In 1886 the Oroya (2) and the
Orizaba were built for the Australia service and introduced
an inbound call at Brindisi in Italy. Here the mail was landed
and transshipped overland by rail to London knocking six days
off the normal Bay of Biscay service. At the same time ships
operating the South America routes off loaded the mails by
tender at Milford Haven enabling London bound letters and
parcels to be delivered a day early. The South America services
also carried bullion and, consequently, the company had its
own bullion trucks on the Great Western and London Midland
Railways. Because of the war in South America the coastal
services there were badly affected, the trans-Atlantic passengers
services were down so the Australia service was the company's
life blood. In 1889 the Orotava and the Oruba (1) were commissioned
for the Australian service and, in the same year, the Chimborazo
undertook PSNC's first cruise to the Northern Capitals.
By 1893 the pattern of trade between South America and the
UK had changed. As the communities in South America became
more prosperous their buying power increased with a corresponding
growth in export trade out of Liverpool. Cargoes carried to
the UK also increased substantially and to cater for the growth
PSNC ordered their first cargo vessels to supplement the passenger
fleet which was not showing any significant increases in numbers.
PSNC were not alone in experiencing the changing pattern of
trade. World trade was expanding and the carriage of cargo
was increasing at a tremendous rate. Up until around 1890
the carriage of passengers was considered to be more important
than the carriage of freight but after that date the importance
switched to cargo on every worldwide route expect, possibly,
that between Europe and New York. PSNC's first cargo ship
to enter service was the Magellan (2)
William Just, who had been
Managing Director from 1843 until 1875 died in 1895 at the
age of 83 and was still serving as a director at the time
of his death. By 1898 economic depression had hit Australia
and the Orient Line suffered as a result. This led to closer
cooperation with PSNC. The company's name was changed to Orient
Pacific Line and PSNC allocated its premier steamships to
the operation. In 1899 the 7949grt Ortona, the largest ship
built for PSNC at the time, joined the fleet.
As there was still no alternative means of transport along
the 4000 miles of coastline from Valparaiso to Callao travel
between the two ports on a luxurious PSNC coastal passenger
ship was a necessity. The weekly service continued to be operated
by substantial ocean going ships but their profile differed
from the conventional transoceanic passenger ships. The main
deck was mainly open for both deck passengers and cattle while
the upper deck had staterooms for overnight and week long
journeys.
During the Boer War between 1899 and 1903 the Orcana was deployed
as a hospital ship and the Orissa, the Orotava, the Ortona
and the Victoria were requisitioned as troopships. In 1900
the Potosi (2) was delivered and immediately sold to the Russians
for use during the Russo-Japanese war. The small coastal steamer
Taboga was seized by the Colombian Government for use as a
warship but released when the Royal Navy intervened.
In 1902 PSNC's Royal Charter
was extended for a further 21 years and the crown on the house
flag changed from the Royal Crown to the St Edward's Crown.
Between 1890 and 1904 an number of iron hulled ships were
converted into coal storage hulks at the major South American
ports as it was considered cheaper to bring ships alongside
for coaling and storing rather than to undertake the operation
using local lighters. At some ports larger ships did not go
alongside a quay but used PSNC's pier-like jetties or tenders.
In the UK the Merseyside 'naval yard' was closed down, the
stores, maintenance and engineering staff being dispersed,
and their berth was moved across the river to the Alexandra
Dock in Liverpool.
PSNC sold their interests in
the Australian route to Royal Mail Line in 1905 together with
their share in the Orient Pacific Line and the Oroya (2),
the Oruba (1), the Orotava and the Ortona. With these vessels
the Royal Mail incorporated the Orient-Royal Mail Line in
February 1906 and gave the ships distinctive buff-yellow funnels.
The Orellana and the Orcana became surplus to requirements
and were sold to the Hamburg America Line. Investment in new
ships continued and during 1906 four new cargo ships were
delivered demonstrating the company's propensity for ordering
in bulk. In 1908 the Orcoma (1) was delivered. Referred to
as the 'all-electric' ship she was the first of the company's
vessels to exceed 10,000grt.
In May 1909 Royal Mail withdrew from the Australian routes
and absorbed the four ex-PSNC ships into their own fleet.
However, in the following year PSNC was acquired by Royal
Mail and although Thomas Rome remained as Chairman control
of the company was transferred to London. PSNC's black funnel
livery was replaced by Royal Mail's buff-yellow and a reduction
in the passenger fleet was effected.
Again, trading patterns were beginning to change in the South
Americas. Royal Mail were very strong in the Caribbean and
the east coast of South America, an area comprising Brazil
and Argentine, which were becoming increasingly richer than
Chile. The Panama Canal was under construction which would
pose a threat to PSNC's coastal routes and the trans-isthmus
railway was already siphoning off trade to Peru. In 1910 the
Argentine - Chile railway was completed opening up a cross
continent land route. Consequently, Royal Mail benefited from
the onset of PSNC's less profitable trade and PSNC's fleet
began to decrease.
Royal Mail brought into PSNC
some of its operating methods including the means of raising
capital for new buildings through the issue of debentures.
By this means existing shareholders provided additional capital,
receiving interest until the debentures were redeemed out
of revenue. The effect was to minimise the number of shareholders
and to control the group's financial policies through a small
but powerful Board of Directors. This policy, however, sowed
the seeds for later discontent as the directors could raise
and use money without having to explain their actions to the
ordinary, risk bearing, shareholders.
In 1913 the company's first
Andes was built for PSNC but after the maiden voyage to Valparaiso
was transferred to Royal Mails routes. In the same year the
company introduced a pension scheme for its staff.
