Stoomvaart Maatschappij Nederland ("Netherlands Steamship Company") or SMN, also known as the Netherland Line or Nederland Line, was a Dutch shipping line that operated from 1870 until 1970, when it merged with several other companies to form what would become Royal Nedlloyd.Nedlloyd itself later merged with Peninsular and Oriental Steam Navigation Company (P&O) to become P&O Nedlloyd, now a part of Maersk.
The company's motto, Semper Mare Navigandum ("Always sail the seas"), conveniently fitted the same initials.
Foundation Introduction The SMN was founded on May 13, 1870, in Amsterdam for the trade between North Western Europe and the former Dutch East Indies (modern Indonesia) via the newly opened Suez Canal. Construction of the Suez Canal had started on 25 April 1859. Together with the development of steam engines with lower coal consumption (the compound engine), the realization of a suitable canal would make sailing ships obsolete on the passage to the East Indies. Of course many had a wait and see attitude towards the canal, but when it was nearing completion in 1869, it became clear that something had to be done.
Park meeting and commission to found the SMN
On 17 August 1869 a new international organisation for the development of trade met in the Parkzaal (now Wertheim park) in Amsterdam. It discussed the opening of the Suez Canal and an upcoming trade congress in Cairo. Mr. J. Boissevain stated that it was now possible and necessary to establish a steam shipping line to Java. The Netherlands had to take the initiative, and had to do so quickly. Government support was essential because the government was the biggest trader on Java. Mr. Boele noted that Dutch shipping to the Indies and across the Atlantic was so backward that it could not establish the steam shipping line without the help of the government and foreign aid. It was not about subsidies, but about cooperation, because the state was a monopolist on Java. He also noted that English capital and ships to establish a steam shipping line had already been offered to him via the Dutch consul in Liverpool. Engineer A. Huet urged more speed on the works of the harbors for Amsterdam and Rotterdam. Mr. Boelen (a different speaker than Boele) made some remarks that the new steam ships should be made suitable to carry passengers, freight and coal, without going to deep.
The chairman of the congress then brought three motions to decide on: The first was that the Dutch trading community should be present in Cairo. The third was that the Suez Canal should be neutral. The second motion was about the statements by Boissevain and Boele. The congress stated that it thought the immediate establishment of a steam shipping line to be the best way to profit from the new canal, and recommended the company to the trading community and the government.
Now the government acted quickly. By 26 August 1869 a commission had been formed on the instigation and under the protection of Prince Hendrik, nicknamed "The Seafarer". It consisted of G.J. Boelen, J.G. Bunge and J. Boissevain and was to negotiate the foundation of a regular steam shipping line from the Netherlands via Suez to the Dutch East Indies. On 31 August the commission was working 'under the leadership of Prince Henry' at Soestdijk Palace his summer residence. On 1 September the commission was summoned and received by the king. He was informed of the plans and views of the commission and declared that the foundation of the shipping line was one of his most serious wishes.
The questions and challenges that had to be addressed out by the commission were many. The kind of ships that were required, the number of ships required, a calculation of when the company would be profitable, and finally how much capital was required. The required amount of capital was staggering and required some kind of government assistance, subsidy or guarantee to raise it. This was also why Prince Henry was involved. The Amsterdam Chamber of Commerce was also involved in the discussion, and addressed the finance minister to support and cooperate in the plan for a direct shipping line between the Netherlands and Java. In mid September the commission again met at Soestdijk.
The contract between the state and the company In February 1870 a contract was signed between the department for the Colonies and the commission. It was a detailed agreement. The commission would get the time to found a public company before 15 May 1870. It had to commission four steamships of a certain specification for a line to the Dutch East Indies. The first of these had to leave for the Indies within one year of founding the company. On each return trip the government would guarantee a substantial amount of cargo for a minimum price. In return the state got a preferred position on the less costly route towards the Dutch East Indies. There were penalties for trips that took longer than 50 days. The guaranteed price and preferred position would last till 1 January 1875, at which date a new contract would start.
The complexity of the guarantee was connected with the trade system on Java. The Netherlands Trading Society still had a quasi monopoly on the production of coffee, tea, sugar and indigo, and Dutch shipping lines could subscribe to transporting these for the lowest price. If this system was maintained, steamships would not get any cargo. Steamships had higher costs, but for the owner of the cargo a higher tariff was redeemed by lower capital cost, lower insurance cost and better quality. Therefore, the Netherlands Trading Society had to agree beforehand on paying for this advantage, instead of using (or being forced to use by law) her monopoly to drive down prices on steamships to the level of those for sailing ships.
The guarantee was devised such that on each return trip to the Netherlands Trading Society would guarantee a cargo of 600 lasts (c. 1,200 tons), but in total not more than 4,800 lasts in the first year. The guaranteed price would be 22,50 guilders higher than the average price agreed by the NTS for sailing ships in the previous 12 months. The minimum for this average would be 75 guilders per last, so the guaranteed price was 97.50 guilders. In case that the company would use smaller ships, this minimum would be 20 guilders above the average. For tin the tariff would be only one fourth of the above.
Prospectus and foundation of the public company On 14 March 1870 the prospectus of the company was published. The board of directors would consist of the executive members: G.J. Boelen, J. Boissevain and C.J. Viehoff; and the non-executive members J.G. Bunge, A.C. Wertheim, C.A. Crommelin, A.A. Bienfait all from Amsterdam, and M.M. de Monchy (Rotterdam), P.C. Loopuyt (Rotterdam) and J.E. Cornelissen (Utrecht). There was also a supervisory board of commissioners, not directors, consisting of mayor of Amsterdam, E. Fuld, E. Mohr, A.R.J. Cramerus and C.F. Quien all from Amsterdam, under the honorary presidency of Prince Henry. The capital of the company would be 6,000,000 guilders, of which 3,500,000 would be placed, divided in shares of 1,000 guilders each and sub-shares of 500 guilders each. The money would be used to buy ships and invest in warehouses, workshops and jetties. The prospectus announced that the company would buy somewhat larger ships than required. The prospectus held a rather detailed calculation of the profitability of the investment, promising a 16% dividend.
The public could subscribe to shares on 24, 25 and 26 March 1870. The subscription failed when it got stuck on 2,487,000 guilders, one million short. A new subscription was opened for 2 and 4 April. This second attempt succeeded in placing the remaining shares.
On 13 May 1870 the contract for the foundation of the public company was signed. It led to a very long publication of the names and number of shares of all shareholders in the company.
Requirements for the first ships In late September 1869 some thoughts about the required ships had been published. It started with a description of recent developments in the construction of steamships and steam propulsion. Ships had become longer, carried more cargo, had smaller engines, lower coal consumption and combined all this with sufficient speed. As a consequence the sailing ship with auxiliary power was losing ground, and especially the British shipping lines were opting for full steam power on their oceanic lines in the western hemisphere. It concluded that for the shipping line to Java the most suitable ship was a screw steamship of 2,500 tons capacity with 400 or 450 hp. These would be able to make the journey in 36–40 days including days lost in bunkering coal in Egypt. A big part of the cargo space would be lost in loading coal for half the trip. Much space would be taken by passengers and soldiers, but even so a significant amount of space would be left for cargo. The freight tariff was expected to be so high that coffee, tobacco, sugar would still be transported by sailing ships. The SMN expected that the advantage of quicker transport was so big that coffee would be transported by steamship.
The contract between the state and the company required the company to commission four ships of a certain minimum size. An annex contained a description of these ships based on negotiations with shipbuilder John Elder. The ships were described as being 2,400 tons Builders Measure, or 2,000 Register tons. They would have to be about 320 feet long between perpendiculars. Beam was to be about 39 feet, and hold till the spar deck 29 feet. The preferred type would be spar deck or flush deck, and the ships would answer to the requirements of several lloyd's. Cargo space should be about 120,000 cubic feet and about 640 tons of coal would have to be loaded. With 2,300 tons of cargo, 700 tons of coal, and about 100 tons of provisions, draught should be 22.5 feet.
Accommodation was specified as 50 passengers first class, 50-200 passengers 2nd and 3rd class and 70 crew. First class accommodation would be between the stern and the machine room. Each cabin would have no more than two beds, not placed above each other, and leaving room for wash stands, luggage etc. Longitudinal and transverse corridors, portholes and other measures should ensure lighting and ventilation of the cabins. The saloon of the first class should span the whole width of the ship, and be divided in a general saloon and a ladies room, both closed off from the cabins by doors. On the spar deck there would be a small smokers and ladies room etc. etc. A light schooner rigging would be carried as a safety precaution.
The engines would be 325 hp Elders compound engines. These would have to be able to develop 1,300 effective hp. Two cylindrical boilers with 6 furnaces each would have to be able to handle 60 pound steam pressure. The space taken by the engine was also limited by the contract. All in all the engines and boilers should give the ship a speed of 10 knots with a coal consumption of 23-25 tons. The trial run would have to reach 11 knots. The specification was signed on account of John Elder by Ch.J. Viehoff. The company could deviate somewhat from this contract, especially on account of the depth of the Suez Canal. The prospectus of 14 March 1870 announced somewhat larger ships than required. The ships would be of 2,000 tons cargo space and 400 nominal horse power, 1,600 ihp in order to ensure a more regular service.
Operational history The 1870s