[Footnote DA: Lloyd's Register, 1910-11.]

[Footnote DB: Meeker.]

[Footnote DC: Lloyd's Register, 1910-11.]

CHAPTER VI

AUSTRIA-HUNGARY

The Imperial Government of Austria-Hungary spurred by the action of
Germany, instituted a direct subsidy system, also modelled after that of
France, in 1893, when the Austrian merchant marine was languishing.[DD]

A postal subsidy had long been in operation, the subsidies being all
awarded to a single steamship company--the Austrian Lloyd, earlier the
Austro-Hungarian Lloyd. They were practically mileage and speed
bounties,[DE] increasing with the extension of service. Ten-years'
contracts were at first made with this company. The contracts, executed
in 1888, particularly guarded domestic interests. In the purchase of
materials it was required that preference be given to Austro-Hungarian
industries. The coal used must be bought from Austro-Hungarian subjects
in the proportion of two tons from Austria and one ton from Hungary,
provided that "the price is not greater than foreign coal, and that the
steam-producing power of the native coal is equal to at least
eighty-four per cent of that of foreign coal." In the building and
repairing of their ships, or parts of ships, and engines, the company
must also favor home interests. Ships, engines, or boilers could be
ordered abroad only with the consent of the foreign office when shown
that the work cannot be made in Austria within proper time, or that the
want can be supplied by a foreign country on more favorable terms.[DF]

By a law of July, 1891, the rates for mail-contract steamships were
fixed as follows: for fast lines, making above ten knots, a maximum rate
of seventy kreutzers per nautical mile; for slower lines, fifty
kreutzers a mile. The total amount of mileage bounty payable each year
was limited to two million nine hundred and ten thousand florins. But
in addition to this bounty the Government agreed to pay the Suez Canal
tolls. To encourage the Austrian Lloyd to build larger and swifter
vessels the Government further agreed to advance the company one million
and a half florins. This was to be furnished in three equal payments
yearly (1891, 1892, 1893), and was to be repaid in five equal payments
of three hundred thousand florins each, beginning in January, 1902. The
company's ships were to be exempted from consular fees, "the same as
vessels of the imperial navy"; and were to be at the disposal of the
naval and