military departments in case of war. All the officials of the
company were to be Austrian subjects, "naval officers either active or
retired to be given the preference"; and there was to be an
administrative committee of eight members, the president appointed by
the Emperor and two other members by the ministry of commerce, the
intention of this provision being to give the Government control over
the company's affairs.[DG]

The general subsidy law of 1893 (November 28) was the outcome of the
deliberations of a special Parliamentary committee appointed that year;
and its declared object, as set forth in this committee's report, was
"to put a stop to the decline of our merchant fleet, to allow it to cope
with foreign competition, and to secure for the inhabitants of our coast
needed employment and profits in maritime pursuits."[DG] Three years
before (1890), with the same object in view, a preliminary step had been
taken in the exemption of all iron and steel steam and sailing ships
from trading and income taxes while engaged in ocean voyages.[DG]

The law provided two classes of subsidies--a trade bounty and a
navigation bounty. They were to go to all steamers and sailing-ships
engaged in the deepseas trade or long-coasting trade, and not receiving
mail subventions. At this time a large percentage of the Austrian steam
tonnage was receiving the postal subsidies, and most of this tonnage was
owned by the Austrian Lloyd Company.[DG] The trade bounty was for ships
making long voyages; the navigation bounty for those engaged in
coastwise voyaging. Ships entitled to the trade bounty were required to
be owned at least two-thirds by Austrian subjects, to be not over
fifteen years old, and registered A1 or A2. The rates were thus fixed:
for the first year after launching, iron or steel steamers, six florins
($2.44) per ton, iron or steel sailing-ships, four florins and fifty
kreutzers; wooden or composite (part iron) sailing-ships, three florins.
After the first year the rate was to be reduced five per cent annually
till the end of the fifteenth year. As an inducement to employ home work
and to utilize home materials, the bounty was to be increased by ten per
cent for iron or steel sailing-ships built in the Austrian ship-yards,
and by twenty-five per cent if at least one-half of the materials used
in the construction were of Austrian origin. If more than one year had
elapsed since the launching of a ship otherwise entitled to a