The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-07-18
STEAMSHIPS, DIVIDENDS AND
COMPETITION.

The Cunard Steamship Company paid
per cent on a capital stock Of $4,000 600
as the result of its operations In 1898. The
StutiSt affirms that in order to make this
dividend $4,000 was transferred from the
insurance fund. The directors Of the great
steamship company reported that trade In
1898 was Improbable. There was great
falling off in frst-class passenger business
and freights were unremunerative. There
was no pressure of European travel in the
direction of the Worlds Fair. This was
noted at the time. On the other hand, 1t is
probable that many thousands of Ameri-
cans substituted visit to the fair for the
European summer tour.
The Cunard Company has received its
best patronage from Americans. Until
1898 there had been a constant increase of
this travel. 1t went up by estimate one
year to nearly 100000. They did not all
travel by the Cunard line. but that CON-
pany for many years took the cream Of
patronage.
About TWO years ago new era OF COM
petition began. American ship-cwners
began to compete for the great prize that
the Cunard Company had secured for
more than quarter of century. One
American company bought two of the
best European steamships that had ever
been put afloat. They were placed under
the American flag by virtue of an act of
Congress that required at the same time
the building Of two other steamships of
equal capacity. Then began the first for
midable American competition that the
Cunard Company had encountered since
the days of the Collins Company. Ameri-
cans began TO patronIze their own ships.
Already the small dividends of the Cunard
line are ascribed IN part to American COM
petition.
Two or three American lines of steam
ships were crowded out of existence by
the Cunard Company with its large capital
and the advantage of Its early subsidies.
The Collins steamships plying between
New York and Liverpool more than
thirty years ago included some of the best
side-wheeI ships that had ever been con-
s;ructed in this country. They were great
coal burners and the most expensive
steamships that had ever crossed the
Atlantic. The small subsidy granted by
Congress was Withdrawn and several OF
the steamers were lost. The Cunard line
increased its capital, and, backed by a
large Government subsidy, crowded the
American steamers so that they were
finally Withdrawn. Yet thirty-fve years
ago the struggle for American patronage
would have been successful with little
more Government encouragement. For
many years thereafter there was no Amer
lean competition. The Civil War inter-
vened and the commerce of this country
was sacrificed. The Cunard Company
alone in the last twenty-five years has
probably drawn American patronage
equal to more than ten times the present
stock of that company.
When the Federal Government began TO
construct new feet Of warships it was
noted that if the swiftest and NJ ost power
full naval vessels In the world could be
constructed in this country it was clear
that the line of construction would not be
drawn there. The swift and powerful
commercial steamships would follow.
American enterprise has already made an
impression on its most powerful British
competitor. The new competition involves
the swiftest and largest steamships that
have ever undertaken to control American
transatlantic patronage.