New-York tribune., 1903-01-30
OCEAN SUBSIDIES UNWISE.
Herr Ba1lin Criticises Policy of the British
Government

Berlin jan 29-Herr Balm, director general
OF the Hamburg-American Line, announces that
the agreement signed at Cologne on Saturday
last by the French Transatlantic Company
with the Morgan shipping combination did not
provide for the former entering the combina-
ton, thereby confirming previous statements on
the subject, but was simply the general traffic
agreement of the North Atlantic steamship
combination, which has been inexistence for
eleven years and which also includes Dutch
and Belgian lines In view of the situation at
present existing, he added, the French line
would not enter the combination, and the lat
ter did not desire it to do so.
In an interview with the Editor of the "Tage
blatt" published to-day Herr Balin said the
German companies regretted the fact that the
British Government had subsidized the Cunard
Line. not because they feared the competition
of that line, but because it a bad example
for other countries, if one country subsidized
lines other countries might do likewise. till
finally all subsidies would have to be abolished
by an international agreement similar to the
Brussels sugar convention. As for the Cunard
Line Herr Ballin did not believe it could sue
cessfuliy compete with the combination, even
with its subsidy, because it did not recognize
that modern conditions compelled working hand
in hand with neghbors. He thought the Cunard
Lines large subsidized steamers were too
extensive to be run at profit, owing to their
enormous consumption of coal The British
Government, Herr Ballin asserted was really
giving to the Cunard Line steamers out
right as it found the capital for building them,
and subsidized the vessels sufficiently to cover
the interest and the amortization of the new
apitaI. Frances experience, he further re-
marked. showed the deadening effects of State
subsidies Herr Ballin would exert influence to
prevent the German Government from initiating
Great Britains example. Means of transporta-
ton created at state expense were always fail
ures when adequate commerce did not exist
The German lines were successful because the
German merchants had the courage to export
German products and buy return freight. Den
mark had created a splendid free port at Copen-
hagen, and the Hamburg American Line had
been induced by Danish friends to establish
line between the United States Gulf ports and
Copenhagen but the freight not there
The only regular commodity offered was oilcake
for cattle feed, but it not in sufficient quan-
tity to maintain the line Hungary trying
to create direct communicate ton between Fiume
and New York, partly by force for Austro-
Hungarian emigrants would be compelled 10
use that line. The Hamburg-American and
North German Lloyd companies, at the request
of the Hungarian Government. sent commits
sion to Hungary year ago to investigate the
possibilities of direct NewYork line but it
was decided that it could not be made profitable,
because the freight not sufficient and pas
sengers preferred seven to ten day voyages to
sixteen and eighteen day passages,
Explaining the Hamburg-k 1erican Lines
present good business in time of depression,
Herr Ballin asserted that it was due to large
exports especially the United States, South
America and East Asia. All signs, he also said,
indicated that the forthcoming passenger sea
son would be very profitable.