Chapter VI: The Expansion of the Hamburg-Amerika Linie (1)

The principal work which fell to Ballin's share during the period immediately following his nomination in 1888 on the Board of his company was that connected with the introduction of the fast steamers and the resulting expansion of the passenger business. Offices were established in Berlin, Dresden, and Frankfort-On-Main in 1890, and arrangements were made with the Hamburg-South American S.S. Co., the German East Africa Line, and the Hansa Line--the latter running a service to Canada--by which these companies entrusted the management of their own passenger business to the Packetfahrt. Thus, step by step, the passenger department developed into an organization the importance of which grew from year to year.

The expansion of the passenger business also necessitated an enlargement of the facilities for the dispatch of the Company's steamers. This work had been effected until then at the northern bank of the main Elbe, but in 1888 it was transferred to the Amerika-Kai which was newly built at the southern bank; and when the normal depth of the fairway of the Elbe was no longer sufficient to enable the fast steamers of considerable draught to come up to the city, it was decided to dispatch them from Brunshausen, a small place situated much lower down the Elbe. In the long run, however, it proved very inconvenient to manage the passenger dispatch from there, and the construction of special port facilities at Cuxhaven owned by the Company was taken in hand. The accommodation at the Amerika-Kai, although it was enlarged as early as 1889, was soon found to be inadequate, so that it was resolved to provide new accommodation at the Petersen-Kai, situated on the northern bank of the Elbe, and this project was carried out in 1893.

The number of services run by the Company was augmented in those early years by the establishment of a line to Baltimore and another to Philadelphia. In 1889 a new line starting from New York was opened to Venezuelan and Colombian ports. The North Atlantic services were considerably enlarged in 1892, when the Company took over the Hansa Line.

The desire to find remunerative employment for the fast steamers during the dead season of the North Atlantic passenger business prompted the decision to enter these boats into a service from New York to the Mediterranean during the winter months. The same desire, however, also gave rise to one of the most original ideas carried into practice through Ballin's enterprise, i.e. the institution of pleasure trips and tourist cruises. It may perhaps be of interest to point out in this connexion that, about half a century earlier, another Hamburg shipping man had thought of specially fitting out a vessel for an extended cruise of that kind. I do not know whether this plan was carried out at the time, and whether Ballin was indebted to his predecessor for the whole idea; in any case, the following advertisement which appeared in the _Leipziger Illustrierte Zeitung,_ and which I reprint for curiosity's sake, was found among his papers.

"AN OPPORTUNITY FOR TAKING PART IN A VOYAGE
ROUND THE WORLD

"The undersigned Hamburg shipowner proposes to equip one of his
large sailing vessels for a cruise round the world, to start this
summer, during which the passengers will be able to visit the
following cities and countries, viz. Lisbon, Madeira, Teneriffe,
Cap Verde Islands, Rio de Janeiro, Rio de la Plata, Falklands
Islands, Valparaiso, and all the intermediate ports of call on the
Pacific coast of South America as far as Guayaquil (for Quito), the
Marquesas Islands, Friendly Islands (Otaheite), and other island
groups in the Pacific, China (Choosan, Hongkong, Canton, Macao,
Whampoa), Manilla, Singapore, Ceylon, Île de France or Madagascar,
the Cape of Good Hope, St. Helena, Ascension Island, the Azores,
and back to Hamburg.

"The cruise is not intended for business purposes of any kind; but
the whole equipment and accommodation of the vessel, the time spent
at the various ports of call, and the details of the whole cruise,
are to be arranged with the sole object of promoting the safety,
the comfort, the entertainment, and the instruction of the
passengers.

"Admission will be strictly confined to persons of unblemished
repute and of good education, those possessing a scientific
education receiving preference.

"The members of the expedition may confidently look forward to a
pleasant and successful voyage. A first-class ship, an experienced
and well-educated captain, a specially selected crew, and a
qualified physician are sufficient guarantees to ensure a complete
success.

"The fare for the whole voyage is so low that it only represents a
very slight addition to the ordinary cost of living incurred on
shore. In return, the passenger will have many opportunities of
acquiring a first-hand knowledge of the wonders of the world, of
the beautiful scenery of the remotest countries, and of the manners
and customs of many different nations. During the whole voyage he
will be surrounded by the utmost comfort, and will enjoy the
company of numerous persons of culture and refinement. The sea air
will be of immeasurable benefit to his health, and the experience
which he is sure to gain will remain a source of pleasure to him
for the rest of his life.

"Full particulars may be had on application to the undersigned, and
a stamped envelope for reply should be enclosed.

"ROB. M. SLOMAN,

"_Hamburg, January_, 1845. _Shipowner in Hamburg._"

Ballin's idea of running a series of pleasure cruises did not meet with much support on the part of his associates; the public, however, took it up with enthusiasm from the very start. Early in 1891 Ballin himself took part in the first trip to the Far East on board the express steamer _Auguste Victoria_. Organized pleasure trips on a small scale were by no means an entire novelty in Germany at that time; the Carl Stangen Tourist Office in Berlin, for instance, regularly arranged such excursions, including some to the Far East, for a limited number of participants. To do so, however, for as many as 241 persons, as Ballin did, was something unheard-of until then, and necessitated a great deal of painstaking preparation. Among other things, the itinerary of the intended cruise, owing to the size and the draught of the steamer used, had to be carefully worked out in detail, and arrangements had to be made beforehand for the hotel accommodation and for the conveyance of passengers during the more extended excursions on shore. All these matters gave plenty of scope to the organizing talents of the youthful director, and he passed the test with great credit.

The first Far Eastern cruise proved so great a success that it was repeated in 1892. In the following year it started from New York, surely a proof that the Company's reputation for such cruises was securely established not in Germany alone, but in the States as well. Meanwhile, however, Hamburg had been visited by a terrible catastrophe which enormously interfered with the smooth working of the Company's express steamer services. This was the cholera epidemic during the summer of 1892. It lasted several weeks, and thousands of inhabitants fell victims to it. Those who were staying in Hamburg in that summer will never forget the horrors of the time. In the countries of Northern Europe violent epidemics were practically unknown, and the scourge of cholera especially had always been successfully combated at the eastern frontier of Germany, so that the alarm which spread over the whole country, and which led to the vigorous enforcement of the most drastic measures for isolating the rest of Germany from Hamburg, may easily be comprehended, however ludicrous those measures in some instances might appear. There are no two opinions as to the damage they inflicted on the commerce and traffic of the city. The severest quarantine, of course, was instituted in the United States, and the passenger services to and from Hamburg ceased to be run altogether, so that the transatlantic lines decided to temporarily suspend the steerage pool agreement they had just concluded. The Packetfahrt, in order not to stop its fast steamer services completely, first transferred them to Southampton, and afterwards to Wilhelmshaven, thus abstaining from dispatching these boats to and from Hamburg. The steerage traffic had to be discarded entirely, after an attempt to maintain it, with Stettin as its home port, had failed. Financially this epidemic and its direct consequences brought the Company almost to the verge of collapse, and the Packetfahrt had to stop altogether the payment of dividends for 1892, 1893, and 1894.

Business was resumed in 1893, but at first it was very slow. Every means were tried to induce the United States to rescind her isolation measures. An American doctor was appointed in Hamburg; disinfection was carried out on a large scale; with great energy the city set herself to prevent the recurrence of a similar disaster. The Packetfahrt, in conjunction with the authorities, designed the plans for building the emigrants' halls situated at the outskirts of the city, which are unique of their kind and are still looked upon as exemplary. These plans owe their origin to the extremely talented Hamburg architect, Mr. Thielen, whose early death is greatly to be regretted.

An important innovation was the establishment of regular medical control and medical treatment for the emigrants from the East of Europe on their reaching the German frontier, a measure which was decided upon and taken in hand by the Prussian Government. The expansion of the Packetfahrt's business, of course, was most adversely affected by the epidemic and its after-effects; and several years of consolidation were needed before the latter could be overcome. Consequently, hardly any new services were opened during the years immediately following upon the epidemic.

An important step forward, which greatly strengthened the earning capacities of the Company's resources, was taken in 1895, when the building orders for the steamers of the "P" class were given. These vessels were of large size but of moderate speed. They were extremely seaworthy, and were capable of accommodating a great many passengers, especially steeragers, as well as of carrying large quantities of cargo. The number of services run by the Company was added to in 1893 by a line from New York to Italy, and in the following year by one from Italy to the River Plate. Pool agreements were concluded with the Lloyd and the Allan Line with respect to the first-named route, and with the Italian steamship companies with respect to the other. The agreement with the Italians, however, did not become operative until a few years afterwards.

In 1897 the Packetfahrt celebrated the fiftieth anniversary of its existence--an event in which large sections of the public took a keen interest. Perhaps the most noteworthy among the immense number of letters of congratulation which the Company received on that occasion is the one sent by the chairman of the Cunard Line, of which the verbatim text is given below. It was addressed to one of the directors in reply to an invitation to attend the celebrations in person.

"It is with great regret I have to announce my inability to join
with you in celebrating the fiftieth anniversary of the foundation
of your Company, to be held on board your s.s. _Auguste Victoria_.

"I the more regret this as I have the greatest possible admiration
of the skill and enterprise which has directed the fortunes of your
Company, especially in recent years.

"You were the first to give the travelling public the convenience
of a speedy and reliable transit between the two great continents
of the world by initiating a regular service of twin-screw steamers
of high speed and unexceptionable accommodation.

"You also set the shipping world the example of the great economy
possible in the transit of the world's commodities in vessels of
greatly increased capacity and proportionate economy, which other
nations have been quick to follow and adopt to their great
advantage.

"Your Company had furthermore met a felt want in giving most
luxurious and well-appointed accommodation for visiting scenes,
both new and old, of world-wide interest, and making such
journeyings, hitherto beset with anxiety and difficulty, as easy of
accomplishment as the ordinary railway journey at home.

"You have succeeded in this, not through any adventitious aids,
such as Government subsidies, but by anticipating and then meeting
the wants of the travelling and commercial public; and no one, be
his nationality what it was, can, in the face of such facts,
abstain from offering his meed of praise to the foresight, acumen,
and ability that have accomplished such great results in such a
comparatively small time as the management and direction of the
Hamburg-American Packet Company.

"I would venture, therefore, to thus congratulate you and your
colleagues, and whilst reiterating my regret at being prevented
from doing so at your forthcoming meeting, allow me the expression
of the wish that such meeting may be a happy and satisfactory one,
and that a new era of, if possible, increased success to the
Hamburg-American Packet Company may take date from it."

Towards the latter end of the 'nineties, at last, a big expansion of the Company's activities set in. In 1897 the Hamburg-Calcutta Line was purchased, but the service was discontinued, the steamers thus acquired being used for other purposes. Shortly before the close of the same year a suggestion was put forward by some Hamburg firms that were engaged in doing business with the Far East that the Packetfahrt should run a service to that part of the world.

Just then the steamship companies engaged in the Far Eastern trade were on the point of coming to a rate agreement among themselves; and the management of the Packetfahrt which, owing to the offer held out to it by Hamburg, Antwerp, and London firms, could hope to rely on finding a sure basis for its Far Eastern business, did not consider it wise to let the favourable opportunity slip. Quick decision and rapid action, before the proposed agreement of the interested lines had become an accomplished fact, were necessary; because, once the gates were closed, an outsider would find it difficult to gain admission to the ring.

Hence the negotiations with a view to the Packetfahrt joining in the Far Eastern business, which had only been started during the second half of December, 1897, came to a close very soon; and in the early days of January, 1898, the Packetfahrt advertised its intention of running monthly sailings to Penang, Singapore, Hongkong, Shanghai, Yokohama, and Hiogo. Six cargo steamers of 8,000 tons burden were entered into the new service; and simultaneously an announcement was made to the effect that large fast passenger boats would be added to it as soon as the need for these should make itself felt.

The participation in the Far Eastern business, and the consequent taking over of competing lines or the establishment of joint services with them, was not the only important event of the year 1898 as far as the development of the Packetfahrt is concerned. In the spring of that same year an agreement was made with the Philadelphia Shipping Company--which, in its turn, had an agreement with the Pennsylvania Railroad Company--by which the Packetfahrt undertook to run a regular service of cargo steamers between Hamburg and Philadelphia.

An event of still greater importance, however, was the outbreak of war between the United States and Spain which also took place in that year. The Spanish Government desired to strengthen the fighting power of its navy by the addition of several auxiliary cruisers; and even some time before the war broke out an offer reached the Packetfahrt through the intermediary of a third party to purchase its two express steamers, _Columbia_ and _Normannia_, which were among the fastest ocean-liners afloat. Before accepting this offer, the Packetfahrt, in order to avoid the reproach of having committed a breach of neutrality, first offered these two steamers to the United States Government; but on its refusal to buy them, they were sold to the British firm acting on behalf of the Spanish Government, and re-sold to the latter. As the Packetfahrt had allowed a high rate of depreciation on the two boats, their book-value stood at a very low figure; and the considerable profit thus realized enabled it to acquire new vessels for the extension of its passenger services.

Meanwhile a new express steamer, the _Kaiser Wilhelm der Grösse_, had been added to the fleet of the North German Lloyd. Ballin, having made a voyage on board this vessel to New York, reported to the Trustees of his Company that he considered her a splendid achievement. Owing to the heavy working expenses, however, she would not, he thought, prove a great success from a financial point of view. He held that the remunerativeness of express steamers was negatived by the heavy working expenses and, as early as 1897, had projected the construction of two steamers of very large proportions, but of less speed. This, however, was not carried out. Instead, the Packetfahrt decided to build a vessel which was to be bigger and faster still than the _Kaiser Wilhelm der Grösse_. The new liner was built by the Stettin Vulkan yard, and completed in 1900. She was the _Deutschland_, the famous ocean greyhound, a great improvement in size and equipment, and she held the blue riband of the Atlantic for a number of years.

About the same time, the express service to New York had been supplemented by the inauguration of an additional passenger service on the same route, which proved a great success in every way. The steamers employed were the combined passenger and cargo boats of moderate speed of the "P" class referred to above; and, their working expenses being very low, they could carry the cargo at very low rates, so that they proved of great service to the rapidly expanding interchange of goods between Germany and the United States. Their great size made it necessary to accelerate their loading and discharging facilities as much as possible. This necessity, among other things, led to the introduction of grain elevators which resulted in a great saving of time, as the grain was henceforth no longer discharged in sacks, but loose. The Company also decided to take the loading and discharging of all its vessels into its own hands. To accelerate the dispatch of steamers to the utmost possible extent, it was decided in 1898 to enlarge once again the Company's harbour facilities, and an agreement was concluded with the Hamburg Government providing for the construction of large harbour basins with the necessary quays, sheds, etc., in the district of Kuhwärder on the southern banks of the Elbe.

It was typical of Ballin's policy of the geographical distribution of risks and of the far-sighted views he held concerning the international character of the shipping business that he attempted at the end of the 'nineties to gain an extended footing abroad for the Company's activities. The Packetfahrt therefore ordered the building of two passenger boats in Italian yards, and it was arranged that these vessels should fly either the German or the Italian flag. In the end, however, a separate Italian shipping company, the Italia, was set up, which was to devote itself more particularly to the River Plate trade. When the financial results of the new enterprise failed to come up to expectations, the shares were sold to Italian financiers in 1905.

The closing years of the nineteenth and the opening years of the twentieth century represented a period of extraordinary prosperity to shipping business all over the world--a prosperity which was caused by the outbreak of the South African war in 1899. An enormous amount of tonnage was required to carry the British troops, their equipment, horses, etc., to South Africa, and the circumstance that this tonnage temporarily ceased to be available for the needs of ordinary traffic considerably stiffened the freight rates. The favourable results thus obtained greatly stimulated the spirit of enterprise animating the shipping companies everywhere.

About the same time the business of the Company experienced a notable expansion in another direction. A fierce rate war was in progress between the Hamburg-South American S.S. Co. and the firm of A. C. de Freitas & Co., and neither party seemed to be able to get the better of the other. As early as 1893 Ballin, on behalf of the Hamburg-South American S.S. Co., had carried on some negotiations with the firm of de Freitas with the object of bringing about an amalgamation of the two companies with respect to their services to Southern Brazil. In 1896 he had done so again in compliance with the special request of Mr. Carl Laeisz, the chairman of the former company, and in 1898 he did so for the third time, but in this case on his own initiative. No practical results, however, were reached, and as Ballin was desirous of seeing an end being put to the hopeless struggle between the two rival firms, he took up those negotiations for the fourth time in 1900, hoping to acquire the de Freitas Line for his own Company. He was successful, and an expert was nominated to fix the market value of the fourteen steamers that were to change hands. As the valuation took place at a time when the shipping business was in an exceedingly flourishing state, the price which he fixed worked out at so high an average per ton as was never again paid before the outbreak of the war. The valuer told me that he himself considered the price very high, so that he felt in duty bound to draw Ballin's attention to it beforehand. Ballin tersely replied: "I know, but I want the business," thus making it perfectly clear that he attached more than ordinary importance to the deal.

As soon as the purchase of the de Freitas Lines had become an accomplished fact, arrangements were made with the Hamburg-South American S.S. Company, which provided for a joint service to South America, a service which was still further extended when the Packetfahrt bought up a British line trading from Antwerp to the Plate, thus also securing a footing at Antwerp in connexion with its South American business. The necessity for taking such a step grew in proportion as Antwerp acquired an increasing importance owing to the increasing German export business.

Perhaps there is no country which can be served by the seaports of so many foreign countries as Germany. Several Mediterranean ports attract to themselves a portion of the South German trade; Antwerp and some of the French ports possess splendid railway connexion with Southern and Western Germany, and both Antwerp and Rotterdam are in a position to avail themselves of the highway of the Rhine as an excellent means of communication with the whole German hinterland. Finally, it must be remembered that the Scandinavian seaports are also to a certain extent competing for the German business, especially for the trade with the hinterland of the Baltic ports of Germany. All this goes to show that the countries surrounding Germany which have for centuries striven to exercise a kind of political hegemony over Germany--or, rather, generally speaking, over Central Europe--are not without plenty of facilities enabling them to try to capture large portions of the carrying trade of these parts of Europe. This danger of a never-ending economic struggle which would not benefit any of the competing rivals was the real reason underlying Ballin's policy of compromise. He clearly recognized that any other course of action would tend to make permanent the existing chaos ruling in the realm of ocean shipping.

In this struggle for the carrying trade to and from Central Europe the port of Antwerp occupied a position all by itself. The more the countries beyond the sea were opened up by the construction of new railways and the establishment of industrial undertakings, and the more orders the manufacturers in the Central European countries received in consequence of the growing demand, the greater became the value of Antwerp to the shipping companies in every country. In this respect the early years of the twentieth century witnessed an extraordinary development, which, in its turn, benefited the world's carrying trade to an ever-increasing extent. Never before had so much European capital been invested in overseas countries. Again, as a result of the Spanish war the political and economic influence of the United States had enormously expanded in the West Indian islands, whilst, at the same time, the Monroe doctrine was being applied more and more thoroughly and systematically. Consequently the attention of the American investors was also increasingly drawn towards those same countries. In Central America new railway lines were constructed by British and American capital, including some right across the country from the Atlantic to the Pacific, thus considerably facilitating trade with the Pacific coast of America. Other lines were built in Brazil and in the Argentine, and harbour and dock facilities were constructed in nearly all the more important South American ports. French and Belgian capital shared in these undertakings, and some German capital was also employed for the same purpose. The Trans-Andine railway was completed, and numerous industrial works were added to the existing ones. The great economic advance was not exclusively restricted to South America; it extended to the Far East, to the great British dominions beyond the sea, especially to Canada and Australia, and--after the close of the South African War--to Africa also. Russia built the great Trans-Siberian railway, and Germany commenced to exploit the resources of her colonies. As a result of all these activities the iron and steel manufacturers were overwhelmed with export orders. This applies particularly to the German iron and steel manufacturers, whose leading organization, the Stahlwerks-Verband, largely favoured the route _via_ Antwerp, because it was the cheapest, to the great detriment of the German ports. Thus the German shipowners were compelled to follow the traffic, and the importance of Antwerp increased from year to year. The Hamburg-Amerika Linie met this development by opening a special branch office for dealing with the Antwerp business.

In 1899, a year before the Hamburg-Amerika Linie established itself in the services to Brazil and the River Plate, a line had been started by the Company to Northern Brazil and the Amazon River. The conflict with the Booth Line which resulted from this step was amicably settled in 1902 through negotiations conducted by Ballin. Later on, indeed, the relations between the two companies became very cordial, and even led to the conclusion of a far-reaching community of interest agreement, the Booth Line being represented in Hamburg by the Hamburg-Amerika Linie, and the latter in Brazil by the British company. An agreement of such kind was only feasible when a particularly strong feeling of mutual trust existed between the two contracting partners, and Ballin repeatedly declared that he looked upon this agreement with the Booth Line as the most satisfactory of all he had concluded.

In 1900 the West Indian business was extended by opening a passenger service to Mexico, and another noteworthy event which took place during the same year was the conclusion of an agreement with the big German iron works in the Rhenish-Westphalian district by which the Hamburg-Amerika Linie undertook to ship to Emden the Swedish iron ore needed by them from the ports of Narvik and Lulea. Two special steamers were ordered to be exclusively used for this service. Henceforth Emden began to play an important part in connexion with the German ore supply, and the real prosperity of that port dated from that time.

Early in 1901 Ballin decided to embark on a trip round the world. He thought it desirable to do so in order to acquire a first-hand knowledge of the Far Eastern situation, which had become of special interest to the country owing to the acquisition by Germany of Tsingtau, and to the unrest in China. His special object was to study the questions that had become urgent in connexion with the organization of the passenger service of which the Packetfahrt, in consequence of the agreement with the Lloyd, had just become a partner. There was, in addition, the project of starting a Pacific service, which engaged his attention. All these important details could only be properly attended to on the spot. It became necessary to acquire a business footing in the various ports concerned, to organize the coast transport services which were to act as feeders to the main line, etc. Besides, the Packetfahrt, and the Lloyd as well, had special reasons for being interested in Far Eastern affairs, as both companies had been entrusted with troop transports and the transport of equipment needed for the German contingent during the troubles in China. During his Far Eastern trip Ballin wrote detailed accounts dealing with the business matters he attended to, and also describing his personal impressions of persons and things in general, the former kind addressed to the Board of his Company, the latter to his mother. These letters are full of interest; they present a more faithful description of his character as a man, and as a man of business, than could be given in any other way. I shall therefore quote a few extracts from the comprehensive reports, commencing with those he wrote to his mother:--

"_On board the I.M.S._ '_Kiautschou_' "_January 16th, 1901._

"The weather was cold and windy when we arrived late at night
outside Port Said, and midnight was well past when we had taken up
the pilot and were making our way into the port. The intense cold
had caused me to leave the navigating bridge; and as I did not
think it likely that our agent would arrive on board with his
telegrams until the next morning, I had followed the example of my
wife and of nearly all the other passengers and had gone to bed.
However, if we had thought that we should be able to sleep, we soon
found out our mistake. The steamer had scarcely taken up her
moorings when several hundreds of dusky natives, wildly screaming
and gesticulating, and making a noise that almost rent the skies,
invaded her in order to fill her bunkers with the 800 tons of coal
that had been ordered. Perhaps there is no place anywhere where the
bunkers are filled more rapidly than at Port Said, and certainly
none where this is done to the accompaniment of a more deafening
noise. Just imagine a horde of natives wildly screaming at the top
of their voices, and add to this the noise produced by the coal
incessantly shot into the bunkers, and the shouting of the men in
command going on along with it. You will easily understand that it
was impossible for anyone to go to sleep under conditions such as
these.... After trying for several hours, I gave up the attempt,
and, on entering the drawing-room, I found that willy-nilly (but,
as Wippchen would have said, more nilly than willy) practically all
the other passengers had done the same thing. There I was also
informed that those who were in the know had not even made an
attempt to go to sleep, but had gone ashore at 2 A.M. Port Said is
a typical brigands' den, and relies for its prosperity on the mail
packets calling there. The shops, the taverns, the music-halls, and
the gambling places are all organized on lines in accordance with
the needs of modern traffic. So it was not surprising to see that
the proprietors of these more or less inviting places of
entertainment had brightly lit up their premises, and hospitably
opened their doors despite the unearthly hour, being quite willing
to try and entice the unwary passengers into their clutches."

"_Between_ ADEN _and_ COLOMBO. "_January 24th_, 1901.

" ... We did not stop long at Aden; and as the quarantine
regulations for all vessels arriving from Port Said were very
strict, it became impossible for the passengers on board the
_Kiautschou_ to land on the island. Aden, which the British would
like to turn into a second Gibraltar, is situated in a barren,
treeless district, and is wedged in between hills without any
vegetation. Small fortifications are scattered all over the island.
It must be a desolate spot for Europeans to live at. The British
officers call it 'The Devil's Punch Bowl,' and to be transferred to
Aden is equivalent to them to being deported."

"_January 28th_, 1901.

" ... In the meantime we have spent a most enjoyable and
unforgettable day at Colombo. The pilot brought the news of Queen
Victoria's death, which filled us with lively sympathy, and which
caused a great deal of grief among the British passengers. Shortly
before 9 o'clock we went ashore: and as the business offices do not
open until an hour later--thus preventing me from calling on my
business friends at that hour--I took a carriage-drive through the
magnificent park-like surroundings of the city. The people one
meets there are a fit match to the beautiful scenery; but whilst in
former times they were the rulers of this fertile island, they are
now, thanks to the blessings of civilization, the servants of their
European masters....

"When we reached the old-established Oriental Hotel where we had
our lunch, we met there a number of our fellow-passengers busily
engaged in bargaining with the Singhalese and Indian dealers who
generally flock to the terraces of the hotel as soon as a mail
packet has arrived. The picture presented by such Oriental
bargaining is the same everywhere, except that the Colombo dealers
undeniably manifest an inborn gracefulness and gentlemanly bearing.
When I tried to get rid of an old man who was pestering me with his
offers to sell some precious stones, he said to me, in the
inimitable singing tone of voice used by these people when they
speak English: 'Just touch this stone, please, but do not buy it: I
only wish to receive it back from your lucky hands.' In spite of
their manners, however, these fellows are the biggest cheats on
earth. Another dealer wanted to sell me a sheet of old Ceylon
stamps for which he demanded fifteen marks--a price which, as he
stated, meant a clean loss of five marks to him. When I offered him
two marks instead, merely because I had got tired of him, he handed
me the whole sheet, and said: 'Please take them; I know that one
day I shall be rewarded for the sacrifice which I bring.' Later on
I discovered that the same man had sold exactly the same stamps to
a fellow-passenger for 50 pfennigs, and that he had told the same
story to him as to me. Such are the blessings of our marvellous
civilization....

" ... In the afternoon we went for a magnificent drive to the Mount
Lavinia Hotel, which is beautifully situated on a hill affording an
extensive view of the sea. Boys and girls as beautiful as Greek
statues, and as swift-footed as fallow deer, pursued us in our
carriage, begging for alms. It was curious to see with what
unfailing certainty they managed to distinguish the German from the
English passengers, and they were not slow in availing themselves
of this opportunity to palm off what little German they knew on us.
'Oh, my father! My beautiful mother! You are a great lady! Please
give me ten cents, my good uncle!' We were quite astonished to meet
such a large progeny...."

"_February 2nd_, 1901.

".... The entrance to Singapore is superbly beautiful. The steamer
slowly wended her way through the channels between numerous small
islands clad with the most luxurious vegetation, so that it almost
took us two hours to reach the actual harbour.... The food question
is extremely complicated in this part of the tropics, which is
favoured by kind Nature more than is good. The excessive fertility
of the soil makes the cultivation of vegetables and cereals quite
impossible, as everything runs to seed within a few days, so that,
for instance, potatoes have to be obtained from Java, and green
vegetables from Mulsow's, in Hamburg. I am sure my geography master
at school, who never ceased to extol the richness of the soil of
this British colony, was not aware of this aspect of the matter.

"Singapore is a rapidly developing emporium for the trade with the
Far East. It has succeeded in attracting to itself much of the
commerce with the Dutch Indies, British North Borneo, the
Philippines, and the Federated Malay States. To achieve this, of
course, was a difficult matter, even with the aid of the shipping
companies, but its clever and energetic business community managed
to do it. We Germans may well be proud of the fact that our
countrymen now occupy the premier position in the business life of
the city....

" ... We spent about thirty-six hours at Saigon. This city has been
laid out by the French with admirable skill, and there is no doubt
but that Indo-China is a most valuable possession of theirs. As
regards the difference in the national character of the French and
the British, it is interesting to note that the former have just
erected a magnificent building for a theatre at Saigon, at a cost
of 2-1/2 million francs. The British would never have dreamt of
doing such a thing; I am sure they would have invested that money
in the building of club-houses and race-courses...."

"_February 16th_, 1901.

" ... As far as social life and social pleasures are concerned, it
must be said that the German colony at Hongkong is in no way
inferior to that at Singapore. Premier rank in this respect must be
assigned to the Siebs family. Mr. Siebs, the senior member of the
Hamburg firm of Siemssen and Co., has been a resident in the East
for a long term of years--forty-two, if I remember rightly; and he
now occupies an exceedingly prominent position both in German and
British society. That this is so is largely due--apart from his
intimate knowledge of all that concerns the trade and commerce of
China, and apart from his own amiability and never-failing
generosity--to his charming wife, who, by means of the hospitality,
the refinement, and the exemplary management characterizing her
home, has been chiefly instrumental in acquiring for the house of
Siebs the high reputation it enjoys. Whoever is received by Mrs.
Siebs, I have been told, is admitted everywhere in Hongkong
society.

"Even though I only give here an outline of my impressions, I
cannot refrain from adding a few details dealing with some aspects
of everyday life at Hongkong, this jewel among the crown colonies
of Britain. The offices of the big firms and of the shipping
companies' agencies, most of them housed in beautiful buildings,
flank the water's edge; farther back there is the extensive
shopping quarter, and still more in the rear there is the Chinese
quarter, teeming with an industrious population. Being myself so
much mixed up with the means of communication, I am surely entitled
to make a few remarks concerning this subject in particular. Horses
are but rarely seen, and are only used for riding, and sporting
purposes generally. Their place is taken by the coolies, who no
doubt represent the most pitiable type of humanity--at least, from
the point of view of a sensitive person. In the low-lying part of
the town the jinrikishas, which are drawn by coolies, predominate;
but the greater part of Hongkong is situated on the slopes of a
hill, and nearly all the private residences are built along the
beautifully kept, terrace-like roads leading up to the summit of
the peak. In this part the chair coolies take the place of the
jinrikisha coolies; and in the low-lying parts also it is
considered more stylish to be carried by chair coolies. The
ordinary hired chairs are generally carried by two coolies only,
but four are needed for the private ones. The work done by these
poor wretches is fatiguing in the extreme. They have to drag their
masters up and down the hill, which is very steep in places, and it
is a horrid sensation to be carried by these specimens of panting
humanity for the first time. In the better-class European
households each member of the family has his own chair, and the
necessary coolies along with it, who are paid the princely wage of
from 16 marks to 17 marks 50 pfennigs a month. They also receive a
white jacket and a pair of white drawers reaching to the knee, but
they have to provide their own food. The poor fellows are generally
natives from the interior parts of the island. They spend about one
mark a week on their food; the rest they send home to their
families. They are mostly married, and the money they earn in their
capacity as private coolies represents to them a fortune. They
rarely live longer than forty years; in fact, their average length
of life is said not to exceed thirty-five. As many as eight coolies
were engaged to attend to the needs of my wife and myself for the
time of our stay. The poor creatures, who, by the way, had quite a
good time in our service, spent the whole day from early in the
morning to late at night lying in front of a side entrance to our
hotel, except when they had to do their work for us....

" ... The Chinese have only one annual holiday--New Year. They are
hard at work during the whole year; they know of no Sundays and of
no holidays, but the commencement of the New Year is associated
with a peculiar belief of theirs. To celebrate the event, they take
their best clothes out of pawn (which, for the rest of the year,
they keep at the pawnbroker's to prevent them from being stolen).
To keep the evil spirits away during the coming twelvemonth, they
burn hundreds of thousands of firecrackers when the New Year
begins, and also during the first and second days of it,
accompanied by the noise of the firing of guns. One must have been
through it all in order to understand it. For the better part of
two days and two nights one could imagine a fierce battle raging in
the neighbourhood; crackers were exploding on all sides, together
with rockets and fireballs, and the whole was augmented by the
shouting and screaming of the revellers. It was a mad noise, and we
could scarcely get any sleep at night.

"The houses in the Chinese quarter were decorated up to the roofs
with bunting, beautiful big lanterns, paper garlands with religious
inscriptions, and a mass of lovely flowers.

"On such days--the only holidays they possess--the Chinese
population are in undisputed possession of their town, and the
British administration is wise enough not to interfere with the
enjoyment of these sober and hard-working people. I really wonder
how the German police would act in such cases...."

"SHANGHAI, _March 6th, 1901_.

" ... It is surely no exaggeration to describe Shanghai as the New
York of the Far East. The whole of the rapidly increasing trade
with the Yangtse ports, and the bulk of that with the northern
parts of the country, passes through Shanghai. The local German
colony is much larger than the one at Hongkong; and here, too, it
is pleasant to find that our countrymen are playing an extremely
important part in the extensive business life of the town...."

"_Between_ TSINGTAU _and_ NAGASAKI, _on board the s.s_ _'Sibiria_.' "_March 18th, 1901._

"Our s.s. _Sibiria_ had arrived in the harbour about ten days ago,
and was now ready for our use. I had decided first of all to make a
trip up the Yang-tse-Kiang on board the _Sibiria_, because I wanted
to get to know this important river, which flows through such a
fertile tract of country, and on the banks of which so many of the
busiest cities of China are situated. The Yangtse--as it is usually
called for shortness' sake--is navigable for very large-sized
ocean-going steamers for a several days' journey. During the summer
months it often happens that the level of the water in its upper
reaches rises by as much as 50 feet, which--on account of the
danger of the tremendous floods resulting from it--has made it
necessary to pay special attention to the laying-out of the cities
situated on its banks. The object of our journey was Nanking. This
city, which was once the all-powerful capital of the Celestial
Empire, has never again reached its former importance since its
destruction during the great revolution of 1862, and since the
choice of Peking as the residence of the Imperial family. Two years
ago it was thrown open to foreign commerce; and the Powers
immediately established their consulates in the city, not only
because a new era of development is looked forward to, but also
because Nanking is the seat of a viceroy.

"Our amiable consul, Herr v. Oertzen, received us with the greatest
hospitality. The German colony which he has to look after consists
of only one member so far. This young gentleman, who holds an
appointment in connexion with the Chinese customs administration,
feels, as is but natural, quite happy in consequence of enjoying a
practical monopoly of the protection extended to him by the home
government. He has helped himself to the consul's cigars and to his
moselle to such good effect that the _Sibiria_ arrived just in time
to prevent the German colony at Nanking from lodging a complaint
regarding the insufficiency of the supplies put at its disposal by
the Government. The consul told us that we should never have a
chance of coming across another Chinese town that could compare
with the interior of Nanking, and so we had to make up our minds
to pay a visit to these parts.

"I had seen plenty of dirt and misery at Jaffa and Jerusalem, but I
have never found so much filth and wretchedness anywhere as I
noticed at Nanking. My wife and a charming young lady who
accompanied us on our Yangtse expedition were borne in genuine
sedan chairs as used for the mandarins, preceded by the interpreter
of the consulate, and followed by the rest of us, who were riding
on mules provided with those typically Chinese saddles, which,
owing to their hardness, may justly claim to rank among the
instruments of torture.

"Our procession wended its way through a maze of indescribably
narrow streets crowded with a moving mass of human beings and
animals. Everywhere cripples and blind men lay moaning in front of
their miserable hovels, and it almost seemed that there were more
people suffering from some disease or other than there were healthy
ones. When we stopped outside the big temple of Confucius, where
the ladies of our party dismounted from their chairs, the people,
in spite of their natural timidity, flocked to see us, because they
had probably never seen any European ladies until then. We were
thankful when at last we reached the consulate building again, and
when, after having had a good bath, we are able to enjoy a cup of
tea.

" ... In the early hours of March 13th our steamer arrived at
Tsingtau. I was surprised and delighted with what I saw. There, in
spite of innumerable difficulties, a city had sprung up in an
incredibly short space of time.

"Rooms had been reserved for us at the handsome, but very cold,
Hotel Prinz Heinrich; and in the afternoon of the day of our
arrival we strolled up the roads, which were still somewhat dusty,
and in parts only half finished, to the summit of the hill where
the acting Governor and the officers of higher rank had their
homes. Even though it is true that up to now military necessities
have taken precedence in the laying-out of the town, so that the
needs of trade and traffic have not received due attention, it must
be admitted that a wonderful piece of constructive work has been
achieved. All the members of our party--especially those who, like
Dr. Knappe, our consul-general at Shanghai, had known the place two
years ago--were most agreeably surprised at the progress that had
been made.

"Our first few days at Tsingtau were spent much as they were
everywhere else--plenty of work during the day-time, and plenty of
social duties in the evenings. But things began to look different
on Saturday morning, when my old friend and well-wisher,
Field-Marshal Count Waldersee, arrived on board H.M.S. _Kaiserin
Auguste_. He had announced that his arrival would take place at 9
A.M., and his flagship cast anchor with military punctuality. The
Governor and I went on board to welcome the old gentleman, who was
evidently greatly touched at meeting me out here, and it was plain
to see that my presence in this part of the world made him almost
feel homesick. The Field-Marshal very much dislikes the
restrictions imposed on his activities; and judging from all he
told me, I must confess that a great military leader has hardly
ever before been faced with a more thankless task than he. On the
one hand he is handicapped through the diplomatists, and on the
other through the want of unanimity among the Powers. Thus, instead
of fulfilling the soldier's task with which he is entrusted, he is
compelled to waste his time in idleness, and to preside at endless
conferences at which matters are discussed dealing with the most
trivial questions of etiquette. He really deserves something better
than that...."

"TOKIO. _March 31st, 1901._

" ... What a difference between Japan and the cold and barren north
of China! There everything was dull and gloomy, whilst this country
is flooded with sunshine. Here we are surrounded by beautifully
wooded hills, and a magnificent harbour extends right into the
heart of the city. From the windows of our rooms we overlook big
liners and powerful men-of-war, and our own _Sibiria_ has chosen
such a berth that the Hapag flag merrily floating in the breeze
gives us a friendly welcome.

"The difference in the national character of the Chinaman and the
Japanese clearly proves the great influence which the climate and
the natural features of a country can exercise on its inhabitants.
The one always grave and sulky, and not inclined to be friendly;
the other always cheerful, fond of gossip, and overflowing with
politeness in all his intercourse with strangers. But it must not
be forgotten that the integrity of the Chinese, especially of the
Chinese merchants, is simply beyond praise, whereas the Japanese
have a reputation for using much cunning and very little sincerity,
so that European business men cannot put much faith in them.

"The women of Japan are known to us through 'The Mikado' and 'The
Geisha.' They make a direct appeal to our sympathies and to our
sense of humour. In one week the stranger will become more closely
acquainted with the womenfolk and the family life of Japan than he
would with those of China after half a dozen years of residence in
their midst. In China the women are kept in seclusion as much as
possible, but the whole family life of the Japs is carried on with
an utter indifference to publicity. This is due to a large extent
to the way their homes are built. Their houses are just as dainty
as they are themselves; and it is really quite remarkable to see
that the Japs, who closely imitate everything they see in Europe,
still build them exactly as they have done from time immemorial.
They are practically without windows, and in place of these the
openings in the walls are filled with paper stretched on to frames.
Instead of doors there are movable screens made of lattice-work;
and since everything is kept wide open during the day-time one can
look right into the rooms from the street. In the summer the
Japanese make their home in the streets, and we are told that then
the most intimate family scenes are enacted in the open air. I am
of opinion that this, far from pointing to a want of morality, is
really the outcome of a highly developed code of morals. Things
which are perfectly natural in themselves are treated as such, and
are therefore not hidden from the light of day....

" ... At 9 A.M. on March 23rd we arrived at Kobe, where we had to
spend several days.

"Our trip is now approaching its end; at least, we now experience
the pleasant feeling that we are daily nearing home. What will it
look like when we get back? At almost every port of call some sad
news has reached us, and our stay at Kobe was entirely overshadowed
by my grief at the loss of my old friend Laeisz. Even now I cannot
realize that I shall find his place empty when I return...."

The brief statement in which Ballin summarized the results of his trip from a business point of view is appended:--

"Among the business transacted during my trip the following items
are of chief importance:

"(1) The establishment of a branch of our Company at Hongkong.

"(2) The acquisition of the Imperial Mail Packet Service to
Shanghai, Tsingtau, and Tientsin, formerly carried on by Messrs.
Diedrichsen, Jebsen and Co.

"(3) The acquisition of the Yangtse Line, hitherto carried on by
the firm of Rickmers.

"(4) The joint purchase with the firm of Carlowitz and Messrs.
Arnhold, Karberg and Co. of a large site outside Shanghai harbour
intended for the building of docks and quays, and the lease of the
so-called Eastern Wharf, both these undertakings to be managed by a
specially created joint-stock company.

"(5) The establishment of temporary offices at Shanghai.