VII
SHIPPING AND WATER ROUTES IN CHINA

The larger steamship lines now supplying the China ports are the following:

When the Panama Canal opens, many more Atlantic lines, such as the Royal Mail, International Marine, German lines, etc., will probably extend their service in time to China, and many trans-Pacific lines, especially Japanese and the Pacific Mail, will extend to America’s eastern coast, not to speak of new lines which may be formed. The British-India Steamship Company intends to extend its Calcutta line across the Pacific and to New York. The American railroads could, at small cost, by a generous pro rata of division rates, have covered the Pacific and Atlantic with American steamship lines, but they have held off, expecting the really unnecessary government subsidies. The subsidy argument would possibly have a different complexion if it were assured that the steamship lines would remain forever independent, and permit no dummy holdings of stock. In the meantime, Japanese and British vessels have been employed on the Pacific and Atlantic Oceans on account of the lower cost of officers’ wages only, the crews’ wages being the same on a Pacific mailer and a Nippon Yusen Kaisha mailer, for instance. Both hire Chinese mainly, who are good and cheap sailors. The American railroad, controlling the west-bound freight, and the American banker, controlling the heavier east-bound freight, could make American steamship lines on the Pacific profitable; indeed, the Pacific Mail already pays its way. The government could, of course, pay a just amount for mails on an increasing ratio for time made, but if the American railroad, American banker, American shipper and American globe-trotter will come to the aid of the American ship, we can, without subsidy, except to independent smaller owners, cover the Pacific with our starry flag.

All the large lines are building new ships for the China trade. The Osaka Shosen Kaisha, running to America in connection with the Chicago, Milwaukee and St. Paul Railway, has ordered steamships from Armstrong, in England, and from the Japan shipyards. The Canadian Pacific Railway Steamship Company and the Pacific Mail are having twenty-knot ships built. The Hansa Steamship Company, running from Bremen, has ordered ships from the Weser Ship-building Company, of Bremen. The Russian Volunteer Fleet has ordered new ships from the Alexander-Nevski works. Wireless is to be used generally, the first shore station having been fitted at Hongkong. The Chinese Merchants and the Sino-American companies (both Chinese) intend to run ships to America, as their plans enlarge. We may yet see the Chinese flag regularly in New York. The Japanese are to run a line into the Black Sea in competition with the Russian Volunteer Fleet; they have already sent boats into Trieste in competition with the Austrians, and they have before now humbled the Germans in the Bangkok-Shanghai service. To show that the Japanese are not the least timid in declaring their maritime ambitions on the Pacific, I shall quote the following circular signed by Manager Iwanaga of the subsidized Nippon Yusen Kaisha (the steamship line in which the Mikado is a large shareholder) at the time of the competition with the long-established British firm of Butterfield and Swire, a firm which had been very friendly to the Japanese during the Russian War. Mr. Iwanaga says: “These foreign firms must be induced to pay respect to the Japanese mercantile flag. It is the duty of the Nippon Yusen Kaisha to check the arrogance of foreign steamers east of Suez.”

The history of China’s greatest steamship line, the China Merchants’ Steamship Company, is as follows: When Li Hung Chang was viceroy of Pechili province at Tientsin in 1871, on advice of Americans and British who were in his employ, he formed this government-controlled line, partly to carry tribute grain from the south; because the Grand Canal was allowed by the various governors to collect silt, while their pockets collected gilt (and guilt)! Merchants and guilds were invited or coerced to subscribe to some of the stock. In 1877 the company bought the Shanghai Steam Navigation Company and its dock for 2,000,000 taels silver. In 1878 Li diverted from the Grand Canal to the steamship company the Yunnan copper destined to the Peking and provincial mints. The great government university at Peking, with provincial branches, created by Kwang Hsu’s reform edicts of 1898, was to be financed partly by the revenues of this steamship company. The republicans used its revenues to aid the 1911 revolution because the imperialists used the railway revenues. The head office of the company is in Shanghai, and it has branches at Newchwang, Chifu, Tientsin, Chinkiang, Kowkiang, Hankau, Ningpo, Fuchau, Hongkong and Canton. The ships are distinguishable at the Chinese ports both by the yellow funnel, and by the immense Chinese characters which, in Austrian fashion, are not always borne on the bow, but midships. The fine vessels of this company were once put under the American flag in 1884 to save them from the French, who were at war with China.

One of the great movements of the future in the reforming Far East will be the Malay Peninsular Canal, about fifty miles long, which will save 1,500 miles in the voyage from Saigon to Calcutta, Madras, etc. It will not cut off and make useless the expensive garrison port of Singapore, which holds the five equatorial seas for Britain, as the Singapore-Rangoon railway will run along the entire peninsula. All these probabilities in the Far East should be considered in full by the student of world politics, finance, commerce and ethnology. A dozen Chinas, Americas, Britains and Germanies could well work many centuries before the world is restored to the economic Eden state, where each man will be free, and have enough to support him and his in peace. Every work of commerce is then a world-work, claiming the altruist’s enthusiasm, and while we often use the phrase, “war of the ports of the Far East,” we mean that joyful exhibition of strength which the wrestler, rather than the warrior, puts forth.

A movement is growing in Japan to deprive foreign ships of the right to trade between Japanese ports, which is similar to a regulation now in operation in America and Canada. Japanese vessels, of course, trade between British and China ports. Another plan that is advocated is to place on ships not built in Japan such a high duty that Japanese owners will be compelled to build in Japan, which would include a personal penalty if Japanese owners owned steamship stock under a foreign flag. All this involves considerable conflict with British interests that have loaned immense sums in Japan, and it is certain that the British foreign office, now so friendly to Japan, will hear from the British Board of Trade, as it is hearing every day from the consular service and such writers as Beresford, Colquhoun and Gilbert Parker.

Whampoa, the first port in China where Europeans traded, is to be opened by the Chinese as a treaty port for deep-sea trading. It is about six miles below Canton. The port will, of course, compete with Hongkong; but Hongkong opened up a railway to Canton to protect herself, and she will see that fast and cheap handling maintains her leadership. The taotai, and Chang Iu Hin who was educated and enriched at British Singapore, are representative republicans of Canton who are interested in Whampoa port. It is proposed to do dredging and make free grants of land for godowns, wharves, etc.

Portuguese Macao, the second port in China where Europeans traded, forty miles from Hongkong, is dredging her silted harbor preparatory to bidding for some of the great oversea trade that is expected. China, which has ambitions for native ports in the vicinity of Canton, frequently sends her warships into Macao waters. The natives of the Macao district (Heung Shan) do not like Portugal’s ambition, and much bitterness is shown.