In 1903 far-reaching alterations were made in the relations existing between the Hamburg-Amerika Linie and the North German Lloyd, which had become somewhat less friendly than usual in more respects than one; and in particular the agreement concerning the Far Eastern services of both companies was subjected to some considerable modifications.

“Yours faithfully,
(signed) “Marie.”

At the same time the Packetfahrt bought the larger part of the shares of the Russian East Asiatic S.S. Company owned by the Danish firm. The object of the purchase was to establish a community of interests with the Russian Company. The Kaiser took great interest in this scheme, and during his visits to Copenhagen in 1903 and 1905 Mr. Andersen reported to him on the subject. It was intended to bring about close business relations between Germany, Russia, and Denmark for the special purpose of developing Russian trade, and to organize the Russian East Asiatic S.S. Company on such lines as would make it a suitable instrument to this end. It is to be regretted that the community of interest agreement then concluded was not of long duration. The Russian bureaucracy made all sorts of difficulties, and it is possible that the representatives of the Hamburg-Amerika Linie in Russia did not display as much discretion in their dealings with these functionaries as they ought to have done. At any rate, the Packetfahrt was so little satisfied with its participation in this Russian concern that it re-sold its rights to the interested Copenhagen parties in 1906, not without incurring a considerable loss on the transaction. The West Indies agreement automatically lapsed when the Packetfahrt acquired sole possession of the four Danish steamers.

When it was seen that German commercial interests in the Middle East had considerably increased, the Hamburg-Amerika Linie opened a special line to the Persian Gulf in 1906. The year 1907 is chiefly remarkable for a rate war affecting the services from Hamburg to the West Coast of Africa, of which until then the Woermann Line had considered itself entitled to claim a monopoly.

To complete the enumeration of the many rate wars which occurred during the first decade of the twentieth century, we must make brief reference to the competition emanating in 1909 from the so-called “Princes’ Trust” (Fürstenkonzern) and its ally, viz. a Hamburg firm which had already fought the Woermann Line. The object of the fight was to secure the business from Antwerp to the Plate. The struggle ended with the acquisition of the shipping interests of the Princes’ Trust, the business career of which came to a sudden end shortly afterwards by a financial disaster causing enormous losses to the two princely families concerned—the house of Hohenlohe and that of Fürstenberg. The details connected with this affair are still in everybody’s memory, and it would be beyond the scope of this volume to enter into them. It should be mentioned, however, that in connexion with the settlement arrived at the two big companies undertook to start some transatlantic services from the port of Emden, and in particular to establish a direct line for the steerage traffic to North America. The necessary arrangements to this end had just been made when the war broke out, and further progress became impossible.

This network of agreements existed until it was destroyed through the outbreak of the war.

Very gradually prospects began to brighten up in the course of 1908, so that the worst of the depression had passed sooner than had been expected. Indeed, in one respect the crisis had proved a blessing in disguise, inasmuch as it had strengthened the inclination of the shipping concerns everywhere to compromise and to eliminate unnecessary competition—the formation of the general pool, in fact, being the outcome of that feeling. The subsequent recovery made up for the losses; and the succeeding years, with their very gratifying financial results, and their vast internal consolidation, represent the high-water mark in the development of the Hamburg-Amerika Linie.

Shortly after the end of the depression a renewed spell of building activity set in. First of all a new cargo steamer, possessing a burden of 12,000 tons—which was something quite unusual at the time—was ordered to be built by Messrs. Harland and Wolff, at a price which was also unusually low. It almost created a record for cheapness; and the courage of the builders who accepted such an order at such terms was greatly admired. A German yard—the Vulkan, of Bremen—then came forward with a similar offer, because the German shipbuilders, too, were glad to provide their men with work. The result of the combined labour of both these firms was a type of cargo boat which proved extremely useful, especially in the Far Eastern trade, and which represented a good investment to the company.

“List of Moselle purveyors wants revision—notices on board to be restricted as much as possible, those which are necessary to be tastefully framed—sailing lists and general regulations to be included in passengers’ lists—state cabin on board Kaiser Friedrich: key, latch, drawer; no room for portmanteaux and trunks; towels too small—Deutschland: soiled linen cupboard too small—stewards Oceanic white jackets—celery glasses—butter dishes too small—large bed pillows—consommé cups—playing cards: Packetfahrt complete name of firm—Packetfahrt complete name on Wehber’s wine bottles—toast to be served in a serviette (hot).”

Even where the peculiar conditions obtaining in tropical climates were concerned—conditions with which he was personally quite unacquainted—he unfailingly discovered any defects that might exist, and also the means by which they could be remedied.

Ballin’s connexion with the Packetfahrt practically coincides with the whole of that period during which the immense progress of modern steamship building from humble beginnings to its present stage of development took place; with the only exception that the North German Lloyd had already, before Ballin joined the Packetfahrt, established its services of fast steamers which were far ahead of those maintained by other shipping companies owing to their punctuality and reliability, and which Ballin then set himself to improve upon and to excel. Apart from this one type of vessel, the science of steamship construction, as seen from our modern point of view, was still in its infancy.

In 1886 the steamships owned by the Hamburg-Amerika Linie were mainly of two different types, viz., those used in the North Atlantic service (principally on the New York route), and those used in the Mexico-West Indies service.

Type One: Fast steamers—twin screws, 18 knots, 8,500 G.R.T.—possessing accommodation for passengers of all classes and provided with comparatively little cargo space, but comfortably and luxuriously appointed throughout. The three leading ideas governing their construction were safety, speed, and comfort; and progress was made to keep abreast of competing lines, until it culminated in the vessels of the “Imperator” class. The Imperator was built in 1913. They were quadruple screw turbine steamers, possessing no fewer than 42 multitubular boilers each, and, as they were of a capacity of 52,000 gross register tons, they were nearly three times the size of the Deutschland.

Type Two: Ships of medium speed and of considerable size, and therefore providing a high standard of comfort for passengers combined with ample facilities for cargo accommodation.

Type Three: Chiefly built as cargo boats, but in such a way that a part of their space could be utilized for the accommodation of a large number of steerage passengers.

Type Four: Cargo steamers without any passenger accommodation.

On the older boats the arrangement was that the small cabins were all grouped round the one and only social room on board, so that the occupants of the cabins could hear all that was going on in the social room, and vice versa. The superficial area at the disposal of each passenger was gradually increased from 43 square feet in the double cabins to 172 square feet in the cabins of the Imperator, so that the latter were really no longer mere cabins, but actual rooms. The suites-de-luxe comprised up to twelve rooms, the largest of which covered an area of 247 square feet.

The provisioning on board the German steamers was of proverbial excellence, the kitchen arrangements were modelled after those found in the big hotels, and were supplied with all manner of supplementary devices. The huge store rooms were divided into sections for those provisions that were of a perishable nature and for those that were not; and for the former refrigerating rooms were also provided in which the temperature could be regulated according to the nature of the articles.

The development of the types comprising the cargo steamers went hand in hand with the expansion of international trade relations, and with the constant increase in the amount of goods exchanged between the nations. To a certain extent development was limited by the dimensions of the Suez Canal. Still, improvements became possible in this respect too when the depth of the Canal was increased to 27 feet in 1908, 29 feet in 1912, and 30 feet in 1914.

Ballin carefully watched this development, incessantly improving the existing types of his company’s cargo boats, so that they should always meet the growing needs of sea-borne trade, and in some instances even anticipating them, until, when the war broke out, twin screw cargo boats of a capacity of 16,000 tons and possessing a speed of 13 knots were being built for the company.