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Rh apparent that the country could not hope to meet emergencies which might at any moment arise, especially in connexion with Korean affairs, unless the development of the mercantile marine proceeded more rapidly. Therefore in 1881 the formation of a new company was officially promoted. It had the name of the kyōdō unyu kaisha (Union Transport Company); its capital was about a million sterling; it received a large subsidy from the state, and its chief purpose was to provide vessels for military uses and as commerce-carriers. Japan had now definitely embraced the policy of entrusting to private companies rather than to the state the duty of acquiring a fleet of vessels capable of serving as transports or auxiliary cruisers in time of war. But there was now seen the curious spectacle of two companies (the Mitsubishi and the Union Transport) competing in the same waters and both subsidized by the treasury. After this had gone on for four years, the two companies were amalgamated (1885) into the Nippon yusen kaisha (Japan Mail SS. Company) with a capital of £1,100,000 and an annual subsidy of £88,000, fixed on the basis of 8% of the capital. Another company had come into existence a few months earlier. Its fleet consisted of 100 small steamers, totalling 10,000 tons, which had hitherto been competing in the Inland Sea.

Japan now possessed a substantial mercantile marine, the rate of whose development is indicated by the following figures:—

Nevertheless, only 23% of the exports and imports was transported in Japanese bottoms in 1892, whereas foreign steamers took 77%. This discrepancy was one of the subjects discussed in the first session of the diet, but a bill presented by the government for encouraging navigation failed to obtain parliamentary consent, and in 1893 the Japan Mail SS. Company, without waiting for state assistance, opened a regular service to Bombay mainly for the purpose of carrying raw cotton from India to supply the spinning industry which had now assumed great importance in Japan. Thus the rising sun flag flew for the first time outside Far-Eastern waters. Almost immediately after the establishment of this line, Japan had to engage in war with China, which entailed the despatch of some two hundred thousand men to the neighbouring continent and their maintenance there for more than a year. All the country’s available shipping resources did not suffice for this task. Additional vessels had to be purchased or chartered, and thus, by the beginning of 1896, the mercantile marine of Japan had grown to 899 steamers of 373,588 tons, while the sailing vessels had diminished to 644 of 44,000 tons.

In 1897 there occurred an event destined to exercise a potent influence on the fortunes not only of Japan herself but also of her mercantile marine. No sooner had she exchanged with China ratifications of a treaty of peace which seemed to prelude a long period of tranquillity, than Russia, Germany and France ordered her to restore all the continental territory ceded to her by China. Japan then recognized that her hope of peace was delusive, and that she must be prepared to engage in a struggle incomparably more serious than the one from which she had just emerged. Determined that when the crucial moment came she should not be found without ample means for transporting her armies, the government, under the leadership of Prince Ito and with the consent of the diet, enacted, in March 1896 laws liberally encouraging ship-building and navigation. Under the navigation law “any Japanese subject or any commercial company whose partners or shareholders were all Japanese subjects, engaged in carrying passengers and cargo between Japan and foreign countries or between foreign ports, in their own vessels, which must be of at least 1000 tons and registered in the shipping list of the Empire, became entitled to subsidies proportionate to the distance run and the tonnage of the vessels”; and under the ship-building law, bounties were granted for the construction of iron or steel vessels of not less than 700 tons gross by any Japanese subject or any commercial company whose partners and shareholders were all Japanese. The effect of this legislation was marked. In the period of six years ended 1902, no less than 835 vessels of 455,000 tons were added to the mercantile marine, and the treasury found itself paying encouragement money which totalled six hundred thousand pounds annually. Ship-building underwent remarkable development. Thus, while in 1870 only 2 steamers aggregating 57 tons had been constructed in Japanese yards, 53 steamers totalling 5380 tons and 193 sailing vessels of 17,873 tons were launched in 1900. By the year 1907 Japan had 216 private ship yards and 42 private docks, and while the government yards were able to build first-class line-of-battle ships of the largest size, the private docks were turning out steamers of 9000 tons burden. When war broke out with Russia in 1904, Japan had 567,000 tons of steam shipping, but that stupendous struggle obliged her to materially augment even this great total. In operations connected with the war she lost 71,000 tons, but on the other hand, she built 27,000 tons at home and bought 177,000 abroad, so that the net increase to her mercantile fleet of steamers was 133,000 tons. The following table shows the growth of her marine during the ten years ending 1907:—

With regard to the development of ship-building in Japanese yards the following figures convey information:—

In the building of iron and steel ships the Japanese are obliged to import much of the material used, but a large steel-foundry has been established under government auspices at Wakamatsu in Kiūshiū, that position having been chosen on account of comparative proximity to the Taiya iron mine in China, where the greater part of the iron ore used for the foundry is procured.

Simultaneously with the growth of the mercantile marine there has been a marked development in the number of licensed mariners; that is to say, seamen registered by the government as having passed the examination prescribed by law. In 1876 there were only 4 Japanese subjects who satisfied that definition as against 74 duly qualified foreigners holding responsible positions. In 1895 the numbers were 4135 Japanese and 835 foreigners, and ten years later the corresponding figures were 16,886 and 349 respectively. In 1904 the ordinary seamen of the mercantile marine totalled 202,710.

There are in Japan various institutions where the theory and practice of navigation are taught. The principal of these is the Tōkyō shōsen gakkō (Tōkyō mercantile marine college, established in 1875), where some 600 of the men now serving as officers arid engineers have graduated. Well

equipped colleges exist also in seven other places, all having been established with official co-operation. Mention must be made of a mariners’ assistance association (kaiin ekizai-kai, established in 1800) which acts as a kind of agency for supplying mariners to shipowners, and of a distressed mariners’ relief association (suinan kyūsai-kai) which has succoured about a hundred thousand seamen since its establishment in 1899.

The duty of overseeing all matters relating to the maritime carrying trade devolves on the department of state for communications, and is delegated by the latter to one of its bureaus (the Kwansen-kyoku, or ships superintendence bureau), which, again, is divided into three sections:

one for inspecting vessels, one for examining mariners, and one for the general control of all shipping in Japanese waters. For the better discharge of its duties this bureau parcels out the empire into 4 districts, having their headquarters at Tōkyō, Osaka, Nagasaki and Hakodate; and these four districts are in turn subdivided into 18 sections, each having an office of marine affairs (kwaiji-kyoku).

Competition between Japanese and foreign ships in the carriage of the country’s over-sea trade soon began to assume appreciable dimensions. Thus, whereas in 1891 the portion carried in Japanese bottoms was only 1 millions sterling against 12 millions carried by foreign vessels, the

corresponding figures in 1902 were 20 millions against 32 millions. In other words, Japanese steamers carried only 11% of the total trade in 1891, but their share rose to 39% in 1902. The prospect suggested by this record caused some uneasiness, which was not allayed by observing that while the tonnage of Japanese vessels in Chinese ports was only 2%