AUSTRIA-HUNGARY. 



competition of Germany and other countries. 

 The merchants called upon the Government to 

 adopt a vigorous commercial policy that would 

 help them to secure fresh markets, especially in 

 China, where other governments have actively 

 supported the enterprise of their citizens. The 

 Minister of Commerce responded by establish- 

 ing subsidized commercial agencies abroad, work- 

 ing in connection with export syndicates at home. 

 An industrial council, recently created to keep 

 the Government in touch with the views and 

 needs of the manufacturers, had failed to realize 

 expectations. The Government in the naval esti- 

 mates provided for the construction of new ves- 

 sels in deference to the demands of the mercan- 

 tile community for an increase in the navy. The 

 chambers of commerce and industry bespeak 

 more radical and wide-reaching reforms, such as 

 the reduction of taxes on trade, the remission 

 of duties on raw materials, discriminating rail- 

 road rates in favor of manufacturers and ex- 

 porters, subventions and bounties, relaxed state 

 control and supervision, the repeal of laws for 

 the protection of labor, etc. One of the chief 

 grievances of Austrian industrialists is the active 

 interposition of the Hungarian Government for 

 the purpose of building up industries at their 

 expense. There are no such labor laws in Hun- 

 gary as in Austria, no hampering legislation or 

 heavy taxation affecting capital, and the Gov- 

 ernment, by offering special privileges and im- 

 munities, has endeavored to induce Austrian 

 manufacturers to establish plants in Hungary. 

 To attract the Vienna silk industry and the tex- 

 tile industries of Bohemia the Hungarian authori- 

 ties have even offered subventions. 



Navigation. The number of vessels entered 

 at ports of Austria during 1896 was 100,873, of 

 11,771,345 tons, and the number cleared was 100,- 

 856, of 11,774,758 tons. The Austrian merchant 

 navy on Jan. 1, 1897, comprised 12,115 vessels, 

 of 215,258 tons, of which 181, of 145,154 tons, 

 were steam vessels and 11,934, of 70,104 tons, 

 were sailing vessels. Of the total number 253, 

 of 174,507 tons, were engaged in foreign com- 

 merce, 1,526, of 22,345 tons, were coasting ves- 

 sels, and 10,336, of 18,406 tons, were fishing and 

 other small craft. 



The number of vessels entered at Hungarian 

 ports during 1897 was 18,700, of 1,844,385 tons; 

 cleared, 18,679, of 1,848,586 tons. The Hun- 

 garian commercial marine on Jan. 1, 1898, num- 

 bered 502 vessels, of 67,879 tons, and of these 

 70, of 45,630 tons, were steamers, whi'e 432, of 

 22,249 tons, were sailing vessels. Of the total 

 number 76, of 62,224 tons, were engaged in ocean 

 commerce, 153, of 5,228 tons, in the coasting 

 trade, and 273, of 427 tons, were fishing craft. 



Railroads, Posts, and Telegraphs. The 

 state railroads in Austria had a length in 1897 

 of 4,594 miles; lines belonging t3 companies but 

 operated by the Government, 933 miles; lines 

 owned and operated by companies, 5,844 miles; 

 total length, 10,438 miles. The total cost was 

 2,662,716,000 florins. The number of passengers 

 transported in 1896 was 105,201,000; tons of 

 freight, 100,000,000; receipts, 263,955,000 florins; 

 operating expenses, 153,896,000 florins. 



The state lines of railroad in Hungary on Jan. 

 1, 1898, had a length of 4,758 miles; companies' 

 lines worked by the state, 3,268 miles; lines 

 owned and worked by companies, 1,763 miles; 

 total length, 9,784 miles. The total capital ex- 

 penditure was 1,241,804,000 florins; number of 

 passengers in 1897, 56,982,000; freight carried, 

 35,724,000 tons; receipts, 121,236,000 florins; ex- 

 penses, 66,060,000 florins. 



The Austrian post office in 1897 carried 809,- 

 770,210 letters and postal cards, 113,036,520 sam- 

 ples and books, and 95,533,400 newspapers. The 

 receipts were 44,650,851 florins; expenses, 40,705,- 

 717 florins. 



The Hungarian post office carried in 1897 let- 

 ters and postal cards to the number of 236,825,- 



000, 92,635,000 newspapers, 43,253,000 samples 

 and book packets, 18,015,000 money and postal 

 orders of the total value of 502,604,000 florins, 

 and 18,114,000 parcels and money letters. 



The telegraph lines of the Austrian Govern- 

 ment had in 1897 a total length of 31,484 miles, 

 with 92,052 miles of wire. The number of mes- 

 sages dispatched was 13,771,084. 



The Hungarian telegraph lines had in 1897 a 

 total length of 13,375 miles, with 64,515 miles of 

 wire. The number of dispatches sent during the 

 year was 13,396,578. 



The New Ausgleich. The commercial treaty 

 between Austria and Hungary, which expired 

 by limitation of time in 1897, has been contin- 

 ued provisionally pending the conclusion of a 

 new treaty, or Ausgleich, which the Hungarians 

 insisted should be made with the co-operation 

 of the Austrian Reichstag, because the Hun- 

 garian Constitution makes the continuance of 

 constitutional, parliamentary conditions in Aus- 

 tria a requisite for all treaty arrangements be- 

 tween the two halves of the dual monarchy. 

 Aside from that, it was feared that any compro- 

 mise reached with the Austrian Government act- 

 ing under Article XIV of the Austrian Constitu- 

 tion the emergency paragraph which empowers 

 the Government to provide for the conduct of 

 affairs by legislative decrees in case of a tem- 

 porary interruption of parliamentary rule 

 might be upset afterward by the Reichstag when 

 regular parliamentary government should be re- 

 sumed. The dismissal of the Reichsrath on Feb. 



1, 1899, when it was found that the deadlock 

 could not be broken, almost put an end to hopes 

 of making a new Ausgleich between the two Par- 

 liaments. Koloman Szell took the premiership 

 in Hungary in May, w r ith the mission of negoti- 

 ating a temporary Ausgleich with the Austrian 

 Government, to be confirmed by executive decree 

 under the emergency paragraph if the consent 

 of the Austrian Parliament could not be ob- 

 tained. Naturally the Hungarian legislators de- 

 manded that under these conditions the financial 

 and economic interests of Hungary should be 

 protected to the utmost extent. Many of the 

 provisions had already been arranged in pre- 

 vious negotiations. On the demand of Hungary 

 it had been agreed that when the commercial 

 treaties with Germany and other countries ex- 

 pire in 1903 new ones should only be concluded 

 till 1907, when the Ausgleich would also expire, 

 leaving Hungary then free to resume her com- 

 mercial independence, if desirable, and make sepa- 

 rate treaties with foreign countries in consonance 

 with her individual interests. The sugar-bounty 

 system was continued. The Hungarian Govern- 

 ment now refused to continue the customs union 

 with Austria longer than 1903, unless in the 

 meantime the normal activity of the Austrian 

 Reichsrath should be resumed and it should be- 

 come possible to complete the arrangements be- 

 tween the two Legislatures, as provided for by 

 the Constitution. The Austrian Government in 

 accepting this hard condition argued that the 

 charter of the Austro-Hungarian Bank should 

 also be made to terminate in 1903. The Hun- 

 garian Government desired, on the contrary, to 

 continue the arrangement with the common bank 

 for ten years, and the Austrian ministry, after 



