80 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.

concession, the interests of the Canadian company were brought inte
the sphere of those of the German companies and the Austro-Americana
 (which was allied with the two German companies). The
Austrian Goyernment assisted the Canadian Pacific Railway Co. in
entering the emigration business at the port of Trieste, because in
this way it was thought that the dependence of Austria upon foreign
steamship companies could be reduced. In order to attain this object,
Austria began a movement which caused difficulties in the shipping
pool. The pool, in beginning its struggle with the Canadian Pacific
Co., believed that not only reductions of rates should be instituted,
but that the fight should be carried into the province of the Canadian
company where it obtained its principal receipts. The shipping pool,
therefore, decided to no longer operate its lines to St. John and
Halifax, where trans-Atlantic travelers generally met the railroad
lines. The pool further decided to establish railroad connections at
Portland, where the Canadian Pacific Co. was in sharp competition
with the Grand Trunk Railroad Co. By this maneuver the Canadian
Pacific Co. was deprived of a portion of its income. Furthermore,
the Austro-Americana endeavored to open a directly competitive line
between Trieste and Canada on behalf of the pool and to make use
of ships furnished by the other lines in the North Atlantic combination.
 In May, 1913, 1t was announced that an understanding between
the pool and the Canadian Pacific Railroad Co. was reached on the
following basis: The new line between Trieste and Canada should be
operated by the Canadian Pacific Co. and the Austro-Americana
working together as the “Pool Line.” An exact understanding was
reached concerning the division of profits. The quota of Trieste in
the emigration traffic remained at 4 per cent, as it had been, but persons
 emigrating from Trieste to Canada were not included in this
gquota, so that in reality the emigration traffic to Canada was increased.
 The Austrian Government, in accepting this proposition,
endeavored to include the idea that passenger tariffs and LH rates
should not be higher than those of other North Atlantic or Mediterranean
 ports. Furthermore, the Austrian Government endeavored
to have more ships put into the emigration service. The terms of this
agreement were prevented from being successfully carried out by a
newer and more awkward conflict inside of the pool
The new conflict resulted from the differences of opinion between
the Hamburg American Line and the North German Lloyd concerning
 the emigration business. The Hamburg American Line claimed
that its participation quota in the German emigration traffic should
be increased from 43 per cent to 47 per cent, and the quota of the
Lloyd be decreased from 57 per cent to 53 per cent. This demand
was based on the building of the Imperator and an increase of tonnage
 on the part of the Hasibiey company. Lloyd replied to this
demand with the contention that the existing quota ought to be maintained
 as long as the proportion of the total tonnage of the Lloyd
to the tonnage of the Hamburg American Line was not materially
changed. This conflict was a menace to the stability of the pool, because
 these matters were regarded as having been settled when the
pool was organized. Other competitive measures were instituted
both by the Hamburg American Line and the North German Lloyd,
such as the increase In capital stock, the Yoworing of rates, and the
entering into traffic fields which had previously been regulated.