From the start Holt's had good
reason to be antagonistic towards the China Mutual. When the
China Mutual's ships called at Liverpool they loaded almost
on Blue Funnel's quays and when they moved to Glasgow Holt's
ships were forced to follow them there. However, it wasn't long
before the strength of the Conference system proved too much
for the China Mutual and, eventually, they had to accept the
established rates.
Holt's survival in the Far East became more and more dependent
on alliances and compromises and the company had to make a stand
and protect its hard won trading routes from Dutch threats.
Two companies were set up in 1891 to counter the threat. The
Nederlandsche Stoomvaart Maatschappij Ocean (NMSO) was incorporated
so the Blue Funnel ships could sail between Amsterdam and Batavia
(Djakarta) under the Dutch ensign and the East India Ocean Steamship
Company, based in Singapore, was founded to cater for the coastal
and insular trade. However, a year later, Holt's had to come
to a compromise with Dutch rivals and, as a consequence, the
East India Ocean Steamship Company was sold to North German
Lloyd.
In 1895 Richard Durning Holt and George Holt
joined the company, the third generation of Liverpool Holt's
to manage the Ocean Steamship Company. Richard was the son of
Alfred's youngest brother Robert who was a cotton broker. Robert
had married Lawrencina Potter, one of nine sisters all noted
for their intellectual qualities. A first class education at
Winchester and New College, Oxford, had freed Richard, when
taken into partnership at the age of twenty-six, from the streak
of provincialism, which may have inhibited his uncles. New policies
were followed under his leadership and new fields opened up,
while his keen intellect, ready wit and attractive personality
won him respect and affection in a wide circle. Though a devoted
Liverpudlian, he was equally at home in London, holding his
own - and more - with international shipowners and, as a Liberal
M.P. It was he primarily who won for Blue Funnel an established
place among the world's great shipping companies.
Alfred's son, George, who became manager at
the same time as Richard, was of a shyer disposition. Though
actively concerned with the general policy of the company his
main interest was on the mechanical side. Unfortunately, ill
health forced him to retire early and so he made less impact
on the firm than his character and ability warranted.
Richard Durning Holt
Lawrence Durning Holt
George Holt
The start of the 20th century saw Holt's,
despite the competition and some disastrous shipwrecks, in good
shape although profits were lower than anticipated. Alfred's
faith and Philip's shrewdness during the first 35 years of the
company's history had been justified. Although criticised for
being conservative Alfred's ship design had evolved to match
the changing conditions and trading patterns and, in many respects,
had set standards for others to follow. The triple expansion
engine had been adopted in 1892 and the hulls had been redesigned
to incorporate a raised forecastle, poop and centrecastle.
By 1902 the China Mutual faced the reality that it had not found
its fortune in the Far East although the company was still an
attractive proposition. Holt's had already anticipated the weakening
of China Mutual and had arranged to work closely with the company
so, when the appropriate time came, Holt's shut the door on
rival bidders and took over the company. In 1905 Holt's began
to build their own wharves and warehouses at Kowloon and, soon
after, established similar facilities at Shanghai, Batavia,
Surabaya and Macassar. However, due to wars, revolutions, increased
competition and the expansion of local low cost textile production,
the hard won China trade, although remaining important, lost
the potential for expansion.
To counter the decline of trade in China Holt's
started to develop its trade routes to Australia. Links with
Australia had been established in 1890 with a service from Fremantle
to Java and Singapore followed in 1901 with a direct Blue Funnel
service from Liverpool. In 1910 a passenger service was inaugurated
using three of the new-style cargo liners. The ships, about
10,000grt and the first Blue Funnel vessels to have refrigeration,
operated a monthly service to Australia via South Africa.
Trade with Australia was difficult due to
intense competition, restrictive local legislation and droughts.
Despite this, Holt's aggressive and characteristic independence
enable the company to turn a £5700 loss on its Australian
business in 1905 into a healthy £91,600 profit in 1913.
The three years prior to outbreak of the First World War were
one of the most profitable periods in the company's history
with profits on its main operations never falling below £500,000.
Robert Holt's youngest son, Lawrence, joined
the company in 1908 and saw the company weather two World Wars
and a Depression before retiring in 1953. He was the opposite
of his brother, Richard, inasmuch that, although as shrewd as
the next man, he neither possessed or professed to have his
brother's commercial acumen or grasp of shipping politics. Nor
was he especially endowed with technical knowledge or aptitude,
though he a good eye for a ship and all things seamanlike. The
Non Conformist Conscience, which burned intermittently in families
like the Holts, illumined his life with a steady glow. Preoccupied
from early manhood by social problems, the struggles of the
seaman and the docker to obtain just reward for their labours
evoked his understanding and sympathy. But his great memorial
must lie in those links of affection and trust, annealed by
a common aim which, in peace and war, he forged with the officers
of the fleet. Indeed the figure of 'Mr Lawrence' endures as
a beloved memory in Blue Funnel hearts, ashore as well as afloat.
At the beginning of the war the Ocean Steamship Company owned
69 ships with an aggregate gross tonnage of more than 470,000grt.
During the period of the hostilities the Blue Funnel vessels
carried more than 250,000 Empire and United States troops. Sixteen
ships were lost including its first turbined steamship, the
Diomed, and these losses were partially offset by the acquisition
of the Indra Line and the Knight Line who traded in the Far
East.
After the war the company extended its passenger
activities more through luck than corporate policy. In answer
to a government appeal to make up the shortage of passenger
ships several Blue Funnel cargo vessels were temporarily converted.
Although the accommodation was somewhat spartan the service
to the Far East was profitable and, because of this, in the
early 1920's, four new ships were built for the passenger trade.
Holt's policy had always primarily the carriage of freight and
although the new ships had luxurious cabin accommodation they
were still classified as cargo-liners.
During the 15 years between 1919 and
1934 Holt's added 28 new ships to the fleet. The company was
still at the forefront of technology and, as a result new advances,
11 of the ships, although of the customary design, were fitted
with new machinery and equipment. Caution was still the order
of the day and new equipment would only be installed on a large
scale after extensive service testing on a limited number of
ships.
