NAVIGATION ON THE YANGTSE
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journey by chair. He was the first Englishman to travel by this route, which it was hoped would develop into an important trade route from Upper Burma and West China.
In 1872 John Swire of London formed the China Navigation Company to trade on the Yangtse, and started by purchasing the two steamers of the Union Steam Navigation Company, following this up a year later with three ships of their own specially built on the Clyde. In this same year of 1873 the China Merchants Steam Navigation Company was formed, a Chinese company partly under government control and direction. This company purchased the steamers of the Shanghai Steam Navigation Company in 1877, and so became the owners of the largest river fleet. A few years later Jardine returned to the Yangtse with the Indo-China Steam Navigation Company, and by the early 1880's the greater part of the Yangtse trade was shared between these three companies: the China Navigation Company, the China Merchants Steam Navigation Company, and the Indo-China Steam Navigation Company.
The formation of the China Navigation Company in 1872 was a logical development from that of the Blue Funnel Line by Alfred Holt in 1866. Alfred Holt and John Swire were close friends and business associates, and when the latter opened an eastern branch of his company in Shanghai he took over the agency of the Blue Funnel Line ships. One reason behind the formation of the China Navigation Company was to provide cargoes for the Blue Funnel ships to and from the Yangtse. Alfred Holt was unwilling to operate ships so far from his personal control, but was willing to support the Swire enterprise. The inauguration of the Blue Funnel Service to the Far East, the opening of a Far Eastern branch of John Swire and Company in Shanghai in the same year, and the formation of the China Navigation Company six years later, meant the introduction of a new and powerful combination to the China coast. Holt and Swire, in association with the Clyde shipbuilding family of Scott, were soon to play a very important part in the China trade, and in the shipping of the whole of the Far East. Malaya, the Dutch East Indies, Japan, and Australia, were all to come within their orbit before many years had passed.
In 1881 the various shipping interests of Jardine were merged into the Indo-China Steam Navigation Company, of which Jardine were made permanent managers. For a list of the main shipping companies plying on the Yangtze see Appendix on p. 130.