Giovanni de Ciotta (mayor from 1872 to 1896) proved to be an authoritative local political leader. Under his leadership, an impressive phase of expansion of the city started, marked by major port development, fuelled by the general expansion of international trade and the city's connection (1873) to the Austro-Hungarian railway network. Modern industrial and commercial enterprises such as the Royal Hungarian Sea Navigation Company "Adria", a rival shipping company the Ungaro-Croata (established in 1891) and the Smith and Meynier paper mill (which operated the first steam engine in south-east Europe), situated in the Rječina canyon, producing cigarette paper sold around the world, became trademarks of the city.