In Ober (1987) a balanced canonical form for continuous-time lossless systems was presented. This form has a tridiagonal dynamical matrix A and the useful property that the corresponding controllability matrix K is upper triangular. In this paper, a connection is established between Ober's canonical form and a Schur algorithm builts from angular derivative interpolation conditions. It provides a new interpretation of the parameters in Ober's form, as interpolation values at infinity, and a recursive construction of the balanced realization.