The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-05-01
PIERPONT MORGAN's PURCHASE OF
LEYLAND LINE FRIGHTENS
BRITONS
THE "BoNAPARTE OF TRADE"
Is WHAT LONDON DAILY TELE
GRAPH CALLS THE ORGAN
IZER OF TRUSTS
WHAT MORGAN HAD TO PUT UP
TranSactiOns Represent a Cash Out
lay by the Banker of a Sum
Near to Ten Million
Dollars.

| LONDON, May 1.-The Leyland line
deal provokes unusual discussion in the
English papers, which reveals the ex-
| istence of not little apprehension as to
the possibility of the United States dom
mating the Atlantic carrying trade. The
! general impression, however, is that the
transfer is connected with the probable
passage by the United States senate Of a
subsidy bill
1t is considered that the terms OF the
transfer are 80 profitable to the Leyland
people that there could be no question Of
their acceptance and that other shipping
! companies would gladly sell on the same
terms.
The effects Of the transfer are d scussed
in all their bearings. Sir Christopher
FuTness, who contributes to the Daily
Mail a long article dealing with the steel
and other trusts In the United States, in
sists upon the necessity of the country
waking up to meet the new competition.
The Daily Telegraph asks editorially
whether the whole British empire Is to
be bought up or bought out by American
millionaires. 1t calls Mr.. ]. Pierpont
Morgan "the Bonaparte Of trade" and
thinks the British public will be very
foolish If it is lulled by statements that
there is no intention to withdraw the
vessels of the Leyland line from the
Union Jack
This is a serious situation" said the
Daily Telegraph, which calls for con-
certed action on this side especially look
ing to the enormous owth Of the Amen
can export trade and the increase of the
American and German shipping tonnage"
The Daily Chronicle is less alarmed, but
says:
at is impossible to look with entire
equaninity upon the rapid development
Of American enterprise or to feel sure
that 1t will not eventually infict untold
misery upon the whole world"
TERMS OF THE DEAL.
In a circular issued by Chairman FL
lerman, of the Leyland line the
shareholders are informed that he has
entered into a provisional contract with
j. Pielpcnt Morgan for the sale of his
entire holdings of ordinary shares in the
steamship line, namely, n,OO0 shares, at
214 los Per share for each SO share, and
that Mr.. Morgan agrees to purchase on
similar terms all ordinary shares offered
before May 26. Holders of q great ma
5Crity of the ordinary shares have, ac-
cording TO the circular intirnated to Mr..
Ellerpan that they viii avail themselves
Of the offer Of Mr.. Morgan. and The ef-
feet VIII be that purchasers Will bsc-me
cWnCrs Of practically all the ordioary
shares Of the American corporation 1T q
cost Of upwards of 1.75O.OG0 pounds sterl-
ing. Mr.. Ellerman binds himself not TO
engage either directly or indirectly in the
North Atlantic trade, either with the
United Kingdom or the continent except
between Antwerp and Montreal, for a
term Of fourteen years, on condition that
the purchasers sell him the MedIte--
ranean, Portugal and Montreal fleets
and the business connected herewith at
an agreed on price. Mr. ElIerman adds
that he proposes TO retain his entire hold
ing in preference shares. amounting t.
over $1,000 pounds sterling, and his CO
directors viii retain all their preference
holdings, amounting 10 lD,00O pounds
sterling. Mr.. EIlerInan also offers u
buy any preference shares at par and
their accrued interest.
A circular issued by the secretary OF
the Leyland line accompanies Mr.. Eller-
mans circular. II explains that the Ci-
rectors, including Mr. Ellerman, hold
$3.50 pounds sterling out II ~ 9, 70
pounds sterling ordinary share capital
and 1890 pounds sterling out Of 81 C0D
pounds sterling preference capital. EeI-
eral Of the directors also control o. large
amount of other shares, and all the a.
reetcrs intend 70 vote IN support Of Mr.
ElIerman's arrangement at sll the meet
ings called in connection herewith
The secretary adds: 1T is ANTICIPATED
that practically all the ordinary share
holders VIII accept the offer, and the ef-
feet VIII be that the Morgans WI hold
1,4D,0Jo pounds sterling Ordiua les a. a
cost Of over 1,759,Oo1 pounds sterling"
4 meeting Of the shareholders has been
called for May Z.
The shipping combine absorbs the in
terest Of the commercial world here
Though no definite information IL yet OBJ
t&inable it IL understood that the Ameri-