The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-04-19
SHIP TRUST
Morgan Annexes the Atlantic
Ocean to His Landed
Possessions.

New York, April 19.-J. P. Morgan. who
is now abroad, has practically consum-
mated plan to combine all the leading
transatlantic steamship lines The COM
panies to be consolidated, it is understood,
include the American and Red Star lines,
White star lines, Dominion line, Atlantic
Transport lines and the Leyland line. The
two last named lines have been under
Morgan control for some time Probable
additions are the Cunard, Wilson and Hol-
land American companies, and tits under
stood that q working agreement" will be
lantic companies, including the North
German Lloyd, Hamburg American, Gen
eral Trans Atlantic (French), Allen and
Anchor lines. .....
Mr.. Morgan has given the matter much
of his time since his arrival on the other
side. In this country the more important
details have been in the hands of Clement
A. Griscom of the American line, while
Charles Steele, Mr.. Morgans partner in
this city, has had charge of the legal pre-
l1minariFs. It is yet too early to give the
exact scope Of the scheme. but as now out
lined there will be an American holding
company into which all the steamship
companies which purpose to enter the
combine, will pool their issues" in ex-
actly the same way that the various con-
Germs embraced in the United States Steel
corporation threw in their holdings, re-
ceiving in return stock of the main or par
ent company. The capitalization is likely
to be in excess Of $3.50, OeO, 900.
One of the most interesting features of
the plan ideals with the subsidy question.
The White Star and Cunard lines receive
liberal subsidies from the British govern
ment. These subsidies would be withheld
or abrogated if the ships of these lines
changed their flag from British to Ameri-
can. For this reason the ships of the
English subsidized companies will doubt
less continue nominally under British con-
troll.
George W. Perkins, of ]. P Morgan &
! Co., is authority for the statement that
American interests will dominate the pro-
posed amalgamation and declares that the
result will prove not only a great fri
umph for Mr.. Morgan, but will make the
| United States the real ruler Of the mer-
| chant marine Of the world Mr.. Per-
kins also says that the plan will be OF
greatest benefit to importers and export
! ers as we'll as to the great railroad in
| terest of this countr-.
Banking interests Identified with the
proposed underwriting syndicate said to-
day that tie new company would have a
New Jersey charter. The Rothschilds
they added, were to be among the under
writer's.
Philadelphia. April 19.-The announce
ment that the International Navigator
company had entered the steamship com
| bination Of which ]. F. Morgan is the heat
| was officially confirmed to-day at the
office Of President Clement A. Griscon
by Howard Puzey, private secretary tt
Mr.. Griscom. A special act of congress
| Mr.. Puzey explained, Iwould be necessar.
to permit foreign built vessel to sal
under the American flag. but, he said
| there is nothing to prevent an American
| company from owning controlling inter
est in a foreign company. In conse
quence vessels affected by the combination
| will sail under their respective flags, bu
will be controlled by American capital
Mr.. Puzey would not admit that the new
combine would practically prevent com
petition, but added that German CON
panies would work harmoniously with thu
Morgan consolidation.