The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-04-20
MORGAN'SLATESTDFA
GREAT COMBINATION OF TRANSAT-
LANTIC STEAMSHIP LINES.
viii Probably Pool Their stock Issues
on the Same Plan as the United
States steel Corporation.
CAPITAL OVER $3.50, 600, 900
INTERNATIONAL NAVIGATION COM
PANY IN THE "COMBINE.,
White star and Cunard Lines to BE
NominaIIy Under British Con-
troll to Save Subsidies.

NEW YORK. April 19.-J. p. Morgan. who
Is now abroad. has practically consum-
mated a plan to combine all the leading
transatlantic steamship lines. London dis
patches announcing the combination were
to-day confirmed at the Morgan banking
house. The companies TO be consolidated
will. IL Is understood. include the American
and Red Star lines. the White Star line,
the Dominion line. the Atlantic Transport
line and the Leyland line. The two last
named lines have been under Morgan con-
troll for some time. Probable addition to
this list are the Cunard. the Wilson and
the HolIand-American companies, and 1t is
understood that a working agreement
will be reached with the other leading
transatlantic companies, including the
North German Lloyd. the Hamburg-Amer-
lean. the General Transatlantic French).
the Allen and the Anchor line.
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.. Morgan's partner in
this city. has had charge of the legal pre-
liminaries. It is yet too early to give the
64aCL cCODC u lie EEnclICp u dS -
outlined there will be an American holding
company. into which all the steamship
companies which propose TO enter the COM
tine will put their stock holdings-'pool
their issues" in exactly the same way
that the various concerns embraced in
the United States Steel Corporation threw
in their holdings, receiving in return stock
of the main or parent company. Just what
the capitalization of the company will be is
not as yet known, but the amount is likely
70 be well In excess Of $l5O,OO0, 900. This
phase of the project will depend entirely
upon the number of teamshi companies
taken into the combine.
One Of the most interesting features Of
the plan deals with the subsidy question
The White Star and the Cunard lines re-
ceive liberal subsidies from the British
government. These subsidies would be
withheld or abrOgated If the ships of these
lines changed their flag from British to
American Because OF this the ships of the
White Star, the Cunard and the English
subsidized companies will doubtless con-
tinue nominally under British control.
G. w. Perkins, of j. +. Morgan & Co,
IS authority for the statement that Amer,
fcan interests will dominate the proposed
amalgamatiOn. and declares that the re-
suit will prove not only a great triumph
for Mr.. Morgan, but will make the United
States the real ruler of the merchant ma
rine of the world. Mr.. Perkins also says
that the plan will be of greatest benefit
The great rai1roaS rests Of me country.
It's effects will be yelt by shippers from
Maine to California. Mr.. Perkins says, and
will also result in a better understanding
between the commercial interests of this
country and Germany. ut is true" he
added. That Mr.. Morgan will act as syn
dictate manager in this combination, as he
brought together and welded the various
interests i'm the United States Steel Corpo-
ration. The financial details have been
completed TO the extent that all the cash
necessary for the deal has been subscribed.
IT Is too soon TO speak about the directo-
rate, but let IL be borne i'm mind that con-
troll OF the company will be held here"
II IS taken as a matter Of course that the
interests now prominent I'm the various
steamship lines will be taken into the con-
solidated directory. Banking interests
| identified with the proposed underwriting
syndicate said to-day that the new COM
pany would have a New Jersey charter.
Confirmed by GriscOm's Secretary.
PHILADELPHIA, April 10. The an
nouncement that the international Naviga-
tion Company had entered the steamship
combination OF which J. 2. Morgan is the
head was officially confirmed to-day at
the Office OF President Clement A. Griscom
by Howard Pussy. private secretary TO Mr..
Griscom. The terms of the agreement be-
tween the International Navigation Com
pany. the White Star. the Dominion. the
Leyland. the Atlantic Transport and the
Red Star lines. which are included in the
tO1lDllioliOBs COuAu MOt ON ltdiHtu mere,
the statement being made that the details
are i'm the hands of Mr.. Morgan and their
publication must come through him. A
we can say" declared Mr.. Pussy. is that
Gr. Morgan's proposition was satisfactory
TO US and we accepted it,"
The new combination. Mr.. Pussy said.
would be operated under the direction Of
Mr.. Morgan. and each company in the com
bfhe Will be represented on the board OF di-
~rectors. The details. he stated further.
have not progressed to the point where
the officers other than Mr. Morgan can be
specified.
A special act of Congress. Mr.. Pussy ex-
planned. would be necessary to permit a
foresgn-built vessel TO sail under the Amer
lean flag, but he said there is nothing to
prevent an American company from owning
a controlling interest in a foreign COM
pany. In consequence vessels affected by
the combination will sail under their re
~spective flags. but will be controlled by
| American capital Mr.. Pusey would not
admit that the new combine would prac-
tically obviate competition. but added that
the German companies would work har-
moniOusly with the Morgan consolidation.