Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1902-04-20
Capitalization Of the Concern Will Be
Almost Fifteen Million Dollars.
BRITISH, GERMAN AND AMERICAN LINES
Deal is Announced from Morgan Company
Office in New York.
LATTER WILL BE At HEAD OF COMBINE
Among Component Companies Are
American and Red star, Dominion,
white star. LeyIand. Atlantic
Transport and Others.

NEW YORK. April 1e-J. P. Morgan,
who is now abroad. has practically con-
summsted a plan to combine all the lead
ing transatlantic steamship lines. London
dispatches to the Associated Press announc
ing the combination we're today confirmed
at the Morgan banking house The COM
panies to be consolidated will. It is under
stood include the American and Red Star
lines. White Star line, Dominion line, At
lsntic Transport line and the Leyland line.
The two last named lines have been under
Morgan control for some time. Probable
additions to this list are the Cunard, VIII
son and Holland American companies, and,
II is understood that a working agree
ment" will be reached with the other lead
ing transatlantic companies including the
North German Lloyd, Hamburg American,
General Transatlantic CFrench), Allen and
Anchor lines.
Mr.. Morgan has given the natter 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-
liminary.
Exact scope Not Known.
1t is yet too early to give the exact scope
Of the scheme. but as now outlined there
will be an American holding company into
which all the steamship companies which
propose TO enter the combine will put their
stock holdings-pool their issues-in exactly
the same way that the various concerns
embraced in the United States Steel cor
porati threw in their holdings, receiving
in return stock OF the main or parent COM
pany.
Just what the capitalization Of the COM
pany will be is not as yet known. The
amount Is likely to be we'll in excess Of
$3.50, ,O00, 900. This phase Of the project will
depend entirely upon the number Of steam
ship companies taken in the combine. One
OF the most interesting features OF the plan
deals with the subsidy question. The White
Star and Cunard lines receive liberal sub
sidies from the British government. These
subsidies would be withheld or abrogsted
! II the ships OF these lines cha. ged their
| flag from British to American. Because of
this the ships OF the White Star. Cunard
and the English subsidized companies will
doubtless contine nomlnally under British
control
American Interests Dominate.
George W. Perkins OF ]. P. Morgan q Co.
| is authority for the statement that Amer
lean interest will dominate the proposed
amslgamstion and says the result will
prove not only q great triumph for Mr..
Morgan. hu. will make the United States
the real rulers Of the merchant marine Of
! the world.
Mr.. Perkins also says that the plan will
/ be Of greatest benefit to importers and eX-
porters as we'll as to the great railroad in
terests OF this country. It's effect will be
felt by shippers from Maine to California.
Mr.. Perkins says, and also will result in a
better understanding between the CONNER
| cial interests OF this country and Germany.
1T is true" he added. that Mr.. Morgan
will act az syndicate manager in this com
| bination, just as he brought together and
welded the various interests in the United
States Steel corporation. The financial de-
! tails have been completed to the extent
| that all the cash necessary for the deal has
been subscribed 1t is too soon to speak
about the directorate. but let 1t be borne in
| mind that control Of the company will be
held here"
It is taken as a matter Of course that the
| interests now prominent in the various
steamship lines will be taken into the con-
| solidated directory. Banking interests
| identified with the proposed underwriting
syndicate said today that the new company
]
thought that no very great amount of cash
contributions would be required from the
| underwriting syndicate. The Rothsehilds,
they added, were to be among the under
/ writer's.
Goes IntO the Combine.
PHILADELPHIA, April 1s.-The an
nouncement that the International Naviga-
tion company had entered the steamship
combine, Of which J. P. Morgan is the head,
Was ofhcially confirmed today at the once
| OF President c. A. Griscom by Howard
Pusey, private secretary to Mr.. Griscom.
| The terms OF the agreement between the
! International Navigation company, the
White Star. Dominion. Leyland, Atlantic
\ Transport and Red Star lines. which are
included in the combination, could not be
/ learned here. the statement being made
that the "details are In the hands OF Mr..
Morgan and their publication must come
| through him.
IAN We can say" declared Mr.. Pusey.
! lis that Mr.. Morgans proposition was sat
| isfactory to us and We accepted it,"
The new combination, Mr.. Pusey said,
will be operated under the direction OF Mr..
/ Morgan, and each company in the combina-
ton will be represented on the board OF
directors. The details he stated further,
have not progressed to the point where the
onicers here, other than Mr.. Morgan, can
/ be specified.
A special act Of congress. Mr.. Pusey sx-
planned. would be necessary to permit
! foreign built vessel 10 sail under the Amer
| ieap nag. but, he said. there is nothing TO
| prevent an American company from owning
a controlling interest In a foreign company.
In consequence. vessels affected by the
combination will sail under their respective
hsgs. but will be controlled by American
4 capital.
Mr.. Pusey would not admit that the new
combinstion would practically obviAte com
petition. but added that the German com
psniss would work harmOniously with the
| Morgan consolidation
| Condition of the Treasury.
WASHINGTON. April is.-Today's state