The Savannah morning news., 1902-04-21
ATLANTIC COMBINE
MIR. GRIsCoM TALKS OF THE SHIP
PING DEAL.
INCLUDES FIVE COMPANIES.
THEIR CONFINED CAPITAL is $780,
100000.

To This other Funds VIII BE Added
to be Used i'm Building New Ships,
Companies viii Retain Individu-
aIity and Nationality and Fly
Their COUntries' FIags-NO Foreign
Built Ship Can Share in Ship Sub
sidy-Means Better Service at Less
Cost, Daily Departures From New
York and Great Advantage to
American Commerce.
Philadelphia. April 2O.-Clement A.
Griscom, president of the International
Navigation Company, one of the five
transatlantic steamship companies
which have been merged under the di-
rection of ]. Pierpont Morgan, to-day
talked freely concerning the CONSOLE
dalton, its purposes and probable eff
fects. Mr.. Griscom said he was unable
to speak definitely regarding the finan-
cial plan, as that was a matter for the
consideration of Mr.. Morgan and his
partners, which perhaps will be decid-
ed upon within the next two weeks. In
any event. President Griscom said, the
consolidated companies would proba-
bly, be in operation under the new con-
ditions within a few months.
So far as the negotiations regarding
the merger are concerned they have
been completed. Agreements for a
controlling interest in all of the various
lines have been secured and all that
row remains to be accomplished is the
organization of the holding or parent
company. This matter is now in the
hands of ]. Pierpont Morgan & Co.,
and their lawyers.
1t is possible, though by no means
certain that the International Naviga-
ton Company, whose chartered powers
are very broad, will be made the par
ent. The question now under consider
alton is the desirability of this plan
against the organization of an entirely
new company to control the operations
of the combined steamship lines. The
published statements as to the finan-
cial basis of the combine, Mr. Griseom
said, were entirely speculative as that
detail had not been completed as yet.
viii Have Big Capital.
1.-The capitalization of the consolidat-
ed companies Mr.. Griscom said, will
be in the neighborhood of 5000, 900,
! which sum about represents the prop
erty absorbed. Working capital, OF
| course, will be provided and the prof
its and reserve funds will enable us
to build the necessary additions to our
fleets. While control of the company
will be held in this country 1t will be
strictly an International organization,
fostering the various companies in
cluded in the consolidation, preserving
their autonomy and respecting their
national and local surroundings"
THE object of the combination con-
tinued Mr.. Griscom, lis to try to give
better transatlantic service at a de-
creased cost. Heretofore the trade has
been extravagantly conducted and we
propose TO operate more intelligently in
the future. We expect in time to inau-
gurate a system of daily departures
from New York an innovation that is
a real necessity.
Have Been at 1t a Long Time.
There is no political significance in
this deal. The negotiations have
covered period of many years and /
was interested in the subject as far
back as 1884. The passage of the ship
subsidy bill would have but one effect,
so far as the new enterprise is con-
cerned. 1t would enable us to sail
ships now building and hereafter built
under the American flag on an equal
footing with the ships of other coun-
tries. The published statements that
the ship subsidy bill would enable us
to sail our foreign vessels under the
Stars and Stripes are incorrect, as the
bill specifically states that only Ameri
can built ships can benefit by its pro-
visions, and Furthermore, such g course,
if possible, is contrary to the whole
scheme.
I'VE have existing only four small
vessels that might benefit by the pas
sage of this bill, and they are on the
Pacific. While in the coastwise trade,
in which they are now engaged, the
provisions of the bill would not apply
to them. After our present mail con-
tract expires the four American trans
Atlantic liners of the International
Navigation Company are eligible for
a new contract either under the pres
ent postal law or under any new act
that might be passed by Congress"
Means Better Service on Atlantic.
1.-The consolidation declared Mr..
Griscom, Twill result in better trans
Atlantic service, steadier and more
uniform rates. a just distribution of
traffic over all American and Cana
QldH SSdDOIlS, IlCiCdSGu liIGS VII tie
Pacific and services to South America
as traffic may be found to justify
them. Having lines between Great
Britain and Australia and New Zea-
land and intimate connections with the
far East American manufacturers Will
be able to distribute their products on
through bills of lading and avoid the
expense of trans shipments which they
now incur.
"The products of the farm will be
shipped from the seaport most conven-
lent to the point of production. In
word, it is intended to reduce trans
portation charges as far as possible to
everyone: to improve facilities, and the
company expects to make its profits
over the conditions of the past from
economical management.
ITO what extent these new services
will be conducted by steamships built
in this country and sailed under the
American flag depends upon Congress-"
-s--0~S--