Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1902-04-21
LINERS
ARE To Be
MERGED
S15o,o0o,ooo OF MoRGAN'S
MONEY IS THE CAPITAL OF
GIANT SHIP c0NS0LIDA-
TON.

NEW YORK, April ID. p. Morgan.
who is now abroad has practically con-
summated plan to combine all the lead
ing transatlantic steamship lines. Lon
don dispatches to the Associated Press,
announcing the COMMUNICATION. were to-
day confirmed at the Morgan banking
house. The companies to be consolidated
will. It is understood, include the Ameri-
can and Red Star lines, White Star line,
Dominion line. Atlantic Transport line and
the I.eyland line. The two last named
lines have been under Morgan control for
some time.
Probable additions to this list are the
Cunard. Wilson and Holland-American
companies and II is understood that a
working agreement viii be reached with
the other leading transatlantic compa-
MES, including the North German Lloyd,
Hamburg American general trans-Atlan-
tic), Allan and Anchor lines.
1t is yet too early to give the exact
scope of the scheme, but as now outlined
there viii be an American holding COM
pany into which all the steamship COM
panies 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 corporation threw in
their holdings, receiving IN return stock
of the main or parent company.
$15o,ooo,ooo Capital.
Just what the capitalization will be is
not yet known, but the amount is likely to
be well In, excess of $3.50. 000O 900. This phase
of the project is based entirely upon the
number of companies taken into the COM
bine
One of the most interesting features of
the plan deals 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. Because Of this the ships Of the
White Star, Cunard and the English sub
sided companies win doubtless continue
no1nihaliy under British control
q. w. Perkins. Of ]. p Morgan & Co, Is
authority for the statement that Ameri-
can interests dominate the proposed ANAL
gamation and declares that the result VIII
prove not only great triumph for Mr..
Morgan but will make the United States
the real ruler of the merchant marine of
the world.
Mr.. Perkins also said the plan would be
of great benefit to importers. and export
ers as well as to the great railroad in
terests of the country.
Its effect win be felt by shippers from
Maine to California, Mr.. Perkins says.
and will also result in a better under
standing between the commercial inter-
ests of this country and Germany.
''It is true" he added, "that Morgan
will act as syndicate manager in this
combination, just as he brought together
and welded the various interests in the
United States steel. corporation.
Financial Details Later.
1.-THE financial details have been COM
pleted to the extent that that cash neces-
sary for the deal hasebeen subscribed. 1t
is too soon to speak about the directo-
rate, but let IT be borne in mind that con-
troll OF the company will be held here.
at is taken as a matter OF course that
the interests now prominent in the va
rious steamship lines win be taken into
the consolidated directory
Banking interests identified with the
proposed underwriting syndicate said TO-
day that the new company would have a
New Jersey charter. They thought that
no very great amount of cash contribu-
lions would be required from the under
writing syndicate but were reticent as
to how far the owners of underlying COM
panies had the option to take new stock
or cash.
The Rothschilds. they added, were to
be among the underwriters.