The Savannah morning news., 1902-05-09
DETAILS OF COMBINE
WHAT MORGAN GIVES THE SHIP
PING LINES.
AGREEMENT MADE PUBLIC.
ASSOCIATED PRESS GETS HOLD OF
COPIES.

White Star Lines Acquisition Dates
Back to Jan. L, 1901, and They Get
shares Based ON Ten Times the Net
Profits for 19OI-DOminiOn Line
Deal Based on Profits of I9OO-Ley-
land Line Valued at $II,736,OOO
and American and Transport Lines
Get Big Pay in Cash and stocks.
The MOrgans Get Big Pay for
Their Work.
London, May S.--The Associated
Press has secured copies of the ship
ping combine agreements. They are
called provisional agreements for the
purpose of the acquisition, on or before
Dec. 81. 1902, of the White Star. Do
minion, American and Atlantic Trans
port Lines, to be organized under the
direction of the vendors to the satisfac-
ton of the bankers, namely the Nor
gans, under the laws of the state of
New York, or such other state as shall
be selected" The vendors, Ismay, I'm.
RE & Co., Mills & Co. dominion Line)
and Messrs. Widener, Griscom and
Bernard Baker receive as consideration
for all their capital stock $120, 200, 900,
of which $6O,OOO,0OO is preferred stock.
cumulative at per cent, and $50, 900 900
common stock limited to 10 per cent.
and also $50,00O,000 in collateral trust
Az per cent. debentures.
Big Pay for Promoters.
The White Star Lines acquisition Is
ante-dated to Jan. l, 1901, the combine,
or corporation, as 1T is terme1, taking
all the lines profits from that date.
The White Star Line shares are ex-
changed on the basis of ten times the
net profits made by that line in 1901.
The arrangement made with the Do
minion Line is similar to that made
with the White Star Line, but on the
| net profits for 1900.
The American and Transport Lines
are Jumped in one valuation az 1854, 1885,
900, subject to $19, $50, 900 of the Ameri-
can Lines per cent. bonds.
The Leyland Line is valued at $11,-
$4,000
The method of payment is as fol-
! lows:
White Star Line, 25 per cent. cash.
70 per cent. preferred at par. and 371a
per cent. of the total amount in COM
mon at par.
The Dominion Line payment is ex-
actiy the same, and the American and
| Transport Lines get between them
$1S.S14,000 in preferred, $3.50 in
! comon, SIS, 1874, 900 in cash, and such
further cash as may be required, at
a rate not exceeding s per cent.
| The Leyland Line gets 81, 1876, 900 cash
and the remainder in capital stock, and
the bonds go to the vendors, who, how
| ever, contribute to the corporation, as
working capital, $7S6.000 in preferred
and $6,643. 900 in common stock, and
ARE to transfer it to the syndicate if
and when formed by the bankers, viz,
the Morgans, for $50 900, 900 cash, and in
full payment for its services the said
$50, 000, 900 in debentures and also 81, $780,
900 in preferred and $25, 100000 in COM
mon stock.
The following important clause oc-
ours at the end of the White Star
agreement:
"Inasmuch as the company is Eng
lish and domiciled i'm England, all
questions concerning the sellers arts
ing under or pursuant to this con-
tract shall be controlled or decided
by English law"
Ismay Imrie & Co. bind themselves
not to undertake any kind of shipping
business for fourteen years.
An additional paper called a build
ers' agreement is appended, in which
the Morgans bind themselves to give
Harland & Wolff all orders for new
vessels and all heavy repairs that re
quire to be done at a shipyard of the
United Kingdom. Nothing herein con-
tained, however. shall prevent the pur-
chasers from placing orders for new
steamers and repairs at shipyardS in
the United States"