The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1902-04-21
Promoters, Of Combine to
Control Liners Frank In
Telling Plans
CAPITAL IS $2OO,0OO,000
Reduction of Rates by Economic
Management, 1t Is Declared, Is
Aim, and Liverpool VIII
Not Be Abandoned.

PHILADELPHIA, April Excitement A.
Griscom, president of the International
Navigation company, one of the live
Transatlantic steamship companies
which have been merged under the drec-
ton of ]. 2. Morgan today talked freely
concerning the consolidation, its purposes
and probable effects
Mr.. Griscom said he was unable to
speak definitely regarding the financial
plan as that was a matter for the consil-
Grafton of Mr.. Morgan and his partners,
which will perhaps be decided upon with
in the next two weeks. In any event,
President GFiScOm said the consolidated
companies would probably be in operation
under the new constitution within a few
months.
So far as the negotiations regarding the
merger are concerned they have been
completed. Agreements for controlling
interest in each Of the various lines have
been secured and all that now remains to
be accomplished is the organization Of the
holding or parent company. This matter
is now in the hands of J. p. Morgan &
Co, and their lawyers.
1t is possible, though by no means GER
tain that the International Navigation
company, whose chartered powers are
very broad, will be made the parent COM
pany. The question now under considera-
ton is the desirability OF this plan as
against the organization of an entirely
new company to control the operations of
the combined steamship lines. The pub
lished statements as to the final basis OF
the combine, MIR. Griscom said, were ell
tirely speculative as that detail had not
as yet been completed.
Ship Subsidy Small Benefit.
1.-The capitalization of the consolidated
companies" said Mr.. Griscom, will be
in the neighborhood of 5000, 000,OO0, which
sum about represents the property alb
sOrbed. Working capital, of course, will
be provided and the profits and reserve
fund should enable us to build the neces-
sary additions to our fleets.
while control of the company will be
held in this country it will be a strictly
international company fostering the var
ious companies included in the consolida-
ton, providing their autonomy and re-
specting their natural surroundings"
The object of the combination" con-
tinued Mr.. GriscOm, lis to try to give bet
ter transatlantic service at decreas-
ed cost. Heretofore the traffic has been
eXtraVagantly conducted and we propose
to operate more intelligenty in the fu-
ture. We expect in time to inaugurat9
a system of daily departures from New
York, an innovation that is a real neces-
sity There is no political significance IN
this deal The negotiations have covered
a period of many years and l was inter
ested 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 concerned. 1t would en-
able us to sail ships now building and
hereafter built under the American flag
on an equal footing with the ships of
other countries. The published state
ments that the ship subsidy bill would en-
able US to sail our foreign vessels under
the stars and stripes are incorrect as the
bill specifically states that only American
re yiciO
and Furthermore such a course, if posi-
BILE. is contrary to the whole scheme.
I'VE have existing only four small yes
sells that might benefit by the passage
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 contract expires the four
American transatlantic liners of the In
ternational Navigation company are
eligible for a new contract either under
the present postal law or under any new
act that might be passed by congress-"
Will Not Abandon Liverpool.
Mr.. Griscom denied the published state
ment that Liverpool would be abandoned
as a passenger port. He said that that
question had not been discussed.
Every port he said, will be de-
veloped along the lines to which port is
best adapted. We will establish an
economic and sensible management.
Mr.. Griscom said it was possible The
company would carry its own insurance.
The consolidation" said Mr. Griscom,
will result in better transatlantic
service, steady and more uniform rates,
a just distribution of traffic over all
American and European seaports, in
creased lines on the Pacific coast and
services to South America, as traffic may
be found to justify them. Having lines
between Great Britain and Australia and
New Zealand and intimate connections
with the far East, American manufacture
ers will be able to distribute their
products on through bills of lading and
az old the expenses of trans-shipments
where they now occur.
1.-THE products of the farm will be ship
ped from the seaport most convenient to
the point of production. In a word it is
Intended to reduce transportation charges
as far as possible, to in every way i'm
prove the facilities of the company and
to increase its profits by economic man
agement over the conditions of the past
To what extent these new services will
be conducted by steamships built in this
country and sailed under the American