The daily morning journal and courier., 1902-10-01
SHIPS TO REMAIN BRITISH
MORGAN COMBINE WILL NOT
 CHANGE THE FLAG.

of British Nationality Officers and a | Reasonable Proportion of the Crews |
 to be Drawn from the Same NatiOn- |
 Government Empowered to Termi-
 nate Agreement if a Hostile Course is
 Pursued to British Merchant Marine.
 Sheffield, Eng, Sept. 3O-Four hun dred covers were laid at the Cutters Feast, which was held here to-day. The principal guests of the occasion were Lord Kitchener and Ambassador Cho- ate, who sat respectively at the left and right of Master Cutler Hobson. Mili- tary officers predominated among the guests and the distinguished persons present included Gerald W. Balfour, formerly president of the board of trade, the Duke of Norofolk, General French and General Ian Hamilton.
 Responding to the toast, His Majes- tvs Forces,' Lord Kitchener avoided political topics and confined himself to aulogizing the conduct of the army and the colonial forces in South Africa.
 MT. Balfour referred at considerable length to the Atlantic shipping ques- ton. After sketching the history Of re- cent events he said:
 "aThe reproach levelled at our ship ping companies for being surpassed in speed by German boats is unjust, be- cause it is impossiblye to run such high speed vessels remuneratively unless they are subsidized. The possibility of foreign monopoly of the entire Atlantic trade is a serious matter and one which must seriously be taken into &C., count" ,.. Mir. Balfour said his department had opened communications with Baron h. verclyde, chairman of the Cunard Steamship company, and with J. r. Morgan, representing the shipping com bine, and that it was the barest justice to both these gentlemen to say they had shown the utmost readiness to meet the wishes of the government.
 Mir Balfour then announced the de- tails of the agreement with the Cunard company. He said the company had engaged to construct two vessels which would make from twenty four to twen- ty-five knots an hour. He considered the proposed subsidy of $150,OO0 year no more than fair remuneration for the services to be rendered. The govern ment, continued the speaker, was firmly sI opposed to the principle of paving g \ subsidy in excess of such fair remuner- ation. and any such excess of subsidy could only be regarded as a bounty in disguise,
 Witb regard to the shipping combina- tion, the president of the board of trade said he believed MT. Morgan had no in- tention of injuring British commerce or shipping, and proof of this was found in Mir. Morgans readiness to meet the
 government on all points upon which Great Britain's interests might seem to
 be most endangered.
 Mir Balfour said an agreement had
 been arrived at with MT. Morgan under
 which British vessels in the shipping
 combine would remain British, not
 merely nominally, but in reality. A
 majority of the directors of the new
 combine were to be of British national itv. the vessels were to fly the British flag, their officers were to be British, and a reasonable proportion of their , crew would be drawn from the same
 nation, while the combine had under taken that at least half the tonnage
 hereafter to be built for it should be
 British built and fly the British flag !, Further, in the event of the combipa-
 ton pursuing a policy hostile to the British mercantile marine, MT. Balfour said the government was empowered tc
 terminate the agreement which was
 for twenty years time and renewable by five years notice from each party to it. It was not desirable. in the in- terests of Great Britain. that the Amer jeans should remain without a consid. erable share in the Atlantic trade, but it was desirable that the inevitable de.
 velopment of this trade should occur
 with the least possible friction between
 the two peoples.
 The speaker said it was his earnes hope that the arrangements he an nouned would, while safeguarding Brit
 ish interests, prove the surest founda
 tion of lasting friendship between tn two nations.
 Mir. Balfour said also
 "The British government, on it's side
 understands that the British companie
 in the combine shall continue to b treated on a footing of equality witt
 other British companies.'
 When Ambassador Choate arose t ', respond to the toast Kindred Beyon |, the Seas" he got an enthusiastic recep e, ton. Tn a humorous address tn I American ambassador said Mir. Balfou a had made the speech he himself ha
 intended to make. MT Balfour, he sait
 had dispelled the idea that there wa any such thing, in Q hostile sense, a a American invasion. The contract n which were the subject of daily dealing 2 between the peoples Of Great Britai 1 and the United States were bindin /, a them more closely together. He woul IT be a bold American. continued MI
 Choate, who, at this moment woul think of approaching Sheffield with an - hostile view
 f. The ambassador agreed with MT. Ba' ~ four that the dangers of competitio V, were of but little account and said tha after all community of interests was th
 tie which had bound the two peoples tc
 gether for the past century, and that |
 hoped this tie would continue to bin = them for the next thousand years. M