Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1902-04-21
THAT SHIP MERGER
More in Detail of Pierpont
Morgan's Lat
est.
eFoR THE BENEFIT OF THE PUBLIC
According to the Statement of One
Who is Interested
i'm Deal.

Philadelphia. April 21.-Clemente A.
Griscom. president of the Internation-
al Navigation company. one of the five
transatlantic steamship companies
which have been merged under the
direction of J. L. Morgan, talks forci-
bly, concerning the consolidation. its
purposes and probable effects. Girls
com said he was unable to speak def
nitely regarding the financial plan, as
that was Il matter for the cOnsidera-
tiOn of Morgan and his partners,
which will perhaps be decided upon
within the next two weeks. In any
event, Griscom said, the consolidated
companies would probably be in oper-
alton under the new conditions within
Il few months. SO far as the negotia-
tons regarding the merger are con-
cerned. they have been completed.
Two Plans Under Consideration.
1t II possible. though by no means
certain, that the International Navi-
CATION company. whose chartered pow
ers are very broad, will be made the
parent company. The question now
under consideration is the deSirability
or this plan as against the organiza-
ton OF an entirely new company to
control the operations of the combined
steamship lines. The published state
mentS as to the financial basis of the
combine. Griscom said. were entirely
speculative. as that detail had not as
yet been completed.
Remarks on capitalization.
-The capitalization of the consoli-
dated companies" said GriScom. will
be in the neighborhoOd of $20OOO0.OO0.
which SUM about represents the value
Of the property absorbed. Working
capital. of course. Will be provided.
and the profits and reserve fund should
enable us TO build the necessary addi-
tions TO our fleets. While control OF
the company will he held i'm this coun-
try il Will be Il strictly international
organization. fostering the various
companies included in the consolida-
ton. preserving their autonomy and
respecting their national and local sur
rOundingS."
Better Service Only Object.
'''The object Of the combination
continued GriScom, lis To try to give
better trans Atlantic service mt de-
creased cost. Heretofore the trade has
been eXtravaGantly conducted and we
propose To operate more intelligently
i'll the future. We expect in time to
inauSurate II system of daily depar-
lures from New IOrk-an innovation
that is real necessity.
There is no political significance in
this deal. The negotiations have GOV
cred a period of many years. and was
in the subject as far back
as 1884. The passage of the ship sub
sidy bill would have but one effect
so far as the new enterprise is con-
cerncd--it 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 a course,
if possible, is contrary TO the whole
scheme"
Griscom denied the published state
ment that Liverpool would he aban-
doned as II passenger port. He said
that question had not been discussed.
Every port he said. will be de
veloped along the lines TO which each
port is best adapted. We will estab-
lish an economic and sensible manage
ment.
The consolidation declared Girls
Iantic service. stcadier and more uni
form rates. just distribution of traf-
fc over all American and Canadian
scapOrts. increased lines on the Pa
cific. and services to South America
as traffic may he 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 pro-
ducts on through bills of lading. and
avoid the expense of trans-shipmentsI
which they now incur.
THE products of the farm will be
shipped from the seaport most conven-
lent to the point of production. In a
word il is intended to reduce trans
charges as far as possible
TO every one; to improve facilities; and
the company expects to make the IN
creased profits over the conditions of
the past from economical manage
ment. To what extent these new serv-
ices will he conducted by steamships
built i'm this country and sailed under
the American flag depends upon con-
gress."