Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1902-05-11
Financial Straits Of Harland & Wolff Gave
Morgan His Opportunity.
ULSTER BANK WITHDREW ITS CREDIT
New York Banker Did Not Require Urging
to Supply Needed Funds.
CONTROL OF FIRM GIVES HIM LEVERAGE
Lord Charles BeresfOrd Predicts that
within Three Years the End of
British Merchant Marine
Supremacy VIII Come.

Copyright, 1902, by Press Publishing Coz
LONDON, May 10.-(New York World Ca
blegram-Special Telegram THE publica-
tion Of the shipping combine agreement has
caused perfect stupefaction here, where re-
lance was foolishly placed in the antece-
dent announcements Of the operators con-
cerned. Public opinion will welcome any
measure, however drastic, to break up the
combine and the law officers of the crown
have been instructed to report whether a
suit would lie against the British COM
panies concerned, on the ground that the
trust operates in restraint Of trade. King
Edward, who was deeply concerned by the
recent reports of the scheme to undermine
British mercantile marine supremacy. was
lulled into a sense OF false security by pri-
vate assurances similar to those publicly
given that the agreement contemplated
nothing that would affect the flag Of a sin
gle British vessel.
Looking for a Victim.
AS the Rt. Hon. l. w. Plerrie Of the Har-
land & Wolff firm is a privy councillor, the
king in his resentment has asked for an
opinion Of the attorney general whether q
participation in a combination directly in
imicable to the interests Of the state is not
inconsistent with the terms of the solemn
oath taken by Mr. Pierrie when he was
sworn in the privy council.
The World has indubitable information
that Mr.. Pierrie was the originator of the
whole scheme. 1t appears that when Sir
William Harland died some years ago his
family drew all their capital out OF the
ship-building yards, leaving Wolff and
Pierrie SO hampered that they had to obtain
heavy advances from the Ulster bank TO
carry on their business. Recently the bank
alarmed at the risk to British shipbuilding
by the prospect of the enactment Of the
American ship subsidy law, pressed for q
repayment Of the advances and In this di-
lemma Pierrie and Wolff approached ].
Pierpont Morgan with a proposal Of deben-
lures as security for advances. Morgan
saw his opportunity and seized IT, and. hav-
ing the White Star line in his power. easily
got the other companies to come to terms.
EDgIand's Marine Waterloo.
The transfer of the shipping supremacy
Of the Atlantic to the United States is Bit
ter enough to Engllshmen. What maddens
them beyond endurance is ]. Pierpont Nor
gans subcontract with Harland Wolff
binding the greatest and most successful
shipbuilding concern in Great Britain not
to build any steamships without the con-
sent OF American paymasters. This is re-
garded as OF national betrayal, especially
objectionable in a firm which, through its
10000 orange workingmen, has always been
| held up as a model OF loyalty in disloyal
ireland. At the House of Commons today
nothing else was talked Of but the chip
combine. which the members did not hest
tate to say is the Waterloo of England'f
mercantile marine.
"In three years we shall be nowhere, 4"
said Lord Charles Beresford to a Newcastle
ship owner. Every one Of these steamers
will be under the American flag and
Offlcered and manned by Americans. The
ship subsidy bill will transfer shipbulldins
to the United States and with the decline
OF our mercantile marine our navy will
| suffer. The only chance OF checking the
American advance is for British ship owners
| to form an opposing combine and for the
government to give large subsidy in sup
port OF it,
These views are not more alarming than
those commonly current and exciting devel-
! opments in Parliament are expected.