Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-04-19
STEAMSHIP MERGER
J. Pierpont Morgan Puts the
Deal Though.
TRANSATLANTIC LINES
ALL BUT THE GERMAN COM
PANIEs ABSORBED.
The New Combination Will Have Over
S15O,ooo,OOO of Capt.
tai.
LINES

who is now abroad, has practically con-
summated plan TO combine all the lead
Ing transatlantic steamship lines London
dispatches to the Associated Press an
nouncfng the combination were today con-
hrmed at the Morgan banking house. The
companies to be consolidated will, 1t Is
derStood. include the American and Red
Star Lines. White Star Line, Dominion
Line. Atlantic Transport Line and the Ley
land Line The two last-named lines have
been under Morgan control for some time.
Probable additions to this list are the
Cunard. Wilson and Holland-American
companies. and it is understood that a
working agreement will be reached with
the other leading transatlantic companies,
including the North German Lloyd. Ham
burgAmerican, General Transatlantic
FTrench). and Allan and Anchor Lines.
Mr.. Morgan has given the matter much
OF his time since his arrival on the other
side In this country the more important
details have been in the hands of Clement
A. Griscom of the American Line, while
Charles Steele, Mr.. Morgans partner in
this city, has had charge of the legal pre-
Hminaries.
1t is yet too early to give the exact scope
of the scheme but as now outlined there
will be American holding company into
which all the steamship companies which
propose to enter the combine will put their
SlOCh pool tnelr issues IN eX
actly the same way that the various con-
Germs embraced in the United States Steel
Corporation threw in their holdings, re-
ceiying in return stock of the main or par
ent company.
Over S15O,OOO, 900 Capital Required.
Just what the capitalization of the COM
pany Will be is not yet known, but the
amount is likely to be well in excess of
S50oVo,0oo- This phase of the project will
depend entirely upon the number OF steam
ship companies taken into the combine.
One of the most interesting features of
the plan deals with the subsidy question.
The White Star and Cunard lines receive
liberal subsidies from the British govern
ment. These subsidies would be withheld
or abrOgated if the ships of these lines
changed their flag from British to Ameri-
can Because of this the ships of the White
Star. Cunard and the English subsidized
companies will doubtless continue norni-
nally under British control.
George W. Perkins of j. P. Morgan & Co.
Is authority for the statement that Ameri-
can interests will dominate the proposed
amalgamatiOn. and declares that the result
Will prove not only great triumph for Mr..
Morgan. but Will make the United States
the real rulers of the merchant marine OF
the world Mr.. Perkins also says that the
plan viii be of greatest benefit to importers
and exporters as well as to the great rali-
road interests of this country. Its effect
Will be felt by shippers from Maine to Cali
fornia, Mr.. Perkins says, and will also re-
suit IN a better understanding between the
commercial interests of this country and
Germany.
Mr. Morgan Syndicate Manager.
1T is true he added, that Mr. Morgan
will act syndicate manager in this COM
bination, just he brought together and
welded the various interests in the United
States Steel Corporation. The financial de-
tails have been completed to the extent
that all the cash necessary for the deal has
been subscribed 1t is too soon to speak
about the directorate. but let it be borne in
mind that control OF the company will be
held here"
Ii is taken as a matter of course that the
interests now prominent in the varous
steamship lines will be taken into the con-
solidated directory.
Banking interests identified with the pro-
posed underwriting syndicate said today
that the new company would have a New
Jersey charter. They thought that no very
great amount of cash contributions would
be required from the underwriting syndi-
cate, but were reticent as to how far the
owners OF underlying companies had the
option to take new stock or cash. The
Rothschlds, they added were to be among
the underwriters
Confirmation in Philadelphia.
PHILADELPHIA, April 19-The an
nOuncement that the International Naviga-
ton Company had entered the steamship
combination of which ]. p Morgan is the
head was officially confirmed today at the
office of President Clement A Griscom by
Howard Pusey, private secretary TO Mr..
Griscom- IAN we can say" declared Mr.
Pusey, lis that Mr.. Morgans proposition
was satisfactory to us, and We accepted it,"
The details. ne stated further have not
progressed to the point where the officers
other than Mr.. Morgan. can be specified
A special act of Congress. Mr.. Pusey ex-
IaTT a h..
fortisn-bu vessel TO sail under the Amer
lean flag, but he said there is nothing TO
prevent an American company from owning
controlling interest In foreign company
In consequence, vessels affected by the COM
bination will sail under their respective
flags. but will be controlled by American
capital.
Mr.. Pusey would not admit that the new
combine would practically obviate com
petition, but added that the German COM
panies would work harmoniously with the