BoletiÌn mercantil de Puerto Rico. (San Juan, P.R.) 18??-1918, 1902-05-19
SA1lJUAN, MAYO -
The 0elI SHIPPING Syndicate
jD he United Sl|eS.
CONSERVATION and Indignation in
England.

The buying up of British steamship
lines by the syndicate financed by MIR.
7. Pierpont Morgan has created a great
sensation in the United States and
great CONSERVATION and indignation in
England.
The terms of the combination pu-
b1ishcd in the New York Papers which
reached us by the last mail are not clear
as to some important points on
which information was expected, but
are sufficiently explicit as to the general
question of ownership. They provide
for the acquisition of the White Star,
Dominion, American and Atlantic
Transport lines ito be organized under
the direction of the vendors to the sa-
tisfaction of the bankers, namely, the
Morgans, under the laws of the State O.
New York. or such other state as may
be selected. The Leyland Line, aclujr-
ed some months ago, is included in the
agreement. The British lines turn
over all their stock to the combination
and get in return SI2ooooooo of the
combinations stock and $4,000 COO OF
AZ per cent. debenture bonds.
The general plan Of transfer has
been substantially the same as tha
By which the United States Steel Cor
poration took over the various prop
critics now owned by it. When that
corporation was formed, it issued its
own stock and bonds in payment and
also gave certain amount in cash.
Apart from the question of immedi-
ate control by Mr. Morgan and his
American associates, the provision
that the organization of the combina-
ton must be to their satisfaction under
the laws of this or some other s.ate
of the Union suggests plainly where
the ultimate authority and ownership
are to be. From thu British point OF
view, the Only satisfactory part # the
agreement, Judging by Journalistic
comment, is that hich gi es to
Messrs Harland &, Wolff, the famous
shipbuilders Of Belfast, all orders for
new vessels and for heavy. repairs re,
quiring to be done at a shipyard of
the United Kingdom, though nothing
in said agreement shall prevent the
Purchasers from placing orders for new
steamships and repairs at shi oyardS
in the United States. 1t is easy to see
that under the discretion implied il
the words requiring to be- done at 4
shipyard of the United Kingdom the
Harland & Wolff prospects are hot
very solidly assured.
It is too soo1 yet for an informed
opinion rs to the probable results Of
the combination on British maritime
commerce. The Cunard Line has re-
manned outside, and the question Of
building rival lines is B ing vigorously
discussed. Alarmed Britons are asking
whether such rivalry, even If power
fully manifested SON, can be main
tained for any considerable length OIL
tine. They wish to know whether the
combination is not the beginning,
rather than the consummation, of a i
process which will absorb their re-
steamship lines. However that
may be, there is no uncertainty as to
the idea which animated the American
capitalists concerned. They look upon
the combination as the last link in a |
completed chain of transportation by
which American products can be sent
more cheaply to Europe. Their aim
has in part been directed toward the re-
duction of the ocean freight rate for
American goods. They had been in
terested in 10 vering the railroad freight
rates from the interior to tile-water
and now they have the means of ar
ranging for ihe best possible terms
for the remainder of the distance to the
European market.