New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-04-20
AMERICANS TO CONTROL
BUT STEA IlLSHIP LINES FLA GS
AND SUBSIDIES RETAINED.
HERE TO BE IN UNDERWRITING
SYNDIC DICATE-CHARTER FROM
NEW-JERSEY.

The report cabled from London that COM
hinat tion of six steamship unes-the White Star.
Dominion Leyland. Atlantic Transport. Amerf-
can and Red Star-had been effected was con-
firrned yesterday by George W. Perkins, OF j. T.
Morgan & Co.
THE proposed company he said. will be
essentially like the United States Steel Corpora
ton in that 1t will bring together under CEN
trail control several independent companies
which will in no wise lose their Identities The
different ships will sail under the same flags.
and will receive the same subsidies as at pres
ent In case Of war. England might still call
on her subsidized ships for service notwith-
standing that they would be owned here.
IF ship ussidy act should be passed IN
this country it might make difference to
us In that case might complete our or
ganization with American ships, which would
not be done If other governments were sub
s.dizing vessels and the United States were
not
The control Of the new company will be en-
tirely American. and will be exercised from
America"
Mr.. Morgan, Mr.. Perkins continued, would act
the syndicate manager in effecting the steam
ship cinsoidation as he acted in the formation
of the United States Steel Corporation. The
directors of the company had not yet been
cided upon for the corporation.
THE UNDERWRITING SYNDICATE
1t is understood on high authority that prac-
tically all the great financial interests of the
country including the Standard Oil group.
in the underwriting syndicate. 1t is believed.
however that in the case of the United
States Steel Corporation, the underwriters will
be called upon TO furnish only comparatively
small sum in cash: the shares of the several
companies being expected to be exchanged d-
rectly for securities of the corporation. 1t
could not be definitely learned yesterday what
the capitalization of the projected company
would be- but it can be said on authority that
there will be an issue of bonds we'll as of
stock.
Banking interests identified with the proposed
underwriting syndicate said that the new COM
pany would have a New-Jersey charter. The
Rothschilds they added, to be among the
underwriters.
THE RUMORS CONFIRMED
The steamship combination proves to be as ex-
tensive as all the rumors concerning it have in
dicated 1t Is seen in the light of present knowl-
edge that the It'd bits that came through the
ca ole under the Atlantic were all more or less
accurate Notwithstanding the many denials
from steamship agents here, and the efforts Of
the prominent European steamship officials who
came here in January and February, to convince
the newspaper men that they were not here for
the purpose of considering plan to bring their
companies into q close union. it is disclosed
that there was something more important than
the signing of rate agreement on foot.
DIFFICULT TO GET DETAILS HERE.
The heads of none of the steamship companies
interested In the deal have offices in New York,
so 1t was difficult yesterday to obtain here any
lie +ba Ann
entity the representatives of the two German
cotnpanies the North German Lloyd and the
Hamburg-American, the only shipping
men here who had any Official information, and
they said that their information was confden-
tial and therefore they could say nothing bout
IT. One man who seemed to be familiar with
the scheme said that the deal closed six
weeks ago and that the arrangement with the
two great German lines was simply a business
agreement to work harmoniously with the COM
bination.
There was no financial interest in the COM
bination so far the German lines con-
cerned he declared. He thought the combina-
tion would be of great value to the steamship
comnanies in the way of equalizing rates. It
1vas in this direction that the greatest benefit
xyould accrue He did not think the fact that
Mr. Morgan and Mr.. Griscom were interested
in transcontinental railroad systems had great
deaI of hearing on the formation of the combina-
tion. The opinion among the steamship men
seemed to be that the project would be of great
benefit TO shipping
In speaking of the SITUATION. Jonn Lee. OF the
White Star Line, said:
THINK COMBINATION A GOOD THING.
Such a combination is outlined in the cable
dispatches from England this morning would
be good thing for transatlantic shipping in
Continped on second page.