Evening star. [volume] (Washington, D.C.) 1854-1972, 1902-10-01
THE SHIPPING MERGER
MIR. BALFoUR DECLARES IT EN-
TIRELY SATISFACTORY.
Does Not Believe Mr. Morgan Has Any
Evil Designs on British
Trade.

At the cutters annual feast in Sheffield.
England. last night Mr.. Balfour, the British
premier. referred at considerable length to
the Atlantic shipping question. He said his
department had opened communications
with Baron Inverclyde, chairman of the
Cunard Steamship Company. and with J.
P. Morgan. representing the shipping COM
bine. and that 1t was the barest justice to
both these gentlemen to say they had
shown the utmost readiness to meet the
wishes of the government.
With regard to the shipping combine,
Mr. Balfour said he believed Mr. Morgan
had no intention Of injuring British com
merce or shipping, and proof OF this was
found in Mr.. Morgan's readiness to meet
the government on all points upon which
be most endangered. Mr.. Balfour said An
agreement had been arrived at with Mr..
Morgan under which British vessels In the
shipping combine would remain British.
not merely nominally. but in reality.
majority of the directors OF the new com
bine were to be Of British nationality, the
vessels were to fiy the British flag, their
officers were to be British and reasonable
proportion of their crew would he drawn
from the same nation, while the combine
had undertaken that at least half the ton
mage hereafter to he built for 1t should be
British built and fv the British dag
Further, In the event of the combine pur-
suing policy hostile to the British mer-
camille marine Mr.. Balfour said the gov
ernment was empowered to terminate the
agreement. which was for twenty years
time. and renewable by five years notice
from each party to It, 1t was not desira-
bic in the interests OF Great Britain that the
Americans should remain without a CON
siderable share in the Atlantic trade, but
it was desirable that the inevitable develop
ment Of this trade should occur with the
least possible friction between the two peo-
pies.
four that the dangers of competition were
of but little account. and said that. after
all. community of interests was the tie
which had bound the two peoples together
for the past century, and that he hoped this
tie would continue to bind them for the
next thousand years. Mr.. Choate's re-
marks were greeted with loud cheers
The directors Of the Cunard Steamship
Company have sent a letter to the share
holders. setting forth the terms of the pro-
posed subsidy. 1t will include payment by
the government of $4,000 annually. the
company to build two large, fast steamers
for the Atlantic trade. The agreement will
remain in force twenty years after the com
pletion of the second steamer. The com
pany is to remain a British concern, and an
undertaking is to be given not to unduly
raise freight rates.
The assistance which the government I'M
der this arrangement renders the Cunard
Steamship Company is designed for the ex
press purpose of meeting the alteration of
conditions of transatlantic traffic caused by
the formation of the Morgan shipping com
bine.
During the continuance of this agreement
the Cunard Company will hold its entire
fleet, including any vessels which it
builds at the disposal of the British gov
eminent