Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1902-04-21
PURPOSES OF THE MERGER
Clement GrisCom Talks Freely of New Deal
in Transatlantic Service.
PRESERVE IDENTITY OF ALL THE LINES
Capital TO he Two Hundred Million
Expect TO Give Better service on
All Lines at Reduced
Rates.

Rates.
PHILADELPHIA, April 20.-Clement A.
Griscom. president OF the International
Navigation company, one Of the Ave trans
atlantic steamship companies which have
been merged under the direction Of j. p
Morgan, today talked freely concerning the
consolidation, its purposes and probable
effects.
Mr. Griscom said he was unable to SPEAK
definitely regarding the financial plan, as
that was a matter for the consideration OF
Mr.. Morgan and his partners. which will
perhaps be decided on within the next two
weeks. In any event, President Griscom
said, the consolidated companies would
probably be in operation under the new
conditions within a few months.
So far as the negotiations regarding the
merger are concerned, they have been com.
nleted. Agreements for a controlling inter-
est in each of the various lines have been
secured and all that now remains to be
accomplished is the organization Of the
holding or parent company This matter is
now in the hands OF ]. p. Morgan & Co. and
their lawyers.
1t is possible, though by no means certain,
that the International Navigation company,
whose chartered powers are very broad,
will he made the parent company. The
question now under consideration is the
desirability of this plan as against the
organization of an entirely new company
to control the operations of the combined
steamship lines The published statements
to the financial basis of the combine,
Mr.. Griscom said, were entirely speculative,
as that detail had not as yet been COM
pleted.
capitalization of Company.
The capitalization Of the consolidated
companies" said Mr.. Griscom, will be in
the neighborhood of 5000, ,0OO, 900, which sum
about represents the property absorbed.
Working capital Of course, will be provided
and the profits and reserve fund should
enable us to build the necessary additions
to our fleets. While control Of the COM
pany will be held in this country, it will
be a strictly international organization, fos-
tering the various companies included in
the consolidation, preserving their autonomy
and respecting their national and local sur
roundinGs.
"The object Of the combination" continued
Mr.. Griscom, ''is to give better transat-
lantic service at a reduced cost, as hereto
fore the trade has been extravagantly con-
Quoted and we propose to operate more in
telligently In the future. We expect in
time to inaugurate a system of daily de-
partures from New York, an innovation
that ls a real necessity,
There is no political significance in this
deal. The negotiations have covered
period OF many years and was interested
in the subject as far back as 1884 The
passage OF the ship subsidy bill would have
but one effect, so far as the new enter
prise is concerned. II would enable us to
sail ships now building and hereafter built
under the American nag on an equal with
the ships OF other countries. The published
statements that the ship subsidy bill would
enable US to sail our foreign vessels under
the stars and stripes are incorrect as the
bill specifically states that only American
built ships can benefit by it's provision, and
furthermore such a course is contrary to
the whole scheme.
Only Four Benefited by Subsidy.
I'VE have existing only four small YES
sells that might benft by the passage of
this bill and they are on the Pacific. While
in the coastwise trade, in which they are
now engaged. the provisions of the bill
would not apply to them. After our pres
can transatlantic liners of the Interna tional
Navigation company are eligible for a new
contract either under the present postal
law or under any new act that might be
passed by congress"
Mr.. Griscom denied the published state
ment that Liverpool would be abandoned as
a passenger port. He said that question
had not been discussed. Every port" he
said, will be developed, along the lines to
which each port is best adapted. We will
establish an economic and sensible manage
ment."
Mr.. Griscom said 1t was possible the
company would carry its own insurance.
THE consolidation" declared Mr.. Griscom,
will result in better transatlantic service,
steadier and more uniform rates, Just
distribution of traffic over all American
and Canadian seaports, increased lines on
the Pacific and services to South America
as trafhc may be found to justify them.
Having lines between Great Britain and
Australia and New Zealand and intimate
connections with the far east American
manufacturers will be able to distribute
their products on through bills Of lading
and avoid the expense Of transhipments
which they now incur.
THE products of the farm will be shipped
from the seaport most convenient to that
Of production. In a word. II is intended to
reduce transportation charges as far as
possible to every one; to improve facilities
and the company expects to make its in
creased profts over the condition OF the
past from economical management. To
what extent these new services will be
conducted by steamships built in this eoun-
try and sailed under the American flag de-
pends upon congress-"