Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1902-04-22
H[ BOUGHT TIE SHIPS
Morgan's Combination OF Trans
Atlantic Steam Ships a
Cash Purchase.
Deal Causes Alarm in London
and Berlin The Press
Comment.
Lines Will Remain Independent
But Under Control Of Gov
erning Board.

c1aSeQ the great SlGdllSIllp llilCo ltlctS
enter the new transatlantic company
under the control of j. Pierpont Nor
gan and others.
Up to yesterday it had been taken for
granted that the deal involved merely a
working agreement, without a change
of ownership.
Yesterday, it was discovered that the
scheme provides for the purchase of all
the lines concerned. Definite terms of
cash or shares, or both, have been fixed
exactly in each case. When the deal is
made every Atlantic liner in the combi-
nation will be practically owned and
controlled in the United States.
That each company will maintain
nominal separate existence. and that
the British flag will still fly over many
of the vessels of the great Morgan
lied" fleet, gives little satisfaction In
London.
| The Westminster Gazette Is the first
! to sound the alarm. 1t declares that
the consolidation should receive the
grave attention Of the government as
vital interests of the empire in time of
war may be jeopardized by the new ar
rangement."
The only crumb of comfort picked up.
by the Westminster Gazette is that the
combination may prove to be a power
! full peace factor between America and
Great Britain, for the great American
financiers would find it to their own in
terests to use their influence against
war between the two countries.
The Pail Mall Gazette thinks the ar
rangement gives the United States an
enormous pull on the Atlantic, and that
| 1t is not creditable to Great Britain
that English steamship lines should be
dominated by Americans.
The allotments of stock in the new
shipping corporation were all taken up
| by British members OF the syndicate at
noon today. What proportion was
given to Europe the Morgans decline to
announce, but evidently 1t was not
nearly so large as desired by the Brit
| ish interests. j. Pierpont Morgan Is
now in Paris.
| Regarding the detection of the Gu
nard. Allan, Anchor and French steam
ship lines, the Morgan views are as fol-
| lows:
1T remains to be seen whether they
will come in. We think it is rather a
good thing, in some respects, not to get
everybody in at the beginning, the idea
being that the present combine is QUITE
big enough to start with and 1t is bet
ter to get it down to practical, work.
| ing basis before being too anxious 70
make a clean sweep"
Will Ruin Competitors.
Anent the possible refusal of the
British and continental shareholders
| to ratify the directors action, 1t Is
stated that no such contingency Is
possible, as the new corporation al
ready owns controlling financial IN
terest in each line. and so far no in
dieations of discomfort on the part OF
shareholders over the prospective con-
version of their present securities have
ben noticed.
| 1t is not expected that the Cunard
| line will join in the combine at pres
emit. The London and Northwestern
railway company will back up tho
| Cunard line in maintaining it's indie
pendence The chief inducement OF
| the Northwestern in taking this action
is to retain portion Of the passenger
business to and from Liverpool.
Terms That Germany Accepted.
| Berlin, April 22.-The general terms
under which the, German steamship
companies have Joined the interna
1 tional ship combine are understood to
be as follows:
| F'irst-The German lines are to have
such representation on the board of
control as to prevent their being out
voted by the Anglo American interests
The German companies will thus pre-
screw their independence and will no
more be controlled by their associates
than they will control them.
Second--A pro rata distribution OF
profits, according to tonnage, will be
made.
Third-The German companies are
to share in the advantages derived
from whatever agreements the COM
bination makes with American rail
roads.
Besides these principles, reports Of
other ideas, less easily understood
are In circulation. One Of these re-
ports is that it Is the purpose of the
allied lines that the management of
the combination shall consist Of three
grounps. of which the Hamburg
American Steam Packet company and
the North German Lloyd line shall
count for two and the Anglo American
Hines
The newspapers, for the most part
discuss the steamship agreement adj
versely. The Berliner Tageblatt ex-
presses the belief that altho the profits
of the German lines may temporarily
increase, it will be at the loss of free
development in the future and the ex-
posure of German business to destruc
ton, which American foolhardniness
and American conceit of their great
ness are sure to bring about.
The real American peril, continues
the Tageblatt, does not lie in American
competition, but in the possibility of
bold American financiers entangling
German business in unsound schemes.
7. New York, April 22.-War on the Gu
nard Steamship Company is predicted
as the first result of the combination
of American, English and German COM
panies.
| Many of those who are represented in
the consolidation of interests admitted
today that, while it is true that the Gu
nard line steadfastly refuses to enter
into the combination by sale or other
wise, the situation is such that the
company will be forced sooner or later
to join. This result, it was announced,
/ yyo,1ld he bro,ipht about thu, a non