The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-04-20
The United States Will Dominate the
Merchant Marine of the
World.
GEORGE W, PERKINS TALKS OF THE PLAN
The Capitalization Of Company Will be Some.
where in the NeIghborhood Of $780,
100000. There viii be an
American Holding Co,
American Holding Co.
(By the Associated Press.)

tBy the Associated PfeSS.)
New York, April ID. p Morgan, who
is now abroad. has practically consum-
mated a plan to combine all the leading
Trans Atlantic steamship lines. Lon
don dispatches to the Associated Press
announcing the combination were today
confirmed at the Morgan Banking house
The companies to be consolidated WILL
it is understood. include the American
and Red Star Lines. White Star Line,
and the Leyland Line. The two last
named lines have been under Morgan's
control for some time. Probable addi-
tions to this list are the Cunard, Wibon
and Holland American Companies, and
it is understood that a working agree
ment" will be reached with the other
leading transatlantic Companies, in
cluding the North German Lloyd, Ham
burg American, General Trans Atlantic
French) and Allan and Anchor Lines.
Mr.. Morgan has given the matter much
of his time since his arrival on the
other side. In this country the more i'm
portant details have been in the hands
of Clement A. Griscom, of the American
Line, while Charles Steele, Mr.. Morgan's
partner, in this city has had charge of
the legal preliminaries.
1t is yet too early to give the exact
scope of the scheme. but as now outlined
there will be an American holding COM
pany into which all the steamship COM
panies, which propose to enter the COM
pany, to put their stock holdings-"pool
their issues''-in exactly the same way
that the various concerns that is en-
braced in the United States Steel Cor
poration, threw in their holdings, re-
eeiving in return stock of the main or
parent company.
Just what the capitalization of the
company will be is not yet known, but it
is not likely to be we'll in excess of
S150,O00000. This phase of the project
will depend entirely upon the number of
steamship companies taken into the COM
bination.
One of the most interesting features
of the plan deals with the subsidy ques-
uon. The White Star and Cunard
Lines receive liberal subsidies from the
British Government. These subsidies
would be withheld or abrogated if The
SHIPS OF the lines changed their flag
from theirs to American. Because of
this the ships of the White Star. Cunard
and the English subsidized companies
will doubtless continue nominally under
British control
George w. Perkins, of ]. Pierpont Nor
gan d Company, is authority for the
statement that American interests will
dominate the proposed amalgation and
declares that the result will prove not
only great triumph for Mr.. Morgan.
but will make the United States the
real rulers of the merchant marine of
the world. Mr. Perkins also says that
the plan will be of greatest benefit to
importers and exporters, as we'll as to
the great railroad interests of this couu
try. Its effect will be felt by shippers
from Maine to California, Mr.. Perkins
says, and will also result in a better
understanding between the commercial
interests of this country and Germany
IL is true, he said that Mr. Morgan
VIII act as syndicate manager in this
combination, just as he brought together
and welded the various interests in the
United States Steel Corporation. This
financial details have been completed to
the extent that all the cash necessary
for the deal has been subscribed. It is
TOO soon to speak about the directorate
but let it be borne in mind that control
troi OF the company will be held here"
1t is taken as matter of course. that
the interests now prominent in the yari-
Gus steamship lines will be taken into
the consolidated directory
Banking interests identified with the
proposed underwriting syndicate, said
today that the new company would have
New Jersey charter. They thought
that no very great amount of cash con-
tr1butions would be required from the
underwriting syndicate, but were re-
ticent as to how far the owners of the
underlying companies had the option to
take new stock or cash. The Rothschilds
they added, We're to be among the under
writer's.