Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1902-04-21
ONLY $2OO,OO0,OOO.
Gigantic transatlantic Steam
er Trust Is Being Formed.
Up. Morgan & Co. at the Head With
Unlimited Money to Use.
Objec Is Better Transportation at a
Smaller Cost.

Philadelphia, April Excitement A.
GriscOm, president of the International
Navigation Co, one of the five trans
Atlantic steamship companies which
have been merged under the direction
of j. p. Morgan today, talked freely
concerning the consolidation, its pur-
poses and probable effects. Mr. Girls
com said he was unable to speak def
nitely regarding the financial plan, as
that was a matter for the consideration
of Mr.. Morgan and his partners, which
will perhaps be decided upon within the
next two weeks. In any event, Presi-
dent Griscom said, the consolidated
companies would probably be in oper-
alton under the new conditions within
Il few months.
So far as the negotiations regarding
the merger are concerned they have
been completed. Agreements for a con-
trolling interest 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 j. p. Morgan & Co. and their
lawyers.
II 10 -lSO"Sicic, tiouSi Wy iio
certain, that the International Navi-
cation Co, whose chartered powers are
very broad, will be made the parent
company The question now under con-
sideration 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 as to
the financial basis of the combine, Mr..
GriscOm said, We're entirely specula-
tive. as that detail had not as yet been
completed.
The capitalization of the CONSOLE
dated companies" said Mr.. Griscom,
will be in the neighborhood Of $780,
100000, which sum about represents the
property absorbed. Working capital of
course, will be provided, and the profits
and reserve funds should enable us to
build the necessary additions to our
fleets. While control of the company
will be held in this country, it will be
a strictly International organization
fostering the various companies includ-
ed in the consolidation, preserving
their autonomy and respecting their
national and local surroundings"
'.The object of the combination" con-
tinued Mr.. Griscom, lis to try to give
better transatlantic service at a de-
creased cost. Heretofore the trade has
been extravagantly conducted and we
propose to operate more intelligently
in the future. We expect in time to
inaugurate a system of daily depar-
lures from New York, an innovation
that is a real innovation.
There is no politics in this deal.
The negotiations have covered period
of many years and I 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 |
enterprise is concerned. 1t would en-
able us to sail ships now building and
hereafter built under the American |
flag on an equal footing with the ships |
of other countries. The published |
statements that the ship subsidy bill |
would enable us to sail out foreign yes
sells under the Stars and Stripes, are
that only American built ships can
benefit by it's provisions. and further
more, such a course, if possible, is
contrary to the whole scheme.
1--WE have existing only four small
vessels that might benefit by the pas
sage 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 present mail con-
tract expires the four American trans
Atlantic liners Of the International
Navigation Co. are eligible for a new
contract either under the present pos
tai law or under any new act that
might be passed by Congress"
Mr.. Griscom denied the published
statement that Liverpool would be
abandoned as a passenger port. He
said that question had not been dis
cus3cd.
Every port he said, "will be de-
veloped along the lines to which each
port is best adapted. We will establish
an economic and sensible manage
ment"
Mr.. Griscom said it was possible the
company would carry its own insur-
ance
"The consolidation declared Mr..
CONTINUED on page 81