The St. Louis Republic. [volume] (St. Louis, Mo.) 1888-1919, 1902-05-09
Transfer of White Star Line Is
Counted as Beginning With
the Year 1901.
MORGAN IN SUPREME CONTROL.
Officers of Present Companies to
Give Their Services in Manage
ment of the Lines Under
New Arrangement.

London, May 8-The Associated Press has
obtained copies OF the shipping combine
agreements. They are called provisional
agreements for the purpose of the acquisi-
ton, on or before December 81, 1908, Of the
White Star, Dominion, American and Allan
tic transport lines, to be organized under the
direction OF the vendors, to the satisfac-
ton of the bankers. namely the Morgans.
under the laws of the State of New York
or such other State rs shall be selected"
The vendors. Ismay, Imrie & Co. Mills
& Co. Dominion Line), and Messrs. Wide
ner, Griscom and Bernard Baker. receive.
as consideration for all their capital stock.
s10.0Oo.oD of which So, 0O.0N is preferred
stock. cumulative. at 6 per cent. and 500
10000 common stock, limited to 10 per cent,
and also $50 .OO.0 900 in collateral trust Al
per cent ~debentures.
Sale Antedated to january 1, 1901.
The White Star Lines acquisition IS ante
dated to January /. 1901, the combine or CO.
| operation. as 1t is termed. taking all the
lines profits from that date. The White
Star Line shares are exchanged on the basis
of ten times the net profits made by that
line in 1901. The arrangement made with
the Dominion Line Is similar to that made
with the White Star Line. but on the net
profits for 1900.
The American and Transport lines are
Jumped in one valuation at IS ,l5S,Wo SUD
| ject to sl9.6s6 900 of the American lines >
per cent bonds. The Leyland Line Is valued
at 81, 1856, 900. based on the understanding
that there are, or will be, outstanding 81
| OTIS. 900 in ) per cent preference shares, ana
i 2.5OO,O 900 in 4 per cent debentures, which are
not included in the purchase price.
The method Of payment is as follows:
| White Star Line, % per cent cash. 20 per
-a- nrI ~ mar cent or
the total amount In common at par. Ahe
| Dominion Line payment is exactly the same,
and the American and Transport lines get
between them SIS, 3l4.0G0 In preferred. s9lo,-
700 in common, SIS, $4,000 In cash, and such
further cash as may be required, at a rate
not exceeding 6 per cent
The Leyland Lin gets 81, 1850 100 cash, the
bonds 60 to the vendors. who, however. con-
tribute to the corporation as working cap
ital s7S6,O0O in preferred, and S6,6430D In
common stock, and ARE to transfer 1t to
the syndicate IL and when formed by the
bankers, namely, the Morgans, for So'0N.-
900 cash and IN full payment for its serv-
ices, the SO. 900, 600 in debentures. and also
&, 5CO,0 900 in preferred and S2,5e0,c0 in COM
mon stock"
Three-FOurths of Stock
1t is provided that the corporation may
take or decline to take any of the lines
of which less than three-fourths Of their
interest shall be delivered by December 81.
1902. The exclusion Of one lines does not
affect the agreement with the others. Inc
vendors agree to use their best efforts to
deliver the necessary three-fourths of their
company's stocks. The agreements would
have been broken had not the Morgans
formed the original syndicate of s5a,NO.O0
cash prior TO April 80, 1892. All the purchase
prices include the ships building.
The White Star owners, though declaring
that tn. line has been carried on entirely
at the risk Of the purchasers since January
l, 1901. agree under the terms Of the pur-
chase to carry on the business of the line.
For their personal services the sellers ARE
to be paid such amounts in remuneration
as shall be fixed by J. Pierpont Morgan OF
the City of New York.
The following important clause occurs at
the end of the White Star agreement: In.
asmuch as the company is English and
domiciled In England. all questions concern
/ ing the sellers arising under or pursuant
to this contract shall be controlled or d.
rected by English law"