The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-05-08
The SHIPPING
TRUST PLANS
Copies of the Combine Agree
1nents Are Given Out in
London To-day.
Plan Took $I2o, 900, An
drew Carnegie Comforts
His English Friends.


has secured copies of the shipping COM
bine agreements. They are called pro
visional agreements for the purpose of
the acquisition, on or before Dec. 81, 1902,
of the White Star Dominion, American
and Atlantic Transport lines. Sto be. Or
ganized under the direction of the ven-
doris, to the satisfaction of the bankers.
namely the Morgans. under the laws Of
the state of New York, or such other
state as shall be seIected... ...
lsma, Imrie & Co., Mills & Co. (Do-
minion lne) and Messrs. Widener, Girls
com and Bernard Barker, receive as con-
sioeraticn for all their capital stock S12O,-
100000, of which 5000 900 is preferred
stock. cumulative at 6 per cent. and $780,
100000 common stock, limited to per
cent, and also 100000 900 in collateral
trust ~ per cent debentures
me White Star lines agreement is
ante-aated to Jan. l, 1901. the combina-
that, date. The White Star line shares
are exchanged on the basis of the, net
pronts made by that line in 1901.
Inc arrangement with the Dominion
line is similar but based on the net profits
for 1900.
The American and transport lines are
Jumped in one valuation at s34,15s. 900.
subject to $19,656000 of the Americans
lines per cent bonds The Leyland
line is valued at $l,736, 900
The method of payment for the White
Star line is as follows: Twenty-Five per
cent cash.. Is per cent preferred at par.
and 81 per cent of the total amount in
common at par. The Dominion line pay
ment is exactly the same and the Amer
lean line and Transport lines get between
them $1S,314 G0o in preferred S915 700 in
common and 900 in cash. ....
The Leyland line gets 11,736, 900 cash
and the remainder in capital stock, and
are to transfer 1t to the syndicate when
formed by the bankers, viz. the Nor
gans, for $50,00o,00O cash and in full
payment for it's services the said $50
oO0,OOO in debentures and also 50, 500, 900
In preferred and S25oo0,OoO in common
stock
1t Is provided that the corporation may
take or decline to take any of the lines
of which less than three -fourths Of tLeir
interest shall be delivered bv Der n
1902
The exclusion of one line does not
affect the agreement with the others The
vendors agree to use their best efforts
to deliver the necessary three -fourtns
OF their stocks. The agreements would
have hecl broken. had not the Morgans
formed the original syndicate OF $50. 300
.oo' cash prior to April 80. 1902. For
their personal services the sellers are to
be paid sucl; amounts in remuneration
as shall &c fixed by j. Pierpoot Moryen.
Iha following important clause oclurs
at the end of the White Star agreement:
lnasmuch as the company is English and
dom1clied in England. all questions concerning
the sellers arising under or pursuant to this
contract shall be controlled or directed by
English law. - - &c.. 80 -
An additional paper. called a. builders
agreement, is appended, in which the Nor
gans bind themselves to give Harland &
NolH all orders Tor new vessels and all
heavy repairs that require to- be done
at shipyard of the United Kingdom
Nothing herein contained, however, shall
prevent the purchasers from placing Or
ders for new steamers and repairs at the
shipyards in the United States
In return Harland & Wolff agree to
build no ships: for any other firms but
those in the combine, except the Ham
burg American line, provided the orders
Of the combine keep the builders works
fully and continuously employed. -.
Harland & Wolff reserve from the COM
bine the cost of work plus commission
On the cost price, in case Of new ships :
per cent, new machinery in old ships IL
per cent, and repairs Is per cent -
Ihls agreement extends for ten years
and is only terminable thereafter by, a
hve-year notice on either side.
Thomas Gibson Bowler, conservative
made several ineffectual attempts in the
house of commons to-day to draw the
parliamentary secretary for the foreign
office, Lord Cranbourne, on the subject
Of the Atlantic shipping combine the
Panama canal. the Danish West Indies
treaty and German railroads in Asia
Minor. Lord Cranbourne's replies did not
1llumlne the situation. He said no com
munications had passed between the
United States and British governments
On the subject of shipping combine, MOI
regarding the proposed purchase of the
Panama canal company's rights, nor as
to the Danish West Indies. AS to the
suggestion that J. Pierpont Morgan was a
leading member of the syndicate carrying
out the concession which Turkey granted
to Germany for a railroad through Asia
Minor to the Persian gulf. the govern
ment, said Lord Cranbourne. had no infor-
nation. -.