Barre evening telegram. (Barre, Vt.) 1898-19??, 1902-05-09
SHIP TRUSTS MAKING
Details Of Contracts Entered Into by
Combinations Members.
ENORMOUS SUMS INVOLVED.
A Clause In the White Star Agree
ment Provides That English Law
VIII Rule In Questions In.
volving That Company.

London. May 9.-Copies Of the ship
ping combine agreements have been Sc
cured. They are called provisional
agreements for the purpose of the &C.
QUESTION, on or before Dec. 81. 1902, of
the White Star, Dominion, American
and Atlantic Transport lines, to be or
ganized under the direction Of the vend-
ers, 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 selected"
The vendors, Ismay, Imrie & Co..
Mills & Co. Dominion line) and Messrs.
Widener, Griscom and Bernard Baker,
receive as consideration for all their
capital stock $12O,OO0,000, of which
SO, 0O0,0 900 is preferred stock, cumu-
lative at per cent, and $60,0OOOOO
common stock, limited to 10 per cent,
and also $4,000, 900 in collateral trust
~ per cent debentures.
The White Star lines acquisition is
antedated to Jan. /, 1901, the combine,
or corporation, as it is termed, taking
all the lines profits from that date.
The White Star line shares are ex-
changed on the basis Of ten times the
net profits made by that line in 1901.
The arrangement made with the Do
minion line is similar to that made
with the White Star line, but on the
het profits for 1900.
The American and Transport lines
are Jumped in one valuation at 1884,
$4,000, subject to $19,688,O0O Of the
American lines per cent bonds. The
Lsyland line is valued at 81, 736, 900.
Method of Payment.
The method of payment is as follows:
White Star line, 25 per cent cash, rs
per cent preferred at par and 37h per
cent of the total amount in common
at par.
The Dominion line payment is exact
ly the same, and the American and
Transport lines get between them $751;
$4,000 in preferred, $915. 100 in COM
mon, $15, 844, 900 in cash and such fur
thor cash as may be required at rate
not exceeding per cent.
The Leyland line gets $11, 900
cash and the remainder in capital
stock, and the bonds 60 to the vendors,
who, however, contribute to the cor
poration az working capital $4,000 in
preferred and $6.643,OOO in common
stock and "are to transfer 1t to the
syndicate II and when formed by the
bankers-viz, the Morgans-for $780,,
00O,O0O cash and in full payment for it's
services the said $50,000,0 900 in deben.
lures and also $2,5O00O0 in preferred
and $25, OO0,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 their interest shall be delivered by
Dec 81, 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 neces'
sary three-fourths of their companies
stock.
The Morgans Were Kept Busy.
The agreements would have been
broken had not the Morgans formed
the original syndicate Of $4,000, 900
cash prior to April 30, 1902.
All the purchase prices include the
ships building. The White Star own
ers, though declaring that the line has
been carried on entirely at the risk Of
the purchasers since Jan. 1, 1901, agree
until the completion Of the purchase to
carry on the business Of the line. For
their personal services the sellers "are
to be paid such amount in remunera-
ton as shall be fixed by j. Pierpont
Morgan of the city Of New York"
The following important clause &C.
ours at the end Of the White Star
agreement:
"Inasmuch as the company is Eng
lish and domicjled in England, all ques-
lions concerning toe sellers arising I'M
der or pursuant to this contract shall
be controlled or decided by English
law"
The agreements cover many printed
pages and include intricate arrange
ments anent the White Stars affiliated
interests and minute directions regard
ing valuation.
An additional paper, called build
ers' agreement, is appended, in which
the Morgans bind themselves to give
Harland & Wolff all orders for new
vessels and all heavy repairs that re-
Quire to be done at shipyard Of the
United Kingdom. Nothing herein con-
tanned, however, shall prevent the pur-
chasers from placing orders for new
steamers and repairs at shipyards in
the United States"