Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1903-01-17
> DEFENDS SHIP TRUST =
Lord Charles Beresford's Views on the Big
Combine ~ ~

When the projected scheme generally
! known as the Atlantic shipping COM
bine' first became realized by the Brit
ish public, an excitement amounting to
alarm was created among our people
(English), says Lord Charles Beresford,
vice admiral of the British navy. in the
New York American and Journal
Personally l shared very strongly in
the anxiety that was prevalent when
first the project of the combine became
an accomplished fact, but this anxiety
was not SO much based on the kroba-
bilities as the possibilities of danger
| that threatened British trade.
| 1t has been suggested that Great Brit
ain should have adopted a bounty fed
| policy for her own ships in order to
compete against the Atlantic combine
but such policy would have been alb
solute madness, as any idea of a COM
mercial war against the combine would
have set the whole American people.
who are now more or less divided in
opinion on the subject, against US, with
| the result that as their capital is float
ing and not largely tied up under truS-
tees, as in The case of the British ma
ton, they could have made q gigantic
combination of financiers, who. be it re-
membered, control the railways, and by
this combination have built Il feet Of
their own. Then by giving a bounty
to this fleet, with the object of reducing
freights, British shipping must have
been driven off the Atlantic. Surely it
pri4 iSh iair
partnership with the American finan-
ciers and divide the profit than to en-
bark on the mad policy of commercial
war.
We have no right in these days to
think that we should have the monop-
oily of the carrying trade of the north
Atlantic. a largely increased part own
eTship, automatically created by the
strongest ties possible Chose of natural
interest in commercial and part owner
ship in great commercial undertakings,
must perforce make other nations
prouder before they attack either one
or other of the English speaking ma
tons. for fear an attack on one might
1t may be said that the combine is
overcapitalized and therefore can new
err pay the shareholders, but the capital
sum paid was not made out on the
value of the ships. but on the value of
what those ships earned. The Ameri
cans are shrewd, hard headed men of
business, and we may depend upon it |
that they knew what they were about |
when they paid so high price for the
British shipping. From a business and
commercial standpoint the combine
would appear to be absolutely sound.
The principal danger Seemed to be !
that as those financiers connected with |
the shipping combine are also connect |
ed with the American railroads they |
might control the water borne traffic |
by giving the combine shipping prefer |
ence in exporting the products of Amer |
lean trusts to this country and so plac- |
ing at n disadvantage the British pro-
ducers. This would be rendered all the |
more easy as the combine owns the |
terminals.
First, to refer to the advantages which |
lie with the British companies, the
suggestion of the American tinancierS |
was that the British companies be paid
one-QuaTter in gold and three-quarters |
in & per cent cumulative preference
shares. The Americans paid, the Brit
ish received. The creation of the trust
will give a distinct guarantee to the
British merchant that there shall be
stability in freights. Sta
bility will stop speculation in freights.
which is merely taking a gamblers
chance.
There can be no monopoly in freights,
as British firms could build similar YES
sells to all those bought by the combine
for one-third of the price those vessels
cost and the newly built vessels would
be modern ships with all the advan
tages of coal saving engines and extra
speed. Again, if an attempt was made
to raise freights shipper could buy
ship of 5000 tons for about 100000 and
ship his goods Immediately Such a
vessel is easily procured, as it does not
a great capital.
There will be an enormous saving in
expenses, amounting, it is said.
to a sum of from < to s per cent. This
saving will be effected in the following
particulars:
First-Cheaper administration in the
number of officials.
Second.-Less cost for repairs and main
tenance. all being under one head. and
Third.-One policy under one admins
tration.
Fourth.-Better service, regular period
cal sailings instead of three ships sailing
one day and none on days following
Fifth.-Economy in agents, houses, Of
fees and work.
Sixth.-And, most important of all, the
possession of the terminals.
1t may be asked, If the British gain
Ill these advantages, what advantages i
accrue to the Americans from their
arge expenditure of money?
First.-They have bought the good I
will of a growing concern with enor- |
nous connections, and besides the ac-
-ual shipping they derive the benefit {
IF retaining the services of the cap I
aims, officers. including engineers and
.rews, of the lines accustomed to run
between England and America.