Martinsburg herald. [volume] (Martinsburg, W. Va.) 1881-1920, 1903-01-10
THE SHIP TRUST
lord Charles Beresford's Views on
the Big Combine
MAKES REMARKABLE RECORD
British Vice Admiral SAYS Atlantic Shipping
Combine Win Be Beneficial 10 England
and San Insure Peace Of the World.

Combine VIII Be Beneficial 10 England
and San Insure Peace Of the World.
When the projected scheme generally
known as the Atlantic shipping com.
hiae'' first became realized BY the Brit
ish publlc. an excitement amounting to
alarm was created among our people
tEnglishl, says Lord Charles Bcrcsfprd,
vice admiral of the British navy, lii the
New York American aud Journal.
Personally | 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 lroba-
bilities as the possibilities Of danger
that threatened British trade.
The principal danger seemed TO be
that us those hnanelers 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.
enee In exporting the products OF Amer
lean trusts to this country and SO plac-
ing at a disadvantage the British pro-
ducera. This would be rendered all the
more easy as the combine owns the
terminals.
First, to refer to the advantages which
He with the British companies, the
suggestion of the American inanclers
was that the British companies be paid
one-quarter In gold and three-quarters
in 0 per cent cumulative preference
shares. The Americans paid, the Brit
ish received. The creation Of the trust
will give q distinct guarantee to the
British merchant that there shall be a
reasonable stability IN freights. Sta
bility viii stop speculation IN freights,
which Is merely taking d gamblers
chance.
There a be no monopoly In freights,
as British firms could build similar yes
sells to al those bought By the conAAine
for one-tlird of the price those vessels
cost. and the newly built vessels would
be modern ships with nll the advaD-
tages of coal saving engines and extra
speed. Again, If an attempt was made
to raise freights a shipper could buy a
ship of 5000 tons for about 100000 and
ship his goods Immediately. Such a
vessel is easily procured, as it does not
represent a great capital.
There will be an enormous saving In
working expenses. amounting, 1t is said.
to n sum of from : to 8 per cent. This
saving win 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 a
reduction In the number OF workshops.
Third.&One policy under one adminis-
tration.
Fourth.-Better service. regular period
icai 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, II the British gain
accrue to the Americans from their
large expenditure of money?
First-They have bought the good
will Of a growing concern with enor
nous connections, and besides the &C.
tual shipping they derive the benefit
Of retaining the services Of the cap
tains, officers, including engineers and
crews, of the lines accustomed to run
between England and America.
Second.-The Americans also gain the
advantages Of all the details already
enumerated as gains to the British,
with the exception Of the price paid for,
the shipping and good VIII.
II may be said that the combine is
ovcrcapitalized and therefore al new. |
or 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 III
that they knew what they were about
when they paid SO high a price for the
British shipping. From a business and |
commercial standpoint the combine
woulc appear to be absolutely sound.
IT has been suggested that Great Brit
ain III ould have adopted a bounty fed
policy for Her own ships IN order tc
compete against the Atlantic combine, |
but such a policy would have been alb
solute madness, rs any idea Of a com
mercial war against the combine would
have set tile 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 MOI largely tied up under trus-
tees. as in the case Of the British ma.
ton, they could have made a gigantic
combination of financiers, who, be it re.
mn,nhnrnn cnnfrnl the rnilwaYa- and by