New-York tribune., 1907-07-14
BRITISH TRUSTS.
Ho5a Shipbuiid'ng Is Systemotized
-rjtb The Help Of Subsidies.

-l business IN Sheffield in small way and
--.z.,arrz came n have Importance as rarufact-
-. ~ ar~ror plates and active competitors Of
-~. yi-gers- Sons & Maxim When their
--.,s+ooz over great shipyard and naval con
,-,ior rlart - Barrow the Brown corpora
-. abreast Of them hy acquiring the
l,.sabark works. between Glasgow and DUN
-, The Thomsons had esta bIished a shin
.a-5 IN the Clyde fifty years before this amalga-
.s,ton and subsequently engineering works
,,arA added, the capital was increased and feet
of runarders battleshipz arnored cruisers and
cargo vessels was built The business had
reached scale of magnitude which rendered a
combination with manufacturers Of arnor and
shin plates indispensable. \ new company was
formed which could provide a single manage
rner- for the ioint business and there was 4
subsequent ANA lgamation with the Flrths, of
Sheffield by which an enlarged supply Of ship
building material was obtained. Nessrs John
Brown & Co by this time owned iron mines,
Co-leTies, hast furnaces, sreel works. sEipyar1s
engineering plant and factories for making forg-
1ngs, castings. shafting. cables and everything
required for q ship From their own resources
they could convert iron and coal from their
mines into modern turbine liner and A0atjns
palace like the Luslta MA Combination had
hAen carried long way. but il was 70 60 fur
fher In Belfast there were extensive shipyards
and engine works. where luxurious steamships
were supplied for the Morgan shipping oon7bina-
+i0n- An alliance was 10 be- arranged between
Clydebank and Messrs. Harland & Wolff for the
profitable distribution NJ business between t'A
+v-o rival shipyards
The details OF rhfs partnership between two
great corpora tons nave nov hp=n disclosed ar-
th0rttatively. It is NOT known whether the first
slvsrces came from Cl-GeNark. or whether the
rrrLLng arrangements We're forced upon the
Belfast firm by competition from the Scottish
vzr5 which had behind i immense masses Of
capital and all the mechanical processes in
vo1ve5 IN the production II ocean liners and
v-z-zrirs. The coalition Is described not IS an
sr-algarlarion hut As an exchange Of Ger
ra5n proportion II shares in the two firms by
which cooperation in finance and business viii
r secured. As the share Cauital of Nassrs.
John Brown 4 CO Is - he increased for the
necessary issue. they may he regarded as the
rurchsse-s. while Nsssrs Hariand & Wolff are
The venders and are paid in ordinary and pref
ere~rA shares of the united corpora tons. In
this 7-av the most resourCefu and powerful
sr+rruil6ing combination in the world has been
formed. with r1inas. colleries. blast furnaces,
sree1 works and factories behind IT. and with
rsvr0Il ~ over thirty thousand men L can
stz=If Supply material fcr the rostliest ocean
liner ~ tie most Formidable battleshir without
going iuro market, and Il has mastered the de-
tails II turbine engineering. 50 as 70 produce
improved Lusitarias a. rapidly IS they are
wanted TIE pooling of the interests Of these
-7,o vast urdertah kings. following n series Of
ooubt-attors and enlargeuenrs ~ plant and
business. creates shpbunding INDUSTRY ur-
rfvaIe6 in Europe v-herhA~ in financial or ne
7ra e4er-aof arnalga nations - powerful syn
drates Tor the production Of ocean steamships
and way vessels is interruption 0f the free
forces n competition. These forces were for
.ne-lv considered essential 70 the maintenance
of -re-erlfrerce II sea The ne~ theory IS that
.rrer.aL prestige requires concentration = re-
sources The shirvards must have raanufact-
ures n armor pl:te. gun metal and material ot
I'll kinds behind them or they will not he
s7-,f-rz5 for effective service on an economic /
f,r- ~ a-e~aro7 for r-1r-a' heraft Al the in
drstrfee which ~ IN with one another must b
brought under a single management, 50 that
r,aruta ac-1rers' profits MAY he saved. brokerage
snd r~cr7or;on expenses b. r@duCed ana the
business n naval construction ne fnofonEFls
s,-s-e-rs-,zed There will be 10 change in the
sdrair!srrario1 of the Belfast and ClydenanE
corrrr7-.o1s hut they VIII have 2 common hase
of srrrlies will avoid the necesslrv Tor durcat-
i-g certain classes Ct plant and viii re operated
ss 2 ,-f~- interest The subsidiary companies a.
Sheffield a-1 Coventry vvil' have an enlarged de-
r1ana for their products business viii be dis
-rlbuted between the shlpTards on natural mes
s-5 -ra re-r repairing plant ~ southampton
conducted as AT annex FOR each. ana "heh ne
,e,- --l,= e-e rcr7-le-ed for the allied coventry
r-drsr~e and FairchiId Companies "arshlps can
* r-oytd=6 with guns and Uountnss as wen a.
s-rrc- rlate without outside contracts Al1sSt9
John Brown &, Co can build and arm q ua''i.
shir es or--rlex and experimental as the Dread
ro-g+. v--rC71r engaging special engineering tai
ent or purchasing material IN the open rnaIHe'-
Thev win rs on the same footing as the Arm
r-rongs n Newcastle. or Messrs Nickers sons q
NFsyi-7 - Barrow IN undertaking nafai con
srrjctior and they will have unsurpass-a =.
so,,-cee fr- building the fastest and most luEuTl
oys ocesn liners Work formerly suD1iNi'i
ans 5is--frr,red among many firms and corpora
,iors * nov under common systernatlZ@l MN
sgerne-- Resources are concentrateo- c9i'pe'i-
ton * Diminished and the cost ~ cohs'' UCril'
Is cheepened. According 70 Old iasLi"@nst NJ -,
dsri,ee rrars "a sacrifice q principle but IRON
ne nav tangled irnperialist.s poln' - .s-.I
ia GAR in Industrial efficiencV ana ra
prestige ,s ,,or,
Wrer these combinations of capital ana plsi-'
tor ne regulation OF a complex business az
critically examined. II becomes eFlaelI
trusts o. the American scale are nov i'll
n Free Trade England. The shlpbu--c'-i6 -,
Fanles Ike the steel producing corpor tio.lS' To-.
srA r,o,irg tsej~ business interests and sharlhS
the benefits Il scientifically regulatea mo -s'
Belfast e the shipbuilding base OF ule ~
can shipr5trg combination now dlfec's1 10y
White Star Line. is 70 be converter li-'C - a
station of Clydebark. where the Gisa --,.L
erg can be hiit under government SUBSIDY "l'n i
The rrsa-z-av5irg thar American influence VIII
Be excluded from the management - -, &C
IVES q noenace % American control as ven
ownership Of vast British steamshlP lh'e. -!
the government sprang 70 the deiehce "a
nations maritime prestige and conud,'' 80
subsidies we're authorized by when the l'''
leadership might be regained- Inc NV -
binauon offers practical proof tha' nc - q,
shipping trust and the subsidized nome IL
oustres are now regulated for tle con'tO
the shipbuiIding industry, 50 thar tI-e pi55
eud the fastest liners can be deslsHeI
-launched more economically here than IN any
ether country This result is accomplished ps
combinations ~ caritaI and concentrations "i
Industrial resources v.n{ch virtually reproou'e