New-York tribune., 1920-11-22
Government OF
Japan Favors
A Ship Merger
secretary of Marine Said To
Be Sponsor for Proposed
Amalganation of Leading
Japanese Shipping Co.
May Organize TwoCroups
Aggressive Marine Policy of
United States Is Thought
Responsible for the Plan

That the Japanese government is the
,1onsor for the proposition to effect an
,nslgamation of the leading steamship
ines Of Japan is indicated by Japanese
,hipping papers received here.
According to these the suggestion for
merger originated with S. Wahamiya,
ne Secretary of Marine, and the mat
,,r has been under consideration by
n, lines for some time. No definite
decision appears to have been reached,
however.
Tie original proposition seems to-
have been for merger of practically
all the leading shipping interests into
one concern, but this plan appears to
have met with considerable opposition.
snd it is now reported that if there is
any an,slgamation it will probably take
the form Of two distinct groups. At
would be the Nippon Yusen Kaisha of
Toxic and the Kokusai Kisen Kaisha
Of Kobe, while the other would be
headed By the Togo Kisen Kaisha and
,he Osaka Shosen Kaisha In this way
each group would include large pas
ssnger line and one chiefly engaged in
cargo carrying.
Leading Interests Involved
Discussing the situation, The Nauti-
cal Gazette points out that the Nippon
snd Osaka companies have important
European connections, while the chief
run Of the Togo Kisen Kaisha is from
Japan to San Francisco and thence down
the coast to South America. The Koku-
sa Company is a combination of ship
builders and ship owners entered into
after the armistice.
There is little doubt in the minds of
American steamship men" says The
Nautical Gazette, that the American
merchant marine act has something 70
20 with the proposed Japanese amalga-
nations. With the determinations of
the Jones act looming ahead, coupled
with period of lower freight rates and
ksener competition, 1t is believed that
the Japanese government, whose views
90 long way, desires the Japanese
lines 10 prepare for rainy day.
hitherto there has been good deal
Of competition among the Japanese
lines themselves, as we'll as between the
latter and stieh foreign competitors as
the Blue Funnel Line, Canadian Pacific
Ocean Services, Pacific Mail, and lat
tsry the companies operating Shipping
Board tonnage on the Pacific. With the
advent Of the Shipping Boards passen-
ger liners to the Pacific in the near fu-
ture, to be operated by the Pacific Mail
and the Pacific Steamship Company,
this competition will be enhanced.
After South American Trade
Zone view put forward here is that if
the Japanese find themselves seriously
affected by determinations, they might
concentrate on South American rather
than on North American connections;
and strive to take as big part as pos
sble in foreign trade there"
Quoting the manager of a Japanese
steamship company here, The Nautical
Gazette says that he see difficulties in
the way Of the proposed amalgamation
and that he does not think that the
japanese government is as enthusiastic
About the plan as it was formerly.
1T is, of course, desirable to effect
economies and avoid waste and dupli-
cation" the Japanese manager is
quoted as saying. "The Secretary of
Marine, | think, has observed that
British shipping companies and other
foreign companies have undergone u
considerable degree of amalgamation
and no doubt he thinks that some
amount of amalgamation would be a
good thing for Japanese shipping also,
out am afraid he has approached the
matter In rather an academic or theo-
fetical way So far he has not worked
ous any definite, concrete plan"