Evening star., 1932-02-28
SHIPS Of WORLD
IN MERGER TREND
u. S. Participates in Move to
Reach Profit Basis or
CurtaiI Losses.

Important ship lines, in an effc.-t to
make a profit or at least reduce losses,
are reported in a worldwide move
ment toward mergers, it is reported at
the Commerce Department.
The fusion Of several Italian lines
has been the most spectacular, and the
United States has participated in the
movement in the combination Of tha
Dawson. Dollar Roosevelt and Interna-
tional Mercantile Marine interests.
Important consultations have taken
place in France also, while in Japan
there have been Affiliations rather than
mergers. The movement is said TO
have originated in the merger nearly a
year ago of the German Hamburg
American and Lloyd groups.
Results Still Undecided.
Department officials say the move
ment has not been under way long
enough for definite results to become
apparent, and they are unable to de-
termine whether the desired economies
have been realized and have brought
improvement in the position Of the
merging lines.
MonopoliStic control of trade channels
has not developed, it is said, as the
mergers have been along national lines,
with international competition still in
effect. 1t is explained that monopoly,
moreover. would not mean necessarily
that ship line could maintain rela-
lively high rates, for these almost in
variably must change with revisions in
commodity prices.
According to department records, the
most important Italian navigation COM
49, 1Iytz-<l H..
that country. The merger creates two
groups, the first including Lloyd Sabau-
do, Navigazione Generate Italiana, and
the Cosulich Lines. The second group
is comprised of the Sitmar, Lloyd Tri-
estino and Martina Italiana. Under
the coordination scheme the first will
be called Italia" the second Lloyd
Triestino."
Operates 81 Vessels.
Italia involves q capital Of nearly
$40, 5000 and will operate 81 vessels,
including the Conte Biancamano, Conte
Grande, Augustus, Roma, Saturnia, and
Vulcania, all Of which have been oper-
ating in the transatlantic service.
Lloyd Triestino, which already holds
all the shares Of the Martina, accord
ing to the department, will openly as
sumo its operations, and the Sitmar viii
completely disappear.
1t is pointed out that the Importance
Of the lines in the merger Is shown by
the fact that the two groups between
them, have SO per cent Of the capital
invested in shipping in Italy, So per
cent of the Italian Mercantile Marine
by value, are responsible for II per cent
of the profits made, and own practically
all the large Italian steamships now IN
service. All the companies concerned
were more or less controlled by the
Banca Commerciale Italiana, and had
largely interlocking set Of directors.
5O-Year Agreement Ended.
Available records show the German
action which marked the advent Of the
merger movement was the conclusion
of a 50-year agreement between the
Hamburg-American and North German
Lloyd Lines Under it's terms the lines
were to apply their entire economic ac-
tivities, without consideration Of prece-
dence, to mutual help and support from
common point of view and In COM
plete cooperation.
The companies were to remain inde-
pendent, with seats in Hamburg and
Bremen. They were to preserve their
character by separate councils, the ma
jority Of the members Of which were to
be domiciled in the two cities. A COM
plete union of interests took place in
the directorates, the division of total
revenue. and operation Of vessels.
The French agreement involved the
Chargeurs ReuniS Of the Fabre group
to share certain expenses and services
for the common good.
The Fabre group, now the most
powerful In France, started in the
Mediterranean by the amalgamation Of
number of companies. Little by little
it extended its operation to the Atlantic
and the English Channel. Several years
ago it annexed the Compagnie des
Chargeurs Reunis.
Super lie de France.
The Compagnie Generate Transat-
lantique Is better known to Americans a.
the French Line, operating the he de
France, Paris and France on the New
York -Havre route. To these the Super
lie de France will be added, and it Is
now being built.
That the entente is Of moment to
French shipping is shown by the fact
that the companies involved control 40
per cent of the total shipping tonnage
under French registry.
An alliance was formed In Japan by
the two foremost steamship lines, Osake
ShoSen Kaisha and Nippon YSen
Kaisha, each of which has well estab-
lished sarvices to all parts of the world.
Elimination of duplication of services
on various routes was reported as one
purpose.
After agreement was reached by the
two large companies cooperation be-
came prevalent in Japanese shipping
and five of the largest companies In
Japan, Kokisat, Kawasaki, YamaShita,
Diado and the shipping department Of
the MitSui BuSSan Kaisha, formed
cooperative society. The organization
wa created with a view to eliminating