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AARINE REVIEW Entered at Cleveland Post Office as Second-class Mail Matter. Published every Thursday at 418-19 Perry- Payne Bldg., by the Marine Review Pub. Co. Vou; XX; PROPOSED COMBINATION OF LAKE SHIP OWNERS. In the past few years the so-called independent vessel owners of the lakes--those who have no connection with the ore companies or railroads --have made several attempts to pool their interests or enter into agree- ments relating to freights. All movements of this kind have failed. On Wednesday of this week, however, a meeting was held in Cleveland and initial steps taken for the formation of an organization that may be effec- tive. There was certainly more enthusiasm and more show of earnestness than has ever existed on similar occasions in the past. It was shown that the number of owners required to enforce the payment of profitable rates is much smaller than in the past and is getting smaller each year; that in fact less than twenty of the larger fleets could hold out for fixed rates and enforce their demands. Extended discussion at the meeting brought out the fact, already well known of course, that with the present outlook for business there is far more vessel capacity than will be required for the coming season; that the individual owner will get. as far as the ore trade is concerned, only what is left after the United States Steel Corporation fleet and other vessels owned by the ore companies are provided for, and that these vessels going up the lakes light will move in a full season more than 11,- 000,000 tons of ore. It was further evident that in view of contracts made some time ago with the Rockefeller fleet at 50 cents a ton free, which would mean about 70 cents including the unloading charge, an effort would be made by the ore shippers to close season contracts at about that same figure. This would mean very slim profit for the best of the steel freighters, with no chance of profit at all for the smaller vessels unless they were favored by much higher coal freights than are expected. The natural conclusion is that a combination on the part of the indi- vidual owners is their only redemption. The outlines of an organization to control freights were accordingly planned. A board of directors of fifteen owners from different ports around the lakes was selected, and it was agreed by those present that for ten days, pending the perfection of details. no ore business should be accepted at less than 90 cents from the head of Lake Superior, 80 cents from Marquette and 70 cents from Es- canaba, and no coal at less than 50 cents to either lake Michigan or Lake Superior ports. It is proposed now to bring this board of directors to- gether in Cleveland as soon as possible and from them select a small executive committee that will be given full power to act promptly on all business that may be offered to the ships. According to the scheme a commissioner, or general manager, will be appointed ar a liberal salary and through his hands all contracts or charters must pass. The broker is not to lose his place in representing the ships with which he has deal- ings, but all his charters must be made through the commissioner. The plan as regards season contracts is to pro rate all such business among members of the organization. Such a scheme could, of course, be carried out if honestly entered into by even half of the individual owners. A few vessel managers say they will stand by the organization even though they are supported by not more than a dozen of the big fleets. The success or failure of the movement will undoubtedly be speedily determined, as it is probable that ore shippers will be selling their product quite largely within the next two weeks and will soon take up the question of lake freights. STEEL CORPORATION APPOINTMENTS. The announcement, immediately following the first meeting of direc- tors of the United States Steel Corporation, that James Gayley of the Carnegie Co. had been elected first vice-president in charge of mines and docks of all the companies is of special interest in the great lakes region, as it means that he is to be the active head of all matters pertaining to raw material in the big organization; that he is to have charge of the vast iron mining and transportation interests and that naturally the present Carnegie organization will predominate on the lakes. Mr. Gayley was for some time in charge of ore and blast furnace matters for the Carnegie Steel Co., and was later given supervision of the iron mining, dock and vessel interests of the company. As regards the ships--112 steel vessels owned by the corporation--no announcement has been made as yet, but Mr. Gayley's appointment still further confirms the belief that they will not be given to an agency but put into one fleet and managed under Mr. Gayley's supervision. It is natural to expect also that in the selection ot 'a manager for the ships, if he has full say in the matter, Mr. Gayley will turn to the present Carnegie organization on the lakes. The present managers of the different fleets say that if required their entire business oe could be fully turned over to a new single head within a couple of days. Other new officers announced after the first meeting of directors of the steel corporation are W. R. Walker, consulting metallurgical en- gineer of the American Steel & Wire 'Co., to be second vice-president, and as such superintendent of works operations, and W. P. Palmer, presi- dent of the American Steel & Wire Co., to be third vice-president in charge of sales. Mr. Walker's experience has been largely in blast fur- nace and steel works operations. Third Vice-President Wm. Bo Palmer is one of the best known men in the steel trade of the country. He was assistant to the president of the Carnegie Steel Co. in President Lovejoy's administration. Later he became vice-president of the liunois Steel Co. and then in turn general manager and president of the American Steel & Wire Co. All the selections thus far made for the management of affairs of the big corporation are of the very highest order. The policy of the corporation as announced is to leave each constituent company with its own set of officers, but all subject to supervision from the corporation's officers in New York, CLEVELAND, O., APRIL 11) 701, Subscription $8.00 a year. Foreign - $4 50 a year. No. 15 LAKE INSURANCE MATTERS. Vessel men are hoping, in view of the activity prevailing among representatives of the insurance companies, that they will be offered, be- fore navigation is fully opened, some reduction from last year's rates of insurance. As yet, however, the only basis for their hopes is the division of interests soliciting the business, which means more competition on this score if not among the companies that actually take the risks. Prominent among agency and brokerage interests that will be seeking the business this year are Smith, Davis & Co, of Buffalo, with C. W. Elphicke & Co. of Chicago and David Vance '& Co. of Milwaukee; Johnson & Higgins of New York; W. A. Prime and J. G. Keith of Chicago, representing Chas. E. & W. F. Peck, and the new combination in the Sea & Lake Insurance Co., which will include Geo. L. McCurdy of Chicago, Edward Smith of Buffalo, Capt. D. Sullivan of Chicago, and others. Mr, Mc- Curdy, who is a leading spirit in the new company, says that although its beginning is not with large capital, and its place may not be one of great importance this year, the principle of including ship owners among the stockholders involves conditions that seem certain to result in a broad development of the company. More may be said later on of the plans in this regard of promoters of the company. The new organization is in- corporated under the laws of Virginia with a capital stock of $500,000. The incorporators are A. B. Wolvin of Duluth, Frank J. Hecker of De- troit, James _C, Wallace of Cleveland, George L. McCurdy and Dennis Sullivan of Chicago, Edward Smith of Buffalo, Charles A. Eddy of Bay City and William E. Fitzgerald of Milwaukee. The first meeting of stockholders was held in Cleveland on Tuesday and the following officers were elected: R. R, Rhodes, Cleveland, president; Col.) FJ: Hecker, Detroit, first vice-president; Dennis Sullivan, Chicago, second vice-presi- dent; Col. George A. Garretson, Cleveland, treasurer; Scott J. Dow, Chicago, secretary; George L. McCurdy, Chicago, underwriter. Members of the executive committee are R. R. Rhodes, Col. F. J. Hecker, Dennis Sullivan, J. C. Gilchrist, Edward Smith, A. B. Wolvin, W, E. Fitzgerald, Charles A. Fddy and W. L. Brown. The home office of the company will be in Chicago. ' GREAT LAKES TOWING CO. IN FULL GONTROL. ~ It has been known for two or three weeks past that the Maythams oi Buffalo, who undertook opposition last year on quite an extensive scale to the Great Lakes Towing Co. were negotiating a sale. After a- year's struggle with quite a heavy loss (on both sides, of course) the Buffalo competitors of the tug consolidation found that in another year they would be called upon to meet a treasury fund of nearly $100,000, which the con- solidation had withheld from last year's businéss to meet competition; that the consolidation had all its property paid for, while they were very largely in debt for their tugs, and that the support of the big vessel in- terests was almost entirely with the consolidation, on account of Great Lakes' stock being held in large quantities by these interests. These conditions were, of course, discouraging to any Opposition, no matter what its strength might be. It is not surprising that the. Buffalo people were willing to give up at the best terms they could make, The sale was practically completed at a-meeting in Cleveland Tuesday. The terms are not given out, but they are undoubtedly of a kind that will not prompt other opposition in the near future. The absorption of the Maytham company removes practically the only opposition which the Great Lakes Towing Co. had in the towing business. When the Great Lakes Towing Co. was organized and the Maythams originally absorbed it was understood that they were not to engage again in the towing business for five years; and the towing com- pany claims that the organization of a new company bv. them was a viola- tion of the agreement. This was another source of disadvantage to the Opposition as the matter was in court. REDUCED PRICES FOR IRON ORE. A meeting of the producers of Bessemer ores was held in Cleveland on Tuesday and the price for all standard Bessemer ore was fixed. The base price agreed upon for 1901 is $4.25 a ton. The base ore runs 63 per cent. iron, .045 phosphorus.and 10 moisture. The relative price of all other ores will be based upon this. The question of the settlement of price was left entirely with the independent owners, the United States Steel Corporation taking no active part in it. This is most significant and shows that the corporation intends to conduct its affairs conserva- tively. It controls by far the greater part of the Bessemer product and could have ruled the price had it so desired. The base price is $1.25 a ton lower than it was last year. Non-Bessemer. ores have already been sold in quite large quantities at $2.90 to $3 for ores that sold at $4 last year, The ore dealers say that the old range production will be about what it was last year, but of Mesabis there is, of course, considerable un- certainty at this early day. Considerable ore of all kinds will undoubt- edly be sold within the next two weeks. The new torpedo boat destroyer Goldsborough, recently finished at Portland, Ore., in her second trial over the prescribed,course in the harbor at Seattle attained a speed of 31.84 knots, the requirement being but 30 knots. The builders are much pleased with this success and claim that the boat has broken the record for her type, which was formerly held hy the Dee: The engines and boilers worked to perfection. Cardiff coal ed. Mr. George W. Brown of Portland, Me., is endeavoring to enlist capital in an enterprise to establish a dry dock and ship building plant in that town. He lately visited New London and was much impressed with the plant of the Eastern Ship Building Ce, ~