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ENGLISH VIEW OF.THE SHIPPING COMBINATION. The Engineer of London discusses the steamship combination in the | following language: ' ' Within the last few days it has been announced that a "combine'-- purists must pardon us for using an Americanism to avoid an ellipsis--has been formed in the Atlantic shipping trade. Mr. Pierpont Morgan appears to play once more the part of deus ex machina. Of the details of the ar- rangement we cannot write. Nothing, indeed, has been made public. Liverpool and New York are alike full of assertions and contradictions. The broad facts tend to show that certain of the leading Atlantic steamship companies, with the exception of the (Cunard Steamship Co., have entered into some form of agreement with American capitalists which will give Americans the control of the Atlantic trade, although the ships will con- tinue to sail under the British flag. At any moment, we are assured, the Cunard company may join the combination. The two principal German Atlantic companies have entered into mutual arrangements; and although their ships will not be under American control, they will act in all respects as though they had followed the example of the other great shipping com- panies. Liverpool, we are told, is seriously threatened, for Southampton is to be made the principal port of call. Much more than this has been said both in American, German and English papers; but at the moment nothing is known with certainty beyond the few meager facts we have stated. The first question--indeed, the only question. of paramount importance that can be asked--is, what will.be the effect of the combination in this country? In dealing with the problem it will be advisable to leave senti- mental considerations on one side; they can help not at all, and they may lead to mistakes. No doubt it is unpleasant in various ways to learn that the control of a magnificent enterprise, wrought out through years of toil by Englishmen of superlative ability as engineers, as ship builders, as traders, should pass into the hands of Americans who have contributed in no way to the development of the entire splendid system; but hard facts. have little to do with sentiment. We conceive the position to be very simple. For years past various Atlantic shipping companies have been competing; they have been heavily handicapped--trightly or wrongly--by British shipping legislation; the ships have not been worked in the most economical way, and the profits earned have paid but meager dividends. Mr, Morgan, associated with two or three others only second to him in influence, appears to have the power of obtaining from American capital- ists unlimited sums of money. The United States is an enormously wealthy country. Mr. Morgan, holding that the railway companies in which he'and his following are interested would be placed in a better posi- tion if they had more control of the Atlantic trade, and holding that the shipping business can be managed in such a way as to earn substantial profits, has carried out the arrangement meagerly but sufficiently described above. At present nothing is known as to the actual amount of money expended. Mr. Morgan could not obtain the control he desired unless he was in a position to acquire. shares; and the probability is that he and his syndicate have bought very large blocks of shipping companies' shares at high prices. It remains to be seen whether the result will be a pecuniary success. It is stated, indeed, at the other side of the Atlantic, that Mr. Morgan has greatly over-capitalized the steel trust. It is not improbable that we shall hear the same thing said of the Atlantic union. Only time can settle whether Mr. Morgan has or has not paid too much. It is..very. difficult to say. with certainty. what the effect of competition has been hitherto in reducing profits. No doubt, if ships were run with half car- goés and many empty staterooms and emigrant berths there would be a loss, which might be avoided by reducing the number of boats run in any on@ week or month or year. We fail to see how a loss or a very small profit can be turned into something fairly remunerative in any way but the one. Such sailing arrangements must be made as will ensure the ships being full. The system would be like that carried on by the owners of the - pleasure boats at south coast watering places, who will not sail until they have a'sufficient number of trippers on board. Instead of a steamer_or two a day from Liverpool we may have but three or four a week. Our readers can easily carry out this line of argument for themselves. | We have next to consider what the operation of the monopoly will be. To all intents and purposes this consolidation of the interests of lines hitherto competitive will constitute a monopoly. We constantly hear it said that a monopoly must be mischievous; that it is ruinous to trade in the long run, and very bad indeed for the consumer. Is this really the fact? We can name various branches of trade which very closely resemble monopolies, but it would not be easy, we think, to prove that they have done-harm. In fact, it admits of proof that, unless monopolies are recog- nized, trade languishes and enterprise is killed. A very remarkable ex- ample of this kind is supplied by the slow development of the electrical industry in this country. There was plenty of capital available, and one scheme after another for electric lighting was proposed, but they all came to nothing, because parliament, fearing a monopoly, insisted on giving municipalities compulsory purchasing powers, to come into effect within a few years. The result was fatal, and until a change was made, granting a monopoly to each company for a reasonable term of years, nothing was done. If Mr. Morgan and his syndicate can cut down working expenses and the cost of transport between this country and the United States, the result on the whole ought to be satisfactory. We do not for a moment think it is likely that the result of the transaction will be to make Aante transport more expensive, or less facile. It is quite possible that speeds may be cut down, but even that is doubtful. : _ Two other questions suggest themselves, and they are noe First, how shall we stand with regard to the ships which have been built and fitted by arrangement with the admiralty, so as to be available as aux- iliary cruisers during time of war? Next, how will the new combination affect the royal naval reserve? It may well be that its effect will ne Stadually to substitute American seamen for men of our nationality, an SO narrow very seriously our recruiting area for the reserve. As matters stand now it is difficult enough to keep up the reserve and any contem- Plated change which would tend to throw obstacles in the way of manning the fleet must be carefully watched. We hope that satisfactory replies: £9 ese questions may be forthcoming. It may very pertinently Pe as a Ow it came to pass that the companies concerned did not amalgama ; long since in their own interests without American aid? The, answer mus be, we thik, that the dominant influence of.a master mind.awas, lacking: Alfthe great Work' Sf the world has been done 'by a very few men, The MARINE REVIEW, ---------- wealth of the United States is at the moment due almost entirely to the exertions of a comparatively small number of individuals. In South Africa we all know what Cecil Rhodes did. Mr. Morgan has been called - the Napoleon of finance. It is impossible to read about Mr. Morgan's schemes without realizing that, probably unwittingly, he is the very incar- nation of Mr. Rhodes' ideas of the federation of the English and German speaking races of the world. The tendency of such operations as the last which he has carried 'out is to obliterate the 'dividing lines 'between the three nationalities. The combination of three nations to carry on the most wonderful trade that 'the brain of man has ever conceived is, no doubt, a most remarkable achievement--one which promises to bring the countries into closer and more friendly relations than have hitherto existed. 'SENATOR HANNA ON THE COAL SITUATION. Senator M. A. Hanna in an interview in Philadelphia characterizes the situation in the anthracite coal region as extremely delicate. The work of the conciliation committee. was ended, said the: senator, when it biter together the operators and the representatives 'of the miners' nion. '1 pire Plea a ves -"I want to emphasize the fact," continued Senator Hanna, "that the conferences between the operators and the miners were satisfactory. Three conferences were held and the proceedings were conducted in the best spirit. I think the operators formed a favorable impression of Mr. Mitchell and gave him rédit for honesty and sincerity in his efforts to change the conditions of the miners. On the other hand, Mr. Mitchell appreciated the consideration 'shown 'him and the interests he represents. Unless a bitter and protracted strike should occur, I believe much good will come out of the conferences' I'am of the opinion that they will lead to better conditions between capital and labor. I am in favor of meetings between employer and employes to consider differences. I want the people to thoroughly understand the position of the civic federation. It can do only two things--exert its influence to prevent.a strike or arbitrate--when a rupture has occurred, at the request of both parties to the dispute. In this case the civic federation has done all within its province. It brought together. through its conciliation committee the representatives 'of the miners' union and the operators. In the evolution of things rapidly tak- ing place in this country the conference of employers and employes is. one of the conditions that must necessarily be a part of it. The progress and development of our industries must be accompanied by the development and improvement of the laboring class." 8 ah Asked whether the civic federation experienced any difficulty in 'ar- ranging the conferences between the operators and the miners, Senator Hanna said: "On the contrary, I found that the operators were quite willing to go half way'in this matter. They are all sensible, broad-gauge business men, who, while they desire to protect their own interests, 'are wise enough to see the drift of things. . "The peculiar situation of the anthracite mining industry," continued the senator, '"'makes the proposition most difficult- The combination of the railroad and mining interests brings forward the question of tonnage, and this and threatened competition from the enormous production of bituminous coal constitute matters which must-be considered. This is the foundation of the operators'? argument. It is not a mere selfish interest that impels them to the stand they have taken, but the proposition is diffi- cult to explain to the rank and file of the workers in and about the mines. It is my hope that when they are educated to understand these conditions they may be considerate and not governed by prejudice in future actions. If my advice had been followed a longer time would have been taken before the present crisis was reached, in order that these things could be ex- plained and better understood. President. Mitchell's statement was has- tened by the fact that scraps of information were given to the public, em- barrassing him with his men. When it is considered that two-thirds of the mine workers are foreigners, speaking six, eight, or ten different lan- guages, it can be readily understood that they are difficult to control." A POSSIBLE BENEFIT TO LAKE TRADE. The following dispatch from New York, dealing with the probable policy of the steamship combination regarding apportionment of freight to different ports of the Atlantic seaboard, is of interest to the lakes: "Among shipping agents it is the general expectation that the forma- tion of the steamship combination will eventually build up the commerce of this port at the expense of Boston, 'Philadelphia and other ports. Fear of such a result has been expressed in both of the ports mentioned, which the promoters of the combine have sought to quiet with assurances that the various lines will continue to observe their present service arrange- ments. But it is pointed out by New York shippers, wh oare encouraged over the prospect of 'better business a few years hence, that one of the most obvious dictates of the policy of concentration and economy is to have as much freight handled at one port as possible. At the present time an understanding among three great trunk lines in the eastern section-- the Pennsylvania, the New York Central and the Boston & Maine--has preserved a certain balance of export and import business among the three principal ports. With the Morgan interests in control of most of the lines calling at other ports than New York and working in close agreement with practically all the other lines, it remains to be seen whether the Mor- gan railroads will be allowed to scatter freight up and down the coast for the benefit of local interests only. As for the permanence of the present. transatlantic service from other.ports it is argued that the service from each port will be, for obvious business reasons, adjusted to the needs of that port's own manufacturing or. agricultural territory, leaving all export freight from the interior to be collected at one port, from which ships can always be assured full cargoes." ' Any development of the export trade from the port of New York must have a corresponding effect upon the business of the lakes. The great lakes route is the natural highway for products of the west to reach New York for export. The development of shipping in the southern ports has had a correspondingly depressing effect upon through lake trade. Dr. J. C..Ayer of New York city has recently purchased the cruising yacht ;Iroguois through the office of Frank N. Tandy of Boston. This boat,was owned by Mr. R. K..Thorndike who used her for sailing at Bar Harbeor.s,,,Dr., Ayer will. use the clroquois for eruisiirg, om Long bland sound. oi 06 mrcit gnrenst