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of the Atlantic trade, and its ramifications and complications. the Morgan combine is absurd. 18 MARINE REVIEW. [May 15 HOW THE SHIPPING COMBINATION IS VIEWED ABROAD. Glasgow, May 1.--It would be a pity if Americans should suppose that the people in the shipping trade of this country are as disturbed and excited as the newspapers over the Morgan shipping combine. That combination is regarded by the trade as just a pool in which, as it hap- pens, some of the partners are in Britain and some in America. There 1s nothing of a national element in it. Indeed, it seems absurd to assume the probability of any of the vessels in the combine at present under the British and Belgian flags being transferred to the American flag (should congress authorize the transfer, which seems more than doubtful in its present temper) if it be true as contended by the supporters of the ship subsidy bill that it costs 30 per cent. more to operate a steamer under the American than under a foreign flag. Where would be the profit of the combine in that case? And why should the White Star and Dominion lines sink their prospective profits in a company which is to cost 30 per cent, more to manage than do their own businesses? That would indeed be a strange way to secure the reputed object of the alliance--the saving of money by the prevention of undercutting of rates. Where would be the benefit of putting up rates in order to spend the increase in extra costs? Otherwise the pool is perfectly intelligible, as is also the arrangement between the allied Anglo-American companies and the German com- panies, to avoid invasion of each others' preserves. The Atlantic sailing bill generally stands much in need of readjustment and with a proper understanding among all the companies in the trade there is no reason why there should not be a daily sailing, each way, all the year around. It is natural that there should be a special amount of interest taken in the affair here, because so many of the steamers concerned in the deal were built on the Clyde. The White Star boats, of course, were built at Belfast. All the (Cunard boats (except one or two of the cargo carriers) were built on the Clyde, and the Cunard company is regarded as a Glasgow insti- tution, though its offices are in Liverpool. Whether or not the Cunard company will join the combine remains to be seen. The probability at present is that it will not, but will form a working alliance,with the other outside companies, not to compete in freights and fares with the Morgan combine, but to resist any possible aggressions of that organization. Besides the Cunard company there are the Anchor, the Allan and the Donaldson lines, all big participators in the North Atlantic trade, all managed in Glasgow and all outside of the Morgan combination. Be- sides these, there are the various large lines, hailing from London, Liver- pool and other ports, such as the Johnston, the Warren, the Manchester, the Neptune, the Philadelphia-Transatlantic, the Furness, the Chesapeake, étc. All these lines have much more tonnage and command a far larger area of trade than the companies in the Morgan combine. And for con- tinental alliances, as a set off to the Morgan alliance with the Hamburg- American and the North German Lloyd, they can co-operate with the Compagnie Transatlantique and the Danish, Italian and Austrian lines. It is said that the Holland-Americar. line is joining hands with the Mor- an combine, but this is as yet unconfirmed. Even if true there are other utch lines free to organize otherwise. Thus the idea of a monopoly by Indeed a monopoly of the transatlantic trafic would not be possible with capital less than ten times that of the Morgan, combine ($170,000,000) if even then. It is curious how little even people connected with shipping know of the enormous magnitude As for the average newspaper writers on both sides of the ocean, they do not even know enough to conceal their own ignorance of the subject. A point of curiosity in a practical ship building community like this is how the ships are going to be valued for the purposes of the pool. The Leyland steamers were acquired by the Morgan syndicate last _year at 50 per cent. more than anybody here would have given for them. The Merion and Haverford were built on the 'Clyde for the International Navigation 'Co. at considerably less money than that company has paid for recent additions to the fleet built in America. All the Dominion and Leyland boats are worth very much less per ton capacity than any of the White Star boats and of the White Star boats the Celtic was built when material was dearer than itis now. Moreover, the cargo carrying capacity of an enormous mail and passenger boat like the Oceanic is small com- _ pared with her tonnage and with the cargo capacity of smaller and less - expensive boats of the other lines. _ interests in the pool. It will be no joke adjusting all the As for the profit of the trust if it has to take over all the lines at their own valuation, I would not give much for it even if present braving the Atlantic will be obsolete. I had Mr. Morgan's millions. An ocean greyhound is a short lived creature and in a very few years every one of the magnificent boats at Any millionaire anxious _to throw away his millions in shipping may find any number of ready _ Sellers of fine looking but rapidly deteriorating fleets. _As for new ships, however, we are ready to supply any amount, nor is it to be denied that the ship builders of the (Clyde and of Scotland gen- erally, would gladly welcome a few more orders just now. Aside from the 55,000 tons or so of war ship contracts for the Royal navy they did not book more than 10,000 tons of merchant craft last month. And although I say merchant craft there were really only a couple of small steamers for Dutch owners and a sailing vessel of 3,500 tons, that properly _.came undef that designation, all the rest of the orders being for fishing vessels and special craft. During the month, however, our builders put into the water twenty-eight vessels, aggregating 46,600 tons, as compared _ vessels and 31,200 was for Germany, 4,000 tons for the British colonies, 1,600 tons for Bel- with ee vane er and 35,980 tons in March, and with twenty-three ( tons in April, 1901. Of the month's output 5,750 tons gium, 1,300 tons for France and all the rest for British owners. As to ..Sizes, there was one vessel of 5,000 tons, two vessels between 4,000 and 5,000 tons, four between 3,000 and 4,000 tons, three between 2,000 and 3,000 tons, five between 1,000 and 2,000 tons and the rest under 1,000 tons. I have reported during the month some of the most notable of the launches and need only now add that in the output was a four-masted ! sailer of 3,300 tons and a four-master of 2,450 tons both for Hamburg _ owners and built by A. McMillan & Co., Dumbarton, and John Reid & Co., Glasgow, respectively. The month's output brings up the total for _ the four 'months ending April to 152,660 tons. This total has never been 3 ay eded in a corresponding period except'in 1899, when the figure' was te 08, ice A tO GOH i 1 MS a, tons. -- ; __ As for'work'in hand, the Clyde and other Scotch ship bui cin ; c p builders beg the second quarter of the year with merchant orders on hand to the i: \ tent of 442,770 tons. Adding war ships then in course of construction, the admiralty contracts, and other bookings of April, and deducting the launches of the month, the total work on hand may now be estimated at about 450,000 tons. This is a big amount before us as we near the middle of the year. But then a good deal of it is in a very forward state and will be run off rapidly within the next few months. It is with regard to the work of next winter that ship builders and the trade unions are getting anxious. Apart from war ships, the total tonnage. under construction in the United Kingdom is fully 120,000 tons less than at this time last year, The demand for tramp steamers seems to have entirely ceased at present and the second-hand boats are obtainable at very low prices. A renewed demand for big steel sailing vessels is not unlikely. Such vessels can sometimes be made to pay in dull times when steamers are losing hand- over-fist. It is reported that the Elder, Dempster Co. propose to make great developments in their West India service and are preparing to order several steamers much larger and faster than anything they have yet put into the trade. Some of the present West India fleet were built on the Clyde, some on the Tyne. A few days ago Alexander Stephen & Sons launched a new boat for the West African service of this company. She is named the Tarquate and measures 370 ft. in length by 44% ft. in breadth and 26 ft. in depth. She has accommodation of the most improved tropical type for 150 passengers, and will have a speed of about 14 knots. The Newark Castle recently launched by Barclay, Curle & (Co. for the New York & Capetown South African service of the Union Castle line had a trial trip this week. She developed mean speed of 13 knots with a development of 4,400 H.P. She is arranged so as to be readily adopted to the accommodation of 300 or 400 emigrants if required, in addition to a considerable number of first and third-class passengers. In this connec- tion I may mention that the new service of the South African combine, re- ferred to in a previous letter, has begun. Under the Ellerman-Harrison- Clan agreement the Haddon Hall is now loading at Glasgow a general cargo for Capetown and Natal. She will be followed by a boat every ten days or so, the intention of the combine being to have thirty-six sailings in the year from the Clyde to South African ports. Mr. Ellerman has just bought three Clan line steamers, and is to put them into his Mediterranean service, while the 'Clan line has chartered a Dundee boat to take up a por- tion of their share in the South African sailings. A few days ago D. & E. Henderson. & Co. launched from their Meadowside yard, Glasgow, a large steel cattle boat for the Lamport & Holt line. She measures 390 ft. in length by 50 ft. in breadth and 29% ft. in depth, and is 4,300 tons gross. This boat, named the Terence, is especially designed for the con- veyance of a large number of live cattle from South America to Liverpool and has ten powerful steam winches and large derricks at the hatches. The machinery consists of triple-expansion engines with cylinders 27% in., 46 in. and 74 in. diameter, stroke 54 in. Steam is generated by three double-ended boilers at a working pressure of 210 lbs. There is also ac- commodation for passengers as well as for cattle. The Canadian Pacific Railway Co. have ordered from C. S. Swan & Hunter, Newcastle-on-Tyne, a twin-screw 20-knot steamer, 300 ft. long, to run between Vancouver, B. C., and Victoria on Vancouver island. There is to be accommodation for. 160 cabin passengers and also for a large number of deck and Chinese passengers. ON A TOUR OF INSPECTION. The general tour of inspection now being made by President Schwab and other officials of the United States Steel Corporation will, in all probability, finally determine the manner in which the $50,000,000 new cash raised for improvements and additions will be disbursed. It is unlikely that the plans that have been drawn by the engineers of the sub- sidiary companies will be materially changed. The only question of importance that has not been definitely settled is the points of location of certain new plants that the corporation will construct. It is understood that considerable doubt will develop as to whether Conneaut will benefit through the additions contemplated by the United States Steel Corpora- tion. Included in the party making a tour of inspection of the properties are the following officials: Charles M. Schwab, president; James Gayley, first vice-president; W. B. Dickson, second vice-president; Veryl Pres- ton, third vice-president; Joseph E. Schwab, assistant to the president; George G. McMurtry, president of the American Sheet Steel Co.; W. T. Graham, president of the American Tin Plate Co.; W. P. Palmer, presi- dent of the American Steel & Wire Co.; A. J. Major, president of the American Bridge Co.; P. W. Moen, vice-president of the American Steel -& Wire Co.; W. E. Corey, president of the Carnegie and National Steel and the American Steel Hoop companies; Frank J. Hearne, president of the National Tube iCo.; Judge E: J. Buffington of Chicago, president of | the Illinois Steel Co.; D. M. Clemson, president of the Pittsburgh Steam- ship Co., and D. G. Kerr, manager of the ore interests of the corporation. Considerable interest was manifested in a report from Boston that if _ the present plan for the retirement of $200,000,000 preferred stock for a similar amount of bonds of the United States Steel Corporation is a suc- cess, the remaining preferred stock, amounting to over $300,000,000 would be retired on the same basis, thus leaving only one class of stock. It was stated that if $50,000,000 more cash was paid in with the retirement of the 'remaining shares the Steel Corporation would have something like $150,- 000,000 cash in its treasury. Financiers in close touch with the United States Steel Corporation said that eventually all the preferred stock of the combine would be converted into bonds, but that any statement on the question would be too premature to warrant discussion, as it was an un- dertaking of the very far future. The Dunderland Iron Ore Co., of London has been formed with a capital stock of $2,000,000 to work extensive deposits of iron ore in Nor- way by means of the Edison process. The chairman of the company is Sir David Dale, managing director of the great Pease firm, whose word is really as acceptable in the north of England as a Bank of England note. The building of large war ships at government navy ,yards is im- practicable and inadvisable-according to Rear Admiral Francis T.; Bowles, chief cgnstructor, who has sent a communication.to, the house naval com- mittee upon the subject.