WHITE STAR LINE

Nelson Evening Mail, Volume LXI, 28 June 1926, Page 8

WHITE STAR LINE

HISTORY TRACED

It The- White'. Star Line, which has ‘been,, sold, for over £7,000.000 was the icentro-around which was formed, in .1902, the Urge consolidation of shipping lint crests known as the International Mercantile Murine (ibmpan'y of :New Jersey, U.S.A. The organisation included the Oceanic. Steam Navigation Company (White. Star), American, Atlantic Transport, Dominion, Lcyland and Red Star Lines. Of: these the White Star, Atlantic Transport, Dominion and Leyland Companies! are British and all (lie ships owned: try tjioin arc registered in Britain. Yet, although British, the capital nf the companies has, since 1902, been held by* an American company., It is conceivable that for all parlies there were disadvantages in this arranogemcnt, and it was to simplify the conditions of working that the negotiations, ! which have now been completed, were ' conducted. The authorised capital of. the International Mercantile Marine •Company consists of £24,000.000. in .shares of £2O, all fully-paid, half Being common and half 6 per cent, cumulative ■preferred shares, The White Star Lino is, perhaps, best known for its Traits- j utlanlic passenger services maintained, by such famous ships as the Olympic, J Majestic, Homeric, Adriatic, Baltic,' Cedric, and Celtic, which are engaged in the United States services. Other 'ships, notably the Arabic, Alegantic, and Doric, are employed in the Cana- i dian route. Vessels of the .While Star | Line are employed in the Australian , trade and, in association with Messrs 1 “Shaw, Savill ,and Albion Company, Limited, in the New Zealand trade. The jline is also associated with Messrs George Thompson and Co., Limited, the managers of the Aberdeen Line, in ■the Australian passenger and cargo service. Furness, Withy, and Co., Limited maintain many services lo and from .Britain and North America, and control the Johnston Line and the Prince Bine. The company has made great progress in recent years under the, chairmanship of Sir Frederick Lewis, a past president of the Chamber of Shipping! of j the United Kingdom. It lias the reputation of': being ai highly efficient organisation and is well represented in the United States, with whose bush, ‘ness..men its relations have always been 'excellent. The company, already carries on certain passenger services between Britain and Newfoundland and between the United Stales and Bcr'muda. At £7,000,000, the purchase price, would represent, an average, of £ll4' per ton for the While-Star fleet of 25 vessels, which aggregates • about 500,000 tons. Sonic difficulty was experienced in getting the International ’Mercantile Marine directors lo agree lo itliis price in view of the high replacement value of the ships to be sold. A number of the directors were said'to he 'asking for a. high price to be paid in .securities. The three largest. White Star vessels, the Homeric, Majestic a’iid' •Olympic, have a present replacement value-of'£B,ooo,ooo. or £SB per ton. The cost of all three.,has been written: off’at-literate-of 4 per cent, annually. A joint official statement in the following terms jwas issued in London - on April. 28 By (Messrs Morgan, Grenfell, and Co., and Mr P. A.- S. Franklin, president of the International Mercantile Marine Company :—Certain premature reports having "appeared in the press in regard to the White Star Line, it seems desirable that- the following statement should he made: Negotiations are proceeding for the purchase of the shares of the Oceanic Steam Navigation Company ■(White Star Line) by a British group, •represented by Messrs Morgan, Grenfell and C'o. Provisional agreement lias been reached, but there are numerous details which will take time to arrange. ,When: a settlement has been arrived at a definite announcement will he made, ibut in the meantime it may he stated that if the negotiations mature Messrs Furness, Withy and Co., Limited, will be the principal shipping interest in the purchasing syndicate. At about the same time as this statement appeared a message received in London from New -‘York stated:—ln connection with- the negotiations for the sale of the White Star Line to British interests, Mr John H. Thomas, vice-president:, of the International. Mercantile:. Marine Company,

made the following announcement: Mr J. I’. Morgan and Mr Charles »Steele have resigned from the hoard of directors, and the finance committee has nominated Mr J. 11. Thomas.ami Mr 11. G. Phillips to lake their places*. Their election will come up at the next meeting of tho board. Air Thomas added on behalf of Mr Morgan and Mr Kteolc, who arc partners in the firm of J. P. Morgan and Co., that their resignations were “du,e 'to the contemplated sale of sonic British- properties of the International Mercantile Marine Company.”— N.Z. Herald.