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14 MARINE REVIEW. [May 15 TERMS OF THE GREAT SHIPPING COMBINATION. The agreements under which the shipping combination was effected have just been made public. They are designated as '"'provisional agree- ments for the purpose of the acquisition, on or before Dec. 31, 1902, of the White Star, Dominion, American and Atlantic Transport lines, to be organized under the direction of the vendors, to the satisfaction of the bankers, namely, the Morgans, under the law of the state of New York, or such other state as may be selected." Ismay, Imrie & Co., Mills & Co., Messrs. Griscom and Wiedener and Mr. Bernard Baker, the vendors, receive for their stock $120,000,000 in stock and $50,000,000 in 4%% per cent. debenture collateral trust bonds. Of the $120,000,000 stock, $60,000,000 is 6 per cent. cumulative preferred and a like amount of common stock, which is limited to 10 per cent. divi- dends. White Star line shares are to be exchanged on a basis of ten times the line's net profits in 1901, and Dominion line shares at ten times the net profits of that line in the year 1900. The American and Atlantic Transport lines are taken over at a combined valuation of $34,158,000, subject to 5 per cent. bonds of the American line to the amount of $19,686,000. : In the papers the combination is referred to as the corporation, and it is provided that the acquisition of the White Star line shall be con- sidered as having taken effect on Jan. 1, 1901, from which date all of the line's profits belong to the corporation. The owners of the White Star line, although agreeing that all profits of the line from that date go to the combination, consent to carry on the line's business until the con- summation of the general scheme of purchase, and it is provided that for their personal services these sellers shall be paid "such amount in re- muneration as shall be fixed by J. Pierpont Morgan of the city of New York." In the matter of making payment for the properties, the agree- ments provide that the White Star people shall receive 25 per cent. in cash, and 75 per cent. in preferred stock at par, with 3714 per cent. of the total common stock issued, at par. Payment for the Dominion line is to be in the same manner. The American and Atlantic Transport lines are to receive together $18,314,000 in preferred stock and $915,700 in common stock, with $15,- 844,000 in cash and such additional cash as may be required not exceed- ing a rate of 6 per cent. For the Leyland line $11,736,000 is to be paid in cash. The remainder of the capital stock and the bonds go to the vendors, who contribute as working capital for the corporation $786,000 in pre- ferred and $6,643,000 in common stock, and are "to transfer it to the syn- dicate if and when formed by the bankers, namely the Morgans, for $50,- 000,000 cash, and in full payment for its services the said $50,000,000 in debentures and also $2,500,000 in preferred and $25,000,000 in common stock." If less than three-quarters of the interest in any line or lines shall be delivered by Dec. 31, 1902, the corporation may decline to take such line or lines. But the vendors promise to use their best efforts to secure the delivery of the three-fourths interests. The general agreement is not - to be affected, as to other lines, by the failure to take in any one of the proposed lines. In order to make the agreements binding, the Morgan interests had to form the original syndicate representing $50,000,000 cash prior to April 30 last, which was done. Ismay, Imrie & Co., the White Star people, obligate themselves to keep out of the shipping business for fourteen years. It is agreed that as the White Star line is English and domiciled in England, all questions arising concerning it under the agree- ment shall be determined according to English law. Disputed questions are to be referred to Price, Waterhouse & 'Co., London accountants. In an additional 'builders' agreement," the Morgans contract to give all orders for new vessels and for heavy repairs, requiring to be done at a ship yard of the United Kingdom, to Harland & Wolff, except that it is provided that "nothing herein contained shall prevent the purchasers from placing orders for new steamers and repairs at ship yards in the United States." And in return Harland & Wolff agree not to build ships for any persons not in the combination, except the Hamburg-American company, so long as orders from the combination keep the builders' works busy. Harland & Wolff are to be paid for work which they do for the combination the cost of the work plus 5 per cent. on new ships, 10 per cent. on new machinery in old vessels, and 15 per cent. on repairs. This agreement runs for ten years and is terminable thereafter only on five years' notice from either side. CARNEGIE IN A CONSOLING MOOD. Andrew Carnegie arrived in London last week and proceeded at once to console the British on the subject of the shipping combination by say- ing that there is no cause for alarm. ."To combine the shipping traffic," said Mr. (Carnegie, "is a big order. There is free right of way on the ocean and the tramp steamers are always with us. The merger may give regular daily sailings to passen- gers, which would be advantageous. I am not in the navigation syndi- cate, having retired from business and reformed, so I cannot advise you as to the €éxact character and bearing of the combination. But, in my opinion, the combine is purely a matter of money making. There is no question of patriotism in trade. It does not care a fig for a flag. It is dividends that count. Of course, every citizen worth a cent wishes his ? own country to be first in everything, and a peaceful, industrial victory is ~ the only genuine one. Victory through war generally costs more than it is worth. If Great Britain continues her costly wars for shadowy ascend- ancy in distant parts and the United States develops her industrial army there can be only one result--Great Britain will have the shadow and the United States the substance. I think there is no prospect of early legis- lation permitting British-built ships to get American register, The Americans have resolved to become a maritime power commercially and will soon be able to build ships quite as cheaply as Great Britain. At first the shipping combine will give the present owners higher returns but regarding the latter prospects I do not care to prophecy. The people of the United States are in sympathy with the new trust. It seems to be a triumph for the flag, and all patriotic Americans, which means all Americans, are naturally pleased. Besides, we have an idea that we can beliet™ all things better than anyone else, and there is ground for this t Cy thi i i j 0 I lene? It The first steel rail » SY a4 1O iS IGiG A oar) 0g \F? \ was rolled at Sault Ste. Marie on May 5. IN THE LAKE SUPERIOR IRON COUNTRY. A dispatch from the Lake Superior iron region says: Considerable work is promised for the Vermillion range. This is quite largely owing to the taking of new lands by the Oliver Iron Mining Co., and the settlement of legal difficulties at the Eaton-Merritt tract and the old McComber mine. This latter has already been entered by D. E. Woodbridge of Duluth. He is rapidly getting the water out of the old workings and will have the property thoroughly examined. The Oliver Iron Mining Co. will explore in the vicinity of the McComber during the year and some exploration is promised east from Ely, in a region distant from the rail- ways. A good deal of work is being done on the Penokee range, west of the hitherto productive part of the Gogebic. This work extends from town 45--1 east to town 44--3 west. At Upson the Schlesinger syndicate is working steadily and with encouraging signs, it is said. It is quite probable that a mine will be encountered there. Near Mellen, at the west end of the belt, work is going on with some encouraging symptoms. At the eastern end of the Gogebic some exploration is also under way, but work that looked satisfactory some months ago is now not so favorable. As depth is reached at the new Maas shaft of the Cleveland Cliffs Iron Co. in the Negaunee district, the work becomes very slow--sinking but 2 or 3 in. in twenty-four hours. In fact, since the middle of February the shaft has gone down but about 12 ft. Sand boils up occasionally, but not so much as a short time ago. The workmen are able to stay at the bot- tom of the shaft and are not greatly troubled by water or sand. That the hundreds of tons' weight of shaft and timbers, loaded as they are with iron does not sink fast is a remarkable thing. A bed of clay will soon be reached. The old Negaunee mine is now shipping as fast as possible, and will make a record-breaking output this year, considering the obstacles encountered lately. ~The volume of ore shipments from Negaunee and Ishpeming is very large, heavier than at the corresponding date after open- ing of navigation last year. 'Considerable ore is going through to Es- canaba. At the Volunteer mine, Cascade range, which was taken not long ago by the Union Steel Co., about 150 tons of ore is being raised daily, and this will increase gradually. The same company is also doing work at other points nearby. On the western Marquette, in the vicinity of the American and Dexter mines, much work is in progress and contempla- tion, and several of the old mines will be pumped out, examined carefully and probably reopened and developed extensively. In the Iron river district of the Menominee range, Duluth parties are working near the Hiawatha mine and are making considerable progress, with some excellent indications. The Hiawatha mine itself is making a fairly large output and will be developed considerably this year. At the Mansfield the sinking of the new shaft in diorite is a very slow, hard job. The twelfth level is being opened, and when the new shaft is ready for business the mine can be a large producer. The old shaft will be sunk another level at once. At the James property the shaft is down 375 ft. It will be carried to more than 300 ft., and drifting will be undertaken. The shaft has been sunk at the rate of 3 ft. a day for some weeks. The Fogarty land near Iron river has been examined this week by agents of the Cleveland interest and may be taken for exploration. Shafts are being put down on the 'Caspian and Kinney properties and machinery plants are being installed at both places. Engineers are starting in the work of preliminary surveys for the Nipigon Railway, a Canadian line heavily assisted by the government and designed to run up the east side of Nipigon river from Lake Superior to Lake' Nipigon, about 80 miles, and thence northeasterly to Albany river. It will cut across the region where most of the large steel making inter- ests of the continent that carry on explorations have had agents and ex- perts for the past year or two. The Oliver Iron Mining Co. had con- fidential men in this region three years ago. The road is being built under a concession to a paper and pulp concern, but will be available, of course, in case iron is found there. Much in the way of floating indications has been found, but little else, so far. TORPEDO BOAT DESTROYER STEWART LAUNCHED. The torpedo boat destroyer Stewart was launched from the yard of her builders, the Gas Engine '& Power Co. and Charles L. Seabury & Co., Consolidated, Morris Heights, N. Y., on Saturday last. The Stewart was named by Miss Frances Rodney Stewart of Newark, N. J., a grand- daughter of Admiral Charles Stewart for whom the vessel is named. The principal details of the Stewart follow: Length on normal load water- line, 254 ft.; beam normal load waterline, 28 ft.; displacement on trial, about 420 tons. The machinery is of a high type of marine manufacture. The main engines are of the four cylinder, triple-expansion, balance type, and the boilers are what is known as the express type, designed by Mr. Seabury especially for the Stewart. The four boilers in the Stewart are designed to develop 8,000 H.P., and are calculated to give the vessel a speed of a little over 29 knots for two consecutive hours. The hull is constructed of high class steel throughout, and with the exception of the officers' and crew's quarters contains no wood, and that used is fireproof. The ordnance will consist of several high power rapid-fire guns and two torpedo tubes, and complete air plant supplying air power necessary for their discharging. The preliminary trials will be started in about two months, and the vessel will probably be ready for commission about Oc- tober. Admiral Charles Stewart was born in Philadelphia. He was cap- tain of the Constitution, which was originally built for the purpose of destroying pirates, and in the war of 1812 he was made admiral. Under the command of Admiral Stewart the \Constitution, which was not well adapted for the purposes of war, scored some remarkable victories, among them being the capture of the Levant and the Cyanne, which was ac- complished in forty minutes. In asking a vote of $100,000 for Quebec harbor, J. I. Tarte, minister of railways and canals, said in the house of commons last week that the vote was part of $1,000,000 which will complete the scheme planned with a view to making Quebec the harbor for the fast Atlantic line, which he expected would soon be established. He did not think Quebec would be a great wheat shipping port. In summer wheat would go from Montreal: in winter from St.John, from which port 2,000,000 bushels of; wheat had been shipped last year. , t to ef ay