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1903.] MARINE REVIEW AND MARINE RECORD. ar TROUBLES OF DOMINION IRON & STEEL CO. A dispatch from Ottawa concerning the troubles of the Do- minion Iron & Steel Co. says: Last week the directors of the prosperous Nova Scotia Steel Co. and those of the embarrassed Dominion Iron & Steel Co. were in simultaneous session at Montreal. That an attempt to amalgamate the two concerns is going on appears the Canadian opinion. The alleged idea is that the management of both should be given to the practical men who have put the Pictou or Fer- rona industry in first-rate shape. This arrangement would be a fine thing for the Sydney property, whose interests appear to have suffered by the stock market operations of men who seemed to think much more of booming shares than of making iron. By conservative methods the Pictou directors have won a fine posi- tion and general confidence. Their affairs financial have been largely confided to Messrs. John F. and G. W. Stairs, members of an old wealthy Halifax mercantile family, long distinguished for caution, probity and good sense. Mr. Fraser, their ironmaster, is also of excellent local connections, and has learned his business in the hard schools of experience and experiment. Of these men Mr. Kendall, Nova Scotian member of the Dominion parliament, said in the recent Ottawa discussion on iron and steel tariff: "The Nova Scotia steel business was taken up by good practical men, who worked first in a small way and developed their busi- ness, and all credit is due them, not only for the development of their own business, but for the establishment of the Dominion Iron & Steel Co. It was their knowledge, acquired under ad- verse conditions, which made those men trusted by investors in the iron business of this country." Some four or five years ago Messrs. Stairs and Fraser were frequently in Boston, negotiating with Mr. H. M. Whitney. Had they been given the reasonable terms and the control of the operations they then suggested it is improbable that any of the wildcat business which has harmed the Sydney concern would have been permitted. After Mr. Whit- ney had organized the industry it passed very much into the hands of Montreal and Toronto men, concerning whose methods statements that probably have not been yet published in Boston were recently made by responsible members on the floor of the Ottawa house of commons. Sir Wilfrid Laurier, the prime minis- ter, than whom no man is more guarded in speech, found himself compelled to remark: "A great company which had been started with a great flourish, and which was supposed to be doing a good business has, I am sorry to say, been the object of a good deal of stock speculation, and has practically admitted it is not in a very good financial condition. It has come to us looking for an increase of the tariff." Mr. Fielding, the minister of finance, said: "Some of those who have approached us with reference to this particular companv have stated that they do not complain that the result is in any way due to the policy of the government." Hon. I. Israel Tarte, recently minister of public works, declared that $100,000,000 "have changed hands during the last few months in connection with the Canadian iron and steel industry that was the subject of discussion." He wanted the government to favor it by more protection in order to boom the price of stock. Mr, Henri Bourassa, than whom there is no straighter man in Canadian pub- lic life, boldly exposed the methods of financing that had led to the alleged loss of the hundred millions. He said: "I am a pro- | tectionist, but I should be sorry to see this or any government use protection as a means of helping stock gamblers. Not that stock gambling is the only question involved here, but it is deeply in- volved. Under the present tariff, knowing exactly where they were, knowing what property they had, knowing what the popu- lation of Canada was, knowing the purchasing power of Canada, that company started some four or five years ago with a huge prospectus, asking the people to subscribe millions, and promis- ing them large returns and profits without conveying the slight- est hint that the tariff was an impediment. Therefore, I say, the prime minister is right in asking for some explanation regarding the management of the Dominion Iron & Steel Co. As regards the loss of $100,000,000, it is due to many people in the country losing their heads. If capital has become difficult, if bankers have become close-fisted, it is because capital was forced into improper channels. I know, as a matter of fact, that the managers and directors of the most important Canadian banks decided, last December, not that the tariff policy is wrong, but that an im- mense amount of capital was invested in stock gambling, and they decided to restrict supplies to stock gamblers. As to the Domin- ion Iron & Steel Co., its directors have repeated time and again that the ministry could not fail to be most prosperous, and if they were going to the government for more protection while en- ticing money from the people on the pretence that the company had a glowing future, I say a thorough investigation should be held, and if the people have been robbed by the directors of the Dominion Iron & Steel Co., these directors should be held ac- countable before that industry is given more protection." "What," Mr. Bourassa asked, "was the prime occupation of this company? They issued bonds to the extent of $8,000,000 at the rate of $85 for every bond of $100, and every purchaser of a bond received in addition a paid-up share of $100 of common stock. So that the company gave a par value in bonds and shares of $200 for $85. They issued preferred stock to the amount of $5,000,000; they issued common stock to the amount of $20,000,- 000; they gave shares all over the country, and they made returns of the common shares to the amount of 80 per cent., because it was such a tremendous industry, and the best investment the peo- ple of Canada could make. And during all this time, I am told by an ex-minister, they were going to the government and beg- ging for. more protection because otherwise they could not live. Let me add, as a piece of information that has been current on the streets of Montreal for some weeks, that a high official of the -Dominion Iron & Steel Co. has placed on the market one thou- sand shares of his own company's securities. Perhaps that has had something to do with the fall in the value of the shares. If we wish to bring in foreign capital to support our industries, if we wish British, American and German capitalists to invest in Can- ada, we must make it known that no board of directors is allowed to speak one way in secret to get favors from the government, - and another way to the public when they want to get its money. The government's hands should be strong enough to force those who made these promises to give an account of their deeds." TREND OF ATLANTIC TRADE. The Liverpool Journal of Commerce, which is probably the foremost daily newspaper in the world devoted to shipping mat- ters, says of the late trend of events in the Atlantic trade: "Since the formation of what is so familiarly known as the Atlantic combine Americans and Britons alike have been more interested in the trade combined under the guiding influence of that master of finance, Mr. Pierpont Morgan, than has been the case during the past thirty-five years. Many have been not a little nonplussed by the characteristic steadiness with which the At- lantic services have been maintained, the real effects of the amal- gamation comprising the International Mercantile Marine Co. being practically confined to the concerns interested, and casually -- to the very keenest observers. Apparently. everything has pro- gressed as before with the exception of alterations of sailings, and a disposition of the ships of the fleets combined such as would not have taken place under the conditions ruling before the grand coup. Such, then, are the only changes which seemingly have fol- lowed the creation of the great combination, but as a matter of fact it is not so. Indeed, it is now stated--if not officially, yet we have it on very reliable authority--that the Cunard Steamship Co. has notified its intention to withdraw from the Atlantic con- ference. This places the company in the unique position of con- tending against practically the whole of the combined Atlantic fleets, and the result will be watched with considerable interest. By assuming this responsibility the Cunard company is exercising a prerogative which many thought some time since would be undertaken by the International Mercantile Marine Co. In tak- ing this step the directors have no doubt reviewed the situation, and have so acted, in their opinion, through force of circumstances. A careful survey of the condition of the Atlantic trade will reveal the fact that the tonnage now engaged in the traffic is in excess of requirements. It may be true that a few of the boats are full cf passengers, but as one swallow does not make a summer, it may also be argued that two or three full ships do not indicate the healthiest state of the transatlantic passenger traffic, and do not warrant any departure from the pre-existing sailings. What effect. this action will have upon the Atlantic trade it is difficult to prognosticate, but those best able to judge do not appear to anticipate any material change. As will be remembered, the policy ot the combined lines was declared as friendly, and that principle has been followed apparently from the first. It is therefore un- likely that antagonistic measures will now be adopted by the Mor- gan interest. That being the case, it is scarcely likely that the Cunard company will carry war into the camp of so powerful an opponent, although it may be considered by the company advisa- ble to secure that liberty of action which can alone be obtained by a severance of all restrictive ties." MR. PIERPONT MORGAN RETURNS. Mr. J. Pierpont Morgan returned from England on the Oceanic last week and he was in the same humor with which the public invariably associates him--surly, irritable, brusque and gruff. Twenty photographers climbed aboard the steamship at quarantine and leveled their cameras in his direction. It would be incorrect to say that they leveled them at him, for he occupied himself incessantly with dodging them and no one got him into focus. He finally tired of being pursued, however, and appealed to the officers of the ship for protection. The purser thereupon delivered a sweeping edict and said that unless they desisted Mr. Morgan would forever forbid a photographer setting foot on any of the vessels of the International Mercantile Marine Co. The photographers thereupon turned their attention to Sir Thomas Lipton, who was also on board, and he obligingly posed for them in a variety of attitudes. Mr. Morgan declined to talk of the shipping combine or the Steel Corporation, but was quite loqua- cious on the subject of the Houdin busts which he recently pur- chased, saying that he had left them in his London house when he discovered that the United States government had determined to levy a duty upon them. At the office of J. P. Morgan & Co. it was emphatically denied that the shipping combination was to be reorganized or that Charles M. Schwab was to resign as presi- dent of the Steel Corporation. The latter rumor has been circu- lated persistently in Wall street. : Mr. W. L. Brown, president of the American Ship Building Co., in an interview given out in Chicago, says that he is confi- dent that ship building will continue to be an increasingly import- ant industry on the great lakes. Wooden boats are wearing out and going to pieces, he says, and the territory fed by the lakes is rapidly increasing. The modern steel carrier must continue to supplant the poorer class.