Pacific Shipping Combine

Hokitika Guardian, 27 January 1922, Page 4

Pacific Shipping Combine

ENORMOUS .MERGER PLANNED. SAN FRANCISCO, Dec. 30. The Extraordinary decadence of American shipping is about to be wiped out, judging by important details of a gigantic shipping enterprise which contemplates a 30,000,000 dollar pool of the United States Shipping Board vessels to operate out of Pacific Coast ports, and which aims at a thorough reorganisation of the shipping of America, there by bringing the scores of Uncle Sam’s war-time constructed ships from their present bone-yard locations into tho highways of commerce on the seven seas of the world.

There lias been a clonk of secrecy surrounding the recent visit to Washington of Herbert Fleisliacker, of San Francisco, the President of the Anglo and London-Paris National Bank, and a financial power of the West of America, l>ut i,t has now been lifted by the intelligence that the big San Francisco financier had been in personal! conference with President Harding, and will now have a. voice in thei approaehment national shipping rehabilitation programme.

The subject was discussed at a halfday session between President Harding, Mr Fleisliacker, and Henry D. Lasker, head of Alio United States Shipping j Board, and it was understood that it was the sense of this conference that the shipping of the United States can best he handled by private interests. On the day following the leaking out of tho secret mission to Washington, some of the leading details were disclosed in San Francisco, and it was announced that the foundation of Mr Fleishacker's plan for rehabilitation of American shipping interests on the Pacific coast will be laid on the following four powerful financial rocks:— (1) The Pacific Mail Steamship Company, owned jointly by Grace and Company and the American International Corporation, the latter 50,000,000 dollar enterprise formed during the war to promote international commerce. 12) IT. F. Alexander of Tacomai. and D C. -Tackling, copper king of San Francisco, through the so-called Admiral Steamship Line controlled by them.

(3) E. L. .Doheny, Los Angeles, Southern California, oil magnate and head of a 20,000,000 dollar syndicate of Southern California already committed to an off-shore service' for San Pedo, a, naval base of Southern California.

(4) A. B. and John Sprockels. of San Francisco and San Diego, who have close connexions with Paris and London, who are also the owners of the only American steamship line between the Pacific Coast of the United States and Australasia.

NEGOTIATIONS OPENED. These four huge filnancial combinations are understood on good authority to have already agreed tentatively to collaborate in the 30,000,000 dollar shipping pool, thus linking the financial backing and maritime interests of the entire coast from San Diego to the North-West.

The Pacific Mail owns no ships in the Oriental trade, but is now using Shipping Board vessels; as an organisation it owns some of the most valuable t er ~ initials and fuel stations in the Pacific waters and the Orient. Mr Fleisliacker, who a few days ago returned from Washington after a conference with President Harding and Mr Lasker, the head of the United States Shipping Board, has already opened negotiations for the financing of the shipping corporation, and has placed the project before some powerful San Francisco banking interests, including Frank B. Anderson president the Bank of California, and William H. Crocker, president of the Crocker National Bank, both of whom have London connexions. Banking interests of Seattle, Tacoma, and Los Angeles have also given favourable attention to the enterprise already and it was announced between Mr FI oi - sliacker and these financial and commercial interests shortly in T-os Angeles, Tacoma, and Seattle, so that the powerful interests of the entire Pacific Coast of the United States will be united when Mr Fleisliacker returns to Washington within a few weeks to submit the tentative plan for tho shipping

coalition to President Harding and tho United States Shipping Board heads. This plan will be as to the best method of placing American shipping on a firm and profitable foundation in the Pacific. The project has h'Sen advanced to tho point of ni discussion of the plans with representatives of the shipping interests and Chambers of Commerce of the leading Pacific Coast cities to arrange for th e 30,000,000 dollars coalition. Some weeks will be occupied in settling these exhaustive details, so that Mr Fleisliaifiker may be able to return to ‘Washington with his perfected plan to lay before Mr Lasker and his etmfreres on the Shipping Board. The subject already has aroused tremendous intoi-est among the commercial institutions of San Francisco, Los Angeles, Seattle, Portland, and San Diego. NOT COASTWISE.

The vessels involved are now Govern-ment-owned, and are to he purchased a t present world market shipping prices on easy terms, to be placed in th 0 trans Pacific service for the exclusive benefit of the- Pacific Coast.

It is oonetnplated that the corporation will control and operate vessels running off shore from five' big Pacific Coast ’ports, with no idea- of coastwise trade entering into the project yet. Hie steamers purchased from the Shipping Boaird will bo the nucleus for the fie* to operate on all trade routes between Pacific Coast and Oriental ports and along the west coast of South America. Later on, private companies now engaged in the same traffic will be asked to, join the combine.

The suggestion lias been offered, and approved by Mr Lasker and President Harding, that the ships now under Government control shall be taken over by purchase, by two Government shipping corporations, one to operate on the Atlantic Coast, and the other on the Pacific. In Fleishacker’s hands was placed the task of working out the organisation of the Pacific Coast corporation.

“In, a general way,” said Mr Floishacker, in explaining the project, “it is proposed to inaugurate a schedule that will permit of two sailings a month from each of the Pacific Coast ports to the Orient. The sole idea is L> enable a privately-owned corporation to maintain an American Merchant Marine at a high standard of efficiency. The financing will be by private capital, and the public will be invited to subscribe io the stock.”

j A request will he made to the United j States Government for subsidies, Mr | Fleisliacker added, and according to recent word from Washington a siibs d.v plan is now being worked out. It is also planned to have the Government place its army transport service at the disposal of the big corporation. Independent observers predict a rate war developing between the British, Canadian, and Japanese against the operations of this American concern in the struggle for world shipping trade on th© Pacific Ocean, and it is surmised ; that the splendid ships of the Canadian Merchant Marine will manage to meet any competition offered by the United States corporation as it already enjoys a lucrative business between the Pacific Coast and the Orient and Australasia.