International Mercantile Marine Company
The International Mercantile Marine Company, originally the
IMM was founded by shipping magnates
IMM was a holding company that controlled subsidiary corporations that had their own subsidiaries. Morgan hoped to dominate transatlantic shipping through
A proposed subsidy bill in the United States Congress failed, which became widely apparent by April 1902 [a] and the company thus was never truly successful. Beginning in the 1920s, the company underwent a series of corporate acquisitions and mergers, which resulted in its becoming the United States Lines in 1943.
History
Founding of the company
As the shipping industry prospered in the late 19th century, some sought to create a trust that would monopolize U.S. shipping companies. However, all negotiations in this regard in the 1890s fell short. The intervention of John Pierpont Morgan, one of the richest men in the world, would change that.[5]
The Atlantic Transport Line, owned by Bernard N. Baker and having both passenger and cargo ships,[6] competed intensely with British and other shipping companies. Baker tried to sell his company to John Ellerman, chairman of the cargo-carrying Leyland Line, who had tried unsuccessfully to take possession of the Cunard Line and HAPAG, two powerful European companies. Negotiations between Baker and Ellerman, advanced but ultimately fell through.[7]
Meanwhile, J. P. Morgan had already concluded agreements with Clement Griscom, president of the International Navigation Company, which operated the Red Star Line and the American Line. Finally, in December 1900, after six months of negotiations, the Atlantic Transport Line joined INC.[8]
Subsequently, Baker, J. P. Morgan, and Simon Bettle Jr. (representative of the INC) negotiated with Ellerman, this time with a view to redeem his property. There would be two companies that would join the trust. The name of one of them was revealed in April 1901: the Leyland Line.[9] The second turned out to be the prestigious White Star Line, bought by Morgan's team, after long negotiations, in April 1902.[10][11][12] On 1 October 1902, JP Morgan & Co. announced the founding of the International Mercantile Marine Company, more commonly called IMM.[13][14] (Constituent elements of IMM, including INC (chartered in 1871),[15] had however been operating for many years already.)[7] IMM was incorporated in New Jersey.[16]
Golden age
Morgan's role evolved over the years. Being American, he could not directly own British ships, but he could own the company that owned the ships.[7] In 1902, the IMM carried 64,738 passengers, a total buoyed by high immigration to the United States. The IMM had signed a partnership with the two most important German shipping companies, Norddeutscher Lloyd and HAPAG, which carried a total of 66,838 passengers. The German-Morgan agreement, signed in New York on 20 February 1902,[b] was a key step in the formation of what was to become the IMM, but did not fully address long-standing competitive friction between and amongst the major German and British transatlantic shipping companies.
Responses in the United Kingdom helped intensify these rivalries. Cunard Line, one of the British shipping companies with independent significance, received grants from the British government for the construction of two great ocean liners, the Lusitania and the Mauretania, which were placed into service in late 1907.
Since 1902, IMM had an agreement with James Pirrie, chairman of Harland & Wolff and member of the management of the White Star Line, stating that the vessels of the company will be built by Harland & Wolff for all the time.[7] Ships of the company were also shifting from one company to another, like the Belgic, built for the White Star Line, which was transferred to the service of the Red Star Line under the name SS Belgenland (1914), or the Regina became the Westernland.[21] This allowed the IMM to schedule a ship each day from the United Kingdom, and passengers to change their tickets to a position equivalent to another vessel of the company. Baker retired from the direction of the Atlantic Transport Line shortly after its integration with the IMM, and was replaced by Philip Franklin. He later became vice president of IMM, while Griscom was replaced as president by Joseph Bruce Ismay in 1904 (who was also president of the White Star Line).[22]
Decline
The early 1910s marked a turning point for the IMM. Indeed, on 15 April 1912, the Titanic, flagship of its fleet,
However, the sinking of the Titanic did not bring about the end of the IMM. Although theoretically powerful due to its continued influence with some of the top American, British, and German shipping companies, the overseeing company never managed to overcome its own financial problems, nor dominate the bulk of the North Atlantic shipping trade, and was therefore not as successful as expected.[7] The company went into receivership in 1915 and was placed in the hands of Franklin, who managed to save it. In the late 1920s, he received grants from the government to American ships (built in the United States or flying the flag) and in 1926 it sold the White Star Line to the Royal Mail Steam Packet Company for £7 million, of which £2.35 million was still unpaid when the Royal Mail Group, which was overleveraged and undercapitalized, collapsed in the early 1930s.[27] In 1930, IMM possessed 30 vessels. There were 19 in 1933 and only 11 by 1935.
The ailing company merged with the Roosevelt Steamship Company, parent company of the Roosevelt Line, in 1931 to form Roosevelt International Mercantile Marine Company (RIMM).[28] Later in 1931, RIMM acquired the financially troubled United States Lines and began consolidating its operations under that brand. The Atlantic Transport Line was dissolved in late 1931 and its ships were distributed throughout RIMM's remaining divisions.[29][30]
The American Line was merged into United States Lines in 1932, the Red Star Line was sold to Arnold Bernstein in 1934, Baltimore Mail Line merged into United States Lines in 1937, the Panama Pacific Line was dissolved in 1938 and its ships divested, and American Merchant Line was merged into United States Lines in 1938.[29][30]
Finally, the Roosevelt Line was merged into United States Lines in 1940, leaving that company as RIMM's only remaining business. RIMM changed its name to United States Lines Inc. in 1943, recasting itself as a smaller company focused exclusively on transatlantic routes under a single brand.[29][30]
Some businesses of the modern shipping industry still regard IMM as an early attempt at the corporate ownership of several companies under a single trust; the kind of large overseeing companies that dominate much of the maritime shipping world today.[citation needed]
Presidents
- Clement A. Griscom, 1902–1904
- J. Bruce Ismay, 1904–1913
- Harold A. Sanderson, 1913–1915
- Receivership, 1915–1916
- Philip Albright Small Franklin, 1916–1936[31]
- John A. Franklin, 1936–1943
Company became United States Lines Inc, 1943[32]
Companies owned by IMM
- American Line: 1873–1932
- Inman Line: 1886–1893
- American Merchant Line: 1924–1938
- Holland America Line: 51% share owned 1902–1917
- Atlantic Transport Line: 1901–1931
- Baltimore Mail Line: 1930–1937
- Dominion Line: 1902–1926
- Leyland Line: 1902–1927
- Panama Pacific Line: 1915–1938
- Red Star Line: 1871–1934
- Roosevelt Steamship Company: 1931–1940
- United States Lines: 1931–1943 (continued as IMM's successor company)
- White Star Line: 1902–1927
See also
- International Mercantile Marine Company Building, former New York City headquarters
Notes
- ^ and presenting Morgan with the "Hobson's choice" of proceeding with the formation of a probably unprofitable holding company (by consummating the acquisition of White Star as its "crown jewel," but having to probably go without the subsidy envisaged under the Frye-Payne bill), or backing away at the last minute and absorbing considerable losses on the prior purchase of Leyland. Morgan ultimately chose to go ahead and continue putting together his "trust."[3][4]
- ^ Central planks of the agreement included dividend-sharing, route-allocation, and joint committee to oversee the agreement, and suspension in the event of war. A contemporaneous side deal authorized the subsequent acquisition by HAPAG, NDL and IMM of a controlling interest in the Holland-America line (but without the direct advance knowledge of Holland-America's management).[17]
References
- ^ "IMM 1916 Annual Report" The New York Times, 4 April 1915; .
- American Neptune, 57 (2): 137–154
- ^ Vale 1984, pp. 94–97.
- ^ Piouffre 2009, p. 58
- ^ "Atlantic Transport Line". The Ship List. Archived from the original on 4 July 2010. Retrieved 7 July 2010.
- ^ a b c d e The IMM Archived 16 January 2017 at the Wayback Machine, Atlantic Transport Line History. Retrieved 17 July 2009
- ^ "Red Star Line". The Ship List. Archived from the original on 6 February 2010. Retrieved 17 February 2010.
- ^ J.P. MORGAN & CO. BUY THE LEYLAND LINE, New York Times of 30 April 1901. Retrieved 17 July 2009
- ^ (in French) Histoire de la White Star Line sur le Site du Titanic. Retrieved 17 July 2009, Vale, pp. 54–61
- ^ (in French) FAQ sur le Site du Titanic. Retrieved 30 December 2009
- ^ Chirnside 2004, pp. 9–10
- ISSN 0362-4331. Retrieved 11 February 2020.
- ^ N.R.P. Bonsor, North Atlantic Seaway, vol. 2 (1978), p. 829
- ^ International Mercantile Marine Co. stock certificate. 1922.
Incorporated Under the Laws of the State of New Jersey
[circular reference] - ^ The German Accession," chapter 3 in Vale, pp. 63–101, Annual Report of the Commissioner of Navigation [U.S.], 1902, pp. 395–99, Navin and Sears, pp. 308–12
- ^ Riffenburgh 2008, p. 12
- ^ Piouffre 2009, pp. 33–36
- ^ J.H. Isherwood, "The Great Olympic," Sea Breezes 21 (1956), p. 101
- ^ Regina/Westernland, Great Ships. Retrieved 7 February 2010
- ^ Piouffre 2009, p. 10
- ^ Piouffre 2009, p. 260
- ^ Wilton Oldham: "The Ismay Line".
- ^ Riffenburgh 2008, p. 7
- ^ IMM 1916 Annual Report
- ^ Green and Moss: "A Business of National Importance"
- ISSN 0362-4331. Retrieved 12 February 2020.
- ^ a b c "International Mercantile Marine Company Building" (PDF). New York City Landmarks Preservation Commission. 16 May 1995. p. 4. Retrieved 12 February 2020.
- ^ OCLC 652516469.
- Time magazine. 10 February 1936. Archived from the originalon 15 December 2008. Retrieved 18 August 2009.
- ^ The New York Times, 21 and 22 May 1943
- Chirnside, Mark (2004). The Olympic-class ships. Tempus. ISBN 0-7524-2868-3.
- Navin, Thomas R.; Sears, Marian V. (December 1954). "A Study in Merger: Formation of the International Mercantile Marine Company". Business History Review. 28 (4): 291–328. S2CID 154857498.
- Piouffre, Gérard (2009). Le Titanic ne répond plus (in French). Larousse. ISBN 978-2-263-02799-4.
- ISBN 978-2709819824.
- Vale, Vivian (1984). The American Peril: Challenge to Britain on the North Atlantic 1901–04. Manchester: Manchester University Press. OCLC 10752931– via Internet Archive.
Further reading
- Boyce, Gordon. The Growth and Dissolution of a Large-Scale Business Enterprise (Research in Maritime History 49, 2012), chapter 4: "Trouble on the Transatlantic Route."
- Gittelman, Steven H.: J.P. Morgan and the Transportation Kings – The Titanic and Other Disasters. University Press of America, Inc., 2012 (ISBN 978-0-7618-5850-8)
External links
- Number One Broadway—The Home Port of the International Mercantile Marine Company (Brief history of location with latest building, rebuilt for IMMC with list of shipping line holdings.)
- «Die 'Titanic stocks', Rose und die zweite Maid» a scripophilistic article listing/showing all known IMM stocks and bonds, and incl. other related documents (in German)
- Baltimore Mail Line History and Ephemera GG Archives