March 1866 a bank failure created serious problems for White Star and in a bid to capture some of the North Atlantic trade deployed the Royal Standard on a voyage between Liverpool and New York but with little Success.

The company's mortgages were then taken over by the Royal Bank of Liverpool but in October 1867 the bank was closed down and it was revealed that the line owed £527,000.

White Star was forced into bankruptcy in January 1868 and was then sold to Thomas Henry Ismay, a 31 year old ship owner, for £1000.

|

Just over a year later, Thomas Henry was approached by a leading Liverpool merchant and financier, Gustavus C. Schwabe, who was the uncle of Gustav Wilhelm Wolff, a junior partner in Belfast shipbuilders Harland & Wolff.

|The men reached an amicable agreement under which Mr. Schwabe would

|provide his financial expertise to help Mr.Ismay to raise the necessary finance to start a new shipping company.

There was a condition that all three parties were happy with - the ships had to be built by Harland & Wolff. The first ship built under this arrangement was the Broughton, an iron sailing barque.

In 1902 the Broughton was wrecked on Hamersea Island during passage from Hamburg to Glasgow.

Between then and 1934, every new passenger ship for the line was built by the Belfast shipbuilders.

The result of the agreement was that in September, 1869, the Oceanic Steam Navigation Co. was established by Thomas Henry Ismay, from its early days.

The line was known as the White Star Line.

Please consider joining our friendly and informed community as an Associate Member. You will have a unique opportunity to get involved in our 2012 Anniversary Commemorative Events & your support will really help us achieve our goals.

To learn more about our unique commemorative Titanic First Day Covers

For more information on how YOU can get involved click here The Titanic Heritage Trust