Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-11-27
OWNERS TO PROTECT
MILLIONS In BONDS
OF SHIPPING TRUST
Investors Of $l7,728,OO0 in
International Mercantile
Marine Company Will Be
Urged to Deposit Securities

Unsettled conditions in shipping, due Il
the war, was the reason advanced for the
movement launched by committee of
financiers for the protection Of the hun
dreds of holders Of s1772so 900 worth of first
mortgage sinking fund per cent. gold
bonds of the international Mercantile Ma
rine Company.
The committee is composed OF william
p. Gest. T. De witt Cuyler. Samuel f.
Houston, Charles d. Norton and George
& Brewster. IL was formed at the behest
OF number OF holdera Of the bonds. A
deposit agreement" dated November -,
1914, has been drawn up by the committee
and the bondholders arc being urged to
Sign It and to deposit their bonds In
negotiable form, together with the cou-
pom due February 1, 1915, with all subse-
quent coupons with the Fidelity Trust
Company, of this city or it's agent. the
Bankers Trust Company. of New York.
Certificates OF deposit will be issued for
all bonds Deposited. r. Homer Atherton,
secretary of the committee, Is looking
after the interests of the Fidelity Trust
Company.
A. MEASURE OF PRECAUTION.
The action of the committee, it was said
today, was not taken because or any ''in-
side" information of any weakness of the
finances Of the company. 1t is deemed
= precautionary measure to protect the
bondholders. The bondholders, however,
In signing the agreement and depositlng
their bonds give the committee full power
70 ask for a receiver or take part in
reorganization of the company.
In some sections OF the financial district
the move OF the committee was believed
to be the first step in the reorganization
of the International Mercantile Marine
Company which 10 a Sl2oOOOOOO concern,
Incorporated under the laws of New Jer-
sey 1t has been frequently called the
"shipping trust"
The rapid growth of the North German
Lloyd and HamLurg-America lines In re-
cent years, which gave them domination
in the various shipping pools. II is report
ed made inroads into the earnings OF the
company although the year of 1919 was
one of the best in the companys existence
This organization for protection ac-
ccrding to one of the bondholders' was |
a safety first move. He pointed out the !
companv had deferred its interest upon |
lis ~ per cent. mortgage and collateral |
trust bonds which matured on october
/ and declared Il would probably default |
In it's payment of the interest due Fep-
ruary on its first mortgage sinking fund |
5 per cent. gold bonds.
CONCERTED ACTION NECESSARY.
This. he said, necessitated prompt. con-
eerted action on the part of the holders
of these bonds for the protection Of their
interests. It was the intention Of the |
committee to act in conjunction with |
holders Of other bonds and the stock
holders for the betterment OF all con-
earned, he declared, and laconically con-
eluded:
TT a large number of persons pick on
one turkey there would soon be no tur-
key left for any one, and II large num-
ber of bondholders get to picking on inc
international Mercantile Marine there
may not be any company left for any OF
them"
The international Mercantile Company
is the outgrowth OF one OF the late Glenn
ent c. Ciriscom's financial coups. II was
incorporated I'm 1892 as the International
Navigation Company on october 1902
it changed its name to the present one.
1t controls A separate lines of steam
ship service. Among them are the Amer
lean line. White Star line, Atlantic
Transportation line. Dominion Line, Ley
land line, National line and the Red Star
line.
WAR HALTS SERVICE
The last-named line. has been compelled
10 discontinue it's service to Antwerp be-
cause OF the war. The control of the Ley
land line and the National line is vested
in the company holding the majority of
the stock in them. They are the only
two lines the company does not operate.
They are operated by separate companies.
The company owns property and has
aailings to and from this city, Montreal,
Quebec Portland. Boston, New York.
Baltimore, Galveston. New Orleans,
Queenstown, Liverpool, Manchester Ply
mouth, Southampton, London. Lelth,
Cherbourg. Havre, Bremen Antwerp the
West Indies. Mexico, Cape Town, New
Zealand. Australia. Azores. and Mediter-
ranean ports.
It's fleet comprises 1873 vessels Of 1856, ,286
tons.