New Britain herald., 1915-04-03
NAMED FUR MERCANTILE MARINE co
Franklin Placed Under $50,QO0
 Bond-- May Continue Business.

New York, April 3.--The Interna- tionai Mercantile Marine company, or ganized by J. r. Morgan and conn pany and controlling a great fleet of steamships plying between the United States and Europe, was placed in the hands of d receiver today by the fed eral court. The receiver named was F. A. $. Franklin, vice president of the company.
 ' The proceedings are understood to be friendly.
 Under S5O,oOO Bond.
 ; Mir. Franklin was placed under a $50, 900 bond and empowered to con- finuo tne business of the company.
 The bill of complaint vas filed by the New York Trust Co. against the Inter- aational Mercantile Marine, the Ft- dclity Trust company, and tho Inter national Navigation company.
 The bill of complaint claims de- fault of interest on $52,!44.00U. 4 1-2 per cent. collateral trust bonds.
 Under Morgan's Leadership.
 The mammoth fleet that flies the flag of tho International Mercantile Marine company was brought togetl,- ar by a syndicate of American and British capitalists under the leader ship Of tho late !. Pierpont Morgan. Tho corporation, in it's present form. was chartered by the state Of New Icrsey in 1902 and succeeded the International Navigation company, which had then been in existence for nine years. t
 One hundred and nineteen steam ships, flying the flags of three nations Great Britain, the United States and Belgium-were operated by tho com pany according to the latest available figures. They represented a gross tonnage of 1,071 ,6S5 tons and t1ero were then building eighteen more ships with 208,000 tons capacity. Some of these ships have been since con- plcted. The company owned the White Star liner Titanic which sank with the loss of more than 1, 1,600 lives in the Atlantic three years ago, and h&r sister ship, the Olympic, ono of the largest vessels in the world.
 Funded Debt S7O.00O. 900.
 More than $100, 1000, ,0o0 of the con- panys authorized capital stock Of $l20,0O0, 900 has been issued. J. F. Morgan x company are large stock holders. MT. Morgan is a director of the company The company's funded debt is approximately s70, 100000 and is made up of two issues of bonds. the Eg issue on which interest has been defaulted and an issue Of $1T,SS2, ,000 first mortgage five per cent. bonds of the International Nav igation company.
 The interest on the s52.744,0 bond issue was due Oct, l., but saving clause in the bonds gave the company six months grace in which to make the pigment. This term of grace expired April l, last Thursday.
 Operated by Subsidiaries.
 No steamships were directly operat- cd in the transatlantic service by the company. their operation being left toN subsidiary corporations. The com pany directed the operation of the White Star line, the Red Star line, the American line. the Atlantic Trans port company. the Leyland line and the Dominion line. The last company should not be confused with the Old Dominion line which operates coast wise steamers between this city and Virginia ports.
 w. w. Miller, of counsel for the bondholders committee, issued state ment in which he said: Tt is under stood that in the event the receiver ship will only relate to the properties directly owned by the International Mercantile Marine company. such as the American line and the Red Star line. 1t will not in any way effect the so-called English subsidiary compan- ies such as the White Star line. the Atlantic Transport line the Dominion line or the Leyland line. If a receiv- Y-c11i isa atnd ( xx-iI1 xok s.. way whatsoever interfere with or disturb the operation of the company or it's subsidiary companies"