The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-04-04

To conserve the assets OF the Inter
national Mercantile Marine Company
and still protect the holders OF It's bonds
on which approximately s2,S0o.oOO In
terest has been defaulted Judge Hough
OF the United States District Court yes
terday appointed Philip a. $. Franklin
receiver Of the corporation under a bond
OF $50 900. Mr.. Franklin Is vice-pres-
dent of the company and Is therefore
thought better qualified than an outside
man TO continue the operation or the
various lines collocated under the name
OF the international Mercantile Marine
Company.
The appointment was made In an
equity suit filed by the New York Trust
Company as trustee OF a mortgage Sc
curing a 1000 900 issue of the cor
poration's Az per cent. gold bonds. Otto
Barnard, president OF the trust com
many. is also chairman of the 1nterna-
tional Mercantile Marine bondholders
protective committee which approved
the bringing of the receivership pro-
ceer.ings
Two codefendants are named In the
suit. They are the Fidelity Trust COM
pany, a Pennsylvania corporation. which
liz named only as a technical defendant
because Il holds another mortgage
against the International corporation.
and the International Navigation Com
pany. Ltd. of Great Britain. In which
the International Mercantile Marine
holds SO, 900 shares OF stock.
According to Information obtained at
the offices OF the International Mercan-
tile Marine Company the temporary en-
ba IRA ssmen. which renders the corpora
ton unable TO pay the interest on its
bond issues is due to the blighting effects
of the war on ocean passenger traf'ic.
ships whose passenger capacity is nor
mally from 400 To 500 are now content
II they can carry 100. and there Is no
advance booking
In addition many OF the corporations
ships have been requisitioned by the
British Government for war purposes.
Although the line will receive reimburse
nent for the services OF these vessels.
the compensation will not equal the
amount which would have been earned
IN the carrying OF freight and passcn-
gers.
The Olympic. taken over by the Brit
ish Government for a troop transport
ship. il now tied up IN England The
Oceanic. converted into a cruiser, was
wrecked OF the north coast OF Scotland
Reimbursement for TINS loss 10 the
steamship company Will be some time
IL coming
Antedating tae var the international
company suffered severe loss from
the sinking ~ the Titanic. which foun-
dered on her maiden voyage, leaving
behind 4 claims aegregating about SIS
600 900 for personal damages and loss
OF lie and property. The White star
Lines petition In the Federal District
Court to escape responsibility for the
greater part of these claims is to be
heard IL May.
Whether the receivership will impair
| the claimants chances Of getting dam
| ages IN case the court holds the White
star Line responsible TO the full extent
of the claims Is probsmatical Accord
| ing To statement given out at the
offices Of the International Mercantile
| Marine Yesterday tho assets Of the
White star Line will not be affected by
| the rcceivershlp.
The Federal District Courts action
| yesterday caused discussion a. I" the
; effect of the rcceiNersh.p ON the siatu'
| Of the English registered ships owned
| 10y the lines included in the International
! Mercantile Marine,