New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-04-04
SHIPPING TRUST
In RECEIVERSHIp
War Completes Financial
Trouble Started by the
Titanic Disaster.
LINES TO BE KEPT
IN OPERATION
No Interest Ever Paid on Com,
mon Stock of Big Morgan
Combination.


The international Mercantile Marine
Company. launched by J. Pierpont Nor
gan in 1902 in his plan TO include the
principal ocean lines of the world IN a
gigantic shipping trust, went into a re-
ceivership yesterday. u had beer
waterlogged from the start, but man
aged 10 keep ahoat until the war prac
tically wiped out passenger traffic and
reduced freight business 20 a mini
mum.
Two of the nations now fighting,
Great Britain and Germany, thvarted
The late fnarcicr's trust plan. Tn
Cunard, North German Lloyd AID Ham
0urc-Amer.can lines refused 20 % n IN
comb nation. ~ thcy were heavily SUB
.dzcd and trcir best ships were
Guided IN the navy r. crse.
Philip A. s. Fra Kiln, vice president
Of the International. was appointed re
ceiver by Judge Hougn. of he United
States District Court, with a bond o.
$4,000. A statement from the Office
late yesterday afternoon said that the
ships OF the combination would co
tinue to be operated as at present.
The only tran satlantic ships which
have been run without danger since tn
war began have been those of n
American Line. Il is believed that III
operation of he others by a receive
appointed by United States court vii
be attended with greater safety VIM.
passing through war zones.
Yesterdays application for the a.
pontment of receiver vas not u0ex
pected in Wall Street. No divide
have ever been paid on the preferlo
or common stock, s60,000,000 of each
Interest on the bonds was kept up un-.
last October. There are collateral tru
d = per cent bonds Of S52.74i,0OO an
bonds Of underlying companies OF so
$4,000. OF this total, S197,O51OOO, a
but Sl9,00O.O00 stock is outstanding.
The equity suit was brought by p.
Kew YORK Trust Company, which no O
he collateral trust bonds as morta
trustee. Accumulated interest amour
20 S2,3O0.000, which the company "a.
mits it is unable 70 pay
Mr.. franklin, VINO was appointed f.
ceiver. stated shat the recelNersh
does not affect any Of the suosidiai
companies, including the White STA
Atlantic Transport, Leyland and White
Star Dominion lines.
"The steamers Of all these line,
said Mr.. Franklin, "and OF the Amer
can, Red Star and Panama-Paclic
lines as well, comprising a fleet OF
about 215 ships, will continue 20 be
operated as at present
The companies placed in receiver
ship are those whose properti( and
assets are collateral behind the ponds
of the international Mercantile Marine
Company and the International Nayi-
4 cation Company, the interest on which
is now in default. making the fore
closure necessary 10 protect the inter
/ ests Of the bondholders.
These bends are a direct obligation.
and are secured by a first collateral
lien, by deposit with the New toFE
Trust Company, trustee, OF the follow
ing stocks: 100 shares international
Navigation Company, Ltd; 20 shares
Societe Anonyme de Navigation Beige
Americana, 29,993 shares Atlantic
Transport Company, of West Virginia.
$50 shares Oceanic Steam Navigation
Company. Ltd; 45.432 shares Brit. IN
and North Atlantic Steam Navigation
Company, Ltd; q ABR shares M.ssfa-
sippe and Dominion Steamship Com
pany, Ltd; 10000 shares Atlantic
Transport Company, Ltd; 1s,4O3 or
shares, Frederick Leyland & Co, Ltd.
The outstanding bonds of the Inter
national Navigation Company, as the
international Mercantile Marine Com
pany was known prior TO 1902, amount
to S1772s,000, and are secured By a
first mortgage on the steamships New
York, Philadelphia, St. Louis, ST. PAU,
Kroonland and Finland. They are also
a first collateral lien on the iceland,
Haverford, Merton, Naderland, Lap
land, Belgic and Gothic.
The reorganization of the companie ;
is in the hands Of the bondholders
protective committees representing the
two issues now in default. The COM
mittee looking after the international
Mercantile Marine bonds consists o.
4 Otto T. Barnard, chairman; Andrew
J. Miller. Sidney F. Tyler and Albert
II. Wiggin, and the international Nayi-
CATION committee consists OF william
p. Gest, chairman; 7. De witt Cuyler'
Samuel F. Houston, Charles ID. Norton
and George s. Brewster.
One of the contributing causes OF
the present embarrassment OF the con
Germ was the Titanic disaster. The
financial resources and prestige OF the
White Star Line received a stunning
blow in what was the worst sea trag-
edv in history in point OF the promi-
nence and wealth Of the passengers m
volved Since the war began the Bilt-
isb government has chartered the
Oceanic and Olympic. The former was
sunk in collision. Papers in the SUIT
state that payments due from the
British government have been slow Of
realization"