New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-08-12
GROUPS AGREE ON
SHIP TRUST PLAN
Decision Regarding Back
Dividends Left to New
Directors.

The long expected agreement on re-
organization OF the international Mer-
camille Marine Company was reached
yesterday at a final meeting of repre-
sentatives Of the two stockholders COM
lnittees and of the bondholders' group.
Security holders arc being notified that
they may obtain copies of the plan to-
day. To those who have not already
deposited their securities with the pro-
icctiye committees opportunity is given
20 do so until September 81.
Although full details Of the readjust-
ment scheme were withheld from off,
cial publication until to-day, it was
learned that the main features do not
differ from those previously outlined.
30 mention is made in the plan regard
ing the accrued dividends onsthe pre-
ferred stock. The decision as to
whether they shall be paid off either in
part or in full is left to the discretion
of the new board of directors that will
I
the receivership has been lifted. II is
confidently expected, however, that one
of the first steps Of the new board will
be to place the preferred stock on a
regular 6 per cent annual dividend
basis. The arrearage on the senior
shares il now in excess OF so per cent,
no dividends having been paid since the
time of organization.
In the restoration of the company to
the stockholders the reorganization
plan provides that the existing bonded
Indebtedness. now amounting with the
accrued interest to approximately $751;
100000. shall be taken care of By the
issuance of 81 per cent in new bonds and
payment Of the remaining 80 per cent
in cash. The new bonds will consist Of
s40,000,000 6 per cent first mortgage
sinking funds out of a total authorized
issue of s50,OO0,O0
In the proposals tentatively agreed
upon several weeks ago it had been pro-
vided that part of the cash to be used
in retiring existing bonds would be
raised by the sale of short term notes,
the amount first reported being Sl0.-
100000. which estimate was later cut
to S5,000.000 Expectation of a con-
tinuation of the present rate Of earn
lngs for some time 10 come has appar-
emily been the cause Of the reorganiza-
tion interests decision not to issue any
notes at all
The plan further provides that the
defaulted interest on tho 5 per cent
bonds OF the international Navigation
Company shall he paid in full IN to Oc-
tober next. The same provision also
applies to the collateral trust a.. per
cent bonds of the International Mercan-
tile Marine Company. While the bond
ed debt of the company is substantially
reduced by the reorganization, there is
no change in the amount OF stock out
standing.
Expenses of the reorganization are TO
be met by contribution of about 81
share By both the preferred and COM
mon stockholders.
Directors Of the new company are 10
be divided into three groups, their
terms expiring respectively in 1917,
1918 and 1919. In the latter group are
F. W. Scott. Harry Bronner, Charles H.
Sabin, George W. Dawson and Albert
Rathbone. Members of the 1918 group
consist of John w. Platten, Donald G.
Geddes, P. A. S. Franklin. Frank A.
Vanderlip and Charles A. Stone. Those
whose terms will expire at the end of
1917 are f. G. Grenfell, j. p Morgan.
Charles Steele, Lord Pirrie and Harold
A. Sanderson.