New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-10-07
p. A. S. Franklin Dis
charged with $4,000
Fee.
COMMITTEE TAKES
COMPANY OVER
War Had Double-Edged
Effect on Shipping
Concern.

The last thread OF the international
Mercantile Marines bankruptcy cocoon
was unwound yesterday when Judge
Hough discharged Philip A. ). Franklin
from a receivership so remarkable that
the court felt compelled to comment
upon it. After eighteen months OF
| phenomenal profit the company Is no"
ready for a reorganization. =.
When the funds now in the hands OF
the receiver are turned over to the
company. the reorganization .plan'
which has been approved by majority
of the bond and stock holders, VIII DE
put into effect.
The war, which, with its unparalleled
freight rates and its tremendous de-
mand for ships, brought the cash pour
! ing into the international Marines
Golfers soon after the receiver was ap-
nointed. was also held responsible for
| the failure 20 pay interest on BONDS
which caused an application for re.
ceiycr. Some of the newest ana most
available ships OF the companies con-
trolled by the international had oeeh
seized by Great Britain for military
Il was in April, after the gloomy
! winter Of 1914-'15, when the possloi'
tiles Of vast war prohts had not ye'
dawned on the nation, that MI rrahA-
lin was appointed. 1t was soon appar-
ent that il had been the hour before
the dawn. Ocean freight rates scared
! ships belonging TO the company were
sold for double their cost, the prontS
were vastly greater than in any periou
before the receivershlp.
Gpirif ArisPa.
International Mercantile Marine
stock began TO be watched, and WIN
recurring rumors OF great Interests
! struggling for control, became sup
I iect for speculation. Many Oh tho
! original stockholders, including SOME
| in Great Britain, who mad sofa "hen
it appeared that the concern was on
! The rocks. repented OF their bargain
II was rumored broadcast that the
| great holding company had purposeiy
! been wrecked.
Anparently needless of such rumors
and unaffected by them, the company
rode prosperous tide under MI
( Eranklin's management With the re-
organization obligations will be dlS,,
/ charged partly with money to be raised
| Inv notwithstanding the properly OF
/ the company and partly by the profts
4
| of the receivership
Commenting on the unusual ending
of a recevership. Judge Hong n sald'
"Mr. Franklin was appointed receiver
not only on the consent, but at the
earnest request, of all parties known
| TO me and interested in the lnterna-
| tional Mercantile Marine Company. Az
the date of his appointment, IN April
! 1915, the task was thanklesS ana uhs
! promising one. The dlslocation OF
! business of all kinds caused by the
present European war was very NAM
/ fest. but the profits that were to &C
Z crue Ia properly managed shipping
I operated under the American nag, oy
reason of the long continuance OF that
| conflict, were not obvious at all.
"Mr. Franklin's management OF this
! property (wilh which | have kept in as
close touch as my knowledge OF busl'
ness would permit has been something
/ for which not only the court and the
/ conpany's shareholders but the public
at large are greatly indebted TO nm:
/ The court has had early knowledge or
( his views as to the probable apprecla-
I ton of shipping property and the IN
creased gains therefrom, and the de-
: PENDANT corporation has reaped the
benefit of his foresight.
Praises Franklin's Action.
aThe reftting Of the few steamers
which in early 1915 few the American
| flag and belonged to the defendant MS
pressure for increased freight tonnage
! and the use Of the cash at his COM
mand TO purchase part OF the racine
I Mail fleet have resulted in prohts NTH
erto unknown in my acquaintance with
receivership proceedings.
! an all the details OF these matters
! he has been seconded by counsel, who
! indeed suggested and devised the ma
chinery by which some of these plans
were perfected.
$50 far as the foreclosing trust COM
pany and their counsel are concerned
| their course, in my opinion, has been
marked by forbearance and a willing
ness TO assume a certain amount OF
/ risk quite unusual in proceedings OF
! this kind. Under the terms OF the
larger mortgage the .rustee-mortgagee
might have taken over absolutely
| Through stock management the AZ
! fairs Of the sub-corporations owning or
absolutely controlling most Of the ship
I ping commonly known as that Of the
! International Mercantile Marine Com
/ pany.
"The easy and legally safe course
/ for these trustees would have been to
play the dog in the manger. They
| have of course greatly benefited their
bondholders by permitting the business
machinery of April. 1915, to continue
( in operation under Mr.. Franklin's man
agement, but they have also rendered
possible the present rehabilitation Of
its affairs"
/ Mr.. Franklin's compensation is fixed
by the court at $4,000. The law firm
of Birmingham, Montgomery & Beech
er, counsel for the receiver is allowed
| 100000; the New York Trust Company,
trustee of the mortgages and complain
ant in the foreclosure suit, $4,000;
James Byrne. solicitor for the COM
plainant, and Byrne & Cutcheon, coun.
sci for the trustee, 100000; the Fidel-
ity Trust Company, trustee of another
mortgage and complainant in cross
suit, $4,000 and Charles X. Beekmsn,
solicitor for John &. Johnson. of coun-
sci for the Fidelity Trust Company,
$4,000.