New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-09-30
A PROSPEROUS
RECEIVERSHIP
International Mercantile
Marine Plan of ReOr-
ganization Adopted.

Stockholders of the international
Mercantile Marine Company, at spe-
cial meeting in Hoboken yesterday, ap-
proved the plan OF reorganization which
had been sanctioned by the committees
representing different classes Of securl-
ties. This paves the way for an early
lifting of the receivership, application
for which will probably be made next
week.
During he eighteen months OF its
receivership, stock control of the COM
pany has been acquired by bankers
connected with the National City Bank,
who are believed to have bought
dominant interest in other large ship
ping properties, including the Atlantic,
Gulf and West Indies and United Fruit
companies.
The constitutional changes necessary
to carry out the readjustment were IN
corporated in seven resolutions. These
contain no mention of any disposition
of the So per cent of back dividends on
the preferred stock, nor was there any
mention of new issue OF notes per-
mitted under the plan.
In addition to passing favorably upon
the formalities relating to the dis
charge of both the New Jersey and
New York receivers the stockholders
elected a new board of directors, the
personnel of which had been previously
forecast correctly. Those who will serve
until 1917 are j. p. Morgan, Edward I.
Grenfell, Lord Pirie, Harold A. Sander
son and Charles Steele. To serve until
1918 are Otto r. Barnard, Donald q.
Geddes, John W. Platten, Charles A.
Stone and Frank A. Vanderlip. Those
whose terms will expire in 1919 are
Harry Bronner, George W. Dawson
p. A. s. Franklin, Albert Rathbone,
Charles II. Sabin and Frederick W.
Scott.
Notes Will Not Be Issued.
The failure of the directors to take
advantage of the provision of the re-
organization plan permitting an issue
of notes up to S1O,OOC,O0O to help pay
off the bonds that are to be retired
caused some surprise in financial cir
cles. 1t was learned that instead of
this procedure the company will Dor
row between 100000 and $4,000, 900
from the banks. The amount of cash
to be applied to the bonds is s375O0,-
900, which means that approximately
s32,0OO,OO0 will be taken from the
company's present cash resources. The
bonded Indebtedness by the plan will
be reduced from $77,0OO,OOO (Which in
cludes par and accrued INTEREST," to
siO,OO0,OOO twenty-fveyea per cent
first mortgage bonds.
The new board of directors have de-
ferred electing officers of the company
until next week, when they will meet
again after the receivership has been
vacated. 1t is expected, however, that
P. a. 5. Franklin, the present New York
receiver, will be made president and
that Harold Sanderson, Of London, will
be made chairman of the board.
Obligations Wiped Out.
Since the receivership the Tnterna-
tional Mercantile Marine Company has
enjoyed the most prosperous period of
its history. Earnings have been so
large as to wipe out practically
all obligations and leave a hand
some profit. At one time it appeared
that the bondholders would obtain pos
session of the property through fore
closure proceedings, but this was pre-
vented by the formation of the pre-
ferred stockholders committee,
which James n. Wallace. president OF
the Central Trust Company, was chair
man.
Some Of the new directors declared
yesterday that the question of back
dividends on the preferred stock is not
likely to come up for active consider
alton at an early date. 1t was init
mated that the floating debt created by I
the bank loans will have to be paid off
before the arrearage on the senior
shares will be taken up.