New-York tribune., 1916-04-27
NEW BANK GROUP
BUYING MARINE
National City Interests
Obtain Control from J. p.
Morgan & Co.

Reports in tn. financial district FOR
the last few days that the American
international Corporation has been a
heavy buyer OF international Mercan
tile Marine shares, with view 20 OBJ
tanning a substantial interest in the
shipping company, reached their cul-
mination YESTERDAY in a printed ac-
count that control had passed from j..
p. Morgan & Co 70 the National City
Bank interests, who are back Of the
concern, organized several months ago
20 promote foreign trade.
While in banking quarter, it was
definitely established that the American
international had recently purchased
in the open market a large block OF
Marine preferred and common. II was
doubted that the amount obtained was
sufficient TO insure control.
The purchase Of the Marine stock
was authorized At a meeting OF the
executive committee of the American
International. 1t was said yesterday,
and the method of buying the shares
was placed in the hands of Otto H..
Kahn. Of Kuhn. Loeb T. Co; Frank A.
Vanderlip. president Of the National
City Bank, and member OF ". r.
Grace & Co.
The story circulated YESTERDAY stated
that 80 per cent. or about 100000. COO.
Of the Marine company's capital had
been acquired BY the City Bank inter
ests. an amount equivalent 10 working
control. Commenting on this state
ment, banker whose knowledge Of
the International's plans could not be
disputed, said:
Assuming that Kuhn. Loeb & Co.
have been acting for the American In
ternational Corporation in the rur-
chase Of shares OF the International
Mercantile Marine Company. should
say the statement that 80 per cent. OF
the outstanding stock had been &C
quired was an cxaggeration. As TO the
passing OF the company's control from
J. p. Morgan 4 Co. by the transaction,
that is impossible. because the holdings
Of the Morgan firm were disposed OF
a considerable period back
II was not considered improbable,
however, that when the present re-
ceivership is terminated. the manage
ment Of the new company will not be
vested in the Morgan firm. II was be-
lieved that the present stockholders
would agree 20 ticket submitted by
such interests as are represented by
the board OF directors Of the corpora
ton.
The active direction Of Marine af-
fairs by J. 7. Morgan 4 Co. ended IN
February, 1915, with the termination
Of the voting trust. The members
we're J. P. Morgan, J. Bruce lsmsy,
". J. Pirrie, p. 4. X. Widcner and
Charles Steele. The receivership dates
from April 3 OF the same year
The Wallace. or preferred. stock
holders plan Of reorganization. 1t was
said yesterday. will be published soon.
Report. that an agreement Rad been
reached with the common stockholders
committee were not credited.
Published statments that the com
mon stock had no voting power so long
as the preferred dividend was IN ar
rears were found 70 be incorrect. The
junior shares, il WAS said, have equal
voting power with the preferred "a to
all questions and without reference TO
any arrears in dividends.
Judge Hough in the Federal Court
vssterday directed counsel in the fore
closure suit against the international
Mercantile Marine Company to submit
70 him within the next few days
iraft Of the order for the appointment
t. referee to take testimony ~ the
proceeding.
He told the lawyers that as tho New
York Trust Company. a. trustee OF the
mortgage, has a valid lien, 1t - the
duty OF the stockholders 70 pay tho
Marine company's debts.