New-York tribune., 1918-11-28
Marine Directors
Favor Accepting
Govt Ship Offer
Insist ON Payment of About
$3.50, 600, 900 in Cash,
Tax Free

Inc international Mercantile Marine
Company is prepared to accept the
oHer OF the United Sta es government
1or the assets of the formers British
owned subsidiaries on condition that
payment be made in cash, according to
statement made yesterday by lead
ing director. He added that it would
rest with the government to secure the
consent of Great Britain to the trans
Ter of the ships from British to Amer
lean registry.
Inc negotiations with syndicate
CT English financial interests. which
were abruptly halted by the entrance
OIL the Washington authorities into the
"eai' according to this same authority.
contemplated the issuance of securities
~ the American holding corporation
III return Tor eighty-five ships aggre-
satlhg $4,000 gross tons, and treas
ury assets, having a total value of
approximately S130,OOO,OOO. It was
also stated that the American directors
understood that no taxes would be- de-
uucted from that amount in the event
lhaC the negotiations with this govern
ment were consummated.
The Chief Obstacle
IN view of the Order in Council ga
zetted in the early period of the war.
winch forbade the transfer of ships of
prltlsh registry to another flag until at
least three years after the war. Wall
Street INDUCED in much speculation
as to how this obstacle to the deal
mlgnt be met. 1t was pointed out that
BRUSH losses of desirable tonnage.
such as that involved in the proposed
SAFE sale' nave been very heavy, and that
snat government might therefore be
eAIremely reluctant to permit the YES
seIs nomlnally controlled by the Inter-
natlona! Mercantile Marine, but in
physical possession of the British gov
ernment, to pass to American registry.
AN unofficial dispatch from Washings
ION stated, however, that complete
agreement had been reached with the
nrltlsh officials pertaining to details
OF the transaction.
An official statement issued yester-
day following the calling of snecia1
meeting of International Mercantile
Marine directors said: eve have been
ADVISED that the government is pre-
pared tc take over the ownership of
the vessels upon the terms of the Brit
ism o1ter, and the details are to be
Worhed ,: out These details in the
llght of the foregoing are of great im-
portance, 1t was stated.
Stock Rises Scnsationallv
The sudden turn in the status of the
now famous Marine IDEAL" was the
signal yesterday for a sharp reversal
IN the price trend of the company's
Job,
ment of the Shipping Boards interfer-
ence in the negotiations with the Eng
llsh interests had shown marked weak
ness. The preferred stock, the most
volatile of them all, opened sensation
ally at liz, an overnight advance of
more than points, while the common
stock had an initial gain of 1s4. The
senior issue, which on Monday dropped
below par and on Tuesday closed at
lO3 .s, continued its upward course un-
I'll it reached 11915, from which there
was reaction to 114A at the close,
where net gain of 1925 points was
reglstered. rs The common after selling
at 29$s, left off the day at 27Aa. up 2$4
The 6 per cent bonds. which are re- cali
able at 40, touched 1O424, compared
with sale on Tuesday at 997s, and
finally closed at 102. 1t was made
clear yesterday that in the event that
the negotiations with the government
are carried to a successful conclusion
these bonds, Of which approximately
$50 100000 are outstanding, will have
to be retired because the sale of the
British owned ships would involve the
removal of an important part of the
collateral.
A plan favored by certain members
of the international Mercantile Marine
directorate, if the deal with the gov
ernment goes through, suggests the is
suance to the Shipping Board or such
other Federal body as might be desig-
mated of share lien certificates, in re-
turn for which the company would re-
ceive in cash S130, 900, or the sum
involved in the negotiations with the
British syndicate.
The announcement from WASHINGTON
regarding the willingness of the Ship
ping Board to purchase the Interna
tional Mercantile Marine fleet under
British registry was pointed to yester-
day as the first concrete evidence that
the United States intends to stay in the
shipping business.
CIfioc Coxxysco C~~.