The sun., 1919-05-21
MARINE DEAL Is
FINALLY CLOSED
British Syndicate to Purchase
Tonnage and Assets Of Eng
lish Subsidiaries.
$185, 100000 is INVOLVED
Project Will Be Submitted to
Stockholders for Approval
on June 16.

osiohai 4uerCdHtue marine COM
pany yesterday the long drawn out deal
for the sale Of the tonnage ana assets OF
the British subsidiary companies to a
| syndicate OF British capitalists has been
closed. The only thing to be done to
make the plan effective is the formal
sanction of the plan by the Marine cor
poration's stockholders at a special
meeting to be held in Jersey City on
| June 10, according to an announcement
yesterday afternoon by p. A. g. Frank
lin, president OF the company, following
a Joint meeting of the company's direc-
tors and finance committee, at which the
latter made formal recommendation to
the directors that the offer be accepted.
Approximately f27. 200, 900, or between
&1S0.000,000 and 3lS6, 100000, is repre-
scented in the deal, which is believed to
be the largest individual ship transaction
| on record. OF the total sum, a little
more than hall, or about $40, 0eo, 900, is
| received for the tonnage to be trans
\ ferred. The remainder represents pay
| ment for the assets In the treasures of
the British concerns. Those assets are
said to be about equally divided between
cash and gilt edged securities.
| THE finance committee and the dlrec-
\ tors met this afternoon" Mr.. Franklin
| said, "and approved OF the British COM
panies disposing of their assets. The
plan will go before the shareholders at a
| special meeting to be held on June 16.
1t Is for the shareholders to make the
| final decision.
approximately f21,ooo,ooo is what
the British companies will have in their
| treasures after they have cancelled all
Of their obligations abroad-all of their
| outstanding Indebtedness The invest
rnent holdings of these companies will be
sold and converted into cash and the
companies will not be the holders Of
anything except cash"
VIII Pay About s13O,OO0.OoO.
The fluctuations of exchange rates
on London make 1t difficult to calculate
exactly what the International Mercan-
title Marine Company will receive as a
result OF the transaction, but It 10
known to be more than s125.o00,0oo
and probably will be in excess OF $780,
100000. Mr.. Franklin stated that he knew
the company would not experience any
difficulty In transferring the money from
England to America II 1t cared to do
so. But" he added. I'VE aren't at all
sure yet that We want to bring the
money over here"
The sale when concluded will be the
largest individual shipping transaction
on record More than 100000 gross
paid being slightly less than 500 a
ton, bringing the total cost OF the ships
alone to their purchasers to approx
mately $70.000.000. In addition there
is about 3s0,0o0,000 of cash and cash
assets. including some extensive hold
inss Of stock in other British compan-
les in the deal There are no terminal
properties for the company to dispose
OF. Mr.. Franklin said, explaining that
In England terminal facilities are not
owned, but municipality held and leased
to operating companies.
Whether the five British comp-.,c-
concerned in the transaction are to be
liQuidated or what action along that line
will be taken Mr.. Franklin declined to
state. He said that any steps which
must be taken as a result OF the sale OF
the British ships could not be announced
yet. The five British companies con-
cerned are the International Navigation
Company Limited, which owns four ves-
sells of a tonnage OF Sc, 652 the Oceanic
Steam Navigation Company, Limited,
twenty-one vessels Of 2S0,l43 tons the
Atlantic Transport Company, Limited
eleven vessels of 70,699 tons; the Brit
ish and North Atlantic Steam Saviga-
ton Company. Limited. seven vessels of
$3.50 tons, and Frederick Leyland &
Co., Limited. twenty-nine vessels Of lsl,-
vessels OF 1895 tons Jointly owned by
the Oceanic Steam Navigation Company
and other interests in the deal. or these
companies the only stock in the hands OF
the public consists of $50, or $3.50, OF the
stock OF the British and American Steam
Navigation Company and about s4,213,-
$50 of the stock OF Frederick Leyland
Co, Limited.
What Ii Left to Parent Company.
With the disposition of the British
subsidiaries the International Mercan-
tile Marine Company will be In posses
sion of only two vessels of 17,40S tons
under the Belgian nag and nine vessels
Of 1898 tons under the American flag
and pier leases, investments and undi-
vided profits. Figuring the value Of the
remaining tonnage on the basis OF that
sold to the British syndicate there is
about Sl2.750,000 and approximately
S2s,611. 900 Of surplus left to the Marine
company. On that basis the treasury of
the parent company. after the conclu
neighborhood OF $170,000.000.
Out OF that amount must be paid
the first mortgage and collateral trust
per cent bonds outstanding to the
amount OF S39,06l.000. These bonds are
secured In part by assets disposed OF and
must be sold when the deal be con-
cluded. The bonds are callable at 10
and interest and thus more than $43,-
100000 will be required for their re-
demption. The next claim on the as
sets OF the company is an accumula-
ton Of 81 per cent of unpaid dividends
on the s51.725.600 outstanding pre-
ferred stock, which totals nearly $780,
100000. After payment of these obli-
cations, there would remain in the
treasury of the company a little less
than 800. 100000.
The International Mercantile Marine
Company was formed in 1902. In Oc-
tober, 1914, It defaulted the interest on
it's Az per cent. bonds at that time out
standing, and on April 3. 1913. follow
ing application by the New York Trust
Company. President Franklin was ap-
pointed receiver. By August OF the
following year q plan of reorganlZa-
ton was worked out, the company's
earnings in the meantime having in
creased SO enormously that its affairs
could be adjusted and the receiver
ship ended. At that time there was a
total OF So per cent. In accumulated
back dividends on the preferred stock.
They have have reduced from time to
time since the reorganization, the last
payment of 10 per cent having been
made a few weeks ago. bringing the
total OF deferred payments down to 81
per cent.
Among the more important and bet
ter known vessels which will be trans