The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-30
MARINE DIRECTORS :
FAVOR LIQUIDATION
Approve Plan for Dissolution
in Case Stockholders Vote
for British Sale.
SPECIAL MEETING JUNE 16
Proposal Is Distribution Of the
English Company's Stock
and Certificates.
SPECIAL MEETING JUNE 16

president of the International Mercantile
Marine Company. that the directors Of
the company had approved a plan for
the liquidation of the entire corporation
in the event that the stockholders should
approve the sale of the British tonnage
and assets, was made yesterday The
liquidation will be effected, IL the plan
be ratified by shareholders, by distribu-
ton of shares and share lien certificates
in the International Navigation Com
pany, the British corporation, which IL
the holding company for the other oper-
ating companies, assets of which are to
be Sold and by a sale of the American
assets and a distribution of the proceeds
That decision was arrived at at a
special meeting of the directors
OF the International Mercantile Marine
Company. held yesterday afternoon. In
which the following resolution was
adopted
THAT It IS the sense of the board
that, in case the proposed sale OF the
British assets should be approved by the
stockholders and the sale carried out, the
International Mercantile Marine Com
pany should be dissolved and its assets
distributed among the stockholders. That
such distribution should be effected by
distribution In kind OF the stock and
share lien certificates OF the Interna-
tional Navigation Company, Ltd, which
represents the British assets, and by q
sale of the American assets and a dis
tribution OF the p-oceeds thereof"
Details OF Proposal.
In other words. the stockholders will
receive on liquidation. in exchange for
their Marine shares, stock in the Inter
ne Rrta
sh subsidiary. That distribution will
be made by whomsoever may be appoint
ed liquidator in the regular manner by
paying first all OF the International
Mercantile Marine Company's indebted
ness second, by retirement of the out
standing 6 per cent. bonds of the com
pany. which will require approximately
E9,500,o00, and third, by distribution of
an equitable amount of the International
Navigation stock for the preferred stock
of the Marine company plus the 81
per cent. in accumulated dividends;
fourth, by the distribution of what Inter
national Navigator stock may remain
among the common shareholders OF
the Marine company.
While the transaction appears to be
very much involved. President Franklin
stated yesterday that at the annual
meeting of the company on Monday
morning ne WOulu De prepared 10 answer
any questions that any stakeholder may
ask. He said that It was his desire to
have the stockholders fully informed on
all of the details of the transaction be-
fore they voted at the special meet
ing on June 16 and he purposed to uti-
lie the opportunity offered him at Mon
days meeting to impart any information
desired
One of the outstanding features of
the transaction. as approved by the d.
rectors, is the apparent success which
the management has met in its effort
to close the transaction without paying
large proportion of the proceeds to
the Government as taxes. One of the
drawbacks of the deal. as originally
framed, was the tremendous taxes which
1t was anticipated the Governments OF
England and the United States would
claim. Under that Arrangement it ap-
pears that the tax problem has been
passed along to the individual stockhold
ers.
Prevent Loss Through Exchange.
Another feature ia the avoidance of
heavy loss through present exchange
rates. If the entire f27,000.000 to be