New-York tribune., 1919-02-26
International
Ship Deal IL
Off for Good
British Admiralty Has For
hidden Carrying Out of
Transaction With U. S.
By Theodore NJ. Knappen
NetO YORK Tribune
Wn,shindtOn RUrer,t

Washinaton Burecu
WASHINGTON, Feb. .25.-The all
but consummated deal for the pur-
chase Of the British fleet of the Inter
national Mercantile Corporation by the
United States Shipping Board is off,
and off for good.
The British Admiralty has, in eff
feet, forbidden the carrying out of the
transaction.
Moreover. it is said the Shipping
Board has beer advised by counsel
that the United States has no power
to restrain the International Mercan-
tile Marine from now passing control
of the ships held through stock own
ershjp of subsidiaries, as was the in
tention when the Shipping Board, at
the instance of President Wilson, held
up arrangements which had been com
pleted toward that end.
AS the British syndicate which had
been organized to buy the British ships
and assets of the International .Mer-
camille Marine Company was under
stood to be only another name for the
british government, the result is that
the United States government, instead
of getting the ships, must submit to
the British governments acquiring
them.
Admiralty Action Final
1t is understood that the action Of
the British Admiralty is final, but the
manner of the action is not known.
While the British Admiralty could not
prevent the International Mercantile
Marine from transferring the title to
the ships through the process of turn
ing over the control of corporate own
ership to the Shipping Board, which
was the method by which the transac-
ton was to be carried out, the Admir-
atty has made it plain that through its
power over vessels of British registry
the ships would be nothing but a fu-
tile and costly white elephant for the
United States.
1t was the original intention of the
Shipping Board to go ahead and get
the ships and take chances on the
question Of ultimate registry under
the American flag, it even being stated
that there might be some advantages
IN having the fleet remain under the
British flag. 1t was considered Ger
was acquired the ships ultimately
would pass to American registry al
the discretion of the owner-the
United States
Foresceing that such would be the
inevitable consequence, the British
Admiralty apparently has decided to
prevent its realization by preventing
the transfer
Expected to Give In
1t is not known here what the
International Mercantile Marine will
do, but it is considered probable
that unless the British government
changes its attitude toward the cor
poration to more friendly and oblie-
ing one the latter will feel constrained
to part with its British subsidiaries
and their ships to the British svndi-
cate.
At the time the United States inter
fleet being transferred from American
to British hands the directors had
made up their minds that the only
way out of their troubles, attributed
largely to the course of the British
government, was to accept the British
syndlcate's offer of $135 600 900 for the
British subsidiary companies. with
their elghty-iive ships of $4,000 dead
weight tons, great and small. including
much OF the cream of the British
marine, and all their assets
cash and otherwise.
The value of these assets, other than
the ships, was such that the ships
proper would have cost only about
$40 100000, or about 500 a deadweight
ton.
This was considered n sacrifice price,
and. indeed, mysteriously low, but it
was expected that on account of the
policy of the British government it
was virtually forced sale.
When the Shipping Board came on
The scene 1t simply undertook to take
over the deal exactly as shaped up for
lhc British syndicate AS new ships
we're costing the government around
$3.50 ton, and some of the passenger
ships could not have been reproduced
IN American yards for less than Sl00
ton, it was generally considered IA
very satisfactory transaction This
VAS considered especially so in view %
he fact that the American fleet is
aCkIng in pagApnunr ,nucata