The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-05-29
EXPECTS MARINE
TO BELIQUIDATED
Franklin Says Dissolution of
Company Probably Would
Follow British Sale.
PLANNING ITS WINDUP
Future of Marine Interests Is
Dependent Largely on How
Government Acts.

II the stockholders Of the Internat,o
mercantile Marine Company at their
specai meeting on June 16 vote In favor
OF the completion Of the deal for the sale
OF the British ships and assets controlled
ny the corporation the company in al
hKeilhood will be dissolved and tbe
shares and bonds outstanding liouidated
president p. A. S. Franklin admitted
Yesterday afternoon that there was every
indication that the closing of the deal
with the British syndicate would mean
inc dissolution of the International Mer-
camille Marine Company.
Ever since Mr.. Franklin announced
snort time ago that the neRotiattons
hau peen completed and that tha stock,
holders were to be asked for their an
prevail there has been considerable spec-
uistion In Wall Street as to tust what
ssps would be taken by the company
Iolowing the conclusion OF the deal
one report was that the companv would
commune business with its remaining
ships as nucleus for n new feet An
other was that the company would be
Houiuated and its assets distributed
among the shareholders. A third was
mat inc present company would be dis
solved and new company formed to
oulld up new marine fleet.
:, yesterday 1t was reported that the
directors of the company were consid-
ering a plan for the dissolution OF tha
company in the event of the completion
or the sale. President Franklin was
asked about that report yesterday after
noon and admitted that IL was true. lie
said indications are that IL the pres-
ent sale be contaminated It will proh-
ably mean the dissolution of the Inter-
national Mercantile Marine Company, -
Mr.. Franklin refused to say what
steps would be taken after that dissolu-
tion should have been arranged, II the
liquidation plan should be adopted. lie
characterized the future action of the
Marine interests as contingent upon a
great many possibilities. It is is possi-
Die, he said, that n new company mIsht
De formed for the operation of ships fly
Ing the American flag. but that tina.
plan would depend wholly on the policy
adopted by the United States Govern
nent. AS he explained In an interview
short time ago. Mr.. Franklin said
again yesterday that the present policy
of the Government Is not such as to
encourage the investment Of capital in
American flag merchant ships. II legis-
lation could be obtained to alter that con-
>tlition, he said. 1t might make big DIFF
ference In future operations.
The stockholders of the Marine COM
pany have been mailed notices OF a
special meeting to be held on June 16 in
Hoboken to vote on the sale of the ships
and assets of the British subsidiaries.
II the vote be favorable, and Indications
are that 1t will be. the directors will
begin Immediately to devise plans under
which the sale can be completed and the
future operation of the company ar
ranged. The notice sets forth that the
directors have approved of the sale.
which will net the company about $685.
100000. The company would own after
the sale, the notice says. mine steam
ships under the American flag and two
steamships under the Belgian flag, the
aggregate gross registered tonnage of
which is 1S0,641 tons, and also cash, Sc
curities and other liquid assets amount
ing to approximately $6.0O0.000, after
establishing reserves for estimated LA
bil;ties"
The notice points out that the COM
pany's bonds are secured in part by as
sets. which It is proposed to sell. and
that the bonds are callable at ITO and
interest. Concerning the offer for the
British ships 1t says: 1.-THE directors Ia
vor the approval of the offer for the rea-
son that. although the British ships are
OF great value and their present earnings
entirely satisfactory. they are owned
and must continue 10 be owned and op-
Grated under the British flag by British
companies and the directors feel that. In
view of the national character which
shipping has attained during and since
the war. and the conditions likely to OBJ
tain In the future, 1t may be found un-
desirable for an American company TO
operate ships under the British nag
through a British company.