The sun., 1919-04-04
MARINE DEAL WITH
GOVERNMENT Is OFF
p. A. s. Franklin, as President
Of International Mercantile,
Makes Announcement.
U. s. NOT IN TRANSACTION
Negotiations for Sale of Ships
Began With British Offer
10 Months Ago.

The Marine deal with the American
Government is Off That announcement
was made yesterday by p. A. 8. Frank
camille Marine Company, when he gave
out the substance Of letter which the
company had received from officials in
Washington declaring that the United
states Government was not prepared
TO carry out the November agreement to
take over tonnage and assets OF British
companies under control of the Inter-
national Mercantile Marine. Mr.. Frank
lin declared that negotiations with the
British syndicate for purchase OF the
properties-=negotiatio which had been
Immediately suspended in November
when the American Government an
nounced it's willingness to buy the ships
had not been resumed and that the
directors were considering whether IL
would be advisable to resume negotia-
lions or let the matter drop and con-
tinue to operate the properties as oper-
ated at present
President Franklin's statement dealt
with the position Of the company with
respect to finances and earnings. Con-
trary to the general opinion, he said
that the earnings for 1918. when finally
reported. would show about the same
figures as those Of 1917. and in reply
to questions as to the rate OF earnings
for the first three months of 1919, said
that they were running along in about
the same ratio. Following IL the COM
plete statement as given out:
During the year 1918 we had pro-
tracted negotiations with a British syn
dictate regarding the purchase Of the
9tAQ shipa hal0ppipn tn nrts
psnies in which we are interested. These
negotiations eliminated in November
last In an offer which. under the then
existing circumstances and conditions
was acceptable to our board Of gov
errors.
u. .. Intended to Take ships.
while the details Of the transaction
were being adjusted we were requested
by our Government not to proceed fur
Their with the matter. and on November
rs We were informed by our Government
that approval OF this sale could not be
given. and that our Government, under
the circumstances was prepared to take
over the ownership of these vessels upon
the terms of the British offer.
Since that date We have used our
best endeavor to obtain a consummatio ton
OF the transaction with our Govern
ment. We yesterday received Q letter
from our Government dated April in
forming Us that they could not consider
further the possible acquisition of the
ownership of our British tonnage, and
that we were free. so far as they were
concerned. to deal with the properties
as we may consider desirable.
The conditions in shipping have ma
terially altered since our negotiations
mistice has. n ffie meantime. been
signed and there have been changes in
the United States income and excess
profits tax laws and in the exchange
situation. All OF these matters make 1t
essential that the board Of directors
should carefully review the whole stu
alton before deciding whether 1t ia now
desirable TO renew the negotiations with
the British syndicate or whether 1t mir I
not be preferable to continue our owner
ship of the various properties, with the
view of developing them under the
American and foreign flags.
THE position OF the company is very
satisfactory as the liquid assets, includ-
ing cash, Of the company and its sub
salaries amount to about $4,000, 900 Of
this sum approximately 1000, 80 rep
resent the proceeds OF steamships sold OF
lost In replacement of which other YES.
sells must ultimately be secured in order
10 adequately maintain our services al
their pre-war standard,
Expects No Drop in Earnings.
TT should be further understood tina,
the larger part Of the above cash is ir
possession OF the British companies and
that the earnings of these companie.
can only be obtained from them through
current dividends.
while definite figures are not We
available. the most recent estimates indi
cate that the earnings for 1918 will b,
approximately the same as those fol-
1917.
The tonnage Of the Internationa
Mercantile Marine Company fleet, in
GLIDING its interests in steamships joint
ly owned. amounts to approximate,
$4,000 tons gross. divided substantial.
as to flag. as follows: American. 113 90,
tons; British, $4,000 tons: Belgian
$4,000 tons"
Marine shares on the. New York stool
Exchange performed their customar,
jumping feats yesterday and after sell
ing well above ia. dropped like so man,
rocks when announcement was mad
that President Franklin would have al
important statement at 3 AS P. NJ. AL
ways sensitive to the slightest breath o
rumor concerning the famous deal, tn
shares ran true to FORM
It was about eighteen months ago tina
negotiations for the sale of the Marine
British tonnage and British essets to
syndicate of English financiers were be
gun. From then until November last tn
status of the deal ran up the scale an
down the scale. on and off until II wa
announced In Washington In Noven
Der that this Government would nc
sanction the transaction. but would TAX
the ships on terms offered by the Brit
ish. From that time nothing OF an oil
ficial nature came from Washington I
Indicate that the status OF the deal ha
changed in any way. High officials {
the Shipping Board repeatedly have II
sisted that the deal would go through
Washington CONFIRMS Report.
WARRINGTON, April 3-Withdrawi
OF the Government proposal to purchai
the British owned interest in the Int
national Mercantile Marine was col
Armed tonight at the Shipping Boar
Vice-Cha irman Stevens declined TO mai
any explanation until the board cou
consider the statement issued in Ne
York by p. A. s. Franklin. president
the company.
Bank of England Statement.