The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-11
Latest Movein Battle to Stop
British Deal Approved by
American International.
HAS OTHER SUPPORTERS
j. W. Platten and f. w. Scott,
Who Are Members, Ask
Help Of Shareholders.


sequent liquidation was taken ves,.ra.,
when Frederick w. Scott and John w
riatten. two Of the directors q,
sne company who oppose the dea,
ana withdrew from the original Ma.
s ne proxy committee. became mem.
s Oh another proxy committee tc
deal. This new proxy COMMITTEE
already has the proxy of the American
International Corporation, the larre,i
s.ockhoider OF the Marine company and
creuited on the books of the company
= snort time ago with more than 81. OOC
snares or its preferred stock. How much
more than that Is controlled by the In.
ternational Corporation is not known.
In announcing the formation of the
new proxy committee Mr.. Platten said
YESTERDAY afternoon: Opposition to the
SAFE oy the International Mercantile Ma.
rHe company OF It's British tonnage
Srystalilzed to-day In the consent OF
FREDERICK w. Scott and myself to ACT
as proxy committee for shareho,der,
who desire to prevent the consummation
OF the sale. In addition to the proxy
or the American International Corpora.
tion. the largest stockholder, this COM
mittee Is already assured of the suppor,
OF other stockholders, who have indi.
Gated their intention of giving us their
proxies. We are very hopeful that sur.
ficient proxies win be received prior tc
the special meeting on Monday, the
18TH. to defeat the SAFE. 1t Is essen.
tial. however. that every shareholder OF
the company should send In his proxy
to our committee"
circular setting forth the position
OF this new proxy committee and seek.
In "a
the meeting on June Is. has been sen,
to the stockholders Of the company.
Call to stockholders,
"Slnce the meeting OF the hoard Of
directors of the International Mercan.
tile Marine Company" says the circu.
lar and the mailing of the notice, dated
May 20, 1919. of the special meeting
further consideration has been given the
proposed sale OF the International Nayi.
CATION Company. Ltd. assets. A large
number OF the shareholders have reached
the conclusion that the sale would not
be advantageous and advisable because
1t would involve the dissolution Of the
International Mercantile Marine Com.
pany as well as the sale of a fleet OF
vessels that could not be duplicated al
any price in less than three years and
then only at a cost largely In excess OF
that now offered and would be opposed
TO the national policy OF upbuildng the
American merchant marinetat this time
Because OF these conclusions and other
considerations. the undersigned direc-
tors OF the company have consented to
act as proxy committee to vote in op-
position to the sale and the American
International Corporation, the largest
ST. nf hA
important stockholders have advised this
committee that they will issue their
proxies in its favor. In view of the
short time remaining before the date
fixed for the special meeting. namely
next Monday, June Is. 1919, you are re-
quested to sign and return Immediately
the enclosed proxy together with q re.
vocation of any other proxy you may
have signed. This committee reserves
the right, II It deems It advantageous
not TO have a quorum present at the
meeting. to refrain from using YOU
proxy. but to use only the revocation
of the proxy which you may return
This circular is signed by Mr.. Platten
and Mr.. Scott.
Mr.. scotrs Statement.
Frederick w. Scott is sending to the
stockholders a circular setting forth his
stand on the Marine deal. Others who
have opposed the deal have made state
ments of their position, but Mr.. Scot,
has been inaccessible so far. His state.
ment says in part:
THE consideration to be paid by the
British syndicate for the British proper
ties Is $4,000, 900. payable in London
total net assets mentioned above. f15,-
061.005. the balance. f11,998,9s5 L. the
total consideration for the entire feet OF
703.509 tons, equivalent to IT pounds
I shilling. / penny, per gross ton. which
converted into American money at $4.65
Is equal to $3.50 ton. This In my
opinion IL totally inadequate price fol-
our British ships.
while perhaps some stockholders OF
the International Mercantile Marine
Company may consider that this II not
or freight ships included in the feet
yet It is but a small part of the value
OF the great capital passenger ships
owned by the White Star Line and by
the Australian lines.
THE obstacles legally of carrying
through the transaction and the very
heavy and unexpected charges would re-
suit in an unknown sum being obtained
for a large portion of the assets OF the
ne Steps 10 Dc taken
in case of the contamination of the
sale would be the liquidation in Eng
land OF the assets of the English COM
psnies. 1t seems to have been deter
mined by the counsel who have been
advising the directors that II Is neces-
sary to liquidate and close out perma-
nently the International Mercantile Ma.
rine Company. a corporation organized
under the laws Of the State of New
Jersey. and while its assets may be
liquldated at fair prices, the good will
Of this great passenger and freigh,
carrier will have been destroyed by tn,
dissolution OF the company and will
bring practically no compensation Il
the stockholders.
Pleads Against Sale to British.
"After the meeting OF the directors
which favorably recommended the sale
to the stockholders. learned OF a very
embarrassing situation that would SURELY
follow. If 81 per cent. OF the total stock
Issued and outstanding is represented M
the meeting on the 10th OF June and 81
per cent. OF this 81 per cent. votes fol
the sale of the company's British prop,
critics the sale Is made ana the STOCK.
holders are bound by 1t. But In ordel
to escape the payment of double taxes
g. e.. one tax by the International Mer.
camille Marine Company and one BY
each stockholder) to the American Gov.
eminent on the profits realized by the
sale OF properties at prices greater thar
the same were valued on March I. 1913
II is necessary to liquidate your New
Jersey corporation and. In order to have
an Affirmative vote for the liquidation. II
Is essential that two-thrds of all the
stock outstanding should vote for such
liquidation.