New-York tribune., 1919-05-29
[. M. M. May Be
Dissolved After
Sale of Assets
Franklin Says Problem of
Federal Taxes Is Trouble.
some Factor in Deal; May
Pass Levies to Holders

If stockholders of the International
Mercantile Marine Company approve
the plan providing for the sale of the
company's British fleet and other as
sets of the English owned companies at
the special meeting scheduled for June
16, steps will Immediately be taken to
dissolve the American holding corpora
ton. This was indicated in the follow
ing statement yesterday by P. A. S.
Franklin, president.
"lndications are that if the sale is
consummated it will probably mean the
dissolution OF the International Mer-
camille Marine Company"
Mr.. Franklin said that one of the
troublesome factors in completing the
sale will be IN connection with the pay
ment of this governments Federal
taxes The impression in financial cir
cles is that whatever leves are i'm
posed will be passed along to the share
holders.
Expect Retirement of Bonds
Although there is no information on
the subject at present, it is expected
that the liquidation of the l. M. M.
company will involve the retirement
of the $39, ,061 900 first mortgage and
collateral trust per cent bonds at 11O
and interest, and of the SOL, ,725, 800 pre-
ferred stock at par, with the 81 per
cent accumulated dividends This pro-
cedure would require the payment to
those security holders of $124176,135,
of which $81, ,209,0 ,035 would go to the
preferred stockholders and $42967,1O
to the bondholders.
In other words the payment to the
company of the f27 100000 which it is
to receive from an English syndicate
for its British properties would pro-
vide funds for liquidation purposes and
still leave a surplus of between S5,-
100000 and $10,00O,OO0 in addition to
other assets, which include nine ships
under American registry and two ships
flying the Belgian flag. The value of
the cash securities and other LIQUID
assets of the American properties is
placed at S6,OO0,0OO.
Call for Meeting
In the call for the special stock
holders meeting on June 16, at which
it is expected the offer of the British
syndicate will be approved, the direc-
tors say:
"The directors favor the approval of
the offer, for the rason that although
the British ships are of great value and
their present earnings entirely salts
factory, they are owned and must con-
tlnue to be owned and operated 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 obtain in
the future, it may be found undesir-
able for an American company to oper-
ate British ships under the British flag
a British company"
The statement was made in the cir
cular that the offer for the British
ships was made on May s, to Harold A.
Sanderson, chairman of the Interna-
tiolna Navigation Co., Ltd, by Ashurst,
Morris & c., solicitors, 7 Thrck-
ton Street, London, "in behalf of
clients" The further statement is
made that the International Mercantile
Marine is the owner of all the shares
of the International Navigation Com
pany, Ltd, which in turn owns the
stock of the Oceanic Steam Navigation
Company, Ltd, and all the shares, ex-
cept five, of the British and North At
lantic Steam Navigation Company,
Ltd, all the shares of the Atlantic
Transport Company, Ltd, 90 per cent
Of the ordinary shares and 411a per
cent of the preference shares of Fred
erick Leyland & Co.. Ltd.