The sun., 1919-06-07
MORE OPPOSITION
TO MARINE DEAL
American International Direc-
tors Announce They Are
Against Sale.
SEE NO ADVANTAGE IN 1T
Stockholders Committee Is
Formed-Represents Both
Kinds of Stock.

Two important Developments in the
plan for the sale Of the British assets
of the International Mercantile Marine
Company and the subsequent liquidation
or that company came to light yesterday
In statement Of the directors Of the
American International Corporation.
which owns large block of Marine
shares. that they were opposed to the
deal and the announcement that a stock
holders protective committee had been
FORMED to investigate the plan further
The first announcement came early in
the day following a meeting OF the d.
rectors OF the American International
Corporation, but 1t was no surprise to
Wall Street, following. as 1t did, the
withdrawal Of Charles A. Stone from
the Marine proxy committee. Mr.. Stone
is president of the American Interna-
tional Corporation and his action was
accepted generally as evidence that the
International did not approve OF the
transaction.
The formation Of the stockholders
protective committee was somewhat of a
surprise. Wall Streets first knowledge
OF the new organization was the an
nouncement that Daniel w. Blumenthal
of the law Arm of NJ. b. d. w.
Blumenthal had been made the commit
tees counsel. He said that the commit
tee had been formed by some stockhold-
ers who sought more light on the pro-
posed sale and liquidation and that it's
personnel included representatives Of
common and preferred stock, That the
committee had not been formed to fight
the sale, said he, but, rather to investi-
gate and after. obtaining information
that they sought to vote on the project
ono way or another. &c..
Mystery About Committee.
None of the directors of the Marine
company who have expressed their dis
approval OF the plan was instrumental
in the formation of the committee ac-
cording to Mr.. Blumenthal, although he
admitted that two OF them had been In
vited to Join Its ranks. He would not
say who the two were. The four Ma
rine directors who have registered dis
approval OF the sale and liquidation are
Charles A. Stone. L. w. Platten, Dom
aid Geddes and F. w. Scott.
Mr.. Blumenthal would not indicate
Just what lines the committees investi-
cation would follow nor would he give
out the names of those who have formed
the committee until he had authority so
to do He said that the committee, from
what It knows of the situation, is in
cined to believe that the interests of the
stockholders can be served best by re-
tanning the ships and continuing their
operation. IN any event" he said. at
would be the height Of folly to dispose
of any OF the company's ships at $50
n ton, the figure offered by the British
syndicate. The committee is under the
impression that. II the company con-
tinucs its business and holds its proper
ties intact for future business purposes,
It will be the wisest course"
He made plain that the members Of
the committee have open minds on the
subject and said that, II after their in
vestigation they decide that the sale and
liquidation is for the best they will vote
that way at the special meeting on June
16. One of the points made by Mr..
Blumenthal was that the stockholders
may decide to ask for higher offer
from the British syndicate which is pur-
chasing ships and assets OF the Marine
cornpany's British subsidiaries.
American international Statement.
The statement given out by the Ameri-
can International Corporation following
the meeting OF its directors yesterday
follows in part:
AT meeting of the board Of direc-
tors OF the American International Cor
poration on Thursday. June 5, the d.
rectorS expressed their opposition to the
proposed sale OF the British assets OF
the International Mercantile Marine
Company and instructed their executive
officers to vote against II. The prin-
cipal considers atoms which Influenced the
board In taking this action were: The
corporation has made considerable in
vestment In the common and preferred
stocks OF the International Mercantile
Marine Company In pursuance of its de-
fined purpose to aid in maintaining and
increasing the transportation OF Amer
lean merchandise In American owned
ships; the feet Is one of the best in
the world to-day and. II sold, cannot be
duplicated at any price in less than
three years and then only at cost Of
more than twice the price offered by
the British syndicate; this decrease in
American controlled tonnage would
come at a time OF maximum demand for
shipping facilities at profitable rates; the
sale OF the British shins and assets
would almost unavoidably lead to the
liquidation Of the American company as
a going concern. This would mean the
giving up OF terminal facilities, dock
leases and the closing OF agencies
throughout the world. all OF these repre-
senting a business, goodwill and assets
established in the course of many years
and of great. in some cases Of ire
placable. value"