New-York tribune., 1919-05-21
[. M. vi. Sells
IS Ships for
$l30,000,OOO
Transfer of Vessels Flying
British Flag to English
Owners Most Important
Deal of Kind in History

The largest and most important
transaction in the history Of American
shipping has been consummated. Direc-
tors of the international Mercantile
Marine Corporation have agreed to sell
eighty-five ships and other assets of
British subsidiaries to an English
syndicate for a sum between $780,
100000 and $135 100000. The directors.
1T was announced yesterday, acted
upon the recommendation of the
nnance committee, and only formal ap-
proval by the stockh olders at meet
ing called for June Is is needed TO
complete a deal that has engaged the
direct attention of two governments.
and for more than year has pro
vlded more excitement in the Wall
Street stock market than any other
single factor
Transfer of the vessels flying the
British flag to English ownership will
involve $4,000 tons of the Interna-
tlonal Mercantile Marines total shin
ping tonnage Of 984, 900 now operated
under the American, British and Bel
glan flags. The companies operating
British ships include the White Star
Line, the Atlantic Transport Line, the
Oceanic Steam Navigation Company
(Llmlted), the International Naviga
tlon Company (Limited), the British
and North American (Limited), and a
majority ownership of Frederick Ley
land e. Co. (Limited).
There are eightyfve ships involved
IN the sale, among which are the
olympic, one Of the largest and finest
passenger liners ahoat; the Adriatic,
the Baltic and other we'll known YES
sells of the White Star Line, and FORTY
four large freighters of the Leyland
Line
Of the total purchase price of the
British companies, P. A. S. Franklin.
president of the parent American cor
poration, said yesterday that the ships
had been valued at approximately
S70,000,000. which would make the
price slightly more than SS2 a ton.
compared with $225 ton which it cost
the United States to build some of its
ships few months ago. Commenting
further on the transaction Mr.. Frank
lin said
"The British companies will sell all
the British boats controlled by the In
ternational Mercantile Marine Com
pany, as we'll as the assets now held in
the treasures of the six British com
panies.
"The American ships operated by
the company are to remain intact, as
we'll as the Belgian boats which are
now in the service of the Marine com
pany's organization"
Asked if there would be any diff
Guilty in transferring to this country
the funds obtained from the sale of
the British ships and. assets, Mr.
Franklin said he thought this could
be done at the discretion of the l. NJ.
Nj. management, but admitted that al
lowance would have to be made for the
present depreciation in sterling ex-
change.
The second offer, which was made
about six months later, was frustrated
by the proposal of the United States
Shipping Board to acquire the ships
on the same terms as those involved
in the deal with the British syndicate.
Active speculation in the Interna-
tional Mercantile Marine stocks dates
back to about year after the begin
ming of the war, when the company
was still in receivership and when trad
ing was confined to the New York
curb market. At that time the COM
mon could be bought for less than
dollar a share and the preferred for
around 49, When the depredations of
the German submarines made it ap-
parent that there would be serious
shortage of shipping, rates for space
began to climb and the rise in the
Marine issues soon became one of the
sensations of Wall Street.
On Monday International Mercantile
Marine preferred established new
high record quotation of 127Ns and
common sold to the new high of 5Si4
Yesterday the latter closed at 54rs and
the preferred at l25as.
COREGA holds false teeth firmly in
pra, o-