New-York tribune., 1919-06-11
Form Committee
To Fight Sale of
|. NJ. M. Assets
Two Directors Seek Proxies
to Defeat Proposal on
Grounds That the Price
Offered Is Inadequate

John W. Platten, president of the
United States Mortgage & Trust Co.,
announced yesterday that he and
Frederick W. Scott, both International
Mercantile Marine directors, had or
garlzed an independent committee 70
solicit proxies for the purpose of de-
featlng the proposed sale of the COM
pany's British fleet and other English
assets. The meeting at which the nlan
VIII be voted upon is scheduled 70
take place next Monday.
"Opposition to the sale bv the 1n-
ternational Mercantile Marine Con-.
pany OF It's British tonnage" said Mr.
flatten, "crystalized to-day in the con.
sent of Frederick ". Scott and mvself
70 act as proxy committee for share
holders who desire to prevent the CON-
summation of the sale.
IN addition to the proxy of the
American international Corporation.
inc largest stakeholder, this COMMITTEES
IS already assured Of the support of
o'her stockholders, who have indicated
'he'r intention of giving us their
proHles. We are very hopeful and con.
Hdent tnat sufficient proxies will he
received prior to the special meet;ng
on Monday, the 16, to defeat the sale
., IS essential, however, that everv
shareholder of the company snould
send IN his proxy to our committee ,,
Mr.. Scott, in a statement accomnanv-
ing the call for proxies, explaining his
opposition to the sale of the NJ NJ
nr't'sh properties, said that the pro.
po'ed purchase price of s27,Oo000o was
w'o'lv inadequate He declared that
'He price offered for the ships was
equivalent to $3.50 ton for the 703.-
.o9 tons involved, based on a price Of
S].oo for the pound sterling.
'"h'le perhaps some stockholders of
the international Mercantile Marine
Company" he added, "may considar
mat this is not an unreasonable low
pflce tor the cargo or FREIGHT sb;nc
included in the fleet. yet it is but
small part of the value of the great
Capital passenger ships owned by the
mite Star Line and by the Australian
lines. '"i
Io illustrates: The Olvmpic tho
third largest ship in the world. is of
gross tonnage of 46,359. This great
snip cost over $S,5OO,000 at pre-war
prices, when the cost of labor in Enc
'and was at low figure. We have no
oa'a at the present time upon which
10 estimate the cost of a great mas
senger steamer of $4,000 to $4,000 tons
II IT were possible to get the consent
Oh the British government and Obtain
slip for the construction of such
SNIP 1T would be impossible to obtain
BID from any shipbuilding company
to build this ship at a fixed nrice
within the bounds of reason. and If
such ship were undertaken tn bo
oullt on cost-plus basis, no one could
Tell what the total cost would be. It
may De that she could be built for
9Io 'ooo,oo0, or perhaps $4,000 .O0O
while IN this offer, if accented. the
stockholders of the International Nor.
camille Marine Company are sellinc ber
at the rate of 1880 a ton. s3.676 ooo
me same thing could be said in p
'"oo'ned way OF the Adriatic, 24.541
tons the Baltic, 23,876 tons the Cedric
and the Celtic, of about 2l 900 tons
each' and many others, totaling prob
aoly 23o,O0O tons. If these passenger
ships of 100000 tons are even Vailed
at so low figure as s179.3O ton in
stead of $3.50 a ton, there would he
added to the value of the feet s23 900
ooo more than the present offer of the
British syndicate.
After the meeting of directors
which favorably recommended the sale
70 the stockholders | learned of vorv
situation that would
surely follow. If 81 per cent Of the
TOTAL stock issued and outstanding is
represented at the meeting on June 16.
ana 5l per cent of this 81 per cent
votes Tor the sale of the company's
British properties, the sale is made
and the stockholders are bound bv #
nut IN order to escape the payment of
douDle taxes to the American govern
ment on the profits realized by the sale
OF the properties at prices greater than
the same were valued on March /, 1919
IT Is necessary to liquidate the New
Jersey corporation, and in order to
1aVe an affirmative vote for the liouida-
llon' 1T is essential that two thirds Of
all the stock outstanding should vote
for such liquidation.
lhe total of the preferred and com.
mon stick is SOL, 100000, but of This
'otal about $12,000,OOO may not vote
and it is still deposited under tho vot,
ng trust agreement made about tho