Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-04-04
j. s. BACKS UP
ON PLAN To BUY
BRITISH SHIPS
The Head of International Mer-
chant Marine Notified Gov
eminent Can No Longer
Consider Possible Acquisition

tsV 1osNINe JOURNAL SPECIAL LEASED wIREl
New York, April 3.--The United
States government has withdrawn its
proposals to purchase the British
owned tonnage of the International
Mercantile Marine
This was announced today by r. A.
S. Franklin. president of the Inter-
national Mercantile Marine company,
who said he had been informed "
the government authorities tnat they
"could not further consider possible
acquisition of the ownership of our
(the company's) British tonnage and
that We were free so far as they were
concerned to deal with the property
as we may consider desirable"
The tonnage involved IN the pro-
posals, now abandoned included such
ships as the Baltic and the Olympic.
They were to he sold to a British
syndicate for $125,O0O,O00 and the
deal was in progress when the United
States government stepped in last
November, disappearing of the SAFE
and offering to take over the vessels
upon the terms of the British offer.
Mr.. Franklin announced that the
company was undecided whether to
renew the negotiations with the Brit
lSH OF 10 retain lne OWileI-
ship of the vessels.
History of Negotiations.
The history of the negotiations was
described by Mr.. Franklin as follows
in a statement issued after a meeting
! of the board of directors:
During the year 1918 we had pro-
tracted negotiations with a British
syndicate regarding the purchase of
the steamships belonging to the Brit
ish companies in which we are inter-
ested. These negotiations eliminated
in November last in an offer which,
under the then existing circumstances
and conditions, was acceptable to our
board of directors.
While the details of the transaction
were being adjusted we were request
ed by our government not to proceed
further with the matter and on Mo-
I yember rs we were informed by our
government that approval of this sale
could not be given, and that our gov
ernment, under the circumstances,
was prepared to take over the owner
ship of these vessels upon the terms
of the British offer.
Since that date we have used our
| best endeavor to obtain consumma-
ton of the transaction with our gov
letter from our government, dated
April i, informing us that they could
not consider further the possible ac-
quisition of the ownership of our
British tonnage. and that we were
free, so far as they were concerned,
| to deal with the properties rs we may
consider desirable.
Deal Ma. Fall Through.
THE conditions in Shipping have
materially altered since our negotia-
tions with the British syndicate. The
armistice has in the meantime been
signed and there have been changes
in the United States income and ex-
cess profits tax laws, and in the eX-
change situation. All of these mat
ters make it essential that the board
of directors should carefully review
the whole situation before deciding
whether it is now desirable to renew
the negotiations with the British syn
dcate, or whether it might not be
preferable to continue our ownership
of the various properties. with the
view of developing them under the
American and foreign flags.
"The position of the company Is
very satisfactory, as the liquid assets,
including cash of the company and
| 100000. OF this sum. approximately
100000 represents the proceeds
or steamers lost or sold in replace
ment of which other vessels must
ultimately he secured in order to ade-
quately maintain our service at their
pre- war standard. 1t should be fur
| ther understood that the larger part
of the above cash is in possession of
the British companies. and that the
earnings of these companies can only
be obtained from them through cur
rent dividends.
while definite figures are not yet
available, the most recent estimates
| indicate that the earnings for 1918
will be approximately the same as
those for 1917.
THE tonnage of the I. M, M. com
pany fleet, including its interest in
steamers jointly owned, amounts ap-
proximately to $4,000 tons gross,
divided substantially as to flag as
follows:
american. 113,000 tons; British,
| SS3. 900 tons; Belgian. $4,000 tons
| Mr.. Franklin said he did not know
the reason for the United States gov
| ernment's withdrawal from the deal