New-York tribune., 1919-06-07
American International Cor
poration, Largest Holder
of Stock, Announces It,
self Against Liquidation
Committee for Protection
Stockholders to Make In.
vestigation of Proposed
Sale of British Assets

The American International Cor
poration, the largest holder of Inter
national Mercantile Marine stock, has
Joined forces with those who are
opposing the sale of the company's
British feet and other English assets
, to a London syndicate. Directors an
nounced yesterday that they had in
structed the executives officers to vote
against the plan at the special meeting
of stockholders called for June 16.
Another development aimed to de-
feat the sale was the announcement of
Daniel W. Blumenthal, of the law firm
of Maurice B. & Daniel w. Blumen-
thai, that he had been retained by a
stockholders protective committee "for
the purpose of investigating the ad-
visibility of the proposed sale of
British tonnage of the company" Mr..
Blumenthal said that the committee
us under the impression that it would
be better for the Marine company to
continue in the steamship business
and instead of decreasing it's holdings
to increase them. He declined to d.
vulge the personnel of the committee
but stated that E. S. Little, of Chandler
Bros. & Co., had been requested to act
as chairman. Mr.. Little later said
that he would not serve.
A. l. C.'s Position
The principal considerations which
influenced the American international
board to take it's stand against the sale
of the British tonnage of the I. NJ. NJ.
were outlined as follows:
"First, the corporation has made it's
considerable investment in the common
and preferred stocks of the Inter
national Marine Company in pursuance
Of its defined purpose to aid in main
tanning and increasing American
owned ships.
Second, the fleet is one of the best
in the world to-day, and, if 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.
"Third, this increase in American
controlled tonnage would come at
time of maximum demand for shipping
facilities at profitable rates; and,
fourth, the sale of the British ships
and assets would almost unavoida blv
lead to the liquidation of the American
company as going concern.
This Uould load m +ba z;,,;. -
of terminal facilities, dock leases and
the closing of agencies, etc, throughout
the world, all these representing a
business, goodwill and assets estab-
llshed in the course of many wears
and being Of great, in some cases. of
irreparable, value
Under the circumstances, the
American International Corporation
directors did not consider the proposed
transaction advantageous to the stock
holders OF either company and, there
tore, decided to vote against it,"
Donald Geddes, head of the Stock
Exchange firm of Clark, Dodge e. Co.,
one OF the |. M. NJ directors who has
taken his stand with those who are
opposing the sale of the British shins.
said yesterday that he was not present
at the meeting of the board at which
1t was recommended that those vessels
be sold, along with other ENGLISH
assets for approximately $4,000 900.
Geddes Changes View
During the war;" Mr.. Geddes added.
i felt that to sell the British ships
might be a good thing because of the
many unce ertainties in the outlook
with the knowledge that British ex
cess prohts taxes have been reduced
from 81 to 40 per cent and the i'm
provemcnt in current earnings 7 have
become convinced, however. that tho
international Mercantile Marine should
be continued as a going concern
u was in the West attending the
annual meeting of the Chicago, Mil
waukee st. Paul Railway when the
international Mercantile Marine d.
rectors voted in favor of the sale Of
the British assets. Had been present
would have voted against it,"
Although the name of Frank
Vanderlip is still included on the com
m1ttee appointed to solicit proxies for
,ne special meeting of I. M. NJ. stock
holders at which the proposed plan for
selling the British assets will be voted
upon, 1T was stated by friends of Mr.
Vanderlip that he is opposed to the
sale. and that upon his return from
the West he will probably withdraw his
name from the proxy committee. This
action has already been taken by John
W. Platten, president of the United
Mortgage and Trust Co., and Frederick
w. Scott Of Baltimore.
1t was learned in official sources that
the actual earnings of the Inter
national Mercantile Marine for Anr;,
were about s3,loo,ooo or more than
loo per cent in excess of the total for
the corresponding month year ago.