The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-06-03

MARINE DEAL Is UP
TO STOCKHOLDERS
Franklin Declares Company
Has Reached Crucial Point
in It's History.
ANNUAL MEETING HELD
Report for 1918 Shows Net of
S12,940, 537-FOr 1917 1t
Was $15,475,9
ANNUAL MEETING HELD

The famous Marine deal and the plan
for liquidation OF the International Mer-
camille Marine Company. provided that
the deal be consummated, were chief
topics Of discussion at the annual meet
Ing of the company's stockholders yes
terday. Many vague points in the pro-
posals were made clear by =. A. s.
Franklin, president OF the company, in
response to numerous questions asked
HIM by shareholders in the meeting.
Mr.. Franklin made plain that in
liqudating the company by distribution
Of share lien certificates of the Inter.
national Navigation Company the In
ternational Mercantile Marine Company
would avoid a tremendous excess pro-
fits tax which would be levied In this
country. Under the present manage
ment. he said. the tax would be passed
along to the stockholders individually,
but even then the tax could be assessed
only IL a stockholder should seek to
realize cash on the share lien certificate
which he could receive should the LIQUID
alton plan be carried out.
While no organized opposition to the
liquidation plan has developed one or
two stockholders present appeared to
regard the proposals with disfavor In
answer to the statement of one of them
President Franklin put Il souarely IN
TO the stockholders to decide "The COM
pany could Afford" the stakeholder said.
to go ahead for two years and after
that sink its entire fleet and It would
then have left 500. 900. 900 more than
the British syndicate has offered for
the liquid assets and tonnage of the
English companies
IF tho shareholders feel that way
about 1t. they can vote against the
proposition" was the presidents reply
We have reached a crucial moment I'm
the history of the International Mer-
camille Marine. II the shareholders wish
TO liquidate the company. they will never
have a better opportunity to do SO than
at the present time. II they wish to
continue the operation of ships, they
have n splendid company to 60 ahead
with. But there has been so much back
ing and filling In regard to the proposed
sale OF the company's British tonnage
that the board OF directors decided 10
recommend the transaction and put the
matter up to the shareholders for de-
cision."
The possibility of the stockholders ap.
proving the sale of the tonnage and
then disappearing the liquidation plan
was touched upon by Mr.. Franklin, who
declared that such action would make
things very difficult for the company
He pointed out that II the liquidation
plan were carried through and the Ma
rine stockholders given share lien certif-
icates of the International Navigation
Company the recipients of the certifi-
Cates could convert them into cash at
once.
When the liquidators have retired
the bonded Indebtedness in the event
That the stockholders vote for liuida-
tion. lie said. the preferred stock will
Immediately have senior lien on the
assets OF the company and share lien
certificates will be issued to the par
amount of the preferred stock and the
81 ~per cent. accumulation thereon. If
tine holders of the share lien certificates
wish to stand the loss in exchange from
pound sterling and to pay American in
come taxes. they may at once convert
their share lien certificates into cash.
The annual report OF the company,
made public at the meeting. shows that
during 1918 the international Mercan-
tile Marine Company had net profit
after all charges. including taxes, OF
si2,940,537. against S15,475.9S5 in the
preceding year. After deductions for
depreciation of steamships. the balance
vas s9,639,026. which Is equal to s1s.63
share on the preferred stock against
final balance OF S11,753,50e. or s2272
share earned In the Immediately pre-
Nious twelve months.
Gross earnings were reported at $780,
l5l.36s. against $41.6O4.2Os in 1917.
The 1915 figures show the balance after
deduction OF British excess profits duty.
Those Of 1917 were gross figures. Mis-
cellaneous income for 1913 was a little
more than s4.50o.000 or 100000 less
than in 1917. making the total income
for 1918 s34.6eS.353, against $51,145,75A
IN 1917. Operating expenses and taxes
were reduced in 1918 nearly S14, 000. 900
being SlS,s3S,O54. against s32,s71.453 in
1917. thus bringing the decline in net
profits down to less than 100000.