New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-09-08

! United States was mors or less pledged
to the success of the American mer-
chant marine. Furthermore it is per-
fectly apparent that the contracts origi-
nally made cannot be enforced becau Sc
few, If any, of the pioneer purchasers
are financially able to carry them out,
The precise problem presented to your
board, therefore, is whether it will in
sist on forfeiture e the payne nts
heretofore made or whether it will give
credit for them on revised contracts at
approximately current prices"
The bondholders then make the fol-
lowing proposition to the board:
l.. That the government AK tentative
price, substantially in excess of pres
ent market prices, subject to final ad-
Justment, when the board fixes a
definite price for tonnage. They sug-
gest the tentative price be fixed at
500 lightweight ton, which they
say is rs per cent above the basis
insurance purposes.
2. That the board give the company
credit for the $3S00,OO0 already paid
in on account on the nine vessels, and
in satisfaction of the credit transfer
to the company tonnage aggregating
$4,000 lightweight tons; in other
words, they ask that the company be
given clear title to four of the steam
ships, returning the others to the gov
ernment
3. That the board fix the final price
for tonnage at the earliest possible
date, and when this price is definitely
fixed that the board make a final ad-
justment based on this price, taking
into account their purchase of the
four boats from the Northwestern
companies, and any additional credit
then available to the company to be
satisfied in the form of additional
tonnage.
The petition was signed by NJ X
Parker, vice-president of the Equitable
Trust Company, chairman of the bond
holders committee. Others on this
committee are w. G. Baker jr, of
Baker, Watts & Co.. Philadelphia; Jay
E. Eddy, of J. H. Holmes g. Co., New
York and Pittsburgh; A. G. 3. Steel
of Graham, Parsons & Co., Philadel-
phia, and Robert c. Adams, of the
Equitable.
Accompanying the petition was a
Statement of facts" from which it
was learned that the Green Star Line
owns eighteen ships, nine of which it
purchased from the board; that the
latter are covered by mortgages to the
hoard amounting to $13,743,231.47, the
balance OF the purchase price due f;
that the remaining nine vessels are
covered by two first mortgages secur-
ing $6,40O,00o, principal amount of
bonds sold to the public; that through
lack of business all of Che boats are
tied up except two; that for some time
the company has had no income, as
the rates on such cargoes as have
been carried have not been sufficient
to pay operating expenses; that the
company has no assets except the
eighteen vessels and in addition ap-
proximately 71,087ol in bank. Angus,
%. and certain amounts due from in
surance companies, but that the money
in bank is held under an agreement
with the board which restricts it's
use to specific purposes.
The liabilities of the company are
given at $27, 558,251, divided as follows
Principal amount of first mortgage
bonds, s6,4OO,O00; principal of indebt.
edness on Shipping Board contract
s13,743,231; principal of second mort
gage bonds. s5,0OO,00O; PRINCIPAL of
notes held by Italian banks, s1,250,000;
principal of notes held by the Cosmo-
politan Steamship Company, s125,JC0;
principal of note held by Wilcox, Peck
& Hughes, 100000; miscellaneous
claims, including supply claims, ap-
proximately $450.000.
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