The New York herald., 1922-12-15
UNITED FRUIT QUITS
I NEW YORK CHARTER
VIII Evade Possible Tax and
May Change Registry if
Dry Ruling Pinches.

Tho subsidiary corporations OF the
United Fruit Company owning American
flag liners have been dissolved so that a
new corporation may be formed under
the laws of Delaware to hold all the
vessels, william Newsome. vice-president
of the company. said yesterday. The
steamship subsidiaries have all been un-
der the New York laws.
The principal reason for the change
from New York to Delaware, 1t was
learned, is the fact that a law OF this
State exempting from taxation the earn
ipgs Of American vessels engaged In for
eign trade expires on January /. 1928. A
large number OF other companies are
planning the same action, 1t is known,
hut most Of them are waiting to see
whether the Legislature reenacts the
exemption law Winthrop l.. Marvin,
vlce-president and general manager OF
the American Steamship owners Asso-
citation, said that It is highly probable
that the State body will continue the
legislation.
1t was denied emphatically that disso-
luton OF the United Fruit subsidiaries
has anything to do with possible
change to foreign registry. The fruit
company has given consideration to this
question. but is understood to be de-
ferring any decision until the test case
of the dry ship ruling Is disposed or by
the Supreme Court. If both foreign and
American ships are barred from the
liquor carrying privilege there would not
be a great incentive to change to Brit
ish registry.
Permission Required.
Permission to put an American vessel
n In ha Ohfanpd
from the Shipping Board. under pro-
vision of the Jones act. and the board
has indicated it's unwillingness. under
current conditions. to grant any such
applications. If the subsidy bill falls.
however. and II the dry ruling is con-
ffrmed as to American, but not to for
eign ships. 1t is believed that the board
will change its position.
The United Fruit Company Is not
likely to benefit by the subsidy bill
even II II is enacted. The House of
Representatives barred from particlpa-
ton in subsidy payments to vessels
carrying the products OF the owners,
and the Senate has shown no disposi-
ton to repudiate the action OF the
House
CAPITAL Not Decided.
The new Delaware corporation In pro-
cess of formation by the United Fruit
Company is to be called the United
Fruit Steamship Corporation. Mr.. New
some does not know what the capi-
talization is to be.
Following are tho New York corpora
tions dissolved: Surname Steamship
Corporation, Heredia Steamship Cor
poration, United Fruit Steamship Cor
poration, San Jose Steamship Corpora
ton. Santa Maria Steamship Corpora
ton, Suramacca Steamship Corporation.
Sixaola Steamship Corporation. Tivives
Steamship Corporation. Limon Steam
ship Corporation. Carrillo Steamship
Corporation. Levisa Steamship Corpora
tion, Coppename Steamship Corporation.
Abangarez Steamship Corporation.
Atenas Steamship Corporation. Cartago
Steamship Corporation, Pastores Steam
ship Corporation. Esparta Steamship
Corporation. Calamares Steamship Cor
poration, Zacapa Steamship Corpora
ton, Turrialba rteamsnip Corpora
ton. Parismina Steamship Corporation
and Metapan Steamship Corporation