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Show RECEIVER FOR MAR1NEC0MPANY Great International Syndicate Defaults Payment of Bond Interest Amounting to Immense Sum. FRIENDLY PROCEEDINGS J. P. Morgan and Company Large Stockholders in Firm Controlling Mammoth Fleet. New York, April 8 The International Interna-tional Mercantile Marine company, organized or-ganized by J. P. Morgan and company com-pany and controlling a groat fleet of steamships plying between the United Uni-ted States and Kurope. was placed In the hands of a receiver today by Ihe federal court. The receiver named nam-ed was P. A. S. FYnnklln, vice president pres-ident of the company. Action against the company was taken by the New York Trust company compa-ny trustee of its $52,744,000 four and a half per cent collateral trust bonds. Interest on which has been defaulted. The proceedings are understood to bo friendly Mr. Franklin was placed under a $50,000 bond and empowered to continue con-tinue the business of th company. Organized by Morgan. The mammoth fleet that flies the flag of the International Mercantile company, was brought together by a syndicate of American and British capitalists under the leadership of the late J. P Morgan. The corporation in its present form was chartered by the state of New Jersey in 1902 under the name of the International Navigation company One hundred and nineteen ships flying fly-ing the flags of Great Rritaln, the I United States and Belclum, were op- I erated, according to the latest available avail-able figures and there were then building eighteen more ships. Some of these have since been completed. Millions in capital stock. More than S100.000.000 of the company's com-pany's capital stock of $120 000.000 has been issued. J P Morgan and company are large stockholders. Morgan Mor-gan is a director of the company, wimse funded dobt is approximately $70,000,000. This is made up of two Issues of bonds, the big Issue, on which interest has been defaulted, and an issue of $17,882,000 first mortgage 5 per cent bonds of the International Navigation company The Interest on the $52,744,000 bond issue was duo October 1 last, but a clause in the bonds gav the com pany six months grace to make payment. pay-ment. This term expired April 1 No trans-'Vtlantic steamships were directly operated by the company, their operation being left to subsidiary subsid-iary corporations whose stock was held by the International Mercantile Marine company These companies directed the operation of the White Star Line, the Red Star Line, the American Line, the Atlantic Transport company, the Lej land Line and the Dominion Line. It was Bald the receivership re-ceivership proceedings would not In any way disturb the operation of the company or its subsidiaries, oo |
