Lehman Brothers Collection - Contemporary Business Archives

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Lehman Brothers Collection

Twentieth-Century Business Archives

American Stern Trawlers, Inc. - Lehman Brothers Collection

American Stern Trawlers, Inc.

List of Deals

American Stern Trawlers was created as a wholly owned subsidiary of American Export Isbrandtsen Company in June 1965.

American Stern Trawlers entered into a contract in November 1966 with Maryland Shipbuilding & Dry Dock Company for the construction of two factory freezer stern trawlers at a cost of approximately $10.5 million. Under the construction-differential subsidy contract between American Stern Trawlers and the U.S. government, the government paid 50 percent of the cost of the two new vessels. This federal government funding was authorized by legislation passed in 1960 and 1964 that was intended to help the United States catch up with foreign competition. During the mid-1960s, about half of the fish consumed in the United States was caught by foreign fishing fleets, particularly Japanese and Soviet.

When these ships were completed in 1968, one began to fish in the North Atlantic and the other in the North Pacific fishing grounds. These "factory vessels" were literally factories. They cleaned, froze, and packaged edible fish and the inedible or trash fish converted into fishmeal aboard ship.

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