The Birmingham age-herald., 1915-11-16

ship lines controlled by American or English capital, but he did bring inte this association all but two or three. MT. Morgan had at that time the prestige as- sociated with the phenomenal success of the underwriting of the United States corporation proposition. It was, there fore easy for him to persuade many of those woh had participated in the Uni ted States Steel underwriting to become members of the underwriting syndicate. which was to finance that combination of ocean steamship companies whose legal title was, as it now is, the International Mercantile Marine company.
 It was commonly reported that the mem- bers of the underwriting syndicate when they met together compared their experi- ence in the underwriting with their happy experience as members of the Steel com pany's underwriting syndicate. It was supposed to have been an unpleasant comparison, and the opinion commonly held was that this underwriting syndicate was compelled to carry a good part of the securities, not finding much of a market for them. MT. Morgan himseljf revealed his dexterity and authority in matters of foreign exchange when he swept the country, so to speak, so that he might secure the exchange with which he could effect payment in gold in Lon- don of S20,e00 900 on account of this con- bination.
 What Was the Matter?
 The combination did not in it's eNperl- enee, according to all reports, meet with the success which MT. Morgan expected. Gradually it's affairs went from bad to worse until at last the corporation was compelled to seek the protection of the courts. Under that protection the steam ships which belonged to the organization have been operating, and very skhl1ui financing has been proposed with intent to perfect a satisfactory readjustment on reorganization.
 A Heavy Debtor
 These are the figures, using round num- bers only, which report the obligations of this company as they were when the courts protection was secured. The com mon stock is of the par value of $4s,9oo,- coo The preferred stock is of the par value of S51, ,730 GOO. The bonded indebted ness is a little over $7e,000, 900. The deferred diviends upon .teh preferred stock are now little over $40, ,000,00O If, therefore, the aggregate bonded indebtedness and the aggregate deferred dividends upon the preferred stock are added 1t is dlscov- cred that they represent s116,5270OO.
 These were figures which little over year ago appeared to be appalling, and they taxed the ability of the best finan- ciers who undertook to work out some satisfactory plan of reorganization. There was a good deal of incredulity about the ability of any financier to do this. Of sudden the European war broke out and there came demand for the kind of transportation which it is the business of this company to sell. MT Morgan could not have dreamed of the magnitude of that demand, and if he were now living he would. of course recognize that it is an abnormal demand, it being impossible for anybody to predict whether it will be continued after the war ends.
 Nevertheless there are some statlsticS available which must be gratifying to those who have an interest in this cor poration and which also furnish side light which reveals some phase of the export trade of the United States There are some good req asons for accepting as accurate the report that the steamships of this company earned in the eight months up to September, 19l5 on the av- craze 3.000000 a. month, or in the aggre- gate $24, 100000. It was not necessary for the company to compete with other trans atlantic steamship lines, since the trans portation that was offered has been far in excess of the facilities for moving it across the sea. We now get good hint of the increase of exports, beginning in September, an increase which represents the most remarkable phenomenon of in- trade of any time
 The company earned in September $5,- GOO 900, and is understood to have earned in October about ss0o0,0O0. As our export trade is increasing, war munition exports going on in unparalleled volume, it is thought fair surmise, that in November and December of this year the earnings will be $9,000,000 each month. If they prove to be as much as that then they will aggregate $1s,0OO,000, or a tota! of $50 O00,000 for the year 1915, and this for a corporation which is in the receivers hands.
 Some of those who are familiar with our export trade are anticipating that it's volume will be as great in the year 1916 as has been the case in the present cal endar year. It is all question of the fu- ture, and the wise man will refrain from taking any other attitude toward it than that of an observer. But If it should prove true that foreign trade is as great in 1916 as in 1915, this company should earn s10S, ,000.000 next year. Should it have that fortunate experience, it will have earned in two years $164 900 GOO. and if from that there be subtracted the s116, O00,O00 which represent it's deferred cum lative dividends upon preferred stock