The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-04-10

TIONAL MERCANTILE
tsSsnss' H fst S crdis;,y mem sst Il , :, "a are ,., deducted 4. and si,s charged ys.,s to
Of the ships nip an is is really really, a fund mai, for the e, G1 rs. IS off,, new . ships b, "A, As Ni j. IS
the past year has been increased. &s IS IS not dsdustsd, as s . as ausii charge
Ss s:ys Ss"s..e s:s !, e II 3 sss!: s1 +: W: aes %s "a. 'S So' e ss Sss% :ssssa ' f'S%
l.y,, n@f E IT, si i'"m he Of s ts 's,sns!ss" 81 M Ne sil iS %u,,f !, C is, and .S sss
S BEEN as skoi S% s"'''e' " expenses e'e'' depreciation" a"' ~r Ia" nave
S j:ss:y Il i. 1911 III; :. % 3 S: : z, 81. 10; ;s;;:: ~: :s:;s Sc
January, February and March. 1915. spprox. 80. issooSOo
Deductng % Ia not yet paid and estimated to
April !. 1916. 100000
The n s:1:ns C. s f. x net earning. since the commence "a. ,.,s.s
eoc,! %s.s = po 9 sss'a ms ss'p Ss sp saasS' to st The s'T ssdSesoq a q '" dsSs a ar o q =
8 s;s 4: . ssisss 8 h. "i Es;'": ssn sssy I ?sa;s;sS i: sf &: vs sSs' IL i. :, :si sss s:.S'
Am. das f tGss? sSss sssa,Gf' ! O. a Rst ip ess Id, sss s safTj Gss, from Ts ,ss Msaa ed.
seHas%%is; i have psr s%Sps &c . p Sis@ 81 sI. dseEsrf sa"? 81, $ small azfft di%Hssads '. snd
s sssSt sSs AZ, N ' sai g s e; ~! s!s14 fh ss The ssd isi!tss; g . 'as' ss's ssd va aS:y 70 ' X:
stock held by the Marine Company as an investment.
Cash Position Of the Company April l. 1916.
g: :sa !: :. :: s:2s :s ss .Ss, : Il N i: n 4: sss . 5sssS:
Add March receipts. taken !. equal to February $3.50: 100000
This Is subject to deduction Of war tax a stated.
The Receiver and constituent companies have since August l.. 1914.
to date. invested out Of current income over SiOO0OyOoO in the purchase
OF new ships. payment OF underlying obligations Of constituent companies.
and other capital purposes.
Income Of Company on restoration Of normal conditions after war;
A forecast Of future earnings always involves some uncertainty. The
controversy with respect TO the surplus earnings in excess OF the bond in
ssesk. IS soeiy Between the Preferred and Common ON ,ottho!dsrs: Com
ritteS. and We are prepared to accept the Preferred Stockholders Com
nittees estimates of these earnings on return to normal conditions.
The Preferred Stockholders Committees estimate is evidently based
earnings for that year. they have added increased earnings due to the new
tonnage now under construction and not then in service. and also the average
earnings OF the Leyland Line for 1912 and 1913. not actually distributed in
those years. but invested in new tonnage, together with dividends on the
shares Of the three companies held by the Marine Company as an investment.
We quote the estimate made on this basis:
Depreeiaton to be invested in e ships to replace
Leaving a didbie income Of. ................. .sil. 2soooo
Interest Sc on SIT 632 oO0. ........S $1,000
Interest +1aec on s2se4 loot. ...... 2.36673o 3.24s,3so
Net surplus after depreciation and interest go. S s.ool. $40"
From this there should be deducted interest on surplus cash as
suned to remain in the Treasury Of ..............s 10000
Leaving a balance Of 80: .:....:. .:..... ....,. 5 7.2si so
II the Preferred dividend of 90 is deducted from the above
amount 49,. p. 80. 3lo3.s+S
1t leaves a balance for the Common Stock OF. ............ s 4i+s.i27
1t will be noted that the foregoing does rot make any provision for the
accumulated dividend in arrears on the Preferred Stock. On the other hand.
It takes substantially no account OF the surplus war earnings which arer more
than sufficient in amount. whether distributed or not, to Offset the cash or
committed value of the accrued dividend.
The foregoing division Of income. therefore. correctly represents the
relative interests Of the two classes, OF stock n the earnings OF the Company
on the basis of normal earnings and conditions: with the amour; Of accurnu-
lated dividends more than Offset BY the var earnings not taken into account