The sun., 1918-09-13
MERCANTILE MARINE
HIT HARD BY WAR
international Co.'s Steamers
Now All in Transport
Service.
GREAT CUT IN PROFITS
Large Increases in Taxation.
Cost Of Operation, Labor
and Equipment.
GREAT CUT IN PROFITS

Reauisitioning Of all OF the Interna-
'ional Mercantile Marine Company's
steamships by the British and AmerI-
can Governments, a large ipcrsase in
taxation here and abroad, and a rise be-
yond all expectations in the cost of
operating steamships az we'll as the
expansion In expenditure for labor, sup
pIies ana equipment OF every kind are
blamed by =. A. s. Franklin, president
OF the company, for the decrease of
yl0,470,665. or 40 per cent. in profits
Tor the year. These statements are made
in the annual report issued yesterday
and now being mailed to stockholders.
Earnings on the s51,725.50O preferred
STOCK before steamship depreciation were
equal, the report shows, to approxi-
mately 80 per cent. This compared with
90 per cent. In the preceding year. when
the company. which had been in re-
ownership. was placed on its feet by
the great advance In ocean tonnage and
freight rates The company paid a total
OF 10 per cent. in dividends on the pre-
ferred stock and had a surplus for the
year after steamship depreciation and
$9.S27S45 dividends of $1,925.665. This
made final profit and loss surplus at the
close Of the year s26,611.S36, compared
=
Gross Earnings S8O,o27.2 o7.
Gross earnings, after providing for the
so per cent. excess profits taxes on the
British ships Of the company. are placed
at $60.027.267. This compares with $685.
449.726 in the preceding year. when the
tax was so per cent. This includes the
operation Of the International Mercantile
Marine Company and its subsidiaries, in
GLIDING Frederick Leyland & Co.. Ltd.
(American Line, Red Star Line. White
Star Line. Atlantic Transport Line, Do
minion Line and Leyland Line), during
the year 1917. The net operating result
was $12,171.542, against $26.027,296 in
1916 after the deduction of bond interest
and depreciation in both years.
Profits from the British companies can
be secured only through the declaration
of dividends by these companies. and not
through net earnings. On this basis the
combined income account shows the
profits for the year to have been SIS ,475.-
eS6. compared with S25,946,650 in 1916,
$17,341.027 in 1915 and 33,307,023 in
1914.
The salient features OF the income &C.
count, taking In the earnings from opera
ton OF the American. Red Star, White
Star, Atlantic Transport and Dominion
from the Leyland Company and other
partly owned companies, compare as fol-
lows:
1917 Changes.
Gross earnings after
British excess profts
TAX .Vl 6b, .OS DEC. xlsW .tpl
Miscellaneous earn
lngs .................. S.S4l,bte Inc. L.H2
Total earnings........ 6l.l45 7I Dec. II. s7o. $50
Expenses, taxes and
miscellaneous inter-
eet ........"..-......- S-,bD,&z DC. ToSsSV
Fixed charges. 2.s9s,3lI Dec. $50 i06
Profit for year be-
fore steamship de-
probation ........... 15.47S. 9s6 Dec. 1910 SOS
The report directs special attention
to the cash and cash assets, which per-
nit reserve for accrued taxes and ex-
cess profits duty of $11,324,9ss and an
allowance of s34,350.000 for replace
ment of British steamships lost or sold
in order to maintain the company's SER
vice at the pre-war standard. and which
aggregate s31.09S,6s3 after these re-
serves and allowances. Before such re-
serves and allowances the company's
cash and each assets aggregate $76,773,-
go, shown in the report Is follows :
Marketable stocks and bonds. $25,129.-
937: cash. s14,056,24S; Leyland Com
pany marketable stocks and bonds. $22.-
522ss7; Leyland Company cash. sl5.-
| 065, 0SS.
II