New-York tribune., 1921-06-07
Slump in Earnings
Shown in Report Of
Mercantile Marine
Smaller Freight Movement.
Drop in Rates and Labor
Troubles Caused Decline
Says P. A. S. Franklin

An estimated income for 1920 suh.
mitted at the annual stockholders,
meeting of the international Nercant;i.
Marine Company yesterday showed =
surplus of $8,307 ,283, equivalent -
$16.06 a share on the s51, 800 prs'
ferred stock outstanding, contrastsa
with $25.06 a share earned in 19fo
The net earnings, plus the dividenda
received from subsidiary conpanie.
after deducting taxes and general er'
penses, were $11,307,441. In 1910
actual net earnings of $15,193,831 wers
reported
The dividends received from n.
British subsidiary companies, Presiden,
P. A. s. Franklin explained. were con.
verted into dollars at the market rats
of exchange on the date received. 4
statement showing the estimated "a.
suits of operating the international
Mercantile Marine and it's subsidiarie.
including Frederick Leyland G. Co. Ltd
(the American Line, the Red Star Line
White Star Line, Atlantic Transpor.
Line, Dominion Line and Leyland Lima
compared with the preceding year a.
follows:
Net earnings, s17,os9.4 1871 ss4,5s7.m
bonds ..,......%. 2,2a1.e7s s.sos.as
Balances ......$14.s27.81 $22.2ss,5Ts
Steamship deprec.. 5.397.654 5,295sss
Surplus ....... $s.44O,158 s17os2,9Is
The above net earnings, after deduct
ing operating and general expenses, in
come and excess profits taxes, and in
terest on debenture bonds, were con-
verted for purposes Of comparison at
S4.85 for the pound sterling. The COM
pany, however, can secure the earnings
of the British subsidiaries onlv
through the dividends which they de-
clare from time to time.
In a statement accompanying the
presentation of the two income ac.
counts Mr.. Franklin said the decrease
IN 1920 earnings was caused largely
by the smaller movement of freight
traffic, consequent recession in freight
rates and by labor troubles, the latter
materially increasing operating ex.
penses.
Mr.. Franklin said that nea earnings
for the first half of 1921 have been run
ming considerably lower than the 1890
figures, due to the great shrinkage in
the movement of ocean traffic all over
the world, resulting in many idle
freight steamers and much of the
freight moving being carried at rates
which IN many cases do not pay the
cost of labor and other charges Incl
dental to handling the traffic to and
from the steamers.
an addition to this" the Interna-
tional Mercantile Marine head added.
"the movement Of third-class passen-
gers from Europe to this country has
been materially disturbed by passport
difficulties and quarantine regulations,
eliminating in Congress passing law
IN May of this year limiting the immi-
grafton from each nation to per cent
of the residents of such nation in this
country, as shown by the 1910 census.
However. the first first and second class
passenger business, in which your
company is very largely interested, is
quite satisfactory.
1T Is impossible to predict a ma
terlal improvement in the situation in
the near future, as this can only ba
brought about as political, economical
and labor conditions in Europe improve
and the buying ability of the German
nations is gradually restored. In the
mean time our property is being well
maintained and judiciously strength
ened, our cash position is strong and
we feel that the company is we'll
equipped to maintain it's position in
various trades and is in excellent con-
dition to weather the storm through
which shipping is now passing"
The company amended its bylaws at
yesterdays ANIMAL meeting, making the
term of the directors one year, and
changed the size of the board from six
teen to whatever number the stockhold-
ers should at any time determine. Five
retiring directors were reelected for
one year.