New-York tribune., 1922-07-23
Outlook For Ship and Commerce

Outlook For Ship and Commerce
Question hope you will pardon ms for
trcbphssihE upon your valuable time. but
Wou,o nke very much TO have your views
On the foIlowinE stocks, az a client OF rnns
10 the owner and holder OF same and
assure you that I Will appreciate your
K,honess In giving mo such information
az you may have concerning the same
MY client owns some shares in the Ameri-
oan snip and Commerce Compeny have
oeeh told that this company and another
company or companies will shortly enter
into a merger, forming ono large company
DO you believe this, and do you know what
company or companies will form the COM
nination, and when, If ever, will the same
take effect? What in your opinion IL the
future outlook for the Amernoan ship and
Commerce, and when II ever viii this
company pay a dividend, and do YOU think
ii Is o stock which one should hold for
future profits In the event Of the failure
what effect VIII that have on the stock?
In your opinion do you believe the ship
subsidy bill will pass and become law?
My client also owns stock OF the Canada
British Columbia Copper Company what
ia the. present position of the company
look for the company? l have been told
that a reorganization OF the company viii
take place this fall and that an assess
nent will be levied on the holders OF
stock. Kindly give me such Information
ss you may possess. My client owns some
Kansas and Quit OH stock. which is quoted
papers stated that the company from =
new well was producing 1850 gallons of oil
per hour and that satisfactory tests OF
some wells owned by the company in
north Texas were being made. This COM
pany in 1920 and 1921 was paying dtvi-
dends WIN you kindly give some in
formation that you have concerning the
company and the future Of the same7
know that all oil stocks are moro or less
to L You viii S kindly w give e'sl me as fu
information you can concerning the
stocks above mentioned.--J. NJ. 2.
Answer-It was reported some weeks
ago that American Ship and Commerce
was to enter into q merger, but this
was officially denied ut the time. We
do not know of any merger now con-
templated in which the company viii!
have a part, and do not think that you
should pay too much attention 20 re-
ports that may be spread for their
effect market-wise. The future of the
corporation is largely the future of
the American merchant marine. One
of the most ambitious shipping prof
elts launched by American interests
during the war. it has built up an ex-
tensive organization, but has been un-
able to return profit during the recent
period OF depression in the shipping
industry. Conditions continue extreme
ly unfavorable for profitable maritime
operations, and especially so for
American companies, which are at a
disadvantage in competition with for
eign lines because OF wage and other
by cooperation with the Shipping
Board. The subsidy bill has been in
dorsed by American shipping men, but
the fficacy of the aid which it offers
is still untried. The influence of it's
failure ID q speculative matter which
we do net care to comment upon. AS
to the chances for its passage, Prosi-
dent Harding's determination to force
its enactment may carry it through
over strong opposition. In conclusion,
American Ship and Commerce to-day is
a highly speculative stock, the dividend
outlook for which is, in our opinion,
uncertain. Our inquiries have failed
to indicate that reorganization of the
Canada Copper Corporation, Ltd, is
planned this fall. A reorganization
took place two years ago, when the
present company was formed to sue
ceed a Virginia company of the same
name. Stockholders in the old com
pany, upon payment OF so cents share,
received share for share Of stock in
the new, or, barring such payment,
three shares of new for ten of old
The company's production is negligi-
bic and its stock Of SIS par value is now
quoted at around % cents 8 share
1t is, in our opinion, extremely specu-
lative and deserves no Investment
rating whatsoever. The Kansas e.
Gulf Company has better record than
many of the small oil companies or
ganized during the postwar boom,
but it's experience has been too short
to rank it yet as moro than a specu-
lative venture. Net income during
1921 was reported as s1,o37, $40 and the
balance sheet as of December 81
showed assets of S2o,s75 600. The lat
tar included only st14,1e7 in cash, and
quick assets generally were slight in
proportion to the total Net assets
applicable to capital stock, on the
basis Of this balance sheet, were COM
puted as equal TO sl17S a share of
$40 par value. but this should not
necessarily be taken at it's face value
The fnct that the company has not
paid dividend since last summer
may possibly be significant of com
parative conservatism Of manage
nent.