New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-06-15
|. NJ. NJ. Head Sees
Marked Decrease
In 1922 Earnings
Shipping Company President
Blames immigration Re-
striction: 1921 Report
Will Show Drop in Net

4 marked decrease in the earnings
Of tho international Mercantile Marine
Company FOR 1922 was predicted IN
remarks appended TO the preliminary
rcport for the year ended December
81 last by 7. A. S. Franklin. president
Estimated results for the hrst i've
months. Mr. Franklin said. show a
substantial reduction as compared WIN
the CORE spending period OF ls2l
This situation. according TO MT.
Franklin. is due almost entirely 10 the
effect Of the new immigration law. "hlch
confines the yearly movement TO TINS
country from each foreign nation 10
9 per cent Of the residents Of such ma
ton in this country, as shown by the
1910 census. 49,,
Furthermore" he continued. "the
law permits 20 per cent Of such num-
hers 10 enter the country monthly
and this resulted in the quotas from
most Of the countries being exhausted
prior 20 January OF tins year ieaN
ing practically no immigrants 10 come
forward during the first SIX months OF
1929. There is total decrease IN lne
movement across the Atlantic, N ooth
directions. Of about 100000 passengers
for the first five months OF TINS year
"a compared with the corresponding
period Of 1921. which decrease IS al
most entirely in the third class there
being slight increase IN the hrst-
class movement.
Showing VIII Improve
beginning with July the immigra-
ton quotas for the new fiscal year cs-
tablishcd by .hc government will again
become effective: therefore IL is eX-
pected that there will be decided inn
provement in the earnings Of your pas
scneer steamers during the last six
months OF 1929. as compared with the
first six months: but there is nothing
NJ present 10 indicate that the total
earnings for that period will be larger
than for the spondinC period OF
last year. IL is evident. therefore, that
a very material decrease in the 1922
earnings. as compared with those Tor
the year 1921, must be expected
Tho preliminary report OF the 1921
earnings estimates the years profit
after taxes and Fixed charges, as $ll.-
.nf711. compared with S15.252.23J IN
1920. After dcducting depreciation OF
steamers the surplus was s5,79S,730
against Sqq05Q59 tho previous year.
Tho net earnings from steamers di-
rcctly operated by the international
Mercantile Marine Company plus mis-
collaneous earnings and dividends re-
ceivcd from subsidiary companies last
year were SS.329.309, compared with
.Sll.3O7442 in 1920.
The decrease in last years earnings,
according 10 Mr.. Franklin. was largely
due 20 the reduction in the movement
Of third-class passengers. and 20 the
great shrinkage In freight traffic
which was worldwide.
Preferred Dividends
Mr.. Franklin. who presented the re-
port OF earnings 20 stockholders al
the annual meeting. said that II il is
possible 20 continue regular dividend
payments OF the preferred stock tho
management would be satisfied. This
was in answer 20 question as "a
what prospect preferred stockholder'
had Of receiving back dividends from
surplus
Questioned regarding the effect OF
the ship subsidy bin on the !. VI. VI
he REPLIED 1.-THE ship subsidy is for
American flag shipping. The ]. VI. VI
has 90 per cent foreign flag vessels.
There were represented at yester-
davis meeting 555.325 shares Of pre-.
ferred and common stock. Directors
..rr~o vrafanfrN