v
IT
FRENCH SAVINGS
BANK ACCOUNTS
LOCAL MINING STOCKS
EVENING LEDGER- PmEADELPHlA, TUESDAY, rAPRITJ 11 191G
.Irt'lie . firsts, 30c s seconds, 8335Ue.i nearby
Prints, fancy, 40c. s acerago extra, SOe. ! firsts.
374T3RC, seconds, 3183Ue.i Jobbing sales of
fancy prints, 4.1l0e 1
i:rJ03 Itecelpts were qulls liberal, but de
sirable stock was In good request aiVI firm
08.78! white,
..i.1.1.. AA4IA ..
TONOFAII STOCKS
PHILADELPHIA
MARKETS
top.ou;
. weisiuiw uviu insf rcr nozen.
i.
Jim llutler ......
IHeNnmitra ...........
Midway
ma.
under light offerings. Quotations, at I50B.BO
per bbl.i aa to quality.
PROVISIONS
There was n fair Jobblnr demand nnd vnlua
ruled Arm. Quotations city beef. In sots,
smoked and nlr-drled 2ne s Western beef.
In sets, smoked. 2Bc , city beef, knuckles
snd tcndrs, smoked ami ntr dried. 27iB2se.i
Western beef, knuckles and tenders, smoked,
27W21C.S beef hams, S2Sfl!3o. pork, family,
f2rir0Si28, bams. s. V. eureih loose. 17H
IRC . do. skinned, loose, 17mrlfie , do. do.,
smoked, 18410c , other hams smoked, city
cured, as to brand nnd morale, WtfMSc.t
hams, smoked. Western cured, 174 f lso : do ,
boiled, .boneless. 30c . picnic shoulders, .1, r.
cured, loose liljc , do , smoked 13'1 fl13'4e.:
bellies. In pickle, according to average, loose,
Ii101.1'4je breakfast bacon as to brand and
average, city curd lSe , do. Western cured,
lidflvo . Iird, Western refined, tierces, 13e.i
do. do., tubs. 1,1c , do . pure city, kettle
rendred, In tierces, 13c, do., do. In tubs,
13c.
REFINED SUGARS
The market was unlet, but ste-tdy. , W
quota: i:ttra fine granulated, 7c. pondered,
7 We.: confectioners' A. il.ouc. : soft grades,
U 2300.83c.
DAIRY PRODUCTS
ntrjnafi Ottering were light and the mar
ket ruled stead but trnd una nulvt. duotn
tlons follow-. NeS ork. full cream, fnncy
hehi miW1Pc . Mo. do. fair to good, held,
ISPlRlai do, do. part skims. lliRililo.
11UT1 lilt Tim nmrkit ruled nrm un
der light offerings and a fair demand. Tho
?uotntlons Western, soltd-p iclted creamery,
nney specials, site., iurn, 37e . extra firsts.
bbl, 78o. 0$1 25. Kale, Norfolk per bbl,,
BOHOOe. Watercress, per ion bunches, M.
Lettuce, Florida, per basket. $308. do.. Room
Carolina, per basket.$304i do. North Caro
lina, per basket. $104. Ileans Florida, pr
bssket, $243 80. Peas. Florida, per .basket,
$.100 reppers. Florida, per carrier. $1,CO03,
Kggplant. Florida, per ernte, $2 W2.no To
matoes, Florida, per carrier Fancv, $1 BO021
choice. $101.80. Asparagus, per crate South
wi.wvi uvj. . uD.i ids, rcr nozen. i wh
J.BOi
wniip, woirninr v idb. per doin,
?&o.do,r. 7 lbs. per rtoien, 1108 RO:
.05
.01
.21
.2
.31
.18
4t
fl'u
0
..14
as.-t. "',"?? ";. t".0"5" 'ftSK":
jm A et us i - " it. i-i- i.'
"" t."o. itJi nninu ana no, z, LFiii)ti
FRESH FRUITS
Choice stock sold fairly and talues mnernllr
ruled steady as follows: Apples, per bbl.
lnesap. $304: llaldwln, $2 8003 23: Green
ing. $2 2803. Hen Uavls, $1.7502.23: other
larlettes. I1.80B2.80! No. 2 $1.2801 Ml
apples. Western, per box. $1,2802. Oranges,
llordi. per crato. $2.8004. Tangerines,
r or da, per strap, $203 80. Grapefruit,
Jlorlda. Per crate. $1.7804. Lemons, per
i.1-i S?i, Pineapples, per crate rorto
WSi. $3.8005. Cranberries, Jersey, ner bbl.,
1 Mlrmh HxKMnlon
CHAIN AND FLOOR
Asked.
.07
.11
.22
.20
.32
.10
4 '4
C,.
04
.8(1
.78
.14
.01
2.1
112
.01
.IH
m
.1)1
.41
.R2
.14
.70
.14
.OS
.rin
.09
1 up quotations loiiow in iree rsscs,nearny
extra, 2lle tier doxen, firsts, 10 7.1 perl stand
ard case, nearby current receipts, 10.60 per
ease. Western extras, 2102.1c per doren:
Western extra firsts, $0,7.1 per case: nrsts,
$0.00 per case Southern. 10 1500 48 per case;
fancy selected enndled frVsh eggs wr Job
bing at 27029c per doxei)
POULTRY
tilvn Demand was good and prices of
fowls and chickens advanced 1r., with supplies
well under control Quotations: Fowls, an ft
21c,: some fancy fat stock higher,, roosters.
12013c rhUkens soft-mealed. 20021c.. ex
ceptional lots higher do, stnggy, llWlfic:
duchs. as to slfe and qu illty. lH02Oe , gecae,
17010c . pigeons, old. per pnlr, 2803UC. do ,
young, ier pnlr. 2DW22-
DlttlSSn'D The market ruled firm, with do-m-uvt
cquil to th.j ottfrlngs of deslroblo stock
Quntattons rresh-kllleil poultry, dry packed
1 owls, 12 to box, tlrj pliked, fnncy seleeteij,
21Hc . weighing 4'i5 lbs. nplrce. 21c:
weighing I lbs. npli eo 21c : weighing 314
lbs uplice 2iic . weighing 3 lbs apiece, 17U ifi)
isije , fowls in bbls, fancy, drv-plcked,
weighing t'j 0.1 lbs nplfre. 2ll14e. welRhlng
t lbs apiece. 2rt'4 c . smaller sires, llt'd llli ,
old roosters drypltkril. Ilk-., lirr.ll 'ta, .lerfn,
fanc, Anwr.ric ; do , other nearby, weighing
23 lbs t r pair. 11111 l.li . larger sizes. 3.1fli
3Hc . capons, per lb Weighing 8010 lbs
nplece 27W2SC. , smaller sires, 2.l2lle. . ducks,
nearbv, spring, asnih . squabs, per flos.it
White, weighing llfl2 lbs. per iloien, $.1.00
SHOW INCREASE,
Montana
North SlAr
Tonopnh llelmont
Tunnpnh Kxtenslon . ...
Tononah Mining
. WHEAT tlpcolpts. 201.210 bush Tho mnr
Kt ruled Heady, with a fair rtomaml nnd
modprntn nnrlngK Quotation: far lotc. In
eport ppator No. 3 red, pot and April,
M.20SH 21; No 2 Soiilhrn red. tl IRWl 21:
team"r No 2 red. tl 1701.20: No 3 red
ll. 1701.20, rejected A. It.ll'i 01 17'4 ; re
jected II. II 13fM 10
I'OnN ltecelptii. fii02 huh. Supplies were
ftmall and the market ruled ateady. thoush
nulet. Quotation: far lota for loeal trade, as
to location No 2 jcllow SJgWjr.. steamer
ellov. SdiffRIc : No 3 ellow, 7?ff.''e . No
4 ello 7fl'fl)7itc cob per 70 lba . 70f70!4e
OATS Heeelpta .11 7s2 Imsh Trailo wan
quiet, but prices ere "ll maintained Quo
tatlons No. 2 nhlle. .11 '4 Kt."2e , standard
white, nojfSIe : No 3 while, W'Jrr.Oc . No I
uhlte, 4714 ciris'ie . implc oita 43H
44iir.: purliled o.iis. Kraded. lOltnoiie
Kl.OUIt llecelpts 120.1 bbls ami 00.001
lbs In sacks There was little trading and
prices were without importart ehanse Quota
tions, per 1011 lbs In wood, Inter clear.
J.I indIR 31 do, stralaht. .1 I11W. 70. do,
patent, $3.7.1 V II. Kansas. ekr, intton sirks.
1 20r no. do . straight, rntton sacks 13.110
drftpn, do. patent, cotton sacks, 13 POTil 11
spring, flrst clear, t.l 31 W5 7.1. do, stralaht,
:".1itl1. do, intent, Hv0 Till do. favorlto
brands. n 00Nn DO, city mills, choice and
fancy patent. 10 floflfn pu. city, mills, resnlar
trades Winter, clear. $,1 losf.1 3 1, do.,
stratuht, i.1 4nff5 70. do , patent. .1 7Sn.
11YI5 Fi.OUn sold slowly but ruled steady
fornla, $203.80. Mushrooms, per 4-lb. basket.
inc. icpjl.-'o.
LIVE STOCK QUOTATIONS
C11ICAOO. April 11. IIOOS Itecelpts, 12.
00O; market (l to 10 cents higher Mixed
and butchers, $0.3000.78: good heavy, $9,480
.70 rough heavy. $9 1800.40, light, $9,250
9.75; Pigs, $808 00; bulk, $0.4500 03.
I'ATTI.K Itecelpts. 4800: marlcet steady.
Tteeves. $7 .10010; cows nnd heifers. $3,000
0.10: stockers and feeders $n 4O08.7Oi Tex
nns, $7 2308.90; calves. $800 25.
KHIUIP Iteeefpts. 14,1100, market strong.
Nattie nnd Western. $009.18: lambs, $8,800
11 70
Conservation of Deposits wi km ..'.'.
i!" y.t
7S
Tlnri tr T.cinr ATM-tirtli T.ivl i
i to Law Which I
its Withdrawals
UOLDKlKt.D STOCKS.
.lsuv. cu uttiv "iiaii jjiiii -fAHnnln ..
,'iniiiiriiirn. r inriiia, per I
ators. 2535o s open crates, 1
..-..-. it:- '..i.Lri. . .."..'.. ?-. ..
ojitirt ltcfrlgcr
18 028c.
, imho nun
I rooih . .
I I llll.los .
n t r. .
.13
.lit
.21
.111
.01
.117
.in
.lit
.4-
:?!!
.17
.12
.III
ij
I
13IG GAIN IN INTEREST , WtttZWh W??.
I l.llr
-" ' i- I rinrneo
,HH M.irt. ioli1ftM t'nfisnllil.UeJ
By YVES GtnOT twii fM jnrf
Rprr ml Colic o RvraiBB .l,,rr I u'-ani' "IT!'! . '. '. '.
PAULS Ann) II. For the llrsl 19 months ' L,I5i;1L-,J,-Jlfi''''
of Hie war Hn- accounts of savings hanks . siKor rick
simw iiip withdrawal of only nts.ooo.ono
italics out or tntni deposits nr l.onn.ooo.. i
000. Tho withdrawals were elilcny In '
.ni
.01
P.ilry Astrc
lumucny
MtscnM.,Ni:ous.
lilt I.' nit fn 101B IIipv were oiilv 1 Is 000 . ,.""' I""
000, uhlclt It only n irlflp over the lntrre--t . n"vb,u Wonder '.
earned liy dciotls in loll, which amount- '
cd to i ts nno.ooo ' -
This conservation of j.-ulnirs hntilt tip- I
joltH In it Inrtre imrt ua duo to the new
Law which llmllcil withdrawals to o0
francs per depositor every trto weeks.
It Is now proposed In further nld sav
ings hanks hy rnlslnj? from 1600 to .1000
franc? tho sum accepted from Individual
depositors. Savings banks can Invest In
Trensur.v bonds, rentes nr national loans.
The profits of tho Credit Lyoimnls In.
creased from ll.t.'O.OOO francs In 1011
to ls,7.-iinoO in 111.-., and Hie hunk there
foro iKflared it dividend of .10 frnnrH for
191 i, against 2". the year before.
The loans of the Credit Fonder were
Insignificant In 10U, nimiherlnfr onlv r.32t,
for 172,000.000 francs. Last ven'r they
tvero only 001, for 22.fi00.000. The
nrrcars of loans lctnnlnlhg to he rollceted
In tho Invaded departments are loss than
would hp supposed, amounting to only
110.000.000 frams.
It remains to he seen nhat the tlnj
light saving hill will in i-ninpllsh for Or
many. Midnight ulll tome tit 11 o't lock,
and cafes close nt O'.IO. instead of 10.30.
In Franco such a measure would he raited
saving tho end of the rnmlle. War per
mits nil lshuH of cMierlments.
.01
.in
.17
.8.1
1 117
.02
112
.111
.37
2 00
VEGETABLES
.vTn..n.,;r',l.mi,rk!tw,".lul' nd prices
showed little change. Quotations. White pi to"
toes. pr bush -Pennsylianla. $1 ana .to:
t.Ml-e ."l-S''" er,; .J""r basketNo 1
iVl.,',M-5n'n,n.,IX0 !,.'.n!r nrlelle. 10
78c. No. 2 30 0 40e. w-hlte potatoes. Florida,
per bbl No. 1. $nr.O07. No. 2, $,16000
Hweet potatoes. Jersey, per basket No 1, 4.-,
0811c. No 2. S1R30C Sneet potatoes. Jer
sej, Dejawnre and JlariMnd per hanipr
No 1. ,7.1c 0$1. No.2 f.liSfilOe flweet pota-
lD'.lfr,".m ih nDi., ii riiiwi,70. On on,
per 100-ib bag. .$101 80 Onions', Texss.pef
.ii :--.-: -'.Y .-' .. ..,, ..... ,i,c
Drop In New York Exports
NHW YOIIIC. April It Tho exports
of merchandise from the port of New York
for tho week ended April S were valued
at J47.973.323, nwtlnst e78,7B3,039 the
prevloni week nnd J28.400.015 In the cor
responding week n year ago; since Janu
ary 1, $686,809,83.1, nRnlnat J377.8ei.9ir
In tho corresponding period last year.
jote:
.WHEAT SUPPLIES
HARD ON PEICES
United Stales Has More Than
65,000,000 Bushels in
Sight
CHAIN Ill.T.T ttH.Tlli:it lOKKf'Avr
m rillf'Adll. t.rll II. Hip Weillirr
foreenst for 31. blurs N-
llllnoU Pnlr In snittheru part, iliutih
In mirth liuilght nnd Wrilne-ililM -.iitne-uliiit
miller In cxtrpnie nnrllirist Imilglit.
IINiiiiirl t.rurr ill. fnlr liinlcht and
lleilitesil.o, tii.idcrute temperature.
WNriiiiiln I'nrilt iliniil In night nnil
1lrilneilii milieu lint i nhler tnnlglit.
lllnncsnlii Im re iing rlntiilineos, with
shnwers lite tmilclil nnd Wt-ilnr'.il.i.i:
wnrmer imrtliuest tntilcht.
Inv.ii IMrtlj ilnuily tonight iiiul
llnlnc'tli.: iirnhihh iinweftlcd hi niirlh:
not mmli rlt iuic In toniiieriilire
North Ilakntu Killll tnnlglit nnd
HeilncMlin: wnrnter 'n.t tnnlglit. niiih r
west.
Smith Diknlii t'ni-ettleil tnnlglit mid
1eiliie.ili , with t-hnners: miller uet
lleilnesil i.,
elirnsk i V.irll. elomlv tonight nnil
lleiltievit.i. i prohibit tin-., tiled -n-t t
warmer in -.nntlmct tnnUhtt iiioler e
Iri'ine west Wednesil i.
Kilns is funernll. f.ilr tnnl-tlil mid
lleihiestl.ij ; not liimli cli.inge In teliilier.i
tnre. rmrAOO. April ll. Owlns to the
presidential prtiuailei tho Hoard of Trnilo
wits not in se.isliiii today.
Tho weather In tho American Not Ihwost
and Canada was mora favorahlo foi hced
ins tinil the kiu'Iiik wheat mnikcta were
easier In the early trailinfr.
KolIowliiB thn rlso lioro yeslorday, tho
market at f.hvrpnnl Kiirlcd Kti adlcr. hut
Inter declined on libera artlv.ilH and he-cail-e
HtIiplPH in the United States and
Canad.t me large. An otllclal report putu
tho yield of wheat in India at Oii per cent,
of normal.
The receipts at Minneapolis and Duliith
today wore .'.12 ears iiKninst 100 earn Inwt
year; at Chicago. 37 cars, against GO cars;
at Winnipeg, xll ears compared with 141
cars. Tho arrival of corn here today was
19G cars, and of n.its, 1S1 cats.
Tho vl.slldo supply if wheat In the
United States Is 1.i;7-.oilO htisliels. a de
crease of CO 1,011ft hushels for the week,
according to llradstreet's. nnd ennipaies
With 4 1,018,000 htisIielH a year ago; In
Canada It Is S7.0 11.000 bushels, a do
croa.so of 001,000 bushels for tho week
and compares with 2I.8.1J.O0O hushels a
year ago; in Huropo (t'oiitlueutn! stocks
omitted), it Is so.iiOfl.ooo hushels, a gain
of 3,100,000 hushels for tho week, and
compares with 70.S00.00O litthliela n year
afjo
Ti
ELKINS, MORRIS & CO.
BANKERS
Land Title Building
Philadelphia
Western Pennsylvania Railroad
Consol. (Now 1st) 4s,
June, 1928
Assumed by the Pennaf. -'j
..HIUUIIU WU. Xs.
Secured by a first mortgage
on 136.59 miles of road
from Allegheny to Butler,
Pa., and branch to
Bolivar, Pa.
Tax exempt in Penna.
Price and Particulars
on Application
Pennsylvania Co. 3&'s
Scries C 1942
Price to Yield 4.35
MELLOR & PJTRY)
Members N. Y. A lidla. f5ti k Yj0iltl
338 COMSIl.llCI Al. THUbnyttiiyra
SERVICE FOR LAWYERS
My ouii lonir experience and
eixuieuc rorii UbruiL
hurt fcpea- auu tmi
HJi in UJtuii: uonjj
rlleotif. Oiie uunvfr
000 vvu arruujteil In 21
A &60U.000 iiJiiiiiii-.irii
Man hlctt?din o huurj
(cre uu7
HARRIS J. LATTA
Pennsylvania Bldg.
tho
y&i. Here in- .H
nnu bKltVT
is uivuvur wr 3
L bond f sign. J H
I Jryr bun
JVlay I
nlBECTORY OF ACCOUNTANTS
CsrtlHed TublU AccouatauU
LAWlLUNCiJ il. UiiOVJti CO
1410 HBftl. liTATU 'iUUa'l' UUILBINO,
I'MtTNEKSlllI'S
American Line
ltcd Star Line
TonnaKc Dec. .11. 1011.
In service 733,011 tons
Under construction,
approx. i-piiid for 1222,234
fn
i I
The Company owns these lines cither directly or through owner
ship of 1009? of the capital stock of the proprietary companies.
These properties arc usually referred to as constituting the Inter
national Mercantile Marine Co. proper.
Tonnage Dec. .11, 101 1.
,.. t , ... In service 288,031 tons
(2) Lcyland Line Un(lor construction 15,125 "
The Marino Co. owns approximately 98 r'r of tho Common Stock
of the Lcyland Lino nnd all of the Preferred Stock except 827,330
or approximately S-1,000,000, tho latter being held by tho public.
The Marine Co. therefore practically owns the entire Lcyland
Lino subject to the claim of about S-1,000,000 of Preferred Stock
in the hands of tho public. Its tonnage is approximately equal
to 32r-'c o the total tonnage of the Marine Company, including
subsidiaries. The condition of the Lcyland Line has gradually
improved, the improvement being most marked between 1010 and
1013 nnd during the last two years of said four-year period its net
enrnings, exclusive of depreciation, exceeded $2,300,000 per year.
Prior to 1012 the Lcyland Line devoted substantially all of its
earnings to the improvement of its property and between Jan. 1,
1011, and Dec. 31. 1014, fifteen ships with a tonnage of 83,980
tons, costing $5,2G2,75G, were paid for out of its earnings. Its
debenture issue, originnlly 52,425,000, ha.s been paid. In 1015
the net earnine of tho Lcyland Line subject to tho war tnx were
over 513,500,000. For tho current year it is earning at an
increased rate.
The cost of this investment to the Marino Company with interest
at 4lire, after deducting dividends received, was, ns of Dec. 31,
1915, over 518,000,000.
(.1) Investments. The Marine Company cither directly or through
subsidiary companies has the following interest in tho common
stocks of other companies:
Tonnage:
Owned 220,517 tons
Under construction. 31,000 "
Tonnage:
Owned 78.188 Ions
Under construction. 10,250 "
Tonnage:
Owned 11,819 tons
Under construction
(approx.) 8,000 "
Condition of the Company prior lo the Declaration of War, August, 1911:
The International Mercantilo Marine Co. was formed in 1902. Tho
impression prevails that the assets nnd earnings of the Company led grad
ually decreased until the outbreak of tho present war, and that tho entire
value of both clnsscs of its stock was created by the war. This is an error.
The condition of tho Company both with respect to assets and gross and
net earnings gradually improved from the date of its formation to Dec. 31,
1913, tho end of the year preceding tho war. This improvement is shown
by the following comparisons:
1003 1913
fiross Voyage Earnings, I. M. M. Co $29,077,755 $17,519,101
The year 1913 instead of 1914 is used, as it is the last year in
which the earnings are not alTcctcd by the war.
Tonnage: Dec. 31, 1902. Dec. 31, 1911.
I. .M. Al. Co. in service bDJ.i i tons 7aj,Ull tons -
Under construction about
one-half paid for 70,000 " 222,231 "
Leyland Line In service 259.5GG " 288,931 "
Under construction 15,125 "
Holland-America Line
25
Shaw-Savill & Albion Co.
Ltd., Aprox. 41ro
Ocorge Thompson Co.,
Ltd., Approx. 30
Total 932,810 tons l,2fi0,501 tons
votiI' Tonnage under construction 1902 Is approximate: accurate
btatement not readily ascertainable; 1914 statement is olllclal.
New Tonnage:
Between January 1, 1911, and December 31, 19,14, tho following
amounts were spent for new tonnago, partly for replacements and partly
-r- firlHitinns:
Tonnage.
I, M. M. Co 89,628
Leyland Line 85,980
Expenditures.
$12,988,270
5,262,756
Payments
on acct.
$12,841,797
816,261
Under construction Bee. 31, 1911
I, M. M. Co .................. . -a,-. J 1
Lcyland Line 15,425
Total new tonnage in service
and under construction...... 413,267 $31,909,081
Tho new tonnage was equal to about one-half of the entire fleet
at tho formation of the Company.
Investments:
The stock of the Holland-America Line, the Shaw-Savill & Albion Co.,
I td and the George Thompson Co., Ltd., was purchased after December
31, 1904, the date of the first published Balance Sheet.
Liabilities:
The liabilities including the bonded or funded debt and net current
liabilities of the Marine Co. and its subsidiaries were not increased; on the
contrary these liabilities between December 31, 1904, the date of the first
published Balance Sheet, and December 31, 1914, the end of the period,
actually showed a decrease of $11,902.24,
Net Earnings prior to War Period:
The net earnings of the International Mercantilo Marino Co. and the
Leyland Line before deducting bond interest and before allowance for de
preciation, but after providing for interest on underlying bonds of sub
sidiary companies and the proportion of preferred stock dividends by
Fredk. Leyland Co., Ltd., due to the public, were as follows;
Average, 1903 to 1909 7 years...., .$4,893,989 annually
" 1910-1M2-13 4 years , 9,414,349
During the early part of 1914 this Company suffered in common with
all business from the then current business depression, but beginning: with
August, 1914, its earnings rapidly increased. This increase has continued
until the present time.
Net earnings stated in this as well as in other paragraphs, are the sur
plus earnings available for interest, dividends, reduction of debt, etc, but
before allowance for depreciation. All expenditures for repairs and main-
IRCAWTILE M ARIME
Holders of United States Mortgage & Trust Company
Certificates of Deposit for Common Mock of International
Mercantile Marine Company:
Your Committee has refrained from giving any statistical informa
tion ns to the affairs of the Marino Company, until its accuracy had been
established by Messrs. Covcrdalc, Colpitts & Co., as Consulting Engineers,
and Mt'f-srs. lint row, Wndc, Guthrie .v. Co., ns Accountants. This oxniiiinn
tion hns just been completed. In view of the press reports of tho Plan in
tended to be proposed by tho Preferred Stockholders' Committee, but dis
approved by your Committee, it is deemed proper to present to you at this
time a summary of tho more important facts, together with a statement
jf tho differences between tho two Committees.
Capitalization nnd Assets of the Marine Company:
The Marino Company has tho following capitalization:
Bonds two issues, 4li and 5 $70,226,000
Preferred Stock par value 51,725,720
(accumulated dividends of 78.)
Common Stock par value 49,872,110
Annual interest on bonds $3,248,330. Interest in nrroars on bonds
to July 1, 191G, amounts to $7,014,870.50, compound interest ex
cluded. The following arc the Company's assets:
While Star Line
Dominion Line
(1) Atlantic Transport Lines
tenancc. both ordinary and extraordinary are deducted nnd charged to
income. The depreciation item is intended to represent tho decreased value
of the ships and is really a fund for the purchase of now ships. As it is n
reserve and not tin actual expenditure, and as the value of the ships during
the pnst year has boon increased, this is not deducted as an actual charge
or payment. Tho depreciation charge atlopted by the Company under
normal conditions is r'r of cost. Tho war tax Iu9 not been deducted from
any of tho items except where stated.
War Earnings:
The net earnings of tho International Mercantile Murine Co. and tho
Lcyland i ino from the commencement of the war, August 1, 191 1, after
deducting all charges and expenses except depreciation and war tax, have
boon as follows:
August 1, mil, o December 31. 1911 $6,131,050
January 1. 1915, to December 31, 1915 41.256,036
January, February and March, 191G, approx 13,500,000
$G1,187,686
Deducting war tax not yet paid and estimated to
April 1, 1916 17,000,000
The balance being net earnings since the commence
ment or the war $1 1,187,686
While all of these earnings cannot be distributed as income and as n
considerable portion must be applied to tho reduction of debt and other
capital purposes, lioveithclcss, they represent actual additions to tho value
of the assets of the Marino Company lefleclcd in the value of its securities.
Tho foregoing earnings do not include tho earnings from the Holland
America Lino. Shaw-Savill & Albion Co., Ltd., and George Thompson Co.,
Ltd., except to the extent that they have been heretofore distributed in
dividends, the exact amount of which earnings cannot be ascertained.
These companies have pursued tho policy of declaring but small dividends
nnd devoting the rest of their profits to the inctense of their assets. They
pursued tho same policy for 1915. Those undistributed earnings add value
to tho stock held by the Marino Company as an investment.
Cash Position of the Company April 1, 1916:
Cash in the hands of Receiver, the .Mortgage Trustees
and subsidiary companies of I. M. M. Co.. including
the Lcyland Line on February 29. 19IG... $15,791,000
Add March receipts, taken as equal to February 4,500,000
The war tax is levied on the British, but not on the American Com
panies, and as to the British Companies it applies only to the excess over
the pre-war profits. Allowance hns been made, not only for the present
war tax of GOCr, but for tho increase to G0 recently recommended, n3
5r.i n.3, lho recommended increase in tho normal British Income Tax.
the allowance, though estimated, is deemed to bo ample; any posslblo
error in the estimate or in the method of calculation should not reduce the
?, -onlonJ."KS ,t0 ,the. oxtcnt of morc than $500,000 per month, leaving
?J,o00,000 instead of $3,000,000 net earnings per month ns above set forth.
Differences between the views or the two Committees with respect to tho
various proposed plans:
These arise out of tho following considerations:
Assets at above valuation April 1, 191G $141,550,000
Income, April 1 to July 1, 1916 9,000,000
Capital LUMHtlc, $150'550'00
Bonds, Vi and 5 .$ 70,226,000
Interest to July 1, 191G 7,014,876
Preferred Stock 51,723,720
Warrants for accumulated dividend 19,655,991
$148,622,590
nmMiT.!?'o.T.'!r. ,rm,omi' of warrants for the accumulated dividends Is tho
n LS11'0,11'111'.1'!'11 '" th0 1'rcforred .Stockholders' Tlnti ; the present
this nmotint accrued dividend does not. In our opinion, exceed
rw, J'-10 posi,tio f the Common Stockholders Committee is that in the
3"1? valuation a large portion of the assets have been included nt a
greatly depreciated value, and many elements of value wholly disregarded.
iTnJL pu',,r. e(luitvi belongs to the Common stock. The position is
based on tho following considerations:
t(l) Thnt in the valuation of $141,550,000 the entire fleet of tho
Marine Co. and of the Lcyland Line has been taken at n depreciated
nlue far below either cost or actual present value. This fleet, as of
uecember Jl, 1915, had a tonnage of over 1,105,000 tons. In tho
aggregate value of $141,550,000 this fleet is included at its depreciated
ante; that is, cost less depreciation. The depreciation is assumed to
tie K annually, but. inasmuch as it was not charged by the Company
every year, the total is slightly less; but substantially, however, tho
licet is included nt the depreciated book value.
Cash April 1. 1916
.$50,291,000
This is subject to deduction of war tax as stated.
Tho Receiver nnd constituent companies have sinco August 1, 1914,
to date, invested out of current income over $10,000,000 in tho purchase
of new ships, payment of underlying obligations of constituent companies,
and other capital purposes.
Income of Company on restoration of normal conditions affcr war:
A foiccast of future earnings ahvnys involves some uncertainty. Tho
controversy with respect to tho surplus earnings in excess of tho bond in
terest, or the balance of tho equity in tho property and the division of tho
stock, is solely between the Preferred and Common Stockholders' Com
mittees, and wo are piepared to accept the Preferred Stockholders' Com
mittee's estimates of these earnings on return to normal conditions.
The Preferred Stockholders' Committee's estimate is evidently based
on rates, tonnage and earnings for tho pre-war year 1913. To the reported
earnings for that year, they have added increased earnings due to the new
tonnage now under construction and not then in service, and also tho aver
age earnings of tho Lcyland Lino for 1912 nnd 1913, not actually distributed
in those years, but invested in now tonnage, together with dividends on
the shares of tho three companies held by the Marine Company as an
investment.
For the very large increase in tho value of tonnago due to
increased cost of construction, ns well as tho increase in market values,
110 allowance Whnlevne lino Vinnn m.l ; t, r! ..-1..-1:
that the excess of the actual value of 1,105,000 tons, over the value
taken, belongs to the Common Stock.
The extent of the difference between tho depreciated and actual
values may be illustrated by taking the twenty oldest boats in actual
service. 111030 cost originally $23,102,000; their depreciated value on
wn 1 1i!Sta,"1F cost less 4 annually for the entire period,
7M154'7!'0!0: In 1915 thcse samo shiP3 alo wrncd more than
$7,000,000, subject to war tax.
, The difference between tho actual nnd depreciated value is strik
ing in tho case of the older ships; but more significant when applied to
the whole fleet; the net earnings of all the ships, after deducting war
?& fmuth0 b.cS,nnin?.f the war to April 1, 1910, being more than
1IK0 of tho price at which such fleet would be included in the above
valuation.
(2) No allowance in the foregoing valuation is made for the
argo current earnings of the Company. Based on the average for
...w ...o. 01A i.iuuuia, muse earnings, utter deducting all charges,
r "nL4"' aro approximately $3,000,000 a month, or at the rate
Ol OilU.UUU.UUU ner TOUT. Tlellletinte inlnrnol tu- : 1 .!.!
We quoto tho estimate made on this basis:
"Net earnings $16,250,000
Depreciation to he imestcd in new ships to replace
obsolete or lost ships 5,000,000
Lca ing a divisible income of $1 1,230,000
Interest 5 on $17,632,000 $ 881.600
Interest JJ2 oil S52.591.000 2,306,730 3,218.330
Net surplus utter depreciation and interest.
.$ 8,001,670"
From this there should bo deducted interest on surplus cash
,- assumed to remain in tho Treasury of $
Leaving a balance of $ 7,251,670
If tho Preferred dividend of 6 is deducted from the abovo
amount 3,103,543
It leaves a balance for the Common Stock of $ 4,148,127
It will bo noted that tho foregoing docs not innko any provision for tho
accumulated dividend in arrears on tho Preferred Stock. On tho other hand,
it takes substantially no account of tho surplus wnr earnings which are
more than sufficient in amount, whether distributed or not, to offset the
cash or commuted value of tho accrued dividend.
Tho foregoing division of income, therefore, correctly represents tho
relative interests of the two clnsscs of stock in tho earnings of tho Com
pany on the basis of normal earnings nnd conditions; with tho amount of
accumulated dividends more than offset by tho wnr earnings not taken
into account in tho foregoing calculation.
Value of Assets of the Company for purposes of Reorganization:
Cash after deducting all expenses and war taxes, as of
April 1, 1916 (approximately) $ 33,000,000
Investments Holland-America Line, Shaw-Savill &
Albion Co., Ltd., and George Thompson Co., Ltd. . . . 11,000,000
Cash paid on account of steamers under construction
December 31, 1915 5,925,000
Brittanic (cost) 8,475,000
Olympic 7,250,000
Pacific Mail bt earners purchased by Receiver (cost),. 5,000,000
Real estate, office buildings, etc., book value 2,000,000
debt, together with the current dividend on the Preferred Stock, leaves
n balance in excess of $29,000,000 a year. The continuance of such
earnings is necessarily uncertain, but the prospects for their con
tinuance for the next year are quite as favorable as the prospects for
tho past year's earnings of $30,000,000 net, were a year ago.
(3) Tho valuation also makes no allowance for anv increase over
the pre-war earnings after the termination of the war. We are advised
that the shortage of tonnnge duo to non-building during the war' period
as well as to the destruction of ships, is estimated to exceed 20 of
the world a tonnage, and it is reasonable to expect an increase in rates
over pre-war rates for a considerable period after tho termination of
the war. An increase of 20 over the rates prevailing during 1913,
nssuming thnt only one-half of tho increase is saved for net, would add
""' fj,,uu,vw ui iici. earnings per year to tne normal profits.
The allowance of the Common Stockholders by the proposed Plan
750,000 is stated to be $12,500,000 of new stock. The acceptance of this Plan by
...u u....uU.. uwiwiuHiwa ,a, muri-iure, Buusiunuauy equivalent to a sale
by the Common Stockholders to tho Preferred Stockholders of their
interest in
(a) the fleet of substantially 1,105,000 ton3 at a price which wholly
disregards the increase in the value of tonnage, and at much less than
its actual or market value;
$ 74,650,000
Leyland Line, cash cost with interest to date 18,900,000
Balance, representing all the remaining assets of
White Star Line, Dominion Line, Atlantic Transport
Line, American Line and Red Star Line, including
entire licet as of December 31, 1914 except Brit
tanic and Olympic (69 ships) all other physical
assets, and all current assets after deducting Oce.
anic Debentures and all current liabilities of the
Marine Co. and its subsidiary companies.
Net income, after deducting all charges, including
war taxes (estimated), for three months, April 1 to
July 1, 1916, at $3,uuu,uuu per month.
48,000,000
$141,550,000
4tft
9,000,000
$150,550,000
Inasmuch as no reorganization can be completed by the actual issue
of securities before July 1, 1910, and as the entire tonnage of the Com
pany is booked until after that date, we have added to the foregoing
values tho net income (after deducting war taxes) at the present rate,
from April 1 to July 1, 1910, or $9,000,000.
Tho value of the assets, including cash as of April 1, 1916, of $141,
550,000, is substantially equal to the value made by Mr, P. A. S. Franklin,
Receiver. His valuation was $129,000,000 as of December 31, 1915. He
has not classified the assets or made the valuation of the items as aboye
stated, but has valued the property as a whole as at present constituted
and on the basis of being operated as before the war. If the earnings
for the succeeding three months to April 1, 1916, after all deductions,
including war tax, are added, it would make $138,000,000. Taking into
account the earnings from January 1 to April 1, 1916, the aggregate of
his valuation, as stated, is substantially the same as above.
(b) war earnings which for more than six months have been averaging
$3,000,000 a month, or about $36,000,000 per year after all deductions
including war tax; '
(c) prospective post-war earnings expected to be considerably in excess
of the normal earnings for a number of years.
Tho whole consideration proposed to tho Common Stockholders for
this Interest is $12,500,000 in new stock which would have a probable
market value about equal to the three current months net earnings of
the Company after deducting war tax; or a market value less than tho
net earnings actually realized between the time the former plan was pre
sented in December, 1915, and this date.
The acceptance of such a proposition cannot be considered.
We have not stated the amount of the excess of the mnrket value over
the depreciated value of the fleet, nor the amount of the prospective war
earnings from this date to the conclusion of the war, nor the amount of
the prospective increased earnings for the period immediately following the
termination of tho war. We omitted this deliberately, as the figures are so
largo as to be apt to mislead, and vye suggest caution in any attempt to
ascertain or uso the figures we have refrained from stating. . Without
therefore, undertaking to state the figures, and making all possible allow
ances for tho necessary uncertainty of any estimates, it must be evident
that the real equity of tho Common Stockholders, based on the actual or
market value of the fleet, and on the current and prospective earnings is
fnr too large-their position far too strpng to justify an adjustment' on
any such basis as has been proposed.
Wo have sought in this statement only to summarize the important
facts. We have not dealt with the much discussed question of the validity
of tho default or prosecution of the foreclosure. Whether the default be
valid or not, the accumulation of earnings and the improvement in the
condition of the property makes tho oft-threatened extinguishment of the
Common Stock impossible.
It is evident that the Company can readily pay its debts, partly in cash
and partly by refunding. Foreclosure proceedings cannot be used as a
means of enforcing the collection of the accumulated dividend on tho Pre
ferred Stock. It is wise to attempt to reach an adjustment between the
two classes of stockholders, but in view of the facts stated, the Common
Stockholders are not justified in surrendering their rights in the assets and
future of tho Company, save on terms that fully compensate them. If no
agreement is possible, the debts should be paid, the property restored and
the controversy between the two classes of stockholders left for settlement
in accordance with their actual rights or by future agreement. This has
been the pdsition consistently taken by the undersigned Committee and will
be maintained.
Dated, New York, April 8, 1916.
JOHN W, PLATTEN, Chairman,
LEWIS L. CLARKE.
DONALD G. GEDDES,
A. II. S. POST,
STACY C. RICHMOND.
WILLIAM C. VAN ANTWERP.
Committee.
WALTER C. NOYES,
ALFRED A. COOK.
EDWIN G. BAETJBR,
Counsel.
CHAUNCHT II. MURPHEY,
Secretary,
85 Cedar Street.
&&
UNITED STATES MORTGAGE & TRUST CO, Depositary.
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