INTERNATIONAL MERCANTILE MARINE COMPANY.

Otago Daily Times, Issue 19800, 27 May 1926, Page 15

INTERNATIONAL MERCANTILE MARINE COMPANY.

It is reported that "English interests are conducting negotiations with a view to obtaining control of the International Mercantile Marine Company," and that Mr P. A. S. Franklin, the president of the company, "is sailing eastward in the Belgenland on tho 10th hist." ; and it is, of course, well known that such, "interests'' have been willing for some time to purchase the White Star Line and other Briti>h steamers owned by the International Mercantile. Marino Company (writes "The Look-out Man." in Fair Flay). At the time of writing, however, nothing definite lid* been arranged. It wdl 1-e remembered th=it in 1918 Lord Kylsant made an agreement for the purchase of Iho whole of these "interests" for 128,500,000 dollars, or £25,700,000. but President Wilson stopped the sale; and, as events turned out, this was fortunate for us, and unfortunate for the International Company, for prices were then fictitious, and the recent earnings have boon insufficient to provide even for depreciation. For instance, in 1924, the prolit, before providing for depreciation, but after charging 2,575,964 dollars for interest, was only 3.368,926 dollars, while depreciation absorbed 5,756,207 dollars, and the results for 1923 and 1922 were about the same. The British interests of the company are as follows: —•

The total tonnage owned by the company on December 31, 1924, was 1,072,851 tons gross. It has a paid-up capital of 51,725,000 dollars in preferred stock, on which 55i per cent, in dividends was unpaid on December 31, 1924, 49,871,800 dollars in common stock, on which no dividend has ever been paid, and, including the 5,804,480 dollars of debenture bonds of the Oceanic Steam Navigation Company, 44,105,480 dollars was owing on debentures, etc._ On the basis of the prices quoted in New York recently, the preferred stock was worth 22,950,000 dollars and the common stock 4,800,151 dollar?, which works out at £5,700,000 for the whole of the capital, including the value of the American interests of the company, which would not, of course, be purchased by a British company.

Own ed by the Total Into rnatinnal capital. Co mpanv. £ £ Oceanic Steam Navigati on Companv— Ordinary ... . .. 5,000,000 5,000,000 Frederick Lcyland and CompanyPreference ... . .. 1,414,350 1.400,140 Ordinary ... . .. 1,200,000 1,200,1100 Atlantic Transport C'o.- - Ordinary ... . .. 1,000,000 1,000,000 Shaw, Savill and Albion Company— 1'reference ... . 105.375 500 Ordinary ... . 105,373 86,500 George Thompson and Company— Preference ... . 150,000 148,820 Ordinary ... . 50,000 50,000 Management 60,000 60,000 £8,944,060