Ship Profits

A reproof of U. S. shipping conditions was the speech of Baron Kylsant, at the annual meeting of the White Star Line, Ltd. in London last week. Two years ago he bought the 25 White Star Line ships from the most important U. S. shipping enterprise, J. P. Morgan's International Mercantile Marine Co. for -L-7,000,000 (TIME, May 17, 1926, et seq.). Last year he predicted a profitable year for the White Star Line under British ownership.

Last week he stated, with justifiable complacency: "Shareholders of the White Star Line, who now number about 15,000, will have observed with interest and satisfaction that the results for the past year not only confirmed my forecast but showed it was more than justified. . . . After providing for the depreciation of the fleet and paying the dividend on the preference _ [preferred] shares, we recommend a dividend of 6% on ordinary [common] shares and balances carried foreward."

This was the first time in several years that the White Star Line has paid its owners any dividends. The I. M. M. continued so successfully to be the White Star Line's U. S. agent that Baron Kylsant gladly extended their contract to 1930.

International Mercantile Marine, founded in 1893 (as International Navigation Co.) and reorganized by J. P. Morgan in 1902, although it owned the White Star Line, has itself never paid common stock dividends. It paid dividends on preferred stock from 1917 until May 1, 1923; none since. It owes about $40,500,000 back dividends on the preferred. I. M. M.'s present financial condition is strong. Last week on the New York Stock Exchange 15,000 shares of its common and 20,000 of its preferred were traded at around $5-50.