The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-07-29
ATLANTIC GULF HAS
SURPLUS DECREASE
Annual Report for 1918 Shows
Drop to $2,7O9,987 From
$9,647,513 in 1917.
NET TOTAL IS s8,9O1, 1853
Loss in Earnings Is Attributed
to Failure of Government
to Pay for Ships.

The annual report of the Atlantic.
Gulf and West Indies Steamship lines
covering 1918 was made public yester-
day and on it's face a very bad showing
was made. The report shows a surplus
after charges. interest. taxes, &c, of
s3.709.9S7, or 1881 share on the
common stock after deduction of pre-
ferred dividends. In the last preceding
year the surplus was ss,647.513. or
s69.57 a share on the common stock.
The apparently tremendous drop in earn
ings is accounted for by the fact that no
settlement for compensation for use OF
the company's ships taken over and op-
Grated during the war has been reached
with the Government Expenses and
charges for the year, however, were
provided for.
Tho total operating revenue for 1913,
the report shows, was s26,638, b49.
against $4S,212, 054 in the last preceding
year. Operating expenses and deprecia-
ton were s21 .s63,431 in 1918, against
Sss,010,9S1 in 1917. and war taxes
were estimated at s75o.0o0 in 1913.
against $5,400,000 in 1917. max
ing the net operating income for
1918 s3,s01,463, against $9.7S7.6S3
in 1917. Other income was sSs2,-
S67 In 1913. against s2,13S,143 in 1917.
and gross income in 1918, $4,7S3,S3o. In
the last preceding year the gross was
si1,s75,776. Interest charges and rent
ais were approximately the same in 1913
as In the last previous year. Preferred
dividends of s6S7.i45 and common divi-
dsnds of s1,4s6.34o in 1913 brought the
balance for 1918 down to $522,266
against s7.2s6.115 in 1917. Total profit
and loss surplus on December 81, 1918,
was $22.294,29s.
Remarks of President.
During 1918" said A. r. Nicoll, pres
ident OF the company, in his remarks to
the stockholders. "all your operating
steamship companies were practically
working under Government control and
loyalty endeavored to meet all require
ments and conditions requested although
at considerable financial loss. On April
IS, 1918, tho Government took possess
sion of the Clyde. Mallory and Southern
steamship companies for war purposes.
Until December 5. 1913, these coastwise
lines were operated by the Director-Gen-
eral of Railroads. Although repeated
efforts have been made to effect settle
ment, not a dollar of compensation has
yet been received, SO that any amounts
which may be due from the Railroad
Administration for the use of these lines
months do not appear In the income ac-
count for the year. although interest.
rental and depreciation have been In
cluded for the year. Neither have COM
missions due from Shipping Board for
the operation of its ships during the past
year been included In the income &C
count as the amount of these commits
sions has not even at this late date been
determined. All expenses. however. have
been -paidvor charged in the accounts.
lowing to abnormal conditions caused
by war and to the extraordinary and con-
slant strain which ships of the several
companies while in Government operation
have had to undergo, to excessive cost
OF repairs and to high replacement, OBJ
solescence and deferred maintenance
charges, your directors in order to pre-
serve the permanency of and hold intact
your capital investment have during
1918 set up a much higher depreciation
reserve than in former years. All these
items are reflected In the smaller net In
come.
Losses Through War.
During 1918 the steamships Carolina,
Berwind and San Saba were lost through
operation of war and Onondaga through
a marine disaster. The United States
Government has paid s475,o00 for Ber-
wind and awarded S1,250,000 for Car
DINA, but the latter offer has been de-
clined as in the judgment of your direc-
tors It does not reflect the true value OF
die ship. No award has yet been made
for San Saba or Onondaga. neither has
any settlement been effected with the
United States Government for the steam
ships Siboney, OriZaba. Agwidale and
Agwistar, all of which or contracts for
same were Communicated early in the
war
Since the war started in August
1914, your companies lost through oper-
alton 4. war or marine disaster or have
cold sixteen ships of 5000 tons and
built sixteen of 60.313 tons, so that the
net gain In tonnage amounts to 1924
tons. This does not include above men,
TONED four chips commandeered by the
Government while under construction
nor Mexican Navigation Company's ships
acquired and sold during the war"