The New York herald., 1921-08-10
AGWI'S NET INCOME
ALMOST WIPED OUT
Report for 1920 Shows Only
S148,231, or About l p. G.
on Preferred Stock.
EXPENSES JUMPED FAST
Mooney, Optimistic as to Fu-
ture, Believes Peak Of Hard
Times Is Reached.
EXPENSES JUMPED FAST

by the Atlantic, Gulf and West Indies
Steamship lines and subsidiaries In 1920
are reflected in the annual report to be
issued to-day. showing an increase in
gross revenue over 1919 of S9,396,24o.
or more than 20 per cent, converted
into a drop In net income of $5,427,374,
almost wiping 1t out altogether. The
net income was S14S.231 compared to
S5,575.605, or the equivalent of about /
per cent. on the outstanding preferred
stock.
No effort Is made In the report to
gloss over the effects OF sharp changes
In business conditions which affected the
company's earnings and position during
the year. Franklin ID. Mooney. presi-
dent, states. however. that the manage
ment believes 1920 and the early months
of 1921 have been the peak of extreme
difficulties surrounding the company's
steamship business and that while large
profits cannot be expected in present
conditions. stable though moderate
earnings are looked for from the steam
ship subsidiaries.
Included In the report is the state
ment issued in April which went into
detail In regard to petroleum operations
of the Atlantic Gulf Oil Corporation.
Two large wells have been brought in
lately. 1t is stated. In the middle Amat-
Ian field of Mexico which should assure
production to the full capacity of pipe
line facilities during the life of the field.
The company charged to its profit and
loss account the dividends paid on the
common and preferred stocks aggre-
eating $2.1S3,4S5 as well as the loss Of
s1.so7.s29 from the abandonment Of
project to lay a. pipe line in France.
Owing to adjustments final profit and
loss surplus at the close of the year was
s24.436,9s0. against s25.675.S10 at the
beginning.
The difference OF s14,s0o.ooo between
the gain in gross and the loss In ne
income was due to the following factors:
Loss from sale Of Liberty bonds owing
to inability to do public financing,
s1,31S.3S9; Increase In maintenance and
depreciation charges, $2.754,4S9; increase
In transportation costs. SS,S92,02S; in
crease in charter costs. S2,32S,232, offset
In part by the decrease In the amount of
reserve for Federal taxes.
The shrinkage In the companys work
ing capital position may be seen from
the following tabulation. as of the close
Of the year:
CURRENT ASSETS.
1850. 1919.
tasl ................. S<,ouo,-uV Sf,A7l,olU
Marketable securities
with Liberty bonds
at cost.............. c.3sf.2oo IL .643. $50
Accounts receivable
and Inventories. $3.50, sos II. 768. 1928
Totals ............. .s1s. .se4. sos s2s.ssl .e73
CURRENT LIABILITIES.
Ancor nts payable. s4,56s.54S s4.112. .2s8
Bank loan. ............. 2.oo7.333 5.s67,Go
Totals ......... ss.oso,ss2 .soa7o. .sa5
Excess current assets. SO. .Ss3 920 1881 ,TTS
The finances of the company are dis
cussed in the report as follows:
Financial conditions now prevailing
have made impossible the public financ-
Ing of the indebtedness incurred In the
construction OF the tanker fleet and the
expenditures and commitments of sub
sidiary companies. Your directors have
largely financed these obligations as
follows: BY mortgages on seven tank
ers to the shipbuilders. for S9.900.000;
bank loan of s6.000.000 (which has been
reduced to about s1.83o,0 TO date)
sale of two tanlkers for $3.400.000 (this
represents a loss OF about $1,500,0 900,
which viii occur In the accounts OF the
current year, sale OF S1,951,5 500 coll
lateral trust 5 per cent. gold bonds.
formerly held In the treasury. at so
plus accrued interest"
The report notes that there has been
no change In the conpany's status since
a special statement was issued on April
6 of this year. During the year the
number OF stockholders increased to APP
proximately $500. q gain Of 40 per cent
in year.