New-York tribune., 1922-03-15
Amer. International
Corporation Has
S8,3O7,305 Deficit
Is Accounted For by Special
Fund of 1000, 900 for
Possible Losses and Ad-
iustments of $2.4oI.0 $50

Adverse conditions caused by the
slump in the foreign exchanges and
deflation generally in 1921 are reflected
n the annual report of the American
International Corporation, issued to
stockhold to-day. Although report
lng net earnings after interest charges
of S184,6Sl, special provision of $4,000,
100 for possible losses in accounts re-
ceivable and inventories, coupled with
miscellaneous adjustments Of s2,491,
$50. left total deficit for the year OF
SS ,3O7 ,305
At the close of 1920 there was a
proft and loss surplus Of s2.407 .847
which was applied to the 1921 deficit
leaving q profit and loss deficit of
s. ,S99, ,407 on December 81 last.
The American InternationaPs in
come is derived from operating prof
It's, interest on investments and divi-
dends from subsidiary companies. Last
YEAR these totaled $5,587,196. com
pared with .s10,3oS,287 in 1920 The
losses were divided as follows:
operatins profit. SO .sssss ss't5o'ss7
Interest ..-.-.......+ 9S57S0 1Se, ,361
Dividends ........... 1.l00S30 l46l442
Total deductions last year were
IL q,
savings being effected as follows: Op-
Grating expenses, S2,S6O,979; domestic
and foreign taxes, S173,250, and inter-
est, S8S,O94
In reviewing the results of the 1921
operations Charles A. Stone, president
Of the corporation, explained that the
reduction in the amount of dividends
received last year was due principally
10 the fact that nothing was received
"n account of accumulated preferred
dividends from the International Mer-
camille Marine Company and no divi-
dends were received from the Pacific
-lall Steamship Company.
The gross business of the trading
companies for 1921 was only about
S25,000,000 compared with $4,000 600
y 1920, and the profit on the reduced
volume Of business was not sufficient
70 meet expenses. notwithstanding
they were reduced approximately So
VoO,o00, contrasted with the preceding
year,
"bward the close OF 1921. however
there was GOOD reason for the belief
that the worst of the world depression
had been seem said Mr.. Stone.
All losses actually incurred by the
subsidiary companies during 1921 were
charged either to the income accounts
of those companies or to the reserves
created in 1920 to provide for shrink
age IN inventories or losses in accounts
receivable. At the beginning of 1921
The amount Of these reserves was $5,-
663,l53 Against this sum known
losses of 81 ,O38,O14 were charged. leav-
ing at the close of 1921 an unused bal
ance of $1.625.13S.
The corporaticns in,esLlrenis in the
stocks Of -Eterna--0r-'. --cr..aMtile Ma
rine, Pacific Mail, New ! lork Shipbuld-
ng Corporation, United States Rubber
Company and Simms Petroleum Ger
poration were carried on the books at
$23 ,676,O97 on December 81. or the cost
price. This price exceeded the market
value on December 81 by approximate
" $1l, 100000 and on March ! by about
S9.800,000
The December 81 balance sheet
bowed total current assets Of S24,-
'19. 79S, against current liabilities of
y lO,9o3,299. leaving a net workin~ cap
tai 1T the end of the year amounting
o G13.366 49o