The extent to which thn textile Indus- j
try waa hit by the depression of last;
year was disclosed yesterday In the1
annual Income account and report of the ]
American V.'oolen Company for 1920, '
which showed that it failed to earn Us 1
full preferred dividends after paying I
taxes, depreciation and commissions on
its common stock Issued during the year,!
but had, on the other hand, a deficit, !
after preferred dividends, of *740,197. !
After payment of 51,983,333 in dividends
on Its common stock the company's
deficit was increased to $2,723,530. In
addition to that deficit in thu income
account of the company the item of
$7,250,0^00 for reserve for depreciation of
inventory, which was in the balance
sheet of 1919, did not appear In the
balance sheet made public yesterday.
The following table gives the salient
features of the 1920 income account au
contained in tl)e annual report:
3020. 1019.
Net profit after apply
ing reserves $0,8113,259 $15,513,415
Depreciation 2,228,401 3.733.011
Insurance rererve POO,000
IVnslcn fund reserve.. 500,000
Commission and ex
penses of com. stock
Issue and provision
for Fed. taxes for
previous years 2.567.058
,0."9,R0n *10,770, WW
Preferred .nwlu.-nd 2, KOI),000 2.800,000
Common dividend 1,983,335 il.200,000
D.fl.If 2,723,530 *4,779,804
?Surplus.
"The disturbed conditions of the wool
market during 1920," W. M. Wood, the
company's president, said In his report,
"are believed to be without precedent
In the industry. The year opened with
prices on an extremely high basis. The
continued demand for lino wools forced
them up to a still higher level nntli the
peak was reached In April. The first
sharp break in prices occurred in May.
