American International Corporation
| Company type | Investment trust |
|---|---|
| Industry | Investment |
| Founded | 1915 |
| Founder | Frank Vanderlip |
| Fate | Merged into Adams Express in 1969 |
| Headquarters | New York City , United States |
Key people | Frank Vanderlip, Willard Straight, Harry A. Arthur, Matthew C. Brush |
| Products | Overseas investments, shipbuilding (through subsidiary) |
American International Corporation was a United States-based investment trust created in 1915 by Frank Vanderlip, with Willard Straight serving as its principal executive. Its board members and shareholders comprised influential American financiers and industrial leaders.
History
Founded with an initial capital of 50 million USD and headquartered at 120 Broadway in Manhattan, AIC's objective was to invest in overseas enterprises, focusing primarily on China and Russia amid the economic difficulties faced by France and the United Kingdom during World War I. The original board included Vanderlip, Otto Hermann Kahn, Robert Dollar, Joseph Peter Grace Sr., Albert H. Wiggin, James A. Stillman, J. Ogden Armour, and Charles H. Sabin. According to AIC president Harry A. Arthur, Vanderlip and Charles A. Stone were regarded as the corporation’s foremost driving forces.
The company’s expansive initiatives encountered resistance from the Wilson administration and were impacted by wartime priorities. Political turmoil in Russia and China, compounded by the deaths of key figures such as Willard Straight and Vanderlip's removal, obstructed the execution of international projects. Although AIC developed a branch network for National City, its foreign investments failed to generate profits, leading to a strategic pivot toward domestic operations. Between 1918 and 1921, its subsidiary, American International Shipbuilding Company, constructed 122 vessels for the U.S. government at the Hog Island shipyard.
From 1915 through 1935, AIC suffered losses amounting to $36 million of its original capital due to the effects of the Great Depression. During Matthew C. Brush’s presidency from 1923 to 1933, AIC was recognized as one of the largest investment trusts globally.
In 1932, Adams Express began purchasing shares on the public market; by 1933, directors affiliated with Hayden, Stone & Co., which controlled Adams Express, were elected to AIC’s board. By 1937, Adams Express together with Hayden, Stone & Co. had established majority control over AIC. The corporation ultimately merged into Adams Express in 1969.
Notable people
- Evelyn Aldrich, American businesswoman who worked for the company in 1917, based in New York City
Further reading
- Mazuzan, George T. "'Our New Gold Goes Adventuring': The American International Corporation in China." Pacific Historical Review 43.2 (1974): 212-232.
- Scheiber, Harry N. "World War I as Entrepreneurial Opportunity: Willard Straight and the American International Corporation." Political Science Quarterly 84.3 (1969): 486-511.
External links
- American International Corporation records held at Yale University (1917), including reports on iron ore and manganese deposits in South Russia authored by engineers Charles Rees and M.A. Neeland.