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EXHIBIT 16.1
[KPMG LLP LETTERHEAD]
Securities and Exchange Commission
Washington D.C. 20549
December 22, 1999
Ladies and Gentlemen:
We were previously engaged as principal accountants to audit the financial
statements of Har-Whit, Inc. (Har-Whit) and Pitt's and Spitt's, Inc. (P&S) as of
and for the nine months ended September 30, 1996, the combined balance sheet of
Har-Whit and P&S as of September 30, 1996, and the consolidated balance sheet of
Pitt's and Spitt's of Texas, Inc. (PST) as of October 13, 1996. We reported on
those financial statements on March 6, 1997. However, on January 5, 1998, we
issued written notice to PST that circulation of our report on the October 13,
1996 consolidated balance sheet of PST be ceased, after learning that there was
a material misstatement resulting from certain parcels of land being excluded by
PST in the purchase price allocation. During 1997 we declined to provide further
services to PST and its successors. We have read American International
Industries, Inc.'s statements included under Item 3 of its Form 10-SB/A dated
December 21, 1999, and we agree with such statements, except that we are not in
a position to agree or disagree with American International Industries, Inc.'s
statements 1) that in September and October 1997, Mr. Daniel Dror, Sr. and his
affiliates gained control of American International Industries, Inc. and
subsequently elected a new board of directors, appointed current management and
appointed BDO Siedman, LLP as auditors of the company whose appointment was
approved by the new board on January 26, 1998, 2) that during the two year
period prior to selection of BDO Siedman, LLP the Company did not consult with
them on matters of accounting principles or practices, 3) that the change in
accountants was as a result of the change in control of ownership of the
Company, and 4) that upon appointment of current management, accounting records
were updated and reconstructed to enable BDO Siedman, LLP to conduct their
audits of American International Industries, Inc. for 1997 and subsequent
periods.
Very Truly Yours,
KPMG LLP
