STUDIES IN SECURITIES 
equipment, gas and oil engines, pumps (increased by an important 
division of Worthington Pump & Machinery Corp.), tractors, and 
heavy machinery, Allis Chalmers maintains 33 domestic and 
four foreign district offices and has sales agencies in 20 foreign 
cities, providing a well established world-wide distributive organ- 
ization. 
In the twelve years ended 1926 this company earned a surplus of 
$21,704,000 available for dividends on its common stock, equal to 
$83.50 a share, and paid owt $8,100,000 in common dividends 
($3,120,000 of this in past two years), or $31 a share. In even 
the severe test year, 1921, the $4 dividend rate at that time was 
fully earned and the treasury position of the company at the end 
of 1921 was the strongest in its history to that date. 
Earnings per share in recent years have been as follows: 
1928.... ¢a.35 “200 
1925. ... Ta B 
1994... 
In these six years there was expended for development work an 
aggregate equal to $9.95 a share additional and there was charged 
off for depreciation an aggregate equal to $17.10 a share. 
As of December 381, 1926 current liabilities were $5,718,000 and 
current assets $33,047,000 including $11,922,000 cash and market- 
able securities. In recent years’ reports, plant account, patents, 
and good will have been set forth in one figure, but deducting 
from total property account the figure of $19,287,000 at which 
patents and good will were separately carried on the balance 
sheet in 1920, we find a tangible asset value for the common stock 
at the end of 1926 of $84 a share. Property account is carried at 
$41,061,000 with depreciation of $10,229,000 leaving net valua- 
tion $30,832,000. 
Allis Chalmers has established itself well in its various lines of 
trade, increasingly so in the electrical business (which now is 
said to contribute 40% of gross turnover of $30,000,000), and its 
common stock paying 6% is assuming investment character, with 
speculative promise found in possibility of a 7% rate from the 
savings in preferred stock retirement. 
3 
American Can Co. 
A grossly over-capitalized 1901 consolidation, American Can Co. 
put back into the property out of earnings from 1912 to 1921 the 
equivalent of $72 a share on the old stock (split-up six for one in 
[131]