STUDIES IN SECURITIES

Intense competition by the copper selling companies at home and
abroad, as productive capacity has been so great, has kept the price
of the red metal abnormally low. Operations of the Copper Export
Association, it is hoped, will alleviate this situation.
At the close of 1926 Anaconda’s treasury position was strong. Current
 liabilities totaled $20,021,000 and current assets $115,561,000
including $28,312,000 cash and marketable securities.

Copper is a metal for which no substitute has ever been found. Its
consumption is in fundamental industries and expansion in demand
 has been continuous except for the abnormal period following
 the tremendous output of war years. Anaconda Copper Mining
 Co. occupies a dominating position here; its big expansion has
been successfully accomplished ; its management and financial condition
 is excellent; its stock, paying $3 dividend, is the medium
for participation in the copper mining, refining, and fabricating
business.

Atchison, Topeka & Santa Fe Ry.

Hardly due to luck the earnings of Atchison, Topeka & Santa Fe
Ry. were substantially greater in 1926 than ever before. A favorable
 set of circumstances simply brought to light the earning
ability secured by long continued heavy investment of surplus.

Last financing was in 1916 and from 1917 to 1926 Atchison turned
approximately $195,000,000 surplus income into the property.
Theretofore, according to 1916 official statement, since the start
in 1896 about $343,000,000 had been spent for improvement and
extension and but $225,000,000 of this was provided by sale of
bonds or stock. Also $101,010,000 has been accumulated for equipment
 depreciation beyond actual retirement needs. Against a
book value of $244 a share of common stock, excluding the $43
additional in equipment reserve, the earnings do not seem extraordinary,
 viz. :
1926. 0, ... . 223.42
LORE Er
1924... 15.46

1923... a 0.315.458
1922..." 12.42
1921 12.13

Road and equipment beginning 1927 had $878,000,000 depreciated
value upon which 6% earnings would pay 4.07% average interest
on $277,178,000 bonds and 5% dividends on $124,173,000 preferred
 stock leaving 159% for $232,410,000 common stock. Perhaps
 the true value of transportation property at current costs is
some $300,000,000 more and if so the legitimate operating earnings
on the common stock would be half as much again. In addition
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