JAS. H. OLIPHANT & CO.
Es
$95,178,000. surplus. Book value of the common, a negligible
$196,700 of preferred being outstanding, is $221 a share, to which
the Louisville & Nashville stock alone of investments if carried at
market instead of 86 would add $40, a total approximating the
record high price of 268 touched in 1925, since when the subserip-
tion rights ruling at about $18 value have been deducted.
As the star among rail stocks having equities ‘‘hidden’’ in
subsidiaries, Atlantic Coast Line R. R. common has speculative pos-
sibilities based on solid ground, while a total 10% dividend earned
twice or thrice allows investment on fair terms.
Baltimore & Ohio R. R.
A century rounded out in 1927 makes Baltimore & Ohio R. R.
the oldest American railroad and few undertakings of any kind
antedate it. Survival has been with a single reorganization, which
was effected in 1899 without foreclosure, and with a record of
common dividends in all 27 of 96 years since in 1831 the first
was paid. The current subscription to 41.6% more common capi-
tal at 10714 in contrast with a price level of 30 for the stock
seven years ago shows the property to have lost no vigor in its ace.
By issuing $63,242,500 common stock and, of the $66,543,000 pro-
ceeds net after underwriting commission, using $35,875,000 to re-
deem $35,000,000 6% bonds, Baltimore & Ohio will have a capital
structure of $546,973,000 funded debt, $58,863,000 4% preferred
stock, and $215,187,800 common stock, latter being increased from
19.2% to 26.2% of total. The remaining $30,000,000-0dd will
presumably pay for a third of the 93% of Wheeling & Lake Erie
Ry. stock bought jointly with New York Central and ‘Nickel
Plate’’ and for the 35% interest in Western Maryland Ry. acquired
since 1926 also. Included in 99,331 shares of Wheeling owned by
Baltimore & Ohio are 38,397 of prior lien 7% preferred with divi-
dends accrued since November 1916, while 311,839 shares of
Western Maryland include 144,789 of 7% first preferred with
accumulation from July 1918, together $12,000,000 present arrears
not impossible of at least part payment which would cut down the
whole investment cost. Just a third of Baltimore & Ohio capitaliza-
tion will be stock, if the non-cumulative preferred is counted in, so
the former topheaviness is substantially corrected.
Actual earnings on 1,519,454 common shares, the earnings figured
on 2,151,878 shares allowing for bond retirement but not for em-
ployment of the balance of proceeds from new stock, and the
operating expense ratios have been as follows :
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