JAS. H. OLIPHANT & CO.
Dividend payments, in addition to 8% cash rate, were 4% an-
nually in common stock beginning 1917 and through 1921, 5%
annually in 6% special stock of $10 par value 1922 to 1925, one
share of Electric Bond & Share Securities stock in 1924, and in
1926 a $3 cash rate and $1 in special stock on the split-up stock.
Its premier position in its field, its record of large earning power
over the years, its rich treasury position and conservative valua-
tions form the basis for the $4 cash rate established in May this
year and the extra payment of $1 in cash instead of the payment
in special stock, total $5 being equal to 30% dividends on the old
stock.
With 25,000,000 square feet of factory space in sixteen apparatus
and supply factories and twelve incandescent lamp factories, seven
service shops and 104 distributors in this country, doing over
$300,000,000 gross business, General Electric plants are carried at
perhaps one-third their reproduction cost. Since formation in
1892, $260,326,000 has been spent on plants, $68,231,000 dismantled,
leaving cost of present plants $192,095,000. Against this gross
figure reserves of $141,538,000 have been set up, so that net value
of plant account is $50,557,000. This figure at end of 1926 doing
$327,000,000 of business compares with $67,000,000 in 1921 doing
$221,000,000 business. This accounts for the low $40 book value
of General Electric shares.
At the end of 1926 current liabilities were $35,537,000 and current
assets $290,046,000 including $147,536,000 cash and U. S. Govern-
ment securities.
Investments in associated companies are carried at appraised
valuation of $71,472,000, representing manufacturers of special-
ties, distributors here and abroad, and departments of the busi-
ness incorporated for convenience or efficiency.
Capitalization consists of $2,047,000 315% debentures due 1942,
$1,200,000 remaining Government loans due 1928, $42,929,000 6%
special stock par value $10 (issued as dividend, with probability of
retirement at $11 a share) and 7,211,482 shares of no par common
stock.
Title of ‘‘most promising infant industry’’ might well be applied
for by the electrical equipment companies. ‘‘Bread and butter’’
business of this group consists of production of lamps, motors, ap-
pliances, ete. and will continue so; and here we have an official cal-
culation that less than 30% of American houses are yet ‘‘wired’’
and only 6% equipped with modern household devices.
Widest scope lies with the development now begun of central
station super-power systems, with the bringing of electrical ma-
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