STUDIES IN SECURITIES 
om i 
The company’s net in 1926 equaled 9% on invested capital com- 
pared with 8% in 1925 which was the same as averaged in the 
company’s first ten years 1902-12. Biggest gain domestically in 
late years has been in the truck, coach, and tractor lines. Sales 
in foreign fields last year were record, with Canadian, French, 
German and Swedish plants operating at capacity. In this coun- 
try there are now 136 company-owned branches and motor 
truck service stations, an important factor in the future growth of 
the company’s motor vehicle business. 
Success of the company led to attack under anti-trust laws. Fifteen 
years later in 1927 a final decision of the Supreme Court left In- 
ternational Harvester with clean escutcheon. 
Assuming the annual 4% stock dividend turned into cash and 
added to the $6 payment from the company, the total income re- 
turn at a price as high as 180 would exceed 7%, and if 50 points 
less should be realized for dividend stock it would still be over 6%, 
an attractive rate considering the fundamental points of strength 
in this investment. 
International Telephone & Telegraph 
Corporation 
Rate at which International Telephone & Telegraph Corp. has 
been going ahead is exhibited by the increase in stock from 
$17,500,000 beginning 1925 to $130,000,000 following 1927 changes. 
Latter figure includes $36,040,000 offered for the entire stock of 
All America Cables, Inc, $20,000,000 issuable in converting 
$25,000,000 bonds, and $14,500,000 subscribed this year at 100 
by stockholders. Also it includes approximately $9,000,000 
subscribed at 83 in 1925 and $30,000,000 at 100 in 1925 and 1926 
and used with proceeds from $25,000,000 514% bonds for telephone 
development abroad and for purchase of the foreign business of 
Western Electric Co. in 1925 for $28,000,000 outright. With a 
foothold in South America secured through control of the cables, 
and an advantage everywhere but the United States and Canada 
held through manufacture of equipment under exclusive Bell 
patents, International Telephone has made itself the opportuni- 
ties to follow up. 
Payment for All America Cables is four shares for every three, 
but on the total stock exchangeable the earnings averaged 10% 
or $3,624,000 over the past seven years, and this property, with 
32,000 miles of cable serving in triplicate the principal Latin 
American nations, paid at least 6% dividends for forty years, 
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