JAS. H. OLIPHANT & CO. 
despite more than doubling the shares during the last twenty 
years by stock distributions. Cost of $28,000,000 cash for the 
Western Electric business, conducted now under name of Inter- 
national Standard Electric, compared with $3,012,000 average 
four-year earnings obtained from $26,000,000 to $40,000,000 vol- 
ume of sales. Accordingly these acquisitions both appear good 
value. To the operated telephone systems with which the com- 
pany began in 1920, of Cuba and Porto Rico, now each 98% 
owned, International Telephone added at a moderate outlay 80% 
ownership of the lines in Spain in 1924 and 92% of those in 
Mexico in 1925. Beginning 1927 the number of ’phones served 
was 63,834 in Cuba, 12,533 in Porto Rico, 20,485 in Mexico, and 
114,360 in Spain, and against over 1,500,000 in New York City 
alone the figures emphasize possibilities for expansion. During 
1927 control of the telephones in Chile and Montevideo, Uruguay, 
was acquired. 
Ability of International Telephone management to improve earn- 
ings per share regardless of additional stock issuance stands out 
strongly. Record has been as follows: on average amounts of 
stock outstanding, $16 in 1926 and $13 in 1925, on shares at 
close of the years, $11.20 in 1924, $8.40 in 1923, $7.30 in 1922, 
and $6.50 in 1921. Since organization in 1920 a $6 dividend 
rate has been regularly paid and four subseription rights in 
three years have given additional cash value. 
Capitalization, $35,000,000 415% bonds of the parent company, 
$8,889,000 bonds and $8,165,000 preferred stock of subsidiaries, 
48,799,000 subsidiary equities, and the $130,000,000 International 
Telephone stock, surely is on sound lines, and under highest bank- 
ing sponsorship this company looks forward confidently. Priced 
to return less than 5%, the stock displays a warrantable expecta- 
tion of increased dividends. 
Louisville & Nashville R. R. 
Bought ‘like a box of candy’ from a speculator (John W. Gates) 
in 1902 for $50,000,000, the 51% of Louisville & Nashville R. R. 
stock then so casually acquired for Atlantic Coast Line R. R. has 
returned over $56,000,000 in cash dividends in the twenty-four 
years since (excluding dividends on 61,200 shares subscribed at par 
in 1912). Indirect return from traffic interchange has doubtless 
been much greater. Benefit has been mutual, and Louisville & 
Nashville, originally unrelated geographically to Atlantic Coast 
Line, owes much of its prosperity to development as an integral 
part of the Coast Line system. 
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