JAS. H. OLIPHANT & CO.

annual dividend. This is equal to 1184% upon the former capital.
Lines of Louisville & Nashville during nearly seventy years have
grown as arteries to the heart of the ‘‘Industrial South’’ with
ample capacity to handle the activity developing. Of 4891 miles in
main track in 1926 there were 1020 of 100-pound and 2090 of 90-pound
 rail. Condition and record of the property stamp both
bonds and stock as investments.

Missouri Pacific R. R.

The product of Missouri Pacific R. R. was 5995 million freight tons
moved one mile in 1922, 7416 in 1923, 8773 in 1924, 9564 in 1925,
and 10132 in 1926. New management since early 1923 and accelerating
 business activity in the region served both have been working
 to the company’s advantage.
A progressive economy in operation shows the company to be on
the right track. Taking the customary tests of efficiency, there was
improvement over the year preceding in each month of 1925 and
1926 and in four months of 1927 reported, in ton miles per train
hour with one exception, in car miles per car day with two exceptions,
 and in fuel used per thousand ton miles with two exceptions.

Meanwhile an aggressive financial direction had acquired at last
report 62% control of Texas & ‘Pacific Ry., and 88% of New Orleans,
 Texas & Mexico Ry. and its fully owned subsidiary International-Great
 Northern R. R., and also had bought a half share in
Denver & Rio Grande Western R. R. Purpose was to safeguard
and supplement the 7347 miles of Missouri Pacific lines spreading
fanwise southwestward from St. Louis, for the 4040 mileage of
subsidiaries covers Texas and brings Missouri Pacific to New Orleans
 and Mexican gateways, while the 2560-mile ‘‘Denver’’ line
leads to the Pacific coast. Ultimate merger of subsidiaries is logical,
 with the Denver in which the other half interest is owned by
Western Pacific R. R. Corp. to continue an investment paying dividends
 for a whole only in traffic benefits. Holdings of Texas & Pacific
 common stock were increased in 1926 from 100,000 to 150.000
shares.

Twenty years ago the Missouri Pacific property last paid a dividend
 and ten years ago it came out of receivership. Government
rental years then brought $11,100,000 surplus income, but thereafter
 the addition to surplus was nil, until in 1924 $6,503,000 was
earned, in 1925 $7,648,000, and in 1926 $8,632,000. In summary
the present company has had $40,800,000 net income and has increased
 funded debt $75,300,000, mostly accounting for $98,000,000
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