JAS. H. OLIPHANT & CO. 
cates a twenty-year life and thus rate of 5% is used for deprecia- 
tion. 
With restored earning power after a single lapse 1921-22 (entirely 
abnormal), cash holdings admittedly larger than needed in conduct 
of its business, prudent capitalization, good management, and chal- 
lenged only by such standards as Illinois Central R. R. and Penn- 
sylvania R. R. for its dividend record, the Pullman Co. as half 
public utility and half industrial has justified a position for its 
stock among equities of real investment character whether in old 
form or mew split-up shares. 
Reading Co. 
eer 
Without selling bonds or stocks to pay for added facilities, the 
Reading Co. handled 31,230,000 tons of freight in 1900 and 70,- 
758,000 in 1926, and total operating revenues were $20,683,000 
in 1896, $39,658,000 in 1906, $57,298,000 in 1916, and $99,290,000 
in 1926, a record suggestive of the value meanwhile put behind 
the common shares. 
Steadily, an increasing traffic in merchandise and bituminous coal 
has cut down the proportion of anthracite to total, from 38% in 
1900 to 19% in 1926 although actually hard coal tonnage in- 
creased 9%, and Reading now enjoys ‘‘well-balanced rations.”’ 
Aside from a small equipment note issue during war control years, 
and the refunding of $18,811,000 bonds in 1911, the last financing 
amounted to $27,731,000 in 1901, annual charge $1,109,000, for 
purchase of $14,504,000 stock of Central R. R. of New Jersey, 
present annual dividend receipts $1,740,000, book value $23,713, 
000, market value over $44,000,000, intrinsic value over $70,000, 
000 estimated. This 53% stock control of Jersey Central gives 
Reading entry to New York harbor terminals with five miles of 
water frontage mostly unused yet, and also lines in Pennsylvania 
as supplemented by its own representing the very heart of eastern 
rail merger ambitions. For years 43% of Reading stock was 
owned in nearly equal share by New York Central and Baltimore 
& Ohio and new purchases begun in 1925 result at present in at 
least 509% control. 
Segregation of the anthracite and iron properties in 1923 meant 
to Reading Co. the receipt of $27,100,000 cash, the release from 
liability for $31,542,000 4% bonds and from sinking fund re- 
quirements on $62,724,000 others, the increase from 4% to 414% 
interest on the latter, and the loss of dividend income, none ever 
[641