JAS. H. OLIPHANT & CO.
3
Capitalization comprises $72,651,000 bonds, $1,771,000 sub-
sidiaries’ stock, and $99,786,530 Western Union stock. Earnings
for the stock have risen along with the equity : against 8% average
1911-17 the net was 13.2% in 1922, 13.6% in 1923, 13.4% in 1924,
15.29% in 1925, and the same in 1926.
No set dividend rate has long been kept by the company (although,
formed in 1851, it has paid something each year since 1874) and
the 7% standing since April, 1918, has just been supplanted by an
89, rate.
The web which is Western Union involves approximately 213,400
miles of pole lines, 3,300 miles of land cables, over 28,800 miles of
ocean cables, and 25,000 separate offices. It does 85% of all land mes-
sage business and this gives 92% of the company’s net income, a
fact dispelling radio fears. Over 66% of messages are handled
automatically now (eight messages can go over one wire) and so
the labor hazard constantly lessens.
The business has been brought to a point where employes are
receiving ‘‘income participation’’ (a total $9,200,000 charged
expenses therefor in six years; last year supplanted by offering of
stock on favorable terms, 30,000 shares subscribed for by 8,700
employes) and stockholders perhaps may look for something addi-
tional (possibly subseription ‘‘rights’’) above the strongly protected
89, dividend.
F. W. Woolworth Co.
Reinvestment of profits has provided the entire financing of the
expansion of F. W. Woolworth Co. from a pioneer enterprise with
$52,616,000 sales and $14,925,000 net tangible assets in 1911 to its
present rank as a leading merchandising company with sales $253,-
645,000 and net tangible assets $114.804.000 last year.
Since formation in 1912 by merger of six non-competitive ‘‘five
and ten cent’’ chains, the development has been one of America’s
industrial romances. viz:
Stores
1926..... .1480
1023.... 1260
1920... 1
a17 a
+
1912.
7
631
Sales
$253,645,000
193,447,000
140,919,000
98,103,000
69,620,000
60.558.000
Net Earnings
on Sales on Stock
129, *$10.85
10.70 31.84
7 13.87
16.72
10.87
R73
7 *On $25 par changed from $100 par in 1924 by issue of four shares
or one.
[80]
