JAS. H. OLIPHANT & CO. 
ranization, except for the exchange of two no par shares in 1923 
for each $100 share of common stock. 
Issuance of share for share of preferred stock and two-thirds of a 
share of common for one of Railway Steel Spring common in 1926 
makes American Locomotive Co. capitalization now: $38,389,600 
7% preferred and 770,000 shares of no par common stock. There 
is no funded debt and only $432,000 subsidiary obligation. 
As of December 31, 1926 current liabilities of the enlarged com- 
pany amounted only to $4,329,000 and current assets totaled $55,- 
008,000, including $32,794,000 cash and marketable securities. 
Combined plant account was $58,920,000 after depreciation, and 
total asset value of the common stock after all other reserves was 
$90 a share. 
Thus the American Locomotive Co. starts on its new basis in 
splendid cash shape, with plant account on a conservative valuation 
{recent policy has been concentration in efficient plants and dis- 
mantling of others) and its business at last enjoying a degree of 
diversification. Railway Steel Spring Co. plants make steel springs 
and tires for car wheels which have a relatively stable market. 
This acquisition was analagous to American Steel Foundries’ ab- 
sorption of Griffin Wheel Co. and American Car & Foundry’s entry 
into bus manufacture. 
The speculative feature of the locomotive business is found in the 
development of the three cylinder locomotive and the oil electric 
engine, the latter in conjunction with Ingersoll Rand Co. and 
General Electric Co. The present period furthermore has the 
advantage of following two years of exceptionally small demand for 
locomotives with fair prospect of change in this respect. 
With production considerably below capacity in 1926, the first 
year of combined operation (and this only from May 14 including 
Railway Steel Spring Co.) the year’s net showed $7.45 a share on 
the common, on the basis of enlarged capitalization. American Lo- 
comotive preferred stock is in the first group of industrial senior 
stock issues, and its common while still speculative in its nature is 
by the company’s recent expansion much nearer investment 
character. 
American Smelting & Refining Co. 
In the four years ended 1926 American Smelting & Refining Co. 
axpended $32,162,000 on new undertakings and improvements 
toward the further diversification and extension of its opera- 
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