JAS. H. OLIPHANT & CO. 
i 
American Steel Foundries 
In 1926, which was with two exceptions probably the worst in 25 
years in the railroad rolling equipment business, American Steel 
Foundries earned its $3 dividend with $1.49 a share to spare. 
This is the more striking when one recalls the checkered career 
of this company in pre-war days. 
Two factors have brought about the change: (1) war profits were 
husbanded and in the eighteen years since the capital readjust- 
ment in 1908 out of $43,778,000 aggregate earnings dividends 
were paid of $21,320,000, leaving $22,458,000 plowed back into 
the property (largely into working capital) or $25 a share on 
present common stock; and (2) in 1919 the Griffin Wheel Co. was 
acquired which with the renewal character of its business has 
stabilized American Steel Foundries’ earnings. 
Thus the company, according to December 31, 1926 balance sheet, 
had current liabilities of $3,278,000 and current assets of $21,- 
177,000 of which cash, Government and other securities totaled 
$12,143,000. Working capital of $17,898,000 would provide 110 
(redemption price) for $8,713,000 7% preferred stock and leave 
$9.20 a share for 902,745 shares of no par value common stock 
(company has no debt and only $305,000 subsidiary stock obliga- 
tion). In addition, net capital assets provide $38 a share, includ- 
ing probably $4 or $5 for good will (figure not available), so that 
book value of common totals $47 a share. 
American Steel Foundries is the largest producer of steel castings, 
sold for new construction, mostly of railroad equipment but also 
of steamships and machinery. In 1919 through issue of $8,481,000 
preferred stock, the Griffin Wheel Co. was acquired, which is the 
largest maker of iron car wheels, 85% of which year in and year 
out go for necessary replacements. Griffin Wheel Co.’s $4,300,000 
6% preferred was retired in 1925 (American Steel Foundries’ old 
debt of $6,836,000 wiped out by 1923) leaving capitalization as 
above described. 
Figured on present number of shares as increased by stock divi- 
dends of 18% each in 1920 and 1922 and 25% in 1925, earnings 
have been as follows: 
1928... ....... 54.40 
1025. cue... 4.50 
1924... 4.60 
1923. . 7.60 
1922. .0vees..32.50 
1921.....defic"" 28 
1920. . A 
1919. 
The current $3 annual dividend has been maintained since 1920 
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