JAS. H. OLIPHANT & CO. 
complacency. In 1922 $30,000,000 15-year 614% debentures were 
issued and are still outstanding, the only change in its capitaliza- 
tion of $45,000,000 7% preferred stock and $45,000,000 common 
stock. In 1923-4 holdings in Great Western Sugar Co., Michigan 
Sugar Co. and Continental Sugar Co. were sold in whole or part 
at a substantial profit over book values. Reduction thus in its 
beet sugar interests has been offset by increased investment (now 
over $30,000,000) in cane sugar properties furnishing about 13% 
of the company’s requirements. Refining facilities have been mod- 
ernized with resultant economy. 
Cooperage, molasses and shipping contribute to operating income 
and income from investments in 1926 was $2,045,000, including 
that from its Cuban producing properties. 
The treasury position at the end of 1926 was strong. Current 
assets were $68,888,000 (including $23,105,000 cash and $21,- 
941,000 loans) and current liabilities only $7,072,000. The item 
remaining of the unfortunate story of undelivered customers’ con- 
tracts of 1920 is down to $1,051,000 compared with $15,113,000 as 
of five years previous. 
American Sugar Refining Co. is the largest producer of a single 
food product in the world and few companies in other industries 
(except the United States Steel Corp. and the Standard Oil com- 
panies) have so highly integrated an operation—production, man- 
ufacturing and marketing. 
Problems still remain. Ever since the fateful month of July, 1914 
sugar has been under the influence of governmental interference 
and still is. Import duties and taxes have been increasingly 
applied by foreign countries. Refining capacity in the United 
States is 50% in excess of needs and Cuban production above 
requirements. 
The American Sugar Co. however is again in good treasury 
position with modernized plants and the speculative opportunity 
in its stock is found in the prospect for further even though irreg- 
ular progress toward former stabilization in the sugar industry. 
American Telephone & Telegraph Co. 
About 514% earned on an average $2,654,000,000 Bell System plant 
investment during 1926 would have provided for the 9% dividend 
on $979,026,000 average outstanding American Telephone & Tele- 
graph Co. stock. Actual realization of less than 7% return meant 
11.95% on the stock not counting in the equivalent of 2.45% more 
in the undistributed earnings of 90%-owned operating subsidiaries. 
With a fair return from public utility property recognized to be 
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