STUDIES IN SECURITIES 
and common dividends $28,121,000, leaving $44,509,000 surplus. 
During the nineteen and one-half years previous, $115,511,000 was 
earned, $69,298,000 distributed, and $46,213,000 retained, or little 
more. To the regular 7% dividends paid since 1917, following at 
least 5% each year from 1903, extras of 1% in 1924, 29% in 1925, 
and 3% in 1926 were added, but with five year payments totaling 
$41 per share and earnings $106 the treatment of stockholders con- 
tinues conservative. A privilege, however, to subscribe for 20% 
additional stock at par was given late in 1926, and subsequently 
the declaration of 114% semi-annual extra dividend indicates a 
total 109% rate to be maintained, resulting in a further gain. 
Management of Atlantic Coast Line avowedly is paying the extra 
dividends from income other than from operations. Mostly such 
revenue comes as dividends from Louisville & Nashville stock of 
which 569,700 shares or 51% are owned. Dividends at the present 
1% rate pay interest on $35,000,000 bonds secured by these hold- 
ings and leave the equivalent of 3.37% on 823,427 Atlantic Coast 
Line shares. 
The table below gives actual earnings on 685,862 shares of Atlantic 
Coast Line stock, earnings as they would have been, without allow- 
ance for employment of $13,756,500 subscription receipts, on 823,427 
shares outstanding since early 1927, and as applied to these present 
shares the due proportions of undistributed earnings of Louisville 
& Nashville : 
1926. 
1925. 
1924 
1923. 
1922 
On Actua’ 
On Present 
$20.10 
22.40 
17.20 
5.60 
10 
I. & N. Equity 
"6.96 
7.23 
AAD 
Had not Atlantic Coast Line increased maintenance $3,173,000 in 
1926 the showing would have surpassed 1925 for $3,089,000 addi- 
tional gross business was handled with but $2,206,000 greater 
transportation cost. Unlike most others this road makes two-thirds 
of the year’s earnings in five months December-April. Indica- 
tion is for somewhat lower 1927 earnings but after a halt the six 
states served appear ready to march on again. 
By 1925, the main line, Richmond to Jacksonville, had been vir- 
tually double-tracked, in 1926, 63 miles of new first track in 
Florida were put in operation and 110 miles of line were equipped 
with automatic signals, showing how extension and improvement 
still proceed. At $157,679,000, however, Atlantic Coast Line funded 
debt is only $14,485,000 more than in 1917, and is far less than 
$82,342,700 common stock plus $4,829,000 premium realized plus 
1271