JAS. H. OLIPHANT & CO. 
ent earnings the simple occupancy of the field here has great 
potential value. 
Outstanding securities of the Erie, $248,400,000 funded debt, $36,- 
000,000 guaranteed leased line obligations, $47,904,000 first and 
$16,000,000 second 4% non-cumulative preferred, and $119,103,000 
common stock, represent not only a 2,317-mile roadway over 60% 
double-tracked, reaching Buffalo, Cleveland, Youngstown, Akron, 
Cincinnati, and Indianapolis, besides Chicago, with terminals in- 
cluding eight main-track access to New York waterfront, and the 
equipment, but also wholly owned anthracite coal properties. 
Receipts from these coal subsidiaries in the last ten years alone 
were $58,500,000, including $48,000,000 from Pennsylvania Coal 
Co. compared with $41,306,000 earnings after depletion allowance, 
and would have paid Erie preferred dividends and left $2.95 a 
share yearly for the common stock. All surplus income, however, 
since 1907 when a preferred dividend was last paid, has been de- 
voted to the property. In the twenty years, the mileage of second 
track was increased from 803 to 1,363 and of side tracks from 1,628 
to 2,061, rail in main line was increased from 86 to 99 pound aver- 
age, locomotive power by 45% and freight car capacity by over 
25%, and grades improved, allowing the exceptional 4,500,000 tons 
freight density to be handled now with more economy. Aggregate 
$120,477,000 surplus income in twenty-five and one-half years 
means about $100 a share put behind Erie common. 
Comparative with a previous high record of $5.05 a share in 1916, 
the earnings for the common have been as follows, with the in- 
cluded contribution of coal subsidiaries shown likewise, per share: 
1926. . 
1025... 
1924. 
19922 
Net per Share 
raq9 
iL 
"6 
710 
From Coal 
$4.80 
2.36 
6.04 
5.16 
bis 
SE 
Presumably before the right expires October 1 this year all $19,- 
627,000 4% convertible bonds will have been exchanged at 50 
for common stock and on the $151,736,000 then to be outstanding 
the 1926 earnings would have been $5.50 a share. Another $13 - 
547,000 of 4% bonds, remainder of $34,000,000 issued in 1901 for 
purchase of Pennsylvania Coal Co., will all be retired by 1935 
through sinking fund. Recent financing with $50,000,000 Refund- 
ing & Improvement Mortgage 5% bonds, two thirds to replace other 
debt, represents a milestone for Erie, since this blanket junior lien 
created in 1916 is used for the first time and an ability to borrow 
on reasonable terms is demonstrated. Maturities prior to 1950 now 
are but $32.730.000 and finally the floating debt is gone. 
1381