STUDIES IN SECURITIES 
Tlinois Central R. R. 
5 
Eats 
With the Governor of Illinois ex-officio a member of the directorate, 
the Illinois Central R. R. in the careful character of a semi-public 
institution has held financial success and the confidence of stock- 
holders. The common stock has stood in the investment class for 
generations while others have come in and dropped out. After- 
math of the war did not bring down the price as low as 80; and in 
the years 1901 to 1912 the range was between 184 in 1906 and 120 
in 1912, although the dividend was 7%, same as now. 
Payment of dividends has been uninterrupted since 1860, averag- 
ing 6.84% during these sixty-seven years. Long sustained earn- 
ing capacity goes without saying. For ten years ending 1917 net 
earnings were $8,740,000 average or just 8% on $109,000,000 com- 
mon stock, and less than 6% was earned in only one year of the 
decade, 1911-12 with 3%. Coming through the Government opera- 
tion years 1918 to 1920 with $13,000,000 added to surplus after 
dividends and sinking fund requirements, Illinois Central showed 
the following earnings on the common : 
1926. 300 2A 08 10 
L028. eens 0.328 A022. vei 143 
1924 . | gh 1921... 28 
Between 1921 and 1927 funded debt was increased from $264,963,- 
000 to $367,208,000 but, thanks to sale at par of $34,145,000 69% 
preferred stock convertible into common and $11,005,000 common 
stock, the proportion of stock has slightly improved from 29% to 
30% of total capital. Ending 1926 there were outstanding $367,- 
208,000 funded debt, $25,268,000 preferred stock ($8,881,000 hav- 
ing been converted) and $129,181,000 common stock. A good part 
of proceeds from stock financing were devoted to terminal im- 
provement in Chicago and electrification of suburban lines and 
so will not bring immediate return. Upon completion of electri- 
fication work in 1926, however, the company found that stim- 
ulus to residential development and traffic was already consider- 
able. In 1908 Illinois Central had sold $13,898,000 and in 1901 
and 1902 $35,040,000 common stock at par and at the earlier date 
used the funds for double-tracking the line from Chicago to New 
Orleans. 
So long as the Mississippi Valley continues fertile, Illinois Central 
is likely to prosper, while there are expansion possibilities in the 
arm that runs through Iowa to the South Dakota and Nebraska 
borders, and currently over $1 a share for Illinois Central stock 
Hos untaken in the earnings of the fully owned Central of Georgia 
y. 
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