STUDIES IN SECURITIES 
pany. Adding the equities in undistributed earnings of the roads 
to be leased, the results would become per share: 
1928. . ke... 519.70 102%... 320.70 
1025... = 18.15 1907 seen 112105 
LOS. a 0.75 a SE a 
These figures do not include the equities in 50% control of Pitts- 
burgh & Lake Erie R. R., 25% or more interest in Reading Co., or 
in considerable other property not promising much greater earn- 
ings contribution soon. 
Giving effect to leases proposed, the New York Central will be 
responsible for approximately $1,150,000,000 publicly held obliga- 
tions having a fixed charge on earnings, and $421,584,000 stock as 
increased by 109% subscription in 1927 becomes 27% of capital 
on this basis. The company proper has improved the ratio from 
25% in 1920 to nearly 389% in 1927 and has remaining some 
$62,000,000 stock authorized for sale on occasion to replace ma- 
turing debt. Excluding equipment notes the maturities of New 
York Central, Big Four, and Michigan Central are $73,834,000 
prior to 1930 and $128,356,000 in the next five years. An anchor 
to windward is the maturity between 1990 and 2361 of a total 
$502,359,000 bonds averaging only 4.018% interest rate. Under 
a policy of substantial financing from earnings the four lines 
in 1926 paid the public only 35% of the amount available for 
common dividends and retained $49,528,000 surplus and in the 
six years paid 429% and had left over $218,000,000 or $57 a share 
if applied to New York Central stock. 
Dividend record of New York Central R. R. and the predecessor 
company has been uninterrupted since 1870. In 1923 the 5% rate 
was raised to 7% and in 1927 to 8%, with which new dividend the 
mid-1927 offering of 10% new stock was facilitated. The shares of 
New York Central R. R. represent a tenth of the entire railroad 
business and a service indispensable to eight states with half of 
the country’s population producing a quarter of farm crops, half of 
mine products, and two-thirds of all manufactures. Under the cir- 
cumstances the stock at 150 level is by no means over-valued. 
New York, New Haven & Hartford R. R. 
The surplus after charges for New York, New Haven & Hartford 
R. R. in 1926 was $8,243,000 compared with $7,418,000 in 1925, 
$2,999,000 in 1924, deficit of $2,917,000 in 1923, of $4,911,000 in 
1922 and $15,327,000 in 1921, the first year of private control 
after the period of Governmental operation and guaranty. Thanks 
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