STUDIES IN SECURITIES 
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worth far below the excessive figures on the New Haven books, 
have possibilities. New York, Ontario & Western (book value 
$13,108,000) is paying a small occasional return, 1% in January 
this vear. The steamship companies are less a problem. 
Ending 1926 New Haven showed a $9,294,000 deficit to corporate 
surplus, but partly due to merger of Central New England Ry. 
the books in 1927 were made to balance. Road and equipment 
account admittedly is stated at ficures under real valuation. 
New Haven is not near dividends but a margin of safety over 
fixed charges has been re-established, a sound treasury position 
has been restored, critical financing has been accomplished, opera- 
ting efficiency obtains again, and the salvage value from a bulk 
of extravagantly made outside investments will be larger than 
seemed likely a few years ago; and it is in these factors that New 
Haven’s attractiveness as a low-priced non-dividend railroad spec- 
ulation is found. 
Norfolk & Western Ry. 
Specialization in the haul of soft coal rewards the Norfolk & West- 
ern Ry. with an earning capacity in 1926 more than two and a 
half times the 10% dividends paid. Coal traffic of the company 
exceeds 75% of the total and in twenty years has developed from 
six to forty million tons. Behind this are the cheaply mineable 
deposits estimated at 500 years’ supply in the West Virginia dis- 
trict wherein the Norfolk & Western taps the Pocahontas, Tug 
River, Thacker, and other fields. There are the smokeless high- 
volatile Pocahontas coal, which being uniquely fit for bunkering 
goes mostly to Hampton Roads for export, and the ordinary gas 
coal, which normally moves rather toward the Great Lakes and 
has a great future with Western industry. The 2241 miles of Nor- 
folk & Western lines deliver to tidewater and to the Pennsylvania 
R. R. System north at Hagerstown and west at Columbus and 
(Yneinnati. 
Average 287-mile freight haul, which is surpassed only on half 
a dozen railroads, and heavy trainloads make for a low ratio of 
operating expense to revenue, as follows: 
1926. .........59.20% 
1995. . eros ss 048 
024... TRO 
ibe? mEq 
ae 
1998,0us ss vn TSG 
08L eB 
1917 oneness 028 
007 Rad 
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