JAS. H. OLIPHANT & CO. 
tillable; in every year since 1919 contract cancellations have re- 
turned more acreage to the company than sold, but with the 
storm. over settlers are reappearing in the country. 
Unification with Great Northern Ry., now proposed, is the reason- 
able outcome of joint ownership of Burlington which neither 
would give up. Savings calculated to result from common opera- 
tion of exceeding 27,000 miles of road are $10,000,000 or $2 on 
Northern Pacific shares. In addition an equity of $1 to $1.50 per 
share in Burlington earnings micht be taken. 
All ready for a renewal of empire-building the Northern Pacific 
Ry. since 1917 has equipped the 3,000-mile main line from Twin 
Cities to Pacific Coast with automatic signals for efficient opera- 
tion, adopted 100-pound rail as standard, and added 7% to loco- 
motive power. The 1926 earnings reaffirm the investment value 
of the stock, and the eventual correction of rate inadequacies 
together with a gradual recovery in farming, mining, and lum- 
ber promise eventually the 7% dividend and a price of par for 
the stock again. 
Pennsylvania R. R. 
Prestige of Pennsylvania R. R. was bred in the payment of divi- 
dends every year since 1847 and found refreshment last November 
when the rate was raised from $3 to $3.50 or to 7% on the $50 par 
shares. Just as a reduction to a $2 rate lasting from May, 1921 to 
November, 1922 displayed the adverse conditions then encountered, 
So the recent increase means the way is clear again, for excepting 
Six quarters at 7% between 1900 and 1921 $3 or 6% was the regu- 
lar distribution. 
Steadily if slowly the proportion of revenues taken by operating 
expenses has been brought under control and accordingly the net 
for dividends has been expanded, viz. : 
Share Earnings Operating Ratio 
26.20 71.5% 
£25 78.4 
~ 80 80.2 
50 81.9 
25 82.6 
30 86.1 
Reducing the expense ratio two points with revenues exceeding 
$700,000,000 a year adds $1.40 to share earnings. 
Equity in Pennsylvania R. R. is different than it was ten or more 
years ago. The same amount of $499,266,000 stock had the residue 
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