STUDIES IN SECURITIES 
capital stock, consisting of 1,350,000 $100 par shares, soon to be 
supplanted by 8,375,000 shares to be exchanged 214 for one of 
present stock. 
This company has an enviable dividend record: Current 8% rate 
has prevailed since 1900, 614% was paid in 1899, and from 8% 
to 12% per annum from 1874 to 1898. Stock dividends were paid 
of 20% in 1910, 36% in 1906, and 50% in 1898, 20% extra in 
cash also being distributed in the latter year. 
Over the years stability of earning power has been a feature. Only 
in 1921 and 1922 has Pullman Co. failed to earn its dividend (fiscal 
year ends July 31), those years reflecting the general depression, 
the aftermath of Government control, and the inevitable higher 
costs. 
Earnings on the stock in recent years have been as follows: 
July 31 July 31 
1026, nn L520 1923. 0. vee» 10.30, 
T9280. i. ALT 1992. ou iveaiie Bal 
EO24 oo i116 192%. eae Bad 
The above earnings include only dividends paid to Pullman by the 
manufacturing subsidiary. The equity in the undistributed profits 
of the latter was equal to 2.80% on Pullman stock in 1926 and the 
same amount in 1925. 
The Manufacturing Corporation’s $50,000,000 capital stock is car- 
ried on Pullman’s books at $36,780,000, whereas according to its 
own balance sheet it has a sound asset value of $56,807,000. Its 
current liabilities as of December 31, 1925 (latest available) were 
$4,857,000 and its current assets $39,495,000 including $22,351,000 
cash and marketable securities. 
Pullman Co. itself in 1926 had $22,070,000 current liabilities and 
$48,247,000 current assets including $33,151,000 cash and market- 
able securities. This makes the treasury position of the two com- 
panies impregnable. 
Taking the value of the Manufacturing Corporation stock at $56,- 
807,000 (its own book value, well justified by average earnings 
1925-26 of $6,822,000), Pullman Co. stock shows an asset value of 
$139. on conservative basis. 
The 8739 cars and equipment are carried at $108,293,000 after 
depreciation of $12,400 per unit, whereas 546 cars added in 1926 
averaged $33,600 apiece. In something over six years since Fed- 
eral control, $81,473,600 has been invested in new equipment so a 
substantial part of the total is relatively new. Experience indi- 
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