JAS. H. OLIPHANT & CO. 
$236,004,000 valuation provided $14,780,000 or 6.26% yield. Total 
income covered $17,794,000 interest at 4.839% average rate on $412,- 
771,000 funded debt and $3,982,000 dividends of 4% on $99,544 - 
000 preferred stock with $37,003,000 surplus amounting to 16.6% 
on $222,292,000 common stock equity. 
Partly thanks to the huge holdings of bonds and stocks, which for 
twenty years have never yielded less than $11,000,000 annually or 
about 5% upon its stock, this company has earned more than 10% 
each year since 1902, and has paid 10% dividends since 1906 ex- 
cepting eighteen months at 8% following a 1914 asset distribution. 
Sum total of investment income in a quarter century is $318,560,- 
000 and balance of earnings saved after dividends $284,766,000 or 
90% thereof. Earnings on the common stock and the amounts con- 
tributed by investments have been as follows: 
Total 
1926... . eee 16.6% 
PODS cee snares srreat nd 0.5 
1924.... .14.3 
han... “h.2 
1922. 0 
1927 99 
From Investments 
6.7% 
67 
6.6 
7.0 
6.3 
5.5 
Variance from year to year of investment income is notably small. 
Security holdings at the close of 1926 consisted of $44,114,000 (par 
$58,131,000) bonds and stocks of affiliated companies, $69,998,000 
(par $79,222,000) bonds and $89,892,000 (par $71,514,000 and 
market over $90,000,000) stocks of standard railroads, and $32,- 
000,000 United States Government bonds. Full ownership of Union 
Pacific Coal Co. returned $1,750,000 in each of the past two years 
and $1,250,000 dividends in each of the two preceding, and half 
ownership of Pacific Fruit Express $2,400,000 in each of the past 
three years and $4,200,000 in the fourth, together the principal 
subsidiaries. Among stocks of other railroads, $22,700,000 in New 
York Central, $44,697,000 in Illinois Central including $12,972,000 
held indirectly, and $4,420,600 or a 3% interest in Chicago & North 
Western are owned. At maturities of Union Pacific bonds J uly 1, 
1928 and December 1, 1929, $30,000,000 bonds and $34,564,000 
stocks held as collateral will be released and the entire $236,004, 
000 of investments becomes free in the treasury. Original reasons 
for these holdings are no longer good and conjectures as to disposal 
of them are likely to arise. With $55,587,000 cash and Liberty 
bonds owned in 1923, Union Pacific sold $20,000,000 bonds of its 
own issue for capital expenditures, and with $70,972,000 in the 
treasury in 1927 sold $26,835,000 414s to refund 4s, so perhaps 
some plans are taking shape. 
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761