Die Fabriksparkasse

Bibliographic data

Monograph

Identifikator:: 1005178828

URN:: urn:nbn:de:zbw-retromon-18208

Document type:: Monograph

Author:: Altenrath, Johannes http://d-nb.info/gnd/1023399458

Title:: Die Fabriksparkasse

Place of publication:: Berlin

Publisher:: Carl Heymanns Verlag

Year of publication:: 1914

Scope:: 1 Online-Ressource (VIII, 96 Seiten)

Digitisation:: 2017

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: IV. Spareinrichtungen für Erwachsene

Collection:: Economics Books

JAS. H. OLIPHANT & CO. to progressive improvement in earnings and co-operative financing of a critical maturity ‘New Haven’’ was successful in avoiding the path which after a similar start in 1921 ‘“St. Paul’’ was forced to follow. New Haven in 1921 following the loss sustained had work- ing capital of $1,287,000, and a $27,582,000 maturity four months away ; in 1926 had earnings equal to $5.20 a share, working capital of $19,950,000, and no sizeable maturity until 1940, barring $87,- 130,000 6% Government loans. Sale of $50,000,000 7% preferred stock at 100 in 1927 is a step in working off the Government borrowings and it proves both a better credit standing and stock- holder good will. This recovery was made with practically no contribution from the ill-fated outside investments which were responsible for the com- pany’s fall from eminence beginning 1913. Rehabilitation of earn- ing power has been due to a tightening grip on expenses, operating ratio declining from 102.3% in 1920 to 73.7% in 1926 (pre-war ratio closer to 70%). No net return is being received from $146,000,000 face value of bonds, notes and stocks of subsidiary railroads, trolley lines and steamship companies, whereas the capital obligations outstanding as a result of their acquisition is a fixed charge. A gross income in dividends from this total was received of $160,060 in 1926 (from Central New England Ry.) but $973,700 was paid out in guar- antees on New York, Westchester: & Boston Ry. bonds and Boston R. R. Holding Co. preferred shares. It is in the ultimate increase of earning power of this bulk of unproductive commitments that final rehabilitation of New Haven rests. The biggest item in these outside ventures is the ownership of 219,189 shares of Boston & Maine R. R. common stock (plus 10,694 shares of preferred stocks and 45,317 shares of prior prefer- ence stock, latter to be taken up at various dates under the 1926 readjustment plan) carried on the New Haven books at $27,247,000 as of December 31 last (through its medium the Boston R. R. Holding Co.) which was acquired at high prices in the latter part of New Haven’s extravagant expansion period 1903-14. Boston & Maine has had a remarkable recovery of earning power from a deficit of $7,348,000 in 1921 to a surplus in 1925 of $6.90 a share, and in 1926 of $9.40. From the low prices there has been a $12. - 000,000 appreciation in the Boston & Maine investment. This is substantial though still leaving book value over twice market value. Some of the street railway ventures look hopeless, other invest- ments such as Connecticut Co. ($45,569,000 book value) and New York, Westchester & Boston ($14,430,000 book value) while now [561

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