Studies in securities

Bibliographic data

Monograph

Identifikator:: 1753210836

URN:: urn:nbn:de:zbw-retromon-128414

Document type:: Monograph

Author:: Nogaro, Bertrand http://d-nb.info/gnd/117039713

Title:: Modern monetary systems

Place of publication:: London

Publisher:: King

Year of publication:: 1927

Scope:: XII, 236 S.

Digitisation:: 2021

Collection:: Economics Books

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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- i631

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