Studies in securities

Bibliographic data

Monograph

Identifikator:: 1757542078

URN:: urn:nbn:de:zbw-retromon-134903

Document type:: Monograph

Title:: Studies in securities

Edition:: Revised

Place of publication:: New York

Publisher:: Jas. J. Oliphant & Co.

Year of publication:: 1927

Scope:: 81 S.

Digitisation:: 2021

Collection:: Economics Books

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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: American Can Co.

Collection:: Economics Books

STUDIES IN SECURITIES business, however, is in containers for products other than food. The $2 dividend is well protected (in 1926 a balance of $5,902,000 was carried to surplus after $4,948,000 common dividend paid) and return of better conditions in the industry should mean extras. American Locomotive Co. Except for an excursion into the automobile business (estimated to have cost the company $7,000,000) and ammunition making during the war, the American Locomotive Co. from organization in 1901 to the 1926 merger with Railway Steel Spring Co. was confined exclusively to the manufacture of steam locomotives. The fact that in 1925 the output was the smallest of any year in its history may have provided the final urge to diversify somewhat the activi- ties of this company. The violent character of the business is indicated in the figures of its locomotive output over a several years period: 1913 (June 30) $50,000,000 1922 (Dec. 31) $129,000,000 1915 wy 8,700,000 1923 e 90,000,000 1919 £é 108.000.000 1925 2d 27.000,000 Intervening years showed sharp fluctuation, the three years ended June 30, 1918 having the benefit of $85,700,000 aggregate ammuni- tion output. The maintenance of war profits in liquid form changed completely the company’s financial condition and dividend policy, though the nature of the business continued ‘‘prince or pauper.” Working capital increased from $12,327,000 June 30, 1914 to $46,436,000 December 31, 1923. Thus while earnings dropped to only half the preferred dividend in 1925 from $21 a share on the common in 1923, yet common dividends paid in 1925 totaled $9,000,000 ($8 regular and $10 extra) compared with but $2,500,000 in 1923 ($5 a share). Similarly the integrity of the plant account was strengthened from profits. On June 30, 1914 property investment was carried at $52,609,000, later reduced $1,500,000 by sale of plants. In the nine and a half years to December 31, 1923, $15,255,000 was ex- pended on additions and betterments and $13,619,000 charged off for depreciation. This would indicate a real property valuation December 31, 1923 of $54,245,000, whereas it was carried on the books at $37,531,000, thus squeezing out $17,000.000 of intaneibles. Up to the absorption of the Railway Steel Spring Co., American Locomotive Co. capitalization had remained unchanged since or- [15]

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