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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Document type:: Monograph

Structure type:: Chapter

Title:: Chicago & North Western Ry.

Collection:: Economics Books

STUDIES IN SECURITIES revenues in 1926, 77.8% in 1925, and 80.7% in 1924; 19% shrink- age means $1 more common share earnings, regardless of possible benefit from rate readjustments. The 7% preferred stock is an unique investment, with the privilege of receiving 3% additional after 7% on the common and equal share after 10%, under which from 1902 to 1920 a total 89% was paid annually. In the common stock. investment and speculation are nicely combined. Columbia Gas & Electric Corporation After a quarter century of separate development the properties of Ohio Fuel Corp. (itself a 1924 merger) were consolidated No- vember 1 last with those of Columbia Gas & Electric Co. and the new Corporation took the latter name. Advantages to Columbia are evident herein: for the new company versus the old company, the requirement for rentals, bond interest, preferred dividends, and $5 on the common shares is increased 1.8 times, comparative with increases 2.7 times in gross and 2.1 times in net earnings and 3.4 times in acreage of lands representing the principal earning asset. To accomplish this, Columbia Gas in effect added only $210,000 to fixed charges and increased preferred stock from $23,860,000 7% to $95,185,000 6% and common stock from 1,500,000 to 3,000,000 no-par shares (since increased by issue of 375,000 shares at 60), thereby improving an already strong cap- ital structure. Since rentals, interest, and preferred dividends take only 429, of current earnings it is clear this public utility is held on ample margin by common stockholders. Revenues aggregating $92,120,000 in 1926 came mostly from retail distribution of natural gas to 4,400,000 population in Ohio and adjacent states and electricity to about 1,100,000 in Cincinnati, Dayton, and vicinity, with wholesale of both not inconsiderable. Of the 4,860,000 acres of land held 760,000 or less than 169% are operated for natural gas and less than 71,000 or 114% for oil. Accordingly, future gas supply is assured from the vast land reserve, potentialities of which are known, while oil and natural gasoline production from a minor status can be expanded almost at will. Altogether this system property stands on the books at 439 mil- lions, as the actual figure accrued during some 25 years, against which 121 millions reserve is accumulated. Charges to reserve, chiefly depletion of gas, run $2.70 per common share annually, and taxes equal $2.50; both are so heavy that relief would seem possible. After all charges the 1926 earnings rate was $6.90 a share on Columbia Gas common stock while on official statement 1331

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