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:: Erie R.R.

Collection:: Economics Books

STUDIES IN SECURITIES I nT aC Te Pe 2 es ee Ce gore Flat oi a At 79% Erie’s operating expense ratio presents opportunity for savings; a 5% reduction would add $4 to common share earnings. Forecast of Erie earnings, worked out in the interest of Chesa- peake & Ohio Ry., expects on the common stock as probably to be increased better than $6.60 share earnings in 1927, $8.10 in 1928, $9.40 in 1929, $10.60 in 1930, and $12.00 in 1931, assuming $5,304,- 000 annual coal subsidiary dividends or $3.50 a share equivalent. Controlling stock in Erie is now held in favor of ultimate grouping with others as in the attempted Nickel Plate merger but an ex- change of shares or lease is unlikely for the time being. Resemblance of the present Erie R. R. to the Southern Ry. of a few years ago is surely not remote. Plenty of traffic, prospect of carrying it more cheaply, ability to raise new capital for better- ments, current earnings sufficient for preferred dividend payments, make Erie stocks attractive for speculation. General Electric Co. To an enviable record in fifteen years before, General Electric Co. added a remarkable showing in the war and the immediately post- war period, and in the past four years, 1923-26 of prosperity, made new records in earning power, From 1910-15 earnings ranged from 11.10% to 16.25% and the lowest figure since 1902 was 7.40% in 1908. Cash rate of 8% in dividends was maintained, supplemented by a 809% distribution in stock in 1912. Billings expanded from $90,467,000 in 1914 to $275,758,000 in 1920 and inventories from $29,292,000 to $118,109,000, successfully fi- nanced by a $37,000,000 increase in stock, $23,000,000 increase in funded debt, and $45,000,000 bank borrowings. Similar flexibility was shown in contraction in 1921 when billings decreased 20%, bank loans were paid off, and 13% earned on the stock. War profits and prudent financing resulted in $63,000,000 cash and (fovernment securities at the end of that severe year. Thus the way was prepared for full participation in the prosperity of the past four vears. viz: 1926. . 1925. . 1924. . 1923. 1922 Billings $326,974,000 290,290,000 299,252,000 271,310,000 200.194.000 *Figured on basis of present no par changed for $100 par value in May, 1926. {391 Net Income $46,672,000 38,641,000 39,236,000 33,525,000 26.231.000 *Surplus per Share $6.14 5.12 5.28 4.60 3.79 shares of which four were ex-

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