JAS. H. OLIPHANT & CO. 
1926) before declaring any dividend on the common stock. Except 
for the 12% in 1916 and 21% in 1917 (war years) the company 
never, up to 1922, earned over 8% in any year on its common but 
its record had been fairly stable, 
In 1922 the conservative policy of husbanding profits began to 
bear fruit in real earning power. After per share surpluses on 
the old $100 par stock of less than $3 in 1921 and under $5 in 
1920, the earnings were as follows: 
O08. ic cnn 92275 19235. enn $10.05 
1924. ......... 20.50 92D ena 13:50 
In this period, the $9,000,000 debenture issue was paid off and 
working capital (excess of current assets over current liabilities) 
increased from under $30,000,000 to over $40,000,000, notwith- 
standing common dividends paid aggregating 2214 9%. This was 
the new era of American Can Co. 
In 1926 with unsatisfactory price condition in the trade, the net 
earnings for the common declined to $10,850,000 from $13,504,000 
in 1925 which meant $26.35 a share on old stock against $32.75 the 
year before. In 1926 a 509% stock dividend and reduction in par 
value from $100 to $25 effected a six for one split-up of the com- 
mon stock so that 1926 net equaled $4.40 a share on the new stock 
compared with equivalent of $5.45 in 1925. 
Capitalization of American Can Co. consists of $41,233,300 7% 
preferred stock and 2,473,998 shares of $25 par common stock 
paying $2 dividend. As of December 31 last, current assets were 
$52,588,000 (including $15,863,000 cash and Government securi- 
ties) and current liabilities were $11,612,000, a strong treasury 
position. Book value of the common shares was $40. 
As to the integrity of this book value, we find the plant aceount 
carried at $110,150,000, an increase of $14,277,000 from the figure 
as of December 31, 1921, whereas in the five intervening years 
expenditures for new construction aggregated $26,139,000. 
Furthermore this book value of $40 a share is figured after de- 
ducting $10,324,000 reserves, which includes $4,060,000 inventory 
reserve and $4,096,000 insurance reserve. 
Dominating its industry as a producer of containers for food and 
other products (three or four times larger than its nearest com- 
petitor), American Can Co. has plants in thirty-eight cities of 
the United States as well as others in Canada and Hawaii, Its 
business is normally of a stable character. In 1925 and 1926 the 
pack of canned foods was large, and owing to this overproduction 
outlook is for a reduced pack in 1927. A large proportion of the 
41 
Tam