JAS. H. OLIPHANT & CO.
A return of nearly 514% afforded by Illinois Central stock at the
present price level can compete for desirability with many bond
yields in particular since the only reasonable question is when the
dividend will be raised.
oie
International Harvester Co.
The 1926 year marked complete restoration to International Har-
vester Co. of its former, old-line, peacetime status.
Between 1909 and 1916 with sales from $100,000,000 to $132,000, -
000 this company earned 914-1714% on its stock, manufacturing
and selling in the United States and foreign countries a complete
line of agricultural machinery and implements, binder twine, en-
gines, wagons and motor vehicles. Then came an irregular seven
year period. First were faced losses of $47,500,000 for war de-
struction of foreign business and later the unprecedented shrink-
age in the American farmer’s purchasing power which really con-
tinued until about 1923. Fortunately in the period of foreign
losses domestic business was excellent, and oddly enough when the
American farmer was stricken the foreign business picked up.
The 1923 year was the first in three that domestic business showed
a profit and it was small. From that time the recuperation has
been rapid, aided by recent development of motor truck, bus and
tractor, so that the total earnings per common share were:
1928... ors. 318070 105... 411.80
1925, <i 736.30 192%, Sn 8.10
The dividend record tells the same story. From a regular cash
basis of 7% (with 1214% stock extra in 1920) it was found
necessary to drop the cash rate in 1921 to 5% supplementing this
with 4% in stock. The latter was suspended in 1923 and the
cash rate of 5% continued alone until April, 1926 when current
cash rate of 6% was restored. In December last the extra
stock dividend of 49% per annum was resumed likewise.
International Harvester’s capitalization consists of $65,568,400 7%
preferred and $105,949,000 (July, 1927) common stock, or total
capital issues of $171,517,400. Current assets as of December 381,
1926 totaled $203,852,000 (including $25,004,000 cash) and cur-
rent liabilities were $34,449,000, providing a net working capital
of $169,402,000. Harvester is one of the few companies with work-
ing capital alone equal in amount to its capitalization. Book value
of International Harvester common stock is $170 a share, dis-
regarding liberal reserves which equal nearly $30 a share more.
146]
