New-York tribune., 1912-04-28
RISE Of AMERICAN CAN
Stocks Long Inactive Have
Reached New High Prices.
HISTORY OF THE COMPANY
PAYMENT of Back Preferred Divi-
dends Rumored-Doubt Ex-
pressed Regarding Market.

Among the stocks which have shot up the
,rico scale like a squirrel up A tree is
American Can. It has gone on and on, and
,,o sir has been thick with reasons why
and reasons why not, but, like all issues
nbicb have good backing Can has con-
,;nued until. like tho parvenus Of society,
:, has forced itself into good company and
bankers will now recognize It as collateral.
The American Can Company is a New
Jersey corporation and was organized on
March 49, 1901. The company has in round
,ur,bers thirty-nine factories and plants in
Nev York. Brooklyn. Boston. Philadelphia
baltimore. Chicago. Detroit. Cleveland and
other ,!ties The authorized capital IS sA,-
noola common and s440oo,oo0 preferred, par
,,lue of shares 500 There have been is
.yed 81. .233. .cN OF the common and 81 .2S3, %
ero of the preferred stocks. The preferred
stock is a per cent cumulative. and on
senteInber go. 1908. ols per cent dividend
was paid. and 81? per cent was also raid on
,prU T. 1907. and October I. 1904. On
January I. 1905. - per cent was paid and
since then the preferred has been showing
dividends at the rate OF : per cent
American Can has been listed on the Chi
cago Stock Exchange since 1901. and IN that
wear the common sold up TO 51lg Trading
~ American Can on the New York Stock
Exchange has been active since January J..
1912. and the quotations have gone higher
than over before IN the company's history
Strong bull gossip has come from the usual
sources Of information in the Street. and
-1,,s
the directors Of the American Can Com
rarv intend 70 do ut their December, 1872,
meeting. As the information goes. the d.
rsctors intend 10 increase the preferred
dividends from per cent, the present Weld
IN per cent, the regular fixed preferred
diyider rate. Further. III" same informa-
tion gives assurance that the back preferred
NJ around 81 per cent or about S+o"o,"oO.
will no paid also hut il is stated this large
sum will not ne paid all al once, but hold
srs n the preferred may expect per cent
~ more during 1918. Al the June meeting
which will Of course. occur before the De-
oenrer one. lust what will be done Is not
known. as the wires have been cut Win
June.
American Can Company earnings have
been exceptionally good according 10 scat
terinc reports unofflcially given and there
would seem 10 be no reason why a least
the company should not show a much bet
ter statement than for the same period in
1911 and probably the regular annual state
ment will give cheer TO stockholders In
fact. some optimists say the common stock
will show around 10 per cent and posi-
bly, more II the season is good one.
Depreciation charges. It is claimed, will
not be as large for 1912 as for 1911 when
almost all the profits We're put aside for
that purpose. For 1911 the company would
have shown around 10 per cent earned,
which could have been applied 10 the pre-
ferred had depreciation charges not taken
the entire amount OF net earnings. The
plants Of the American Can Company are
said 70 he in excellent condition. and as
per statement Of those in a position 10
know new plants will not be imperative for
several wears The surplus item % Amcr-
can Can Companv. as of December s. 1911,
was $4,000. and the cash account showed
S.53s 99q. or nearly $4,000 more than Al
any other time. The depreciation charges
IN 1911 included 10000 set aside 10 settle
the suit now in tho courts Of the Vulcan
DEFINING COMPANY. should the hnaI Dc
csion re unfavorable 20 Can.
The company has in process of develop
rent and completion d new adding ma
chine. which has already been patented
and is said % be just the article which the
butcher. baker and candlestick maker have
been looking and yearning for these many
years
Since us organization the company has
expended an amount equal 10 over Sj
share Oh its stock for new construction and
improvements So. all things considered.
can is a respectable member Of the STOCK
Exchange group Of securities. But Of the
markets. il not strange that all the actiF-
ity should begin at the time when the mar
ket as whole shows strength and needs a
fine booster 10 keep up enthusiasm: One oi
the operators who is short OF Can said re-
Gently:
Insiders the real ones must have known
the gradual improvement in the finances o.
the company before the band began play
ing Usually directors do not know cA-
actly what g. going 10 happen at the next
meeting and if they do, are not free 10
tell all the good things and invite the Wall
Street professionals and the dear public to
beautiful feast at the sacrifice Of their
own pockets If can will pay its back pre-
ferred dividends, some Of the thrifty Can
director might have been induced 10 PICK
Up Can quietly when it was low and hold Il.
or course. melons have been cut and 60
lave lemons in Wall Street and il is diff
cult 10 say which kind Of fruit will he
seryed." 1t is well for the long side TO
remember mat can common has had Il
good rise. and that when the top has been
reached IT. may como down as easily. II not
more 50. than IT has gone up.
II investors wish TO Luy can common and
hold IL for its final settling on 10 4 divi-
dcLd basis, that is proposition which each
one must consider from an investment
point Of vicU. and not from a speculative
one. The only question r. hoU long VIII y
b hefor' both the preferred and common
vii be paying satisfactory dividends The
soUndness and future of the American can
Company are not questioned.