Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-03-19

grown tremendously. The company'S
latest balance sheet is considered a
model which any concern might well
study. With good share OF its assets
in liquid form, the company is in az.
excellent position either to weather a
period of less prosperous business or to
increase its dividend disbursements II
present good business continues.
About 1922 the company'S balance
sheet first began to show important
earning power. From that year. when
earnings on the present stocks were
$3.06 a share, they mounted to $5.46
In 1925, fell off for two years, but in
1928 reached the record of $685.
share, averaging $4.36 for the seven
years. The company has been COLI
sentative In the matter Of dividends
and only recently has increased the
regular rate to So. At present prices,
the yield is thus 2.54 per cent The
stock is selling at 81 times average
earnings over the past seven years or,
in other words, sells at a price which
yields 1853 per cent on those earnings.
Continental Can.
From the standpoint of total earnings,
Continental Can is about one -third the
size of American. Although it entered
the field at later date, ii has expanded
50 rapidly in recent years that for
the past seven years the earnings OF
Continental have shown as remarkably
consistent growth as American. During
that period both American and Con-
tinental's earnings increased 125 per
cent.
Continentals rapid progress in a
field where American was already well
intrenched demonstrates the progress
sive character of its management. The
company has usually followed the policy
of absorbing smaller plants at strategic
points rather than building new plants.
has today some 80 factories for making
cans and containers, including one for
manufacturing can-making and can
ming machinery. Last year 1t absorbed
the United States Can Co., which had
been the third largest in the industry.
Today Continental plants are found
throughout the entire country.
The company has no funded indebt-
edneSS and only small issue of pre-
ferred stock ahead of the common. Its
financial strength is such that most of
the financing of the purchase of new
properties has been accomplished by an
per cent stock dividend was paid to
stockholders.
During the past seven years earnings
on the present stock have increased
from $l.97 share to S448 in 1928,
averaging $3.50. Present dividends of
$3.50 are being paid on the common, a
large enough proportion of earnings to
indicate that the management believes
the company will continue its present
rate of growth. At its present price the
stock is yielding 3.57 per cent on the
dividend and 4.13 per cent on average
earnings.
The business of both leading can
manufacturers is expected to grow
steadily in the future, but the prices
of their stocks can scarcely be expected
to keep up the rapid advances of the
last two years in which both have
tripled in value. Both stocks have
shared generously in the broad upward
movement of general security prices
during the past two years, for both are
quite sensitive to general market con-
ditions. They can probably be expected
to fluctuate in a broad way with the
trend of the general market in the
future.
tCopyright. 1929