New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-12-07
INVESTMENTS TN
PUBLIC UTILITIES
interviews with Specialists Are
Favorable to These Issues
Bonds and Stocks.

The following views on the stability and
condition of public utility investments
and the market for them are given by
brokers specializing in this class of Sc
,uritics:
WILLIAM 2. BONBRIGHT & CO.-"At
he recent convention of the Investment
Bankers Association an address review
ne very ably the bond market over a
)criod Of ten years was delivered. 1t was
BASED on u selection Of $l,5O0O0O of each
II three classes OF bonds, public utility,
municipal and railroad, and the public
Utility bonds not only showed the great
st interest return but comprised the only
roup showing market appreciation. The
downward movement in securities which
here is valid reason to believe reached
What will prove its extreme this year is
,tiikingy illustrated by the contraction
If the leading government bonds in the
worlds markets. According TO common
,cceptation, the standard securities Of the
world are British consols and French
-entes; IN ten years the former have
,hown decrease of 22.S per cent in price
snd the latter decline of IS per cent;
/
showing Of public utility bonds in the
lace Of such searching weakness is eX-
remely impressive and reflects the mar
Set's more general recognition of the in
restment merits peculiar to these securi-
les.
1T is, of course, true and natural that
The public utility branch of the market
has not been immune from depressing in
luences. Requirements for new capital
caused by constantly growing uses for
vss and electricity coming at a time OF
strained credit resulted I'm what have
peen we'll described as growing pains
md brought the securities of some COM
oanies to prices that ignore absolutely
the development of earning capacity.
The securities OF companies that have
been afflicted with these growing pains
present opportunities particularly advan-
.ageous for the investor"
HARRIS FORBES & CO-"Public
utility bonds as a class are constantly
6nding greater favor with conservative
investors The earning power of such
properties has been settled beyond expert
ment, and their profitable operation is an
. established business fact. Furthermore,
the steady growth in population of this
country justifies the belief that the busi-
ness of the public utility corporations
will increase steadily from year to year
We refer particularly to the companies
supplying gas, electric light and power
water, street railway and telephone SER
vice TO large and growing centres Of pop
ution. where the bonds bear a conserva-
tive relation TO the property from both
he standpoint Of earnings and physical
property, and where the bonds are Sc
cured by mortgage drawn with re-
strlctlons that amply safeguard the in
weston
Public utility commissions, already
existing in forty-three states, have been
factor in popularizing the bonds of the
public utilities under their supervision, as
they afford at least a certain degree of
protection TO the public, the companies
and the investors in the securities Of the
latter. OF course, the commissions do
not, however. obviate the necessity for the
average investor 10 rely on the recon-
menddtions Of his zankers. 1t is still es-
sential TO the greatest safety that the
latter should be of large financial respon-