Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-09-14
NATIONAL BANKS
INCREASE HOLDINGS
OF UTILITY ISSUES
Government Figures Show
Growing Demand for This
Class of Investment Sc
curities = Three-cent Fare
Fight Still On.

National banks of the country are
among the most conservative purchasers
Of securities. Their directors consider
wisely and we'll before they invest tho
moneys ntrusted to them, and 1t Is APP
parent that any security which they pur-
chase must have behind it., to a marked
degree, the safety and conservatism
which characterize the conduct of the
banks themselves.
1t Is interesting to note what the ma
tlonal banks have been doing in the last
few years along the line of public utility
Investments. Figures compiled by the
United States Comptroller of the Cur
rency establish the fact that the only
securities In which these banks increased
their holdings in the last five years were
those of public service corporations.
There was consistent increase each
year unit. 19l3-the last figures available
when the percentage reached 1874 per
cent Railroads aggregated 33.S per cent
of the bank holdings In 1909; in 1912 they
had decreased to 30.4 per cent. and last
year they represented only 2S.3 per cent
United States bonds represented 172 per
cent of the holdings In 1909. but by 1918
they had decreased to 152 per cent. State
and munlcipals decreased from 23.7 per
cent. in 1909 to 1872 per cent. in 1918. These
figures represent percentages OF the total
Investments.
The principal reason for the tncreasc1
popularity of public utility securities
the fact that they combine safety
principal and interest with attract
yield. It costs more to live these dr.
than 1t did ten years ago The cons,
quence Is that the investor. to meet the
additional drain on his income, naturally
turns to investments in securities which
yield the largest return and are, at the
same time. safe and conservative Cap
ital flows into investment channels where
there Is the greatest return. founded first
OF ALL on stability. High-grade public
utility honds offer these Inducements in
marked degree to prospective investors
The report OF the Interborough Rapid
Transit Company for the year ended
Juno 30, 1911. makes favorable show
Ing Passengers carried increased II So
l55; gross earnings increased s1,Ol7,525
Bath. n. Y, wants to build n s=ocoo
municipal light plant The plan is being
opro.ed by the Bath Gas and Electric
Company and the Empire State Gas and
Electric Association.
City Solicitor of To'edo, O., has bcen
directed by the county to produce "con-
crete objections" 10 the complaint OF the
Toledo RAILWAY and Light Comrany
agains' the enforcement of the three ent
fare ordinance The company says II
ha" 'rs' on AVERAGE oe slO0y a day since
March e. when the fare ordinance be-
came effective, through it's refusal to ac-
cept three-cent fares on Its cars.
The Arkansas Light and Power Com
pany has been Incorporated at Little |
Rock, Ark, with ss50OOO capital. to build
and operate power plants.
Commonwealth Power Railway and !
Light Company. one of the largest pub
lie utility holding companies in this coun-
try. gained 6.3 per cent. in gross IL pcr
cent. in net. and 7.3 per cent. In balance
IN the l2-month period ended July 81 last
Gross earnings of the company for July
Increased S.9 per cent. and net gained
9.6 per cent The company operates In
Michigan, Illinois, Indiana. Ohio and Tis-