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 well before they invest the
moneys intrusted to them, and 1t Is ap-
parent that any security which they pur-
chase must have behind II, to marked
degree, the safety and conservatism
which characterize the conduct Of the
banks themselves.
1t Is interesting to note what the ma
tional 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 tho 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 until 19l3-the last figures available
when the percentage reached 1874 per
cent. Railroads aggregated 1913 per cent.
of the bank holdings in 1909; in 1912 they
had decreased to 30i per cent. and last
year they represented only 2S.3 per cent.
United States bonds represented 1T2 per
cent. of the holdings in 1909, but by 1918
they had decreased to 15.2 per cent. State
and municipals decreased from 2S.7 per
cent. in 1909 to 1872 per cent. In 1913. These
figures represent percentages OF the total
Investments.
The principal reason for the increased
popularity OF public utility securities Is
the fact that they combine safety of
principal and interest with attractive
yield. 1t costs more to live these days
than 1t did ten years ago. The conse-
quenco is that the investor. to meet the
additional drain on his income. naturally
turns to investments in securities which
IL L.
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 bonds offer these inducements In
marked degree to prospective Investors.
The report of the Interborough Rapid
Transit Company for the year ended
June 20, 1914. makes a favorable show
ing. Passengers carried increased 17,5iO,-
1856; gross earnings increased s1.0l7,525.
Bath. n. y, wants TO build $4,000
municipal light plant. The plan is being
opposed by the Bath Gas and Electric
Company and the Empire State Gas and
Electric Association.
City Solicitor OF Toledo, o., has been
directed by the county to produce CON
crete objections" TO the complaint of the
Toledo Railway and Light Company
against the enforcement Of the three-cent
fare ordinance The company says it
has lost an average of $1,000 day since
March IS, 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
u .t- ol DO, h,,tl q
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.S per cent. in gross, II per
cent. in net. and T3 per cent In balance
in the 12-month period ended July 81 last
Gross earnings of the company for July
increased 80 per cent, and net gained
96 per cent. The company operates in
Michigan. Illinois, Indiana Ohio and Wis |
consin Il. W. Clark & Co., of this city, |
are associated in its management.
LehiCh Valley Railroad has pettioned |
the Public Service Commission of New |
York for permission to discontinue pas
senEer service on its branch line from !
Geneva to Seneca Falls, through Water |
loo. Attorneys for the road declare that |
average passenger receipts were only 1876 |
cents a day, only one passenger being |
carried, and that operations were at a |
net loss of s491 daily. Hearing on the |
case was adjourned until next Friday.