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 the
| moneys intrusted to them, and 1t is ap-
parent that any security which they pur-
chase must have behind it, 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 the only
securities In which these banks increased
their holdings in the last five years were
those of public service corporations.
There was a consistent increase each
year until 1913-the last figures available
when the percentage reached 1874 per
cent. Railroads aggregated S3S per cent.
of tho bank holdings in 1903; in 1912 they
had decreased to 304 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 l5.2 per cent. State
and municipals decreased from 23.7 per
cent. in 1909 to 1872 per cent. in 1913. These
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-
auence 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-Erade public
utility bonds offer these inducements in
marked degree to prospective investors
The report of the marlborough Rapid
Transit Company for the year ended
June 80, 1914, makes favorable show
ing. Passengers carried increased l7,5IO,-
1856; gross earnings increased S,Ol7525.
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.
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 1t
has lost an average of $1,000 a day since
March IS. when the fare ordinance be-
came effective, through Its 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 s650,000 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,S per cent. in gross, IL per
cent in net, and 1.3 per cent. in balance
in the l2-month period ended July 81 last.
Gross earnings of the company for July
increased 3.9 per cent, and net "ained
9.6 per cent The company operates in
Michigan, Illinois, Indiana, Ohio and Ms
consin. T.. W. Clark & Co., of this city,
are associated in its management
Lehlgh Valley Railroad has petitioncd
the Public Service Commission of New
York for permission to discontinue pas
senger service on its branch line from
Geneva to Seneca Falls, through Water
loo Attorneys for the road declare tina
average passenger receipts were only 1876
ccnts dav. only one passenger being
carried. and that operations were al a
net loss of si.9l daily. Hearing on the
case was adjourned until next Friday.