Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-01-16

The action of Philadelphia Rapid Transit
trust certificates in the trading on the
Philadelphia Stock Exchange today puzzled
the Street with the news out Of the
declaration Of a semlannual dividend Of
2h per cent, placing the certificates on
per cent basis, It had been expected
by some holders that the price would ad-
vance with the opening Of the Exchange.
Instead the start found the price un-
changed from the close Of yesterday,
block of 500 coming out at 34h. After
that, with the exception Of one sale OF
three shares which was made at BAN, the
price held below the final of yesterday
throughout the full session. The certii-
Gates were by far the most active on the
list The fact that the price did not mount
higher on the dividend declaration was
not surprising to the rank and file of trad
crs, however as it was figured that the
dividend declaration had been discounted
What the Street could not understand,
however, was why the price is so low.
Selling around "a the certificates net more
than per cent Traders on the floor and
persons in the Street who are interested
In the company's affairs figured that TINS
income yield would not be In effect long
that is the price would advance TO where
the yield was more in conformity with the
prevailing rates Of return on other invest
ments A trader who has watched the IN
tcrests Of the Rapid Transit Company for
years and who is one OF the best informed
in/the street said today that he expected
to see the price go above 40 At Al y the
income return would be 6 per cent. While
there was "A considerable amount of selling
of the certificates today, ii was commented
on that the demand was larger than the
selling there being many orders to buy in
the market at 34 Many odd lots came out
on the tape during the day, and 1t was said
that there was considerable investment
buying.
The consensus Of opinion in the street
seems to be that the plan which was sub
tnitted TO the city by the company with
regard to the new transit lines will go
through, and those who are interested in the
propertv point to this as another reason
why the stock should sell higher. The com
pany in the last few years has spent much
in repairs the building of new cars and in
equipment, and its present condition is good
News that the Pennsylvania Public Serv-
ice Commission had approved the refinanc'
ing and merger plan of the Philadelphia
Electric Company naturally caused some in
terest to be shown in that stock but there
was very little change In price. The COM
pany Is now free to go ahead with It's
rehnancing plan. The plan, which provides
that all of the properties Of the Philadelphia
Electric Company Of New Jersey be trans
ferred to the Philadelphia Electric Company
of Pennsylvania, also provides that the
capital stock of the latter company be in
creased from S25, 100000 to $50 900 900.
Nothing has yet been said of what will
he done with the old stock under the re-
financing plan. In some quarters of the
Street II Is expected that one of the first
steps will be the placing of the stock on an
per cent dividend basis. against per
cent as at present. The price of the stock