New-York tribune., 1921-06-25
Wants Power Bonds Compared

cuestton--Wouid be pleased ii you would
tel f,,,I me know the conparabic Iaeslts Of the
intowing bondS: Connecticut Light and
Power Company FIRST refunding a., Series
4, May I, isSi; Montana Power IS; Wis
Series A, l945s Puget Sound zsower and
light Company ias, Series A. Is41.-
Answer-Montana Power first and re-
funding 5s are secured by first mort
gage on all of the property formerly
owned by the Missouri River Electric
and Power Company. The property
covered by direct or collateral lien COM
rrises thirteen hydro-electric power
plants and four steam reserve plants
having about 233 600 horsepower. The
company supplies the power for the
electric operation of the Chicago, Mill
wackee & st. Paul electrified division
and for important mining operations.
We think it is one of the best of the
power company bonds, and rank it
high. The Connecticut Light and Power
first refunding 7ss due 1851, would, in
our opinion, rank second. They are se-
cured by first mortgage on the main
hydro-electric plant on the Housatonic
River and on sixty-one miles of ilnpor-
tant transmission lines. The company
has large market for its power among
the industries of New England. The
Wisconsin Electric Power 75ss, due
i945, are secured by a first mortgage
on q steam generating station on Lake
Michigan, adjacent to Milwaukee. The
plant was built in 1920. The Puget
Sound Power and Light 71zs, due 1916,
are secured by mortgage covering
nearly all of the property of the COM
pany, but are subject to S26,76O,000
prior liens. The net available for in
terest in 1920 was s5056,547, and in
terest and sinking fund call for
s2,638, 103. The company has shown I'M
proved earning power so far in 1921.
Favors Low Coupon Rate Bonds
Question-will appreciate your opinion
of the Rock Island, Arkansas & Southern
sMs. due 1894 recently selling around %
per cent Am looking for bend of low
coupon rate which is reasonably secure as
to principal and interest. bond seliing
at discount is more attractive to me at
present, as l. do net require income for
present living expenses, but wish to ac-
cumulate for later years. VIII be glad of
other suggestions of bonds which seem to
be selling at an attractive basis,-vW. V, +.
Answer - Rock Island, Arkansas g.
Southern Az per cent bonds, due 1884,
are guaranteed principal and interest
by the Chicago, Rock Island & Pacific
and are secured by a first mortgage on
364 miles of road There are $11,000,-
900 of them outstanding, so that they
are at the rate of about $4,000 per
mile. At present prices they yield
around 8 per cent. The Rock Island
is one of the weak roads and few
years ago went through receivership
without foreclosure. We would class
the bonds as reasonably safe as to in
terest and as a business mans semi
speculative investment. Illinois Cen
trail first 31as due 1851, selling recently
at 6S, have, for instance, much great
er degree of security. Kansas City
Southern first IS, due 1850, recently
secured low coupon rate bond, selling
at q large discount. Rio Grande West
ern first As, due 1889, recently selling
at 611a, do not have quite the same
high degree of safety, but are an at
tractive and good investment.