Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-09-09
BROADER DEALINGS
IN LOCAL MARKET
Comeback of Public Utility
Concerns Striking Develop
ment Of Years Recovery

Although the volume OF business was
relatively small there was an unusually
wide distribution Of the dealings In
today's local market. Most all classes
were represented in the transactions, but
price variations were narrow except in
few inactive issues. The Kentucky
Securities shares, which yesterday gave
signs of an awakening interest nfter
months of neglect, made further i'm
| provement the common advancing "a
point to 1912. while the preferred was
run up points to "a. Brill on small
turnover moved up a point to SO.
American Gas. on the other hand.
yielded . points to 65. Fractional
shading occurred in p. II. T., Phila-
| delphia Electric issues and Y. G.. I.
common. Pennsylvania Railroad was
| in moderate demand, advancing to 46k I,
or within nm eighth of the weeks top
price. Lake Superior was well sus-
taned at Sia, indicating strong sup
| port.
In the various groups. the years s
remarkable recovery in market values
relatively has been nowhere so striking
issues. The come back in these par
ticular shares stands out more promi-
nently because Of the almost phenome-
nal accomplishments in the rehabli-
tation of these important and growing
enterprises. None of the country's cor
porations were harder hit than these
concerns durlng the war and the post
war period, Simply because 1t was alb
solutely beyond human power to have
foreseen conditions arising from the
almost revolution Of economic and fun
damcntal principles.
Unlike many of the industrial cor
porations, they were unable to lay away
nest eggs from big war profits to
weather the storms precipitatcd by the
drastic defation process. All of them
were compelled to stand upon their own
legs and battle with conditions which
for n time threatened to engulf them.
Efficient management, severe retrench-
ments and widespread economies en-
abled the majority to be safely piloted
through the dangerous channels leading
to bankruptcy and receiverships.
That is all now past history. and all
the more important utility enterprises
are in a healthier and sounder position
than Mt any time since their organiza-
tion. The battles fought were not with
out compensation in that the struggle
for existence resulted in receiving
much fairer treatment from the various
State commissions and other regulating
bodies than was dreamed of not many
years ago. Not only We're higher rates
granted. but regulations little short of
confiscatory were either repealed or
greatly modified.
To help matters along these same
companies have every prospect Of ma
terially benctiting from the situation
created by the prolonged labor dis
turbancc in the coal industry and the
railroads. Much has been said concern
ing the substitution of oil fuel for
coal, but this is relatively infnitesimal
to adoption Of electric power in plant
operation, supplanting the steam en-
gine. The cost of substituting electric
motor power in manufacturing plants
has in every case been quickly overcome
by the savings in power costs, as when
the machine is stopped the operating
power automatically shuts off.
Then again, the unacceptable fuel
shortage this winter is certain to force
the people to obtain heating require
mcntS other than from coal. With the
existing higher rates this unexpected
new source Of revenues is bound to
swell the earnings of all utilities and
further strengthen their financial posi-
tion. Consequently the position of
this class of bonds has been materially
improved, as the new conditions not
only assure the safety of fixed charges,
but will permit number to restore old
dividend rates on stocks and resume
where they have been left off.