The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-02-28
PUBLIC UTILITY
BONDS GOOD
BUY
Contains All Elements 81 First
Glass Investment, Says
Banker.
BY MUNROE ROBERTS
Copyright. 1929. BY Cos11Or0lttan

News Service.l
NEW YORK, Feb. 28.--s When
issued and distributed under proper
regulations, high grade public utility
bonds contain all the elements ue
first. class investment for the most
conservative and exacting inveg-
tors" III. j. Shaw OF A. III. BickmOre
and Company, specialists In public
utility securities said today.
The public utility companies 1T
this country are supplying pro-
duct or rendering necessary serv.
ice to the most prosperous sections
OF the country, their affairs arR
under the closest supervision. they
operate on strictly cash basis. re-
quire a comparatively small capital l
and have little or no interrupfion of
their business In the periodic sea-
sons Of depression which inevitably
sweep over the country. For that
reason their bonds are not subject
to the influences which cause vide
fluctuations in securities OF other
kinds.
The best grade or public utility
bonds are those issued by the corn
panies furnishing electric M@hf.
power and gas to prosperous com.
munities in the United States On
these bonds the yield, az q rule Ii
slightly better than on tax-exenpt
government and municipal issues a6
well as on the more popular ii.
dustrials.
AT the foot OF the list, -
CARDS desirability, would place the
traction group, not because of poor
management on the part OF the tran
ton companies, but because oS the
heavy burdens that have been
placed upon them in recent years.
notwithstanding the valuable serv.
ices rendered by them, II has been
necessary to actually abandon thou
sands of miles Of good traction lines
The best sales territory for pub
lie utility bonds is among private In
vestors who from experience have
learned to appreciate them.
Striking gains are being reported
in the net earnings Of some O8 Cur
representative railroad systems Tor
the January month. Despite the.
fact that the roads were handi-
capped in some territories by heavy
snowstorIns, they made substantial
Improvement both in car loadings,
as well as in net earnings. Given
a. year free from Congressional
railroad baiting,' with plenty of
freight and plenty OF willing work
ers, the railroad systems should eas.
lily round out their quota OF net
earnings this year and have some
thing over for purposes OF expans
sion.
The stock exchange authorities
are making thorough examination
OF the so-cal1ed privilege system,
generally known as the buying ana
in as nourishing condition % In
former years, the putin call market
has been fairly active OF late. Par
ticular interest attaches to the Iii
vestment at this time because of
the fact that the pools ana pool
managers have come to receive
their Recommendations In calls on
the stocks in which they are oper-
ating. and. of course, 1t Is sup to
them" to make them valuable.
The latest price schedule OF the
United States Steel Corporation
shows an advance in blue and black
annealed sheet steel So a ton; gal
vanized steel, SIS, and full finished
automobile sheets, S.. The new
prices of the big corporation are
about 50 ton below those Of the
leading Independents, but delivery
is a more important factor than
price in the steel trade, as in other
lines Of industry at the present
time.
A new issue Of $4,000. 900 ten-year
collateral per cent sinking fund
gold notes Of Lockwood, Greene II
Co. is offered today by New York
banking syndicate.