San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-04-06
Ance Of Investment Buy.
|g Instead Of Specula-
tive Indicated.
RNINGS PROVE 1T
bic Utilities Strong in
So-called Outside |
Markets. |
By BYRON SELLER.


ewi York, April 5.-The week has
marked by a revival of intere4 1t
railroad stocks so pronounced ais
Indicate the possibility of invest
buying as distinguished from THE
hly speculative. That there is IA
I'D basis for such a revival, THE
ruary earnings statements abup1d-
" demonstrate.
compared with January the i'm
cement was striking. 1t was mot
the. increase in gross earnings,
the larger proportion that WAS
Id for net which was the i'm
|sive feature of the returnJ 1t
to, 1.-The belief that even Though
fic should fall off as apparently it
in March, economies in oTtera.
would suffice to make a good
Wing for the stocks.
Southern Pacific Il Leader.t
The leader in this movement twas
Southern Pacific. For MONTHS
les of this road have dragged along
hout. material change. All the
it was earning and PAYING its
pr cent dividend nearly twica over
apparently was out of linef with
hison, granting that the latter
the greater earning power.
Vail street was quick to Suggest
the raising of the Southern Pa
! dividend was under cohsidera-
Provided there is no Vnfayor-
railway legislation at Washing
high grade dividend paying rail-
stocks have been selling below
merits as investments on the
s. of the current charge for money
record car loadings.
he strength Of Southern Pacific
shared by stocks of other strong
iers. such as New York. Central
Atchison. With regard TO the
pr. many holders of the stock still
+ for an eventual increase in the
Fterly disbursement. 1t is pointed
that for the past ten years. earn
on Atchison common have APP
kimsted twice the dividend require
r - - - - -
~ TJy en-. cumucu ec~;r. ss,i
time the dividends ha{e been con-
|ed at the same 6 per cont rate.
Guch Speculation In. Rail- Bonds,
long with the actiyitf I'M the rail-
p stocks has been specuya in
road bonds, chiefly OF the higher
ding issues. such MS thosN Of the
Paul. the New Haven. The Sea
I'd and the Erie. II must not be-
kotten that there are three great
road refunding operations which
kt ha completed within the next
+. These are the financing by tho
timore & Ohio. the New H3ven and
/ st. Paul If their extensive nearby
|urities. The hest INFORMATION as
the progress along these Mines is
work on the Baltimore X Ohio
h has been undcr way fort some
b. As to the New Haven. the
ement Is made in the annual re-
! published this week that nlans
under consideration for taking eare
he Euronean loan which falls due
iii I. 1925. With regard to ST.
jl. bankers have not vet under
hn the task and will not under
Z It for some time 10 come. =.
FOR has the buying. Of ST. Faul
| ds been done nv the interests
kch have this financing to fake
~. II has como from Outsiders
is believed to have been some
ht embarrassing 70 the bankers.
Public Utilities Active.
The week has heen noteworthy for
kee~ilative and investment hctiv-
cuire as significant rs in rallrond
|lrities. but an activity Of (which
general public has taken little NO
There has been sharp rise IN
securities Of electric light and
yer companies. not on the ey-
|nge. but in tne so-callsd outside
bonds and e,en preferged stocks Of
Re companies have noN shared the
b-ovement neavlv as mNch as tho
kmor stocks. Nor has i&. b"en the
|,rit;es of operating compaUies. but
holding compnnies which hava re-
ted the greatest attention. For
+ time there was a prejudice lamonr
servative Investors against Nolding
|G annie This seems to be bre's-
lore stress ia being nut up@n fl"
[sification of risk which the hold
company eniovs over the oHeratinr
many. a condition pa~ticrlaylv true
the public utility field. Mean;
liz the electric light and power nro-
-ers have been renorting a steadilv
reasinc demand for the service they
,e tn sell. an increase which has
N reflected ~ MT earnings.