13 AUGUST 1927, Page 23


This table showing the margin of cover sufficiently explains the wide divergence in the yield to the investor on the securities quoted. With the exception of the London and North Eastern, all the companies had a considerable balance in hand after paying interest on the prior charges, and any encroachment on reserves was usually made with the object of determining the rate of interest on the Ordinary stock. In the case of the London and North Eastern Railway, however, it will he seen that the balance was on the wrong side, and that is the more serious at the moment because the North Eastern Company has probably drawn more drastically on its reserves than any other company.