13 AUGUST 1927, Page 23


I have not gone at all closely into the actual prospects for the current year, because I agree with the writer of the circular from which I have quoted that it would be unwise to look for anything much better than was obtained in 1925. And if, as may be hoped, this view is too cautious and the economies effected prove to be greater than estimated, even then the question of replenishing reserves has to be considered. On the other hand, in the case of the London and North Eastern Railway it will be seen that better results than those for 1925 would have a powerful influence upon the company's position, enabling it then with some ease to retain all its Prior Charge stocks in the list of trustee securities. That in the meantime, however, the Second Preference stock should be giving as high a yield as over 7k per cent. is sufficient indication of the anxiety which is felt with regard to the matter. I cannot help thinking, however, that the 4' per cent. Preference of the London Midland and Scottish and the 5 per cent. Preference of the Southern Railway look rather attractive, as does also the Great Western 5 per cent. Consolidated Preference, giving its yield of over 5k