17 AUGUST 1934, Page 30

LOOKING AHEAD Some six months have to run before the

railway results for the past year expressed in net revenues and dividend distribu- tions will become known, and in the meantime, freed from the fear of Labour troubles, professional operators doubtless feel that if traffics continue to increase even moderately the atmosphere will be favourable for a further rise both in Prior Charge Stocks and in the Ordinary issues. Moreover, as regards the former, professional operators doubtless base their anticipations partly on the idea of a further rise in trustee securities, thus giving a stimulus to the Prior Charge Stocks of English Railways, even though most of them no longer come under the head of full trustee stocks. This upward move- ment, in its turn will, so it is argued, have a sentimental effect upon the Ordinary Stocks even though no dividends may be in sight for some time to come. If, however, such an advance in the Ordinary Stocks takes place as a result of these speculative operations, genuine investors and existing holders will, no doubt, consider very carefully whether intrinsic merits in the shape of dividend prospects justify the advance, for there are many who believe that sooner or later there may be some drastic reduction in the nominal capital of the Railways.