One of the outstanding advantages of the Capital Reorgani- zation
Scheme recently submitted by the Directors of the Underground Electric Railways of London is that it greatly simplifies the method of distribution of profits. Time was, of course, when the complicated capital arrangements were not of great moment in that respect, owing to the unfavourable financial position, but now that the outlook is improving the lPirectors have done well to endeavour to simplify the arrange- ments. Among other things, the ls. shares disappear, as all the interests are to be converted into one class of £1 ordinary shares. Each £10 share is to receive 71/,, of the new £1 shares, and the Contingent Certificates are also to be disposed of finally for 200 ,000 £1 shares. All the same, the market. appeared to have been looking for something in the Capital Reorganization Scheme more directly to stimulate expecta, tions concerning forthcoming dividends, and the quotations of the shares have reacted since the Scheme appeared. In their circular the directors also refer to arrangements made to secure the raising of new capital, and on the whole I find in good quarters that the opinion, both as to present and future prospects of the Company, is a hopeful one. Certainly, the Company has deserved well of the public, whose interests it has served, and it must be hoped that in due course the Stockholders will receive some-kind of reward in increased financial prosperity.
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