PRIOR CIIARGES.

To some extent, of course, these views are applicable to the Prior Charge stocks, though obviously the applica- tion is one of degree. Whatever may be the present security of the best Prior Charge stocks of our English Railways, it is not equal to that of the pre-War period, even when allowance is made for the very large reserves built up by many of the companies. And yet, as the following table will show, the yield on some of the better-class Prior Charge stocks is not so very high, though admittedly all of the stocks enumerated in the. following list come under the category of trustee securities, and, therefore., even the lowest yield mentioned in the list, namely, £5 ls. per cent., is not to be despised in these- days when • a full 5 per cent. trustee stock is not always easy to obtain: From the circular of one of the best- known firms on the Stock Exchange I quote the following list of present prices and yields per cent. on the leading Prior Charge stocks of English Rails. By " present prices," I am referring to those of a week ago, but present-day quotations scarcely vary by a fraction from those quoted and the yields, therefore, can be taken as approximately the same

L.N.E. 3% Debs. ..

tf 4% 1st Guartd.

f 2 4% 1st Pref. ..

4T 2nd Pref. .. 4% Perpet. Debi. 4% Cons. Guartd.

G.W.L.M.S.

4% Pref. ..

4% Debs. ..

ft 5% Cons. Guartd.

9 f 5% Cons. Pref... Southern 4% Debs: ,, 5% Pref.

• •

•

• • • • • • • • • • • • • • • • • • • •

56 71 63 56 78 77 72 79 98 94 78 90 £ s.

r 7

5 14 6 9 7 6 5 3 5 5 5 13 5 1 5 4 5 8 5 3 .5 13 d. 6 0 0 0 0 0 0 0 0 6 0 0

From the foregoing it will be seen that for the most part .the yields range from £5 ls. in the case of Great Western- 4 per cent. Debentures up to £7 6s. per cent. hi the case of London and North Eastern 4 per cent. Second Preference. It will be observed, therefore, that in the matter of security, conditions appear to differ materially in the various companies.

Yield Price. per cent.