Financial Notes
THE RAILWAY SETTLEMENT.
IT is possible that holders of Ordinary Stocks of English Railways may have been somewhat puzzled by the fact that the compromise settlement reached last week with regard to a restoration of the cuts in wages has been followed by a considerable rise in Home Railway securities both as regards Prior Charges and the Ordinary Stocks. The explana. tion is a fairly simple one and it maybe well that holders of Ordinary Stocks, especially, should appreciate it because it may influence their future action in holding on to or realizing the stocks at the higher value. The partial restoration of the cuts in salaries is expected to cost the companies in a hill year an aggregate amount of about 11,100,000, and inasmuch as net revenues are very far below the level of 1931, when the cuts in question were made, it might have been thought that Ordinary Stocks would have declined rather than have risen as the result of the decision.,
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