— AND ORDINARY SHARES There is an even stronger case for
holding fast to the ordinary shares of the supply companies, and especially of the undertakings, such as County of London, Edmundsons, North-Eastern Electric, and Midland Counties, which one might naturally expect to form the spear-heads of a grouping policy. As I have previously indicated in these notes, the days of big capital bonuses and steadily rising dividends in the supply industry have gone, which means that rapid capital appreciation is also imlikely, but the scope for further growth in consumption still makes these shares attractive equity investments. Priced to yield between and 42 per cent. on current dividend rates, the ordinary shares of the big undertakings have reasonable prospects of gradual appreciation under the proposed new regime. My own choice would fall on Edmundsons LI ordinary, at 375., which look decidedly under-valued to give a return of 42 per cent.
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