HOME RAILWAY PREFERENCES With the exception of the London, Midland

& Scottish the home railway companies have done all that was expected of them in the first half of the year, and a little more. Expenditure has been rising but net revenues, especially on the London & North Eastern and the Great Western, have improved quite considerably. Once, again, therefore, I feel justified in pointing out the merits of some of the preference stocks. Here is a selection which offers good security with attractive income yields :—

Current Price.

£

0/0

s. d.

Gt. Western 5 per cent. Pref. .. • •

ii9i

4 5 3 L.M.S. 4 per cent. First Pref. .. ..

86} 4

14 3

L.M.S. 4 per cent. 1923 Pref. .. . • 79} 5 9 1--iN.P--ft- -4 per cent. First Pref. ..

74i 5

8 9 Southern 5 per cent. Pref... ..

..

n7 4 6 9 In the current half-year the companies will all be faced 'with a further rise in costs but will have the benefit of three Months' working on the increased level of freights and fares. With gross receipts still rising, they should be able to improve their net revenues still further by the end of the year, strengthen- ing the cover behind the preference stocks. Among the specu- lative stocks in the railway market London & North-Eastern second preference, quoted around £30 per £zoo nominal, or 6s. in the £, still looks to me better value for money than any of the ordinaries. L.M.S. ordinary, at £33, however, is prob- ably worth. putting away for six months on the theory that the net revenue figures just declared represent a pretty conservative estimate of the earnings position.

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