For the benefit of that class, im
i portant. if small, it may he pointed
out that there is a distinction he
| tween the bonds of relatively high
I .and thns* lnw*r coupon rates. Th* 1
j :n:lo is. that thp bonds carrying the i
j higher rate give thp purchaser a ;
i little more return than those with h '
S lower coupon, hut the latter have
i the hotter chance of price appreei- i
f ation in an advancing bond market j
! generally. fine reason for this is j
‘ that the higher-coupon bonds sell
j-stt premiums, and by higher rates is |
; meant 5 per cent and over, whereas. '
| the lower ones, those with 4‘j per
cent, sell at a discount. Another
| reason is that the higher-coupon
i "bonds are limited in their possibili
ties l»v callable prices, which are not
...so great a bar for the others.
There are not many utility issue*
|’■with i 1 ) per cent coupons yet. but.
i 'undoubtedly, there will be more as
time goes on. There is no reason
‘why the strongest of the utility cor
porations should not he able to fi
nance themselves on the same basis
as the most prosperous railroads. It
is the writer's opinioti that the pref
erence should he given to the utility
bonds over the railroad bonds when
the two are approximately equally j
well seen red.
•
August freight traffic on th* Ter* j
Marquette Railway showed a good
gain over August last year—73.477
carloads against fi3,577.
