Venturers' Corner
Buying of American utility shares was the obvious reaction to President Roosevelt's defeat on the Supreme Court issue. With a liberally-minded Court, reforms in the utility industry are still practical politics, nor should I like to assume that the President is going to sulk in his tent, but it will be surprising if the companies are treated as drastically as seemed inevitable a few months ago. Market quotations had been severely scaled down through fears of punitive legislation, and there should be scope, at least from a speculative point of view, in American utility shares at current prices. A share with possibilities and which, incidentally, enjoys a free market in London, is Inter- national Holdings Common, now quotes around 27, dollars.
As its name implies, the company is a holding company, one of the main assets consisting of shares in Hydro-Electric Securities which, in turn, has large interests in American utility concerns. The total value of the assets held is at present roughly 16,500,000 dollars, equivalent to 31 dollars per share, against the current quotation of 2i dollars, so that on break-up calculations a buyer starts with a little in hand. Income is improving, but as the value of the assets per share is below the minimum fixed under Canadian law for dividend distribution the board is formulating a reorganisation plan to enable divi- dends to be paid. Apart from the chance of capital appreciation there should also be a reasonable return on the outlay when the promised scheme has gone through.
CUSTOS.
[Readers' enquiries, or requests for advice regarding particular shares, will be answered periodically as space permits. Correspon- dents who do not desire their names to appear should append initials br a pseudonym to their questions.1
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