"Both railroads have turned out to be very good operators," Ms. Evans at Morgan Securities said.

Mrs. Byron-Brown, 42, is also the managing editor for equity research at Morgan Securities.

J. P. Morgan Securities and Swiss Bank Corp.

The underwriter was J. P. Morgan Securities.

J. P. Morgan Securities and Goldman, Sachs & Co., joint brokers.

Lehman Brothers and J. P. Morgan Securities.

J. P. Morgan Securities and Merrill Lynch & Co.

Among the companies that have selected Morgan Securities recently are the Chubb Corporation, an insurance concern.

Securities dealers declined to comment publicly on Morgan Securities partly because they use the Morgan bank for financing and other services.

Morgan Securities' first move in junk bonds was to create a research staff of a dozen analysts drawn from the ranks of Morgan bank.