The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-03-21
PUBLIC UTILITIES
BONDS ARE STRONG
Better Market for Them Due
to Attitude of Regulating
Bodies.

The last week was characterized by a
lack of striking developments In the m
vestment situation. In so far as new
issues of securities are concerned It was
the quietest six day period distributing
bankers have known since the squirt OF
new financing STARTED about twelve weeks
ago. A little more than $13,OOO,O0O Oh
new bonds were offered to investors,
decrease OF about S35,oVU,oVu lrolh iaSe
weeks total.
About $4,000 900 of last weeks bond
total was divided into three public utility
issues-S7. 100000 san Joaquin Light
and Power Corporation unifylng ana re-
funding per cent bonds. s2.000,OoO Cali
fornia oregon Power Companys flrst
and refunding mortgage twenty year
~ per cent gold bonds and s2,5cO0oo Los
Angeles Gas and Electric Corporation
general and refunding mortgage per
cent. bonds.
1t was more by design than accident
that all the large offerings were In the
public utility class. Indeed bankers find
that they can market the securities OF
the big public service corporations Tar
more readily since the various regulat-
ting bodies have shown signs OF adopt
ing a more benevolent attitude toward
them in respect to rates, &c.
Public utility bonds were among the
strongest features in the bond market
and many of the most important issues
sold at or near high records for the
year This was especially true of the
bonds of telephone and telegraph com
panies, which were favorably influenced
by the increase in rates granted by the
Public Service Commission. New York
Telephone AIS and American Telephone
and Telegraph As and 5i5s all touched
new high prices for the year.
Traction bonds also responded to the
promise Of better things held out by the
prospect of the transit bill passing the
State Legislature. Bonds OF the Brook
lyn Rapid Transit. marlborough Rapid
Transit, Hudson and Manhattan Com
pany and Third Avenue Railway Com
pany advanced TO within fractions of
their 1921 high records.
The bond market was not very active
last week, but the trend of prices was
distinctly upward. Relieved of the
pressure OF selling for tax purposes
and encouraged by signs Of an easier
money situation. the market gave q good
account OF itself Virtually all groups
Of bonds participated. but the fractions
and public utility bonds were the most
prominent.
Foreign Government bonds and Lib
crly DonuS continued neaVy In the early
part Of the weeks, some issues touching
new low levels, but substantial recover
les we're recorded before the close on
Saturday. Kingdom OF Norway IS got
down to new low record since January
1. OF $685., but rose later to 99L Sac
Paulo IS and Chilean Government Ss
sold at their low records for the year
OF 97h and 80, respectively Some
large sales OF Chilean bonds were made
for cash, which was taken as an indl-
cation OF short account in that issue
French Republic Ss sold to within about
/ point OF their low record, and Dan
ish consolidated s. about u point.
In the Liberty bond group the first
3i5s were the weakest, declining 10 a
new low record for the year or 1890,
but toward the end OF the week they
rallied about ! point. Sharp rallies
from the low prices also occurred in
the other Liberty bond issues, particu-
larly In the second As, third AIS and
fourth Al.
Some railroad bonds also established
new low records last week and in their
case the rally was not quite so Wig
orous. Atlantic Coast Line AS, b. and
Q. gold As, and Chicago Great Western
first As were three issues breaking new
low ground. Industrial bonds were
quiet, there being little interest in this
group with the exception perhaps OF
Y. $. Realty SIS and Y. s. Steel 5s. which
advanced to within n fraction Of their
high prices for the year.