Evening star., 1922-10-04
BONDS IN DEMAND
At HIGHER PRICES
by GEORGE r. HUGHES.

| by Special Leased wire 10 Inc star.
| NEW YORK. October 4-Bonds. like
! stocks. were active and higher in to-
! days market. Gains of a point anG
! more We're common.
| 1t was noticeable that the larges,
| advances were made by the second
| grade and more speculative secur-
tiles.
Liberties, while slightly higher. did
not make proportionally as large
ga inS.
| Railroad bonds were in especial de-
! manG. The active issues covered as
wide a range as New York Central
refunding and Improvement 5s and
Seaboar' AIR Lines 6s. The !asi
named bond was up more than two
! points at 691.. Speculation here evi-
| IDENTIFY was based on expectation OF
improved earnings in the last quarter
of the year Up to the end Of July
the Scaboard was earning at rate
sufficient to cover barely 81 per cent
of fixed charges.
st. LOuis-FrissO.
ST. Louis-Sau Francisco income 6s
which sold eX the ST payment on
Monday. gained more than a point
! showing for a bond on which no
interest will be paid for a year to
come. st. LouiS-San Francisco earn
| ingS. however, are very good. On
present indications not only will the
fun rate on the preferred stock be
covered. but something like 4 per
cent will be left for the common.
The adjustment SIS also were higher.
but speculation was not as active
as i'll the incomes.
Other Bonds Firm.
Other railroad bonds in demand
INCLUDED Great Northern as. up a
point and attractive because of the
-callable feature: Erie prior-lie
As and both Southern railway IS and
Southern railway Chs. Colorado and
Southern 4 l.s of 1885 also gained a
point. At today's price the yield to
maturity is ) !. per cent and. while
the bond is secured by second lien.
the Colorado and Southern. under the
Burlington management, has shown
remal kably consistent earning power.
An Exception.
An exception to the general trend
among railroad bonds was Western
Pacific IS. which were heavy. This
was evident more in the offerings in
the outside market than in the quota
tions on the exchange.
All the foreign issues were strong.
United Kingdom 5l3s of 1887 sold
almost three points above the low
reaChed Wnen reports from tne
Dardanelles were the most gloomy.
French issues. which were sensitive
in the extreme to the bad news last
week. proved equally responsive to
favorable advices today. Both the SIS
and the 712s made substantial gains.
as did the French municipals
Czechoslovak SIS advanced more than
point and the Japanese issues were
noticeably higher. However, the
Jugoslav SIS. dealt in on the curb,
continued to decline.
Traction Issues.
Among the traction issues some at
tention was attracted to Chicago
Railways SIS of 1927 selling about
Sl12, against a high for the year of
95. Today's price is equivalent to a
maturity return of around 10 per
cent. a striking commentary on the
position of traction bonds generally
in the estimation of investors no mat
ter what the security.
The additional issue of s7,500,0 900
American Gas and Electric per cent
debentures, announcement of which
was made in these dispatches yester-
day, was reported heavily oversub-
scribed. Sales were made on the curb
today at par. the price at which the
bonds were offered.