Evening star., 1924-01-05
BONDS ARE STRONG
AT HIGHER LEVELS
Traction Issues Again Advance on
Earnings Reports-Sugar Is
sues Sell Higher.
FOREIGN GROUP REACT
$15,0 900, 900 Lehigh Valley Offer
ing Due Next Week.
BY GEORGE II. HUGHEs.>

Special Dispatch to The Star.
NEW YORK. January 5.-The bond
market continued today the show OF
strength initiated yesterday. High
grade investment securities were
firm and there were substantial ad-
vances in the speculative issues.
The feature was the heavy deal
ings in Market Street Railway first
5s and the same company's per cent
notes both selling within a point or
less of par. This activity was In
response to the announcement that
$13 100000 in refunding bonds will
be offered next week to take up the
$4,000. 900 of 6s and the 100000 OF
SIS. the former maturing in April and
the latter in September.
Both issues have been strong all
week, during that time the 5s having
gained more than 4 points and the 6s
about 2h
There never was any reason in earn
these bonds sold in October and Mo-
vember. This low for the 5s was
8S1s and for the Is. 93A. The only
doubt was about the conditions OF
the refunding. which now seems to
have been definitely removed.
Transit 0s Also Active.
Next in interest to the active buy
fng Of the Market Street Railway
bonds was the strength in Brooklyn
Manhattan Transit IS, which made a
new high also on large sales. On the
week these bonds advanced between
IA and 3 points, rejecting contin-
ued good earnings. Just now, in fact,
these bonds are tho speculative IA
vorites among all the fractions.
In contrast Interborough issues
have been dull and heavy. Third
avenue adjustments, on the other
hand. are up over two points on the
the last statement was not quite SO
favorable. In bonds of a higher
grade there has been good buying
Of Hudson and Manhattan Refunding
5s which at the market yield over
8 per cent. and are amply protected
by earnings.
In the speculative rails the New
York, West Chester and Boston AIS
up more than four points on the
week, held their gains today. while
there was a better market for other
New Haven obligations notably the
debenture Sc.
St Loifs-San Francisco bonds are
also all up on the week from the in
vestment issues. the prior lien As, 5s
and 6s, to the speculative adjust
ments and income 6s. The compare
tive neglect of these bonds for SO
long is hard to explain. Fries were
Arm today. but with little price
change.
Cuban Cane Sugars Gain. ~-
Among industrials, Cuba Cane Sugar
IS and Convertible IS sold at their
recent highs. The weeks advance is
greatest in tho Is, which have been
selling out OF line, there being no
diff1culty in security in the two Is
sues. International Mercantile Ma
rine IS held above so, in sympathy
with the strength in the preferred
stock.
In the high grade list the feature
again today was the strength in the
new American Telephone and Tele-
graph debenture S rs above the issue
price.
In foreign bonds the French gov
ernment obligations reacted frac-
tionally under last nights high, but
were still surprisingly firm. As a
matter of fact on the week these
bonds are practically unchanged.
Next week is expected to see a
large increase in the volume OF new
financing. including s15, 900 in Le-
high Valley bonds.