Evening star., 1927-10-03
BOND LIST STRONG;
TRADING QU|ETER
Junior Rail Mortgages Are
Feature-IndustriaI Issues
Are Irregular. y,
BY CHARLES +. SPEARE.

| Special Dispatch to The Star.
/ NEW YORK. October 3.-The bond
! market was quieter today, but 1t con-
! tinued to exhibit strength in various
| groups Of domestic and foreign is
! sues. The moderate supply of new
! bends offered in September and the
! absence of any large issues today were
| helpful to those outstanding.
| With the return of Junior partners
| and sales managers of many of the
! large investment houses from the
| Seattle convention, it is expected that
| there will be more activity in the way
| of bringing out new bonds. A num-
| ber We're held up until after the con-
, ..'ention, when the selling forces of
! important organizations could be GEN.
tered on them.
The strength of a number of junior
! railroad mortgages was an important
feature of today's market. Southern
Railway general 6s sold at the highest
price Of the year and the 6ias about
duplicated their previous record of 125.
Chesapeake IS Reach Par.
Fort Smith & Texarkana 5i2s sold
above 1o7 for the first time. The
Chesapeake Corpora ton SIS finally
touched par. They have not respond
ed tC the full extent possible in rela-
ton to the rise of Chesapeake Corpos
ration stock, but they show a very
substantial premium for those who
bought them when they We're issued
last Spring.
Kansas City Southern SIS were about
102 and the various Minneapolis, st.
Paul & Sault Ste. Marie issues, from
the consolidated IS to the 12s, were
all quite active and strong. A nota-
BILE exception to the general movement
was that of Florida East Coast 5s,
which are at the lowest of the year
on account of the disastrous state.
ment of the road for August and for
the first eight months of 1927. In the
latter period gross revenues declined
over 35 per cent and net nearly 65
per cent.
While these bonds have been going
down, the Seaboard Air Line consoli.
dated ts have been rising to within
a point of the high of the year. This
is illustration of the value of DIVERSE.
fication. The Florida East Coast Rail.
way is affected almost entirely by
conditions within the State of Florida.
The Seaboard Air Line is also un-
der the influence of these conditions,
but has been able to balance the loss
in one State with gains in the half
dozen other States through which 1t
runs.
Italian Bonds Hold Gain.
Italian government Is, City of Milan
and City of Rome 61as and Italian
Public Utility Is were able to hold
last weeks gains. The French rail
group showed more life. German rs
moved back to 107, Argentine 6s have
been fractionally better as the last
issue is absorbed, and Mexicans were
in demand again at an advance of / u
points.
Industrial issues We're Irregular The
trend toward public utilities is still a
very positive one. One of the days
movements was in Continental Bag
and Paper 6s, which were brought out
several years ago around par, dropped
to rs and have stood there for nearly
a year. They were very active today
above SIS. Local fractions were irregu.
lar, with Brooklyn Manhattan Transit
6s at the lowest of the year.
The second Liberty ANS, which are
to be paid off at par November Is, con-
tinued to sell at slight premium.
There is very large undeposited
amount of them. Nearly $3.50 900
Delaware & Hudson SIS were uncon.
verted when the privilege expired on
October l.