Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-15
BOND PRICES SAG
|NDRAGGY MARKET
Advent of New Issues Re-
suits in setlidg of Old
Groups.
BIZ y. H. RICHARDSON.
II dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, January 15.-In the
wake of the $500 ooo 900 of new bono
issues f1oated so far this week has come
o period of readjustment Of investment
portfolios, with the result that bond
prices sagged today as outstanding is
sues that could profitably be sold in
order to take up new offerings were dis
posed of. The declines were narrow
and the list yielded reluctantly
AS is traditional, the heavy oversub-
scription of the American Telephone
per cent issue has resulted in the bring
ing out Of other new issues offered to
those who were disappointed in their
small allotments of the telephone bonds.
Today's budget included $35, 1888, 900
Chesapeake 81 Ohio refunding 412s,
$4,000, 900 Associated Gas g. Electric
per cent convertibleS, the $4,000, 900
North American Edison issue announced
Tuesday and nearly 100000 of NUM-
cipals.
The SIS and 51ks of the North Ameri-
can Edison Co. which were already out
standing were off today under heavy
selling. The 5las have dropped liz
points since the announcement of the
new bonds and the IS have dropped
over 2l1f
The new issue was admitted to trad
ing on the curb. opened at 1854, or / IA
points premium, and in a few sales
dropped to the offering price of 9512.
Iigh-g grade rails, public utilities and
industrialS were weak, with few excep-
tons. Atchison General As, Canadian
National IS, Pennsylvania General 4I2s,
Great Northern rs, Inland Steel 4 l2s,
American Telephone 512s and when
e It'll IAIy ~ EE
Columbia. Gas SIS all had declines, rang
ing up to point in the case Of the
Pennsylvania issue. On the side of
advance were st. Louis-San Francisco
"A" As, Southern Pacific AIS and
Standard of New Jersey SIS.
The selling had an even more uni
form effect in the junior railroad list,
the only exception being the obliga-
lions of the Seaboard Air Line, which
were strong. The president of this road
announced completion of the sale of
$40, OoO, 900 common stock and the sue
cess of the conversion of $50. 458, 900 of
adjustment bonds with over $4,000 600
Of unpaid interest into Sill ,229, 900 con-
Solidated per cent bonds, 336,570
shares Of common stock and warrants
emitting holders to subscribe to 224,580
additional shares. The plan, according
to the president, effects a debt reduce
tlOu Oh 40,IoU,UUU.
OF interest to the market today was
the statement that the United Steel
Corporation has completed plans to re-
tire S54, 700, 900 bonds of subsidiary
companies. These include Illinois Steel
Co., $18.500,000: H. C. Prick Coke Co.,
SO, 705 900: Monongahela Southern Rail-
road. $5,S00,000; Union Railroad, S.
900, 900. and some smaller issues
Foreign bonds were irregular, with
strength in South Americans and
French issues. Since Japan went on q
gold basis last week there has been
heavy European buying of all Japanese
dollar bonds. In the last day or two this
has been concentrated in Toxic Elec-
trio 6s, which have advanced from SO to
about 9l. This brings the bond once
more above its original issue price of
coz and makes it one of the few for
eign issues brought out in the last two
years to be selling at a premium,