Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-05
NEW BOND ISSUES
FIND READY SALES
Investment Market Is Ex-
pected to Show Rapid
Improvement.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, January 4-During the
past week the investment market wound
up the year 1929, depressed because
OF income tax selling, took breathing
spell on Wednesday, resumed Thursday
in dull trading session, and then
forged ahead on Friday under a brisk
reinvestment demand.
The happenings of the last three
sessions of the week, however, were
merely the prelude. traders are con-
WINGED, to greater activity next week
and for many weeks to come
AS matter of fact, bond houses had
Thursday and most of them have pre-
pared their list of offerings to reinveSt-
ment buyers for publication on Monday.
New Issues Sell Well.
Thus the break in the middle of the
week served as a recoil for the in
evitable recovery from the low levels
at which bonds still are selling. Money
rates were still high after the holiday.
but they eaScd on Friday.
New issues continue to sell we'll and
bond traders report that big offerings
of the past two or three weeks are
about two-thirds disposed of already.
Many other large offerings are sched-
uled for the early. weeks of this year,
but this week was comparatively bar.
rem, the only issue of Importance being
one for $60,000,000 of 6 per cent de-
bentures CT the insult Utility Invest
mentS, Inc. This issue was offered at
99I2 and carries both a convertible
feature and stock warrants. It opened
on the produce securities market at
around the offering price
During December there were $452,-
238, 900 Of bonds offered, as against
$22, 10000 of new stock financing. Last
year those figures were practically re-
versed, with $279,9l0,000 of bonds,
the same month $74,099, 900 of bonds
were called as against SOL ,932, $50 in
December 1928.
Many other issues are due to be
called in the next few weeks, including
the Bethlehem Steel 51as and IS, on
February /. The amount available for
re-investment, Immediately, therefore.
is considered to be well below require-
mentS, as conservative estimators place
funds to be re-inveSted at close to
81, 900 900, 900.
Baldwin Locomotive may possibly
issue some bonds, as authority is to be
debt. The last issue by this concern
was put out in 1910. 1t consisted of
$15,000,000 of per cents, of which
$5,0O0,00 Is still reserved and over half
of the remainder has been retired.
This bond has been quoted close to
the call price for a long time. Other
large amounts expected to be issued
consist of rail equipments, municipals
and induStrialS.
Foreign Bonds Active.
The market ended 1929 with an
average for domestic bonds of 1851,
or of $40 on the year This figure
is about 2.30 above the low level for
1929.
Foreign bonds were active during the
week and despite selling on Monday
and Tuesday, some of the French, Bel
gian and Central European descrip-
tons made Roadway. Although the
later sessions of the week saw some
advances in German and South Ameri-
con descriptions, these are still at low
levels because of the heavy losses In
them during the october and November
break. They had to withstand the
heaviest onslaught of tax-selling.
Argentina placed a $4,000, 900 loan
IN London, which was construed as
reason to support that countrys dollar
credits, and other South Americans i'm
proved with them.
One OF the tragedies of the invest
ment market just now is the position
OF the traction issues. These have, OF
course. been weak for a long time, but
just as the year ended a number OF
reports were issued which indicated
that many of the traction bonds are
IN much worse shape than holders hac
fhnlNnhf NF
selling between 5 and so, and for some
there are no bids of any kind. An
indication of how most OF them are
situated is given In the example of a
small strest railway in PENNSYLVANIA
This company had a net balance, after
charges, of $6,143 in 1927; a deficit OF
$4,159, after charges. in 1928. and q
deficit of $l0.056 in 1929. At the same
time real estate holdings which were
pledged to secure the bonds were as.
sessed at cents on the dollar of bond,
issued.
Attention was drawn to the veal
condition of some sugar company bond,
by the request that holders of $4,132..
300 Punte Allegro Sugar Co. l5-veal
per cent sinking fund convertible:
| deposit their debentures under agree.
ment to waive sinking fund require
| ments for five years. These bonds ar.
selling around 551a, after touching 81
| during 1929. The company also ha.
outstanding $4,000 900 in 6 per cen
notes due october !, 1880. Both ar
debentures and are equally direct OBJ
legations Of the company but are unse
cured by mortgage.
Sugar Bonds Decline.
The drastic declines in sugar bond
caused by the tariff situation and IN
attempt OF the Cuban government {,
FIX SUGAR prices bv legislation are show,
IContinned on Ninth page /