Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-12
BOND LIST WEAK
IN HEAVY TRADING
Holders of Junior Railroad
Bonds Flood Market
and Force Decline.
BY F. H. RICHARDSON.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, May 12-Holders of
Junior railroad bonds took fright to-
day in the face of the report OF a
small deficit by the New York Central
fer the first quarter and threw their
bonds onto the market for what they
would bring. Prices melted away 2 to
4 points in the same bonds that were
so heavily bought last week, and recent
gains were wiped out-some issues drop.
ping to new lows.
The list in general was weak, with
the exception OF the highest grade sea-
soned investment securities. Foreign
dollar bonds pursued the same trend
in general, with acute weaknesses in
the Argentine group, where a govern
mental deficit of over $4,000, 900 was
expected to add flame to the revolu-
ton that has been Smoldering there.
Argentine IS we're off to 6 points,
under 80 for the first time since issue
and from IS to II points under &C
customed levels.
Trading was heavy all through the
list, activity being increased by some
forced selling occasioned by the weak
ness of stocks. Money rates were I'M
changed at their low levels.
It was the same situation that has
been seen so many times in the market
III Vic PdoI 10 HlOlIAlo. WHICH, Vic Al
vestment market gets every factor into
place for an upturn, something comes
along to cause renewed unSettlement.
The rise in secondary carrier bonds
last week was based not on first quarter
earnings, which were decidedly bearish,
but on April earnings and favorable
prospects for the second and third quar-
tiers. Very likely the New York Cen
trail itself will show vastly better re-
port at the end of the second quarter.
Today, however, st. Paul SIS, Erie SIS Of
1867 and 1875. Rock Island 412s, Mis-
souri-Pacific general SIS, SIS and 512s;
sacrificed in large blocks. New York
Central bonds also reflected the liqui-
dalton with fractional declines in the
recently issued 412s. Nickel Plate 4 12S
dropped heavily after their recent wide
recovery of 10 points from their low. So
did Nickel Plate 51as.
AT the same time Atchison general
As advanced to new high price and
there was a keen demand for such
prime issues as American Telephone SIS
Chesapeake Corporation SIS, Columbia
Gas & Electric IS, Consolidated Gas
512s, Great Northern rs, National Dairy
Products 514s, New York Telephone IS
Philadelphia Co. SIS and Standard Oil
OF New Jersey IS.
Austrian government bonds were
fractionally lower in response to the
announcement that the Kreditanstalt
had suspended payment. though the
decline was checked by the news that
the government would aid the bank to
reorganize. South American issues.
especially those in which portions were
hoated in both London and New York.
were subjected to arbitrage operations
and prices were slightly higher here
while London quotations were heavy.
But weakness persisted in South Amer
leans, owing to the slide in Argentine
issues. Europeans we're mostly un-
changed.
The municipal market was strong
and active. A syndicate headed by the
National City Co. secured New York
City's offering of $52,0O0,000 Of four
year corporate Stoc,s on a bid of
100.0119 for all or none of the bonds
as 3's. This was basis of 2.99702 per
cent and constituted another record
price for New York's obligations. The
premium was $6,l88. There were i've
bids submitted
United States Government issues
continued to make new highs.
Copyright, 1871