Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-08-11
BOND PRICES GAIN
-
IN LATE TRADING
Sudden Activity on Dull Mar
ket Brings Improvement
for Day.
BY T. H. RICHARDSON.
isl Dispatch to The Star.

Special Dispatch to THE Star.
NEW YORK, August la dull bond
market session, in which prices worked
irregularly lower, was climaxed by sud-
den activity in the last hour today.
Prices ended substantially improved on
the day.
The quickening of activity and the
fleming Of prices followed the afternoon
upturn in etocks. Bonds did not reflect
this rally in stacks until 1t had been
under way for full hour
Railroad bonds previously had been
driven to their lowest levels of the year
in moderately heavy liquidation end the
late Improvement in this group was
narrower than that elsewhere. Sharp
upturns in the foreign list followed the
reduction of the Reichsbank rate.
The lower range in railroad bonds
applied to virtually the entire carrier
list, though few of the prime
mortgages held losses to small frac-
tons. The market was pessimistic in
regard TO the outcome of the rate
hearing at Washington. where six
Western States have applied for dis
missal of the railroads application for
Is per cent rate increase on the
ground that the Interstate Commerce
Commission is unauthorized to grant
such an increase on a showing of a
financial emergency alone.
Junior issues, such as Frisco b SIS,
st. Paul S. MissouriPaciflc SIS and
Erie General Lien As were off a point
or more. Frisco .Pfior Lien A As
touched a new low.
One feature was drop of over a
point in Canadian Pacific perpetual Is
TO S1l4. nsw low for this year and
last There are $276, 500 900 of these
As outstanding and they not only con-
stitute the general funded debt Of the
entirs Canadian Pacific-as they are
deposited as collateral behind other
bond issues Of the road-but are one of
the worlds largest railroad mortgages.
The company's action in maintaining
its Si25 annual stock dividend rate
was expected by the market so the
weakness in the As was attributed to
the liquidation of q large account in
them
Recent issues of the great Eastern
roads, Pennsylvania 414S, New York
Central 4l2S, Baltimore 81 Ohio 4l2s
and in the Southwest the new 4las of
1881 of the Southern Pacific, eased of to
new lows for the year. Nor did railroad
issues of any description show much ten
dency to follow the rally in stocks
around midday.
High-grade domestic public utility Is
sues. such as American Telephone 5 l2s
and SIS, Western sUnion SIS, Philadelphia
Co SIS and Peoples Gas, Light IL Coke
SIS, were firm.
Junior industrials were steady, nota
bly, Dodge Brothers IS, Remington Rand
5l9s, American international 512s and
the New York City fractions Warner
Brothers Pictures IS gained points.
The foreign list reflected a waiting
attitude. The failure of German issues
to move substantially higher on Mon
day was evidence of the prevailing
tendency to await developments in
Germany Young plan 5l2s and Dawes
reparations rs fiuctuated irregularly
around their previous closing prices
Other Germans were quiet. Sterling
was strong and high-grade European
bonds were firm. South Americans
moved uncertainty. Argentine issues
improved with Argentine exchange
Chilean and Brazilian bonds were lower
Australian obligations, with small ad-
vances. mirrowed favorable reports on
the success of the governments re-
funding operation.
The reduction of the Reichsbank rate
to 10 per cent from Is per cent was
construed as bullish because it argued
that the German situation had so far
improved that the Central Bank. au-
thorities were able to relax to some ex-
tent the stringent measures necessary
three weeks ago to keep capital in Ger
many. German bonds firmed on this
news