Evening star., 1933-08-25
RISE MAINTAINED
BYF0RE|GN LOANS
CORPORATE Domestic Market
Is Slightly Lower in
Afternoon.
Special Dispatch to The Star.

Special Dispatch to The Star.
NEW YORK, August 25.-Foretgn
loans, especially European government,
speculative rails, and United States
Governments featured today's strong
and active bond session.
The corporate domestic market was
slightly lower in the afternoon, chiefly
because of the softness in high-grade
issues, notably rails and public utilities.
Meanwhile foreign loans merrily
rushed forward, the two active Dutch
East Indies issues climbing to new
heights for the year and Paris-Orleans
Railway 512s performing similar feat.
Strength Of Colombian issues, the mort
gage bank loans excepted. was main
development in South American descrlp-
tionS.
American & Foreign Power SIS were
up couple of points. Lake Shore 312s
at 84ss were down Is. Pennsylvania
3l2s at 83 were up 3ss points to new
par. New Jersey Power AIS at "a were
off a shade. ST. Paul SIS were up near
" point in the final minutes Of trad
ing, when many speculative carriers
snapped out of their midafternoon
heavineSS.
Close Higher for Day.
The market finished actively and in
the main higher. with United States
Governments well taken throughout the
session.
Reduction of the volume OF Chesa-
peake Corporations per cent convertl-
Bile bonds outstanding by $3.278OOU,
through their conversion recently into
common stock. caused this issue to
stand out prominently in domestic rails.
AS Of June 80 only S39,2l6,O00 OF these
bonds were outstanding compared with
$43.334,000 on December 81. last, some
of the reduction being effected through
sinking fund retirements.
The present bidding up OF this issue
Is occasioned by the proximity Of the
directors meeting. where it is believed
that an increase in dividend rate will
be voted. These reports lacking off1-
cial confirmation, started purchasing OF
the stock. whose rise naturally induced
bond exchanges.
In the industrial list, motors and
amusements hardened. Dodge IS at
98la were first to attain new peak.
They were followed by Warner Broth
ers IS at 42a4. likewise at new high.
Trade reports indicate both Of these
industries are improving because Of
higher payrolls and increased leisure.
Petroleum debentures during the first
three hours were not much changed
despite the welcome announcements OF
oil and gasoline price advances. Metal
debentures generally firmed slightly,
partly due to the movement of the
shares into which they are convertible
and partly due to higher metal quota
tions.
Junior Rails Advance.
Meanwhile the junior rails steadily
moved forward They were led by the
usually active issues such as St Paul
adjustments and gold SIS, Chicago &
Northwestern 434. several of the Mis-
souri, Pacific bonds. and Denver & Rio
Grande As. During this period Inter
national Great Northern adjustments
eased and several of the Seaboard
issues aged a loss of a point.
The imitation talk generated by the
increaeed purchases of United States
Government securities by the Federal
Reserve should have had uniformly
adverse effect on high grade issues.
This was not the case. Atchison gen.
eral 4s were within fraction Of their
highest level of the year. Later,
however, Union Pacific first As. Stand
ard Oil of New Jersey SIS and other
gilt-edged bonds fractionally receded.
Attainment of new high price by
the new Treasury 3L4s was the stellar
event in the United States Government
group. whose over-the-counter activity
gave a much better indication of their
demand than sales on the exchange.
Copyright, 1933D