Evening star., 1933-06-08
BONDS UNSETTLED
! IN LATE TRADING
Sharp Break in Northwestern
j Railroads Issues Tests
Rest of Market.
BY JOHN A. CRONE.

Special Dispatch TO The Star.
NEW YORK, June "a sharp breal
IN the bonds of Chicago & Northwestern
Railroad, which followed the sale Of 6
block of S150,000 of 434s of 194s at IL
a drop of 9Ea points, unsettled the bone
list In afternoon trading today anc
brought selling into the second-grads
rails.
In quick succession Northwestern 412i
Of 2o30 sold at Is, of 5; the 412s OF 2o3o
at 28sk, off rs; the first IS Of 203o a'
AZ, of 9h; the 612s of 1896 at "a
off u and the SIS of 1887 at Sc, off u
Then the 434s hit 10. Subsequently
some of these issues touched even lower
levels before showing signs of recovering
Apprehension Eased.
Naturally these declines caused ap-
prehension in bond circles, but Arthur
s. Pierce, vice president of Chicago q
Northwestern, declared In Chicago he
knew of nothing to account for the
drop in the carriers securities. adding:
I'VE have cash on hand to meet our
July interest requirements, which ap-
proxin1ate s542, 1000. There is no change
In our situation and there is no truth
to rumors of reorganization. =
German government 5l2s and rs
were both up over points in the
forenoon, following the rally in Reich
issues in London. This was based on
Berlin reports that DR.. Schacht mad
stated that the expected moratorium
would not affect either the Dawes or
Young plan issues.
United States Government obliga-
tions. with unimportant exceptions,
hardened. This tendency resulted from
the heavy oversubscriptions rendered
for the two new Treasury issues, pro-
ceeds from which will be used to re-
fund maturing securities and provide
funds for the public works program.
The Treasury stated that books would
remain open to accept subscriptions OF
$4,000 or thereabouts for the new
Issues
Strength of the Reich government
obligations was transmitted to German
states, cities, industrials and utilities,
though some of the latter group re-
ceded in the early afternoon.
Communication Issues OFF.
Rebounding from the lows hit
Wednesday, Rock Island issues moved
upward They had discounted the
bankruptcy proceedings under the
new railroad law, filed yesterday.
Following early profit some
of the second-grade rails sought new
heights for the year. This group in
cluded Nickel Plate IS, Allegheny Cor
poration SIS of 1850 and SIS of 1949, and
Wabash 5l2s.
Speculative communication issues,
such as Postal Telegraph IS, Interna-
ticnal Telephone 41as and convertible
412s and IS, were all lower after their
violent upswings in the three preceding
days based on merger reports linking
these concerns with Western Union.
The couponed issues of tire and rub
ber firms rather belatedly mirrored the
recent rise in tire quotations. National
Steel IS were firm on the company's
statement that it had anticipated
sinking fund requirements for this
year. In the motor division Dodge
IS were fractionally higher.
U. S. Groups Firm.
United States Governments remained
firm in closing dealings while most
other sections of the domestic bond
list were still under the influence of
the sharp break and almost equally
quick rebound in Chicago & North
western issues.
Although some of the Northwestern
issues recovered more than 80 per cent
OF their maximum losses, the second
grade rails as group failed to stage
such an improvement. High grade
utilities, like American Telephone SIS
of 1865, were a trifle easier
japanese bonds continued to feature
the foreign division in the afternoon,
with gains Of several points in some of
them. The strength of foreign cur
rencies against the dollar also was
mirrored In italian rs and other Euro
pean loans. Reich issues cancelled
part of their earlier advances.
Copyright, 1880