Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-07-18
RAILS. LEAD RISE
ON BOND MARKET
Scores of Speculative Issues
Reach New Heights for
Upturn.
BY JOHN A. CRONE.

NEW YORK, July 18.-Scores OF
speculative securities scared to new
heights in bond dealings today. Sec
ond and third grade rails, after open
ing irregularly, led the upswing, being
Joined later by the lowest grade OF for
eign issues and low grade to medium
grade domestic industrials.
Spectators bid so briskly for many
of the lowest type bonds, some OF whose
companies now are in receiversh1p or
in process Of reorganization, that they
were lifted to levels not approximated
in the last two years. In the case OF
carriers some OF the bidding up doubt
less was based or increased car load
ings and earnings, but it would seem
that prices In many instances already
have discounted all the traffic improve
ment and profits possible this year.
Switching from stock market opera
tons and the scarcity OF new securities
of the speculative type quite generally
were cited as explanations for this rush
for low-grade bonds st. Paul adjust
ments and the SIS Of 1855 once again
were quickly marked up to new highs
on the roads car loading reports
Reorganization Watched.
The activity of the st. LouisSan
Francisco Railway securities, certifi-
Gates Of which in some cases went to
new peaks for the year. followed Wash
ington dispatches telling that the first
hearing of reorganization plan by the
Interstate Commerce Commission under
the new bankruptcy laws for railroads
had started. Most of the dissenters to
the proposed plan represent large bank
Ing institutions here
Although Searboard Air Line reported
a net loss Of $568855, after charges,
for May, which contrasts with $3.50, 500
company we're bid up. Fonda, Johns
town & Gloversville 4l2s of 1882 were
pushed up point to a new high Of 8.
Iowa Central As advanced.
While handful of the better grade
rail issues-five out of six Canadian
National obligations opened at new
peak pr1ces-and the medium grade
carriers were swinging upward, the
spectators got into the foreign division.
In the South American list the issues
of Brazil, Bolivia and Peru were bid
up. Later few of the Argentine issues
were prodded to new levels. but current
quotations were too high to attract
spectators much to this group, as there
was a decided preference shown for
issues selling under 40.
Climb in Afternoon
Colombian, Chilean and Uruguayan
Issues sought new tops in afternoon
dealings, when Polish descriptions and
European public utilities, such as ST.
lesia Electric 6l2s, also hardened.
American Chemical convertible 512s,
Anglo Chilean Nitrate rs. Lautaro Nj
trate 6s Colorado Fuel & Iron IS, Hud-
son Coal SIS, Lehigh Valley Coal IS,
International Mercantile Marine IS,
Keith IS. Kelly Tire IS, Niagara Shares
ner Co. IS eX-warrants reached new
highs on this movement.
Baldwin Locomotive S. were OF
about point. after the note refunding
plan was declared operative. Brooklyn
Manhattan Transit IS were off shade
after directors voted to retire S750,000
of tWo-year per cent notes August l.
Thus far S4,000,O00 of the $l3500, 900
note issue due August l, 1884, has been
retired. In the face of slightly higher
time money rates in the mid afternoon.
all groups, utilities excepted, continued
to work higher.
close included a slight recovery in
United States Governments, the market
for which has been rather thin, some
softness in French and Italian issues,
further strength in bonds of rubber
companies, notably Goodyear IS of 1857,
renewed buying of gilt-edged indus
trials, as exhibited by the new high OF
Standard Oh of New York 4i2s and
betterment in the high-grade rails,
such as Louisville & Nashville Uni
fed As and New York Central IS Of
1882, both of which hit new highs.
Copyright, 1889