Evening star., 1933-07-13
|a|hDPR)CESR REACH
new HIGH LEVELS
Speculative Securities Lead
Rise, While Best Grade
issues Lag Behind.
BY JOHN A. CRONE.

opecial DlSpatch 10 Inc star
NEW YORK, July 13.-Speculative
securities, domestic and foreign de-
scriptions, were actively bid to new
high levels in bond dealings today,
while high-grade issues Jagged and
ranged from unchanged to slightly
lower.
The Junior rails, lower grade public
utilities, communication issues, eXclud-
ing the American Telephone list, and
a long list of industrials ranging from
foods, metals and motors to the oils,
were lifted into new high territory as
the general market forged ahead.
Chicago, Milwaukee, st. Paul g. Pa
ciflc adjustments were the first of the
junior rails to record a new maximum,
as they were actively turned over in
the first two hours. Later some of the
Wabash, Rock Island and Inter" 7ticnal
Great Northern issues pointed Up. ds.
In the medium grade rails Southern
Railway 6l2s were the first to establish
q new high.
Low Grade Division Leads.
The best gain in local fractions dur
Ing this period was in the low grade
division, where New York Railway in
comes attained their best quotation thus
far this year. Utilities Power g. Light
5lzs of 1857 were bid up more than a
point.
In the communication group Postal
Telegraph 5s of 1853 led the way into
new high ground, followed by the 5
per cent issue of 1855 of their parent
company International Telephone g.
Telegraph. Later some of the Western
Union issues bettered.
Hardening of the communications
group reflects two inf1uences-the rise
in traffic in this country, which is
natural in view of the gain in general
business; and the gyrations of foreign
exchange. In the case of International
Telephone Exchange fluctuations have
played an important part in earnings
the last two years. The company
recently reported that telephones in its
system numbered 100000, a gain of
$3.50, or "A per cent for 1882, despite
the fact that economic conditions in
Cuba forced II 900 disconnections. The
company reported net loss of S4.000,-
600 in 1882, against net profits of
S7,600,000 in 1881, but in many of the
68 countries in which it operates cur
rency had depreciated to such an ex-
tent that restrictions were placed
around conversions of such currencies
into Sgyars. The rise of these currencies
lin terms Of dollars will help total
earnings, which have been aided by
gain in domestic traffic.
American & Foreign Power, operat-
ing in many foreign countries, has eX-
perienced foreign exchange losses de-
spite the fact that its electric output
rose during the last year. Utilities
Power & Light issues have been some
what Influenced by exchanges, as the
company operates in Great Britain.
U. S. Bonds Easier.
RESPONDING to the extension offer
whereby the S13900,o90 of Az per
cent notes due November l next will
be converted into per cent notes,
which can be exchanged at the rate
Of 81, 900 par value for 40 common shares.
American Rolling Mill 4l2s on the curb
| Jumped AZ points on turnover OF
more than 1900 bonds in early after
noon dealings.
United States Government bonds were
a trifle easier most Of the afternoon.
Meanwhile, the two ST. Paul issues, the
adjustments and the gold IS, virtually
monopolized the tape so far as junior
rails were concerned. A sharp rise in
Argentine issues, q better tone in Aus
tralian descriptions, recovery in many
German bonds as result Of details
about the handling of dollar interest
and flrming tendencies in Italian issues
featured the foreign division.
In the last hour cnly, the public
utilities, speculative communications
excepted, were virtually unchanged on
the day. Albany Perforated Wrapping
Paper IS, Canadian Steamship IS, CUBA
cane 6s. Goodrich convertible 6s, Muir
raw Body 612s, Paramount-Famous-
Iasky IS, RADIO o-Keith-Orpheum Is,
United States Rubber SIS and Youngs-
town Sheet & Tube SIS of 1878 were a
few industrials reaching new highs in
late trading which demonstrated the
width of demand for all grades.