Evening star., 1933-07-27
BOND LIST EASES
AFTER EARLY RISE
Speculative Rails and UtiIi-
ties Draw Major Interest
in Short Session.
BY JOHN A. CRONE.

Special Dispatch to The Star.
NEW YORK, July 27.-After opening
quietly and virtually unchanged. bonds
turned active and upward in today's
short session. Speculative rails and
utilities formed the bulk of trading.
The basis for the further speculative
bidding up of the rails came in the
form Of specific corporate developments
President Scandrett announced that the
ST. Paul road had withdrawn an appli-
cation for s9,O0o,O0O to the Reconstruc-
ton Finance Corporation, as, owing to
a marked improvement in our earnings
and cash position. the road will not
need these funds" St. Paul adjustments
and the gold SIS" were lifted more than
2 points after this announcement.
Earning reports were the stimuli to
issues such as Chicago g. Northwestern
Rock Island, International Great North
en, Missouri-Pacific and Erie Balti-
more & Ohio formally offered holders
Of Cleveland, Lorain &, Wheeling Rail
way consolidated first SIS of October l
1888. plan involving a 40 per cent
cash payment and the rest in Baltimore
81 Ohio notes, which would run for
three years and carry 5i2 per cent in
terest.
June Earnings Cited
In marking up Pennsylvania and
New York Central issues. dealers pointed
to the June earnings Of these roads.
Net operating income of Pennsylvania,
somewhat forecast by its rapid repay
ment Of Reconstruction Finance Cor
porstion borrowings, showed a gain of
100 per cent over June, 1882. New
York Central's net operating income Of
$4,384, ,965, however. was up more than
1000 per cent over the S192,052 re-
ported for June, 1892.
Holders Of st. Paul & Kansas City
Short Line first mortgage bonds. due in
1941. and Of Rock Island, Arkansas &
Louisiana first 41as, due in 1884. both
issues of which are guaranteed by the
Rock Island. were asked to deposit
their bonds with protective commit
tee formed after the latter road failed
to pay it's July interest on the general
mortgage per cent bonds. The COM
mittee stated that it had been notified
that August l interest on St. Paul d
Kansas City Short Line will be de-
ferred.
u s. Issues Lower.
United States Government obliga-
tions generally we're lower during the
first hour, as it was indicated that
August Is would bring a long-term
issue. possibly totaling 81 0oo, 900 600,
for the purpose of meeting $469 ,089 600
maturities and obtaining funds for car
rying out the public works program. If
long-term bonds are not hoated at
this time, perhaps because of money
or security market conditions over the
next week or so, it Is probable the en-
tire issue will be five-year notes.
In considering its August financing.
the Treasury also is looking ahead to
meet the September Is maturities OF
S451 ,447 900 Of l 4 per cent certificates.
Furthermore it is possible that the
Treasury may seek to refund the So
268 ,O95 $50 of outstanding Fourth
Liberty 4l4s, which could be called
october IS If refunding loan bearing
around 81. per cent would then be
acceptable to prevalent market condi-
tions. Then the First Liberty Loan is
callable at any time on 80 days notice.
1t consists Of $685. 1882. 900 Of 4As. $5,-
O02,450 of Is and 81 1892 227, $50 Of
3la per cent bonds.
Turns Down at Close.
The market paused in the first half
IQe laSL uouI, dIlo Iueu lul Nco aCti'e
again on the downside In the foreign
list Switzerland 512s yielded more than
q point. and Nord Railway 61a about
., the same amount Typifying the un-
settlement of South American descrip-
tions was the drop of more than point
in Uruguayan IS.
Liggett & Myers SIS. moving against
the general trend of better industrials,
gave way a point. Union Pacific As
were about a half point lower for a
time. Low-grade rails, under the lead
ership of St Paul adjustments, gave
up part of their initial rise. United
States Treasury 3lss, at 100.16, were of
5-32; Treasury As, at 1864. were of
4-32, and Treasury IS, at 98.24, were
of 2 just before the close. &lich was
active and irregularly lower.
tCopyright, 1880