Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-08-02
BOND LIST FIRMS
AFTER UNCERTAINTY
Speculative Rails and High.
Grade Utilities Lead
Stronger Trend.
BY JOHN A. CRONE.
Special Dispatch to The Star.

bI JUN n SNONEs
Special Dispatch to The Star.
NEW YORK. August 2-The bond
market, after opening with mixed price
tendencies, displayed a firmer tone to-
day under the leadership of speculative
rails and the better grade of public
utilities. United States Governments
were dull.
Further recovery in Argentine loans,
some betterment in European obliga-
tions, notably Swiss SIPS and United
Kingdom 51as, and weakness in Aus
TRAN and German securities were fore
noon features in the foreign division.
The receivership petition for Colorado
Fuel g. Iron and its subsidiary, Colo
RADIO Industrial, took the Street quite
as much by surprise as did the August
l interest default on these two issues,
both of which had been recommended
by several investment advisory services
as recently as two weeks ago.
Colorado Fuel g. Iron SIS opened at
49, of points. after their break Of
49, points late Tuesday. Colorado In
dustrial SIS opened off 2 points at 80,
after a break Of more than points
Tuesday and about as many on Mon
day.
Foreign Defaults Cited.
The selectivity that characterized
foreign bond dealings in the forenoon
was the direct result of the official an
nouncement of IL defaults Mostly
of these unpaid interest coupons are
attached to Austrian or German loans,
which for the last few weeks have
been soft.
Defaults on August coupons thus
far officially stated include: Bavaria
61as of 1945, Bank of Silesia IS OF
1947. Ilseder Steel IS Of 1913. Leipzig
Is of 1947. Nuremberg Is OF 1859, Saxon
Public Works rs of 1945, Tyrof Hydro
electric Power Is of 1852, Rhine
Westphalia Electric IS of 1853, Central
Bank of German State and Provincial
Loans IS of 1852, German Consolidated
Municipal Loan of German Savings
Banks and Clearing Association rs OF
1947. Province of Hanover 61as of 1949
and Prussian Electric IS of 1854.
The three chief domestic defaults
were Colorado Fuel & Iron 5s, its sub:
sidiary Colorado Industrial IS, and Old
Ben Coal IS of 1914. The latter had
been forecast by an official announce
ment nearly month ago.
Steel issues today generally were IN
clined to softnesS despite the assuring
tone of midweek trade reviews. Repub-
lie Iron & Steel SIS were down points
at SO. Even the high-grade Bethlehem
Steel refunding IS were OF point at
90 at one time.
Utilities Show Firmness.
The rising trend In the better class
Of public utilities was indicated first IN
such issues as Philadelphia Co. SIS and
Ohio Public Service TBS. perhaps being
based on the fact that weekly power
OUTPUT figures again showed current
consumption passing the 1882 mark.
Later some of the speculative COM
munications like International Tele-
phone and Western Union issues moved
ahead. the latter partly at least on the
second quarter earning statement. "a
ciflc Public Service SIS OF 1885 and port
land General Electric 4l2s Of 1860 also
moved upward.
International Great Northern adjust
ments followed the advance of st. Paul
adjustments and rising prices for such
speculative rails as St. Paul gold 5s.
Rock Island 4l2s of 1852, series A; Mis-
souri, Pacific Sis and As, and chicago
Northwestern Ans. Meanwhile high
grade issues like Atchison General As,
American Telephone IS of 1865 and tbs
better grade of industrials were very
dull and virtually unchanged.
Strength in Brazilian bonds followed
the rise of such issues in London, where
the move was based on Brazils accept
ance of the Niemeyer financing plan.
U. S. Issues Weaken.
Colombia Mortgage Bank issues were
not much changed, even after the insti-
tuition notified the Stock Exchange it
would be unable to carry out its offer
to make partial payment of one-third
cash and the balance in scrip on &C
count of interest on its 20-year 6 per
cent issue of 1947, until such certificates
could be registered under the new
securities act.
Botany Mill 6l2s improved on the
announcement that the mills orders
had tripled. a statement made in con-
nection with the unsuccessful attempt
of a group to have the receivership ex-
tended to a subsidiary the Botany
Worsted Mills of Passaic, N. j. Quick
overSubScription of the Canadian gov
eminent loan in London flrmed DonliTl-
ion issues here. New Jersey Power 81
Light AIS Of 1860 at one time we're
down about points.
Washington dispatches indicating
that imitation measures soon would be
undertaken, Immediately had an effect
on the speculative rails, which followed
the uptrend of stocks. but United States
Governments did not respond so
promptly. Treasury IS of 1851 were off
1892 at this time. Official quotations on
the new Treasury issues were lacking.
but the most frequent prices heard were
1904 for the l IS and 100lz for the
3LAs The market was active and strong
at the finish