Evening star., 1933-06-20
JUNIOR RAILS RISE
IN BOND MARKET
Speculative Issues Are Most
ACtive-Demand Good
for High Grades.
BY JOHN A. CRONE.
.pecial Dispatch to The Star

Special Dispatch to The Star.
NEW YORK, June 20.-Junior rails
many of which reached new high price.
for the year or longer, featured an ac'
tive and firm bond market today.
Although speculative issues were tht
most active and enjoyed the widesl
fluctuations, there was a good demand
for the better grade and prime secur-
tiles, especially those of public utility
operating companies, from Western
banks and investment firms, principally
for the account of estates, pension ano
trust funds and insurance companies
This type of buying once more MADE II
possible for conservators to offer paris
of their portfolios and receive for such
offerings good bids.
Insurance Block Sold.
The broad speculative demand for the
aecond-g grade rails also provided gooo
channel for the offering OF such issues
Most of the st. Paul adjustments that
appeared on the tape Monday, for IN
stance came from fire insurance COM
T,anv whose present financial condition
Is well known by the public. Required
to meet certain immediate demands, ].
turned to its holdings OF this issue ano
realized more than expected from SUCH
offerings. 1,,o.+
AN rer cent issues were the first OF
fhe speculative carriers to reach new
neaks for the year st. Paul adjust
r,ents performed a similar feat. Then
the Ct paul SIS of 1875 moved into new
hich ground, being trailed by several
Improvement in demand for Western
rTnion Telegraph issues resulted 1roAl
the announcement that increased earn
inus enabled the company to cover lts
interest requirements a little more than
one and one-half times. Earnings Tor
1882 failed by $842,595 to cover fixed
charges, which in 1881 were covered
twice and in 1880 were covered "a
times. Recent declines IN western
Union obligations followed the enolng'
temporarily at least, OF merger possl,
bilities of that company with Fostai
telegraph & Gable. Postal per cent
honds also have rallied since the term1-
nation of merger negotiations, the re-
coyery being ascribed to gains in trafnc
st. Joseph Lead 512s were the flrst OF
the industrial group to attain new
altitude levels for the year.
Make Best Showing.
1ndustrials and high grade rails made
the best showing in the afternoon. IN
the former group American Cyanamlo
SIS of 1912, National Steel IS, j. j. New
berry 51ks and Penn-Dixie Cement nrst
6s moved to new high levels. In the
latter list. Union Pacific As ana nrst
Is and Atchison As hardened.
Meanwhile some Of the better type OF
industrials, such as Bethlehem Steel IS
of 1886. Inland Steel AVS and Standard
Oil of New Jersey SIS came within small
fractions of their best levels for the
wear. With the exception OF American
Telephone collateral SIS Of 1946, most OF
this company group flrmed, though
other high grade utilities were less IN
demand than earlier in the session.
German rs and some Of the Reich
utilities regained recent losses late In
the afternoon, when speculative foreign
demand, especially for South Americans,
seemed less in evidence than lew
hours earlier. United Kingdom issues
at this time were at their best OF the
day. with the exceptions Of "a point
gains and losses in Liberty first As and
Treasury 3ass of 1941 the United States
Government list moved narrowly despite
an increase in turnover.
Copyright. 1933)