Evening star., 1933-07-21
BREAK REFLECTED
IN BOND MARKET
LoW-Grade Foreign and Do
mestic Issues Offered
Freely by Traders.
BY JOHN A. CRONE.

Special Dispatch to The Star
NEW YORK, July 21.-The sharp
breaks in shares and commodities were
reflected in the bond market in the
final hour today, as spectators freely
offered low-grade domestic, and foreign
issues.
st. Paul Adjustments early in the
last hour were down to 20, or 8A
points below their peak price in the
forenoon. The Gold SIS of the same
road then were selling around 49,
against their earlier high of 5434.
Denver & Rio Grande Western IS of
1878 at 81 were down about 6 points.
The SIS of 1855 were off about points.
International Telephone convertible
41as, United States Rubber IS, Chicago
& Northwestern 4si and Rock Island
convertible 4l2s had losses running
from 2 to points. Wheelir" Steel
convertible 4l2s at 715s were JFn
about points from their earlier top.
Move Against Trend.
Some of the high grade rails moved
against the general down trend. Louis
vile & Nashville As at 97A were up
more than a point, after losing that
amount in the first hour.
The ability of certain speculative
bonds to attain new highs while stock
prices were tabogganing brought forth
the explanation that considerable
number of stock market professionals
switched some of their recent large
share profits into bonds to protect
themselves from squall and to obtain
a higher return on their funds.
The earlier rally in the St. Paul is
sues probably resulted from the state
ment of President Scandrett, who
doubted If the road would be able to
continue showing the large carloading
gains for the rest of the year that 1t
has registered in recent weeks. "Busi-
ness picked up somewhat in the later
part of last year." he continued, latter
showing severe declines in the Summer.
However, it seems to me that if busi-
ness continues at its present accelerated
rate we may cover our fixed charges for
1888" His remarks did not make clear
If he expected the road to earn con
tingent" as well as fixed charges"
Baltimore & Ohio asked the Inter-
state Commerce Commission for permis-
sion to offer holders of the S5,000,00u
Cleveland, Lorain & Wheeling Railway
first mortgage consolidated SIS, due Oc-
IODer L, 1870, payment VI ~ pei eeA4l
in cash and 60 per cent in three-year
s per cent notes.
British Issues Up.
United Kingdom of Great Britain
SIPS were up slightly throughout the
forenoon, though they were not as spec
tacular as on Thursday, following the
government conversion offer. The most
active Argentine governments recovered
about point of their losses of the pre-
ceding day. Loans of the so-called Eu-
ropean gold bloc were easier. Bordeaux
IS and Marseilles IS each opened off 2
points. French 712s at 1862 showed
an initial dip of points and the tbs
at 1862 were off "a.
The new high attained by Shell
Union Oil SIS, with warrants brought out
some firmer bids for petroleum issues,
which resulted in Colon Oil IS gain
ing ~ points. Missouri Pacific bonds
the road is in bankruptcy heavy
on the formation of Bondholders'
Protective Committee.
Speculative industrials, such as st.
Joseph Lead SIPS, International Paper
IS, American Metal 512s, Loew's IS.
Paramount 512s, Famous Player Is,
Colorado Industrial IS, Dodge 6s, Muir
ray Body 61as and Skelly Oil 5l2s
yielded from fractions to several points
in the forenoon.
Copyright. 1933l