Evening star., 1947-10-12
Bonds
Continue 10 Ease
Al Week 'sCIose
BY tho Assoeioted Press

al VCCN } klV9c
BY tho Assoeiotsd Press
NEW YORK, Oct. IA further
slight undermining of the quota
tions on high-priced corporation
bonds was about the only clearcut
development In today's short bond
market.
Low to medium priced specula-
tive issues were mixed, the rails
averaging a little better on slim
purchasing.
Sales totaled 1921 900, attesting
to a SLOW session, and compared
with $1,750,000 last Saturday. Fri
days sales totaled $4,O6O, 900.
The sagging tendency in better
rated and therefore higher-priced
bonds was not as pronounced today
as on Friday, but there were
enough of these issues dipping frac-
tions to keep attention of investors
focused in that corner.
A. T. & T. Bonds Down.
American telephone 2As sold at
96, Santa Fe is at 122, Celanese IS
at 103, Chesapeake & Ohio 31ks at
lO4ha, Goodrich 2As at 991s and
Kansas City Southern IS at 1o3a
all for fractional losses. There were
many others changing hands at
lower levels.
Sale Of one U. s. Treasury ~ of
1971-66 at 103.17 represented a de-
cline of 30/32 of a point and was
the only activity of the day in
Government bonds. World Bank
IS sold at par, decline of 6/32, the
only sale made in the world bank
division. The over the counter
market, where most Government
bonds are traded, is closed on Satur-
day.
1t was a .two-way affair in the
more actively traded lower priced
issues. Closing a shade lower were
Baltimore & Ohio SIS of 1000, series
*" Central of New Jersey IS, Rock
Island 41zs, Big Four general 4s
international Hydro Electric IS and
New Haven income AVS.
Hudson 6s Manhattan income IS
and refunding IS were by far the
leaders on the other side. the first
advancing az points to 1871 ano
the latter up TX to 561z. Others
showing lesser improvement in.
cluded bonds of Missouri Pacific
Morris & Essex, Pennsylvania Cen
tral ,Airlines and st: Louis -San
Francisco.
Outstanding events of the week in
bond market affairs included the
ICC freight rate boost which
stimulated demand for carrier
securities %of all types for a while;
fairly large amount of new securi-
ties either sold publicly or at COM
petltive underwriters sales and the
persistent leaning to the lower side
OF high grade corporates.
Explanations Differ.
Explanations for the drop in these
securities could be had at bargain
rates if solicited in brokerage
quarters but they seldom agreed on
any one central theme except that
there was a change in sentiment
brewing among large investors.
Some said this was because in
terest rates were hardening, how
ever slow the process might be-
Others said it was because of the
inf1ationary implications of large
scale spending in Europe, while still
others said it was because high
quality bonds had risen too high
in recent years when there was little
to buy in the quality line and prices
were now merely adjusting them
selves to realistic conditions.
On the latter point 1t was noted
during the week that the recently
sold $75 100000 of Pacific Gas &
Electric s. met a strong demand
when the underwriting syndicate
was dissolved and the bonds found
q natural level at around 9811 to
9S& as against the public offering
price Of 100. Some Of the big five
insurance companies were under
stood to be among purchasers at
the lower level after having with
held subscriptions at the higher
price.
Two big issues for the coming
weeks were talked of in underwrit-
ing circles. They were the $780,
100000 Pacific Telephone bonds
upon which bids will be received up
to October 81 and Sis, ,0OO, 900 New
York Tri-Borough Bridge issue
which were expected to be ready
for the bidding stage at an early
date.