Evening star., 1947-02-02
Railroad Bonds Keep
Most Of Advance
|At Week Close
by N. As.eeiatsd Press

' u
obligations held at the top Of the
weeks gains in the bond market
today. Missouri Pacific loans were
an exception in the final session.
Favored issues. principally in the
lower price ranges, tackled on ad-
yances Of fractions to more than q
point. A scattering of minus signs
salted the list.
Star performers today and the
Ipast few sessions were Western
Union obligations following an
nouncement the company, though
showing a net loss for 1916, had re-
turned to profit-making basis in
December.
The SIS of go hit 1s47 high on
a 2s-point advance to 831a and the
AIS were also at the years peak on
a ia point gain to 85la.
MOPAC Issues Ease.
Missouri Pacific liens were ad-
versely affected by the United
States Circuit Court of Appeals in
Kansas City denial late. Friday of a
motion to remand the present reor-
ganization plan to the Federal Dis
trict Court in st. Louis. Court ap-
proval Of the motion, would have
meant the ultimate revision Of the
reorganization plan by the Inter
state Commerce Commission.
In heavy turnover MOPAC con-
vertibles dropped 8 to 271z and the
general As lost TX at 361a. The
ISSUES had improved earlier this
week.
Demand for railroad bonds during
the week appeared to stem mainly
from earnings reports which in
many cases were better than ex-
pected. At the same time more opti-
mism was displayed over 1947 earn
ings prospects, with many observers
stressing the possibility that greater
operating efficiency in the months
to come could be reflected in income
reports.
News from Washington, while ap-
parently having little immediate ef-
feet on the railroad bond price struc-
ture, was studied carefully with an
eye on long-range implications. A
major legislative battle was in the
cards over the bill to exempt rail-
roads from provisions of the anti
trust laws. The bill is still before
the Senate Commerce Committee
but lines were already being drawn
in the Senate itself.
Robert Young Watched.
Also watched were the manipula-
ton of Robert r. Young. chairman
of the C. g. O., who publicly threw
down the gantlet in bid for con-
troll of the giant New York Central
Railroad system.
New York Central "a" 41as today
moved up Ia to 80la and the con-
solidated As added nearly as much
at 10.
Biggest splash in the new money
market during the week was made
by sale of $25 5,O0o, ,e0G of Firestone
Tire g. Rubber Co. debentares, bear
ing 2h per cent coupon and mar
keted at par.
E4Okl OQO11bl col Cd41AC lICWD VI kAdA4o
to refund approximately $100, ,000, 900
of outstanding bonds. The city,
which was understood to be dicker-
ing with First Boston Corp. for pub
lie sale of the proposed issues, said
it would sell $77,8l1,000 of bonds
payable in United States funds and
s31, ,s4S, 900 payable in Canadian cur
rency.
United States Government issues
in the over-the-counter market
slipped rather badly early in the
week, but started a comeback to-
ward the week end. The Victory
Loan 2hs of December, 1967-1972,
closed 1882 Of a point below last
week at 102 27/32 bid.
Foreign dollar loans on the average
moved up smartly during the week.
Sales for the short session totaled
So, 10000 compared with 1894, 500
q week earlier.
Turnover for the week stepped up
to $31 ,319, 300 from $22,l76,200.