Evening star., 1948-10-03
Bond Buyers Favor
Selected Carriers
In Quiet Dealings
BY the Associoted Pres,


NEW YORK, Oct. "A group OF
selected rails paced the advances on
the bond market today as trading
resumed with small volume in the
first Saturday session since spring.
Leading the upturn were Centra,
OF New Jersey liens, the IS up IL
TO 81 and the As up 2 points at SO
on moderate turnover.
Chicago & Eastern Illinois in
comes were up II at 48, Missouri
Pacific IS OF 1878 gained a point tc
85A and the convertible 5las were
up Is to 267s on a sale of a block
Of 81 bonds.
Peoria & Eastern As of 1860 gained
IA to 64l2. Southern Pacific 27ss
and Third Avenue adjustment SIS
both gained a point.
Narrow losses were registered by
Hudson & Manhattan liens, Inter-
national Great Northern adjustment
6s and Western Union SIS of 1851.
Lehigh Valley 412S of 1850 lost
points on the sale Of two bonds.
United States Governments and
foreign dollar bonds were quiet.
Sales totaled 100000, compared
with a volume of $2,720,O00 on May
%, the last previous Saturday
session.
New Financing Heavy.
A big batch of new financing and
a few lively moments for a couple
of railroad issues that appear infre-
quently kept the market alive during
the week.
An aggregate of $1O0,O00O00 in
new financing was spread before
investors Thursday. 1t was one of
the largest totals of the year.
At the top Of the new issues was
R. J. Reynolds Tobacco Co. s60,000,-
600 of three per cent debentures.
Dealers books were closed quickly
and underwriters reported further
distribution to investors went very
well.
For the future, there is poSsibil-
ity Of a $45 10000 issue Of Detroit
Edison Co. convertible debentures,
but If approved it will be offered to
stockholders only at the rate of $100
for each of Is shares of stock held
Detroit Edison has called a special
meeting Of stockholders for october
26 at New York to vote on the pro-
posal.
Final terms as to interest, redemp-
ton and conversion will be deter
mined later if approval is given, but
it is planned to provide conversion
of the debentures into stock not
later than two years after issue date.
Virginian IS Decline.
Railroad loans that gave q little
pep to the market on Friday were
Ontario and Western refunding As
and Virginian Railway IS.
The Ontario and Westerns moved
ahead IA points to 1925 as more
than $4,000 par value of the loan
changed hands.
The Virginians fell two points to
SO on unusual activity. Recently the
road announced plans to sell $780,
900 of Series &C" first lien and re-
funding bonds.
Neither issue appears very fire.
quently and between them they
made up a good share of Fridays
total market volume.
There was an unusual movement
in United States Government bonds
during the week, too, with 19l of the
2hs Of ls54-52 changing hands on
the Stock Exchange.
The issue fell nearly 3A points,
comparatively large amount, but the
drop simply represented an evening
up Of the Stock Exchange and over
the-counter prices.
The weekly condition statement
Of banks indicated that during the
past month Federal Reserve Bank
purchases Of Government securities
were just under the amount the
member banks had to put us as
added reserves.
The added reserve requirements
called for about $4,000 00O, 900 out of
a total increase Of $4,000 900 900 in
member bank reserve requirements
for September. Federal Reserve pur-
chases of Governments from the
member banks during the month
amounted tn S1 Q71 mn nm