Evening star., 1949-07-24
Largest Sales Total
In More Than Year
By the Assoeioted Press

NEW 1orbIA, u uly l0.- 1lC wi
porate bond market emerged from
a coma this week to grind out its
largest sales total in more than
a year.
And for that achievement bow
Is due to American Telephone &
Telegraph Co.-without it the VOL
ume might have been among the
lowest for the same period.
Earlier this year, A. T. 81 T.
brought out the biggest corporate
securities issue in history, 1884,
$4,000 in 3As per cent convertible
debentures maturing in 1859. The
company offered these securities
to its stockholders, who snapped
up more than $685. 100000. The
unsubscribed balance. $9.026.500,
was put up for sale in the open
market Friday.
Buyers bought up the entire
balance within an hour and a
half. most of 1t on the New York
Stock Exchange. When the smoke
cleared, trading in the issue on
the New York floor stood at
$9.419,000, which, bond men said,
was an all-time high for turn
over in an individual issue in any
day on the New York Exchanges S
bond books.
Furry Boosts Sales.
That furry brough Fridays COR
porate total to- $11,810,000 in par
value figures, which in turn raised
the weeks sales total to $22,938,-
600 a figure not equaled since
$24,132,000 changed hands in the
week ended June IS, 1948.
Price-WiSe, the markets accom-
plishments were less glittering,
although the week was far from
losing proposition. Railroad, in
dustrial and low yield bonds made
minor gains on average, while
utility and foreign dollar loans
held steady.
Rails, on the rise since the first
of July. added to their gains
early this week and by Thursday
had entirely eradicated the losses
suffered in a series of sharp price
breaks in June.
The Associated Press average
Of 20 rails entered the month of
June at 1877, but was knocked
down to 88.5 by the June declines.
BY last Wednesday. however, a
recovery movement that carried
through IA straight sessions built
the index up to 89.7 again. A set
back of i of a point Thursday
put the index down to 89.6, where
it held through Friday.
Corporates Win Support.
Traders hope that the recent
price gains (and yield declines)
by United States Treasury securi-
ties would turn investors eyes to-
ward high-grade corporates as
investments producing some
what better yield.
This trend already has devel-
oped to small degree. Coinciding
with this. however, has been an
easing off of United States Gov
ernment bond prices in the past
week and a corresponding slight
swing in their yields. Next
weeks offerings of new corporates,
totaling nearly $40,000,000. are
not expected to go far in meeting |
the increasing demand. On
Louisiana and Arkan-
Sas Railway will sell $5,640,000 of
equipment trust certificates.
Tax exempt State, county and
bonds also-are finding
a place in many portfolios as al
ternates for Treasury securities.
AS the result of brisk demand this
week for new tax eXempts, the un-
sold supply still on dealers shelves
was cut down to S110.695 900 by
the close of business Friday from
$113 .653 900 the previous week, ac-
cording to a compilation by the
publication Blue List.
Next weeks offerings of tax ex-
empts will total S67,133, 900, ac-
cording to Daily Bond Buyer, COM
pared with $44,676,534 this week.
The bulk of next weeks total is
represented by New York City
Housing Authority's issue of $50
300, 1000 of bonds to finance five
public housing projects.