Evening star., 1949-02-27
Railroad Bonds STAGE
Recovery in Active
Week-End Trading
BY the Associated Press

Week-[nQ IrdQlng
BY the Associated Press
NEW YORK. Feb. 26.-Recoy
cry trends ruled in the rail sec
ton of the bond market toda.
Other issues were Irregular
higher with price changes marrow
Sales totaled 100000 as com
pared with 100000 last Satul
day.
Gains among the rails range
to more than 2 points in tradin
that was comparatively active fe
weekend session.
Katy adjustment SIS were u
212 at 1917. Missouri Pacif
bonds all were higher, with tn
&c" SIS up a point at 1914, an
the General SIS ahead at IA g
391a. New York Central AZ
climbed two points to 5634 an
the consolidation As were up tn
same amount to 81.
New Haven Issues Up.
Others ahead by a point q
more included New Haven incom
4H2s, Big Four AIS, Denver (
Rio Grande Western IS and a
and Morris & Essex 3las.
Lehigh Valley Railway of Ne,
York. leased to the Lehigh Vale
Railroad. skidded S points to
on the sale of 13 bonds, while tn
parent company's bonds game
from q to 112.
Third Avenue adjustment
eased Ia to 34l2. Illinois Centrs
4s4s were of point at 1873. Th
remainder OF the bonds in tn
minus column were mostly dow
only fractions and included Beth
lehem Steel 234s, Central OF Ne
Jersey SIS. City Investment 4
Saguenay Power IS and Souther
Pacific 4l2s.
AS is customary on Saturday
no Government bonds were trade,
The foreign list was mixed, wit
Copper agen 5s, Pernambuc
stamped Is and some Uruguaya
issues up a point or more.
Bond sales for the hve-day wee
totaled $14,775,200 as compare
with $l4.365,900 for the six-da
session last week.
Bond traders SHE'D away fror
railroad issues earlier this wee
after a look at January state
ments rejecting heavy winter ez
penses, revenue declines and or
Grating losses. Liquidation of in
come rails. which spread at time
to higher grade issues, sent tn
Associated Press rail average dow
4 by Friday, but the averas
gained slightly on Saturday.
The rail average stood at 81
at the beginning Of business Nor
day and finished at GOT toda,
The biggest one-day decline ws
3 Of point Thursday.
Corporates Act Better.
Corporate issues had a bette
response from buyers this wee
and the unsold total Is estimate
at $25,000.000. a sharp drop unde
the previous week.
Municipal and State. issues ha
a less favorable reception an
the current ursold inventory
estimated to be In excess {
s1O5, 100000.
The quick sale Of the City {
Philadelphia's $44.200,000 variou
purpose bond issue this week WI
said. however. to have buoyed u
the tax exempt market and helpe
to move some slower selling issue
Tax exempt offerings next wee
are expected to total about $21
500, 900. a big drop from this week
362, 100000. The biggest issue O
the schedule is $4,000, 900 of elee
trio power revenue bonds of Mash
vile, Tenn.
President Truman opened
$1,040, 100000 Savings Bond sale
drive this week. The quota is tt
first to be set fer a postwar bon
campaign.
Next week opens what may
one Of the most active months
history in railroad equipmer
financing. Equipment trust tssu.
scheduled for competitive market
ing during the week includ,
Chesapeake IL Ohio, $5,150.O0
Tuesday; New York Central, $12
100000, Wednesday, and Delawal
& Hudson. $4,000, 900, Thursday.
Other equipment issues totalin
more than $40,500,0O0 are schec
uled for competitive bidding late
in March.
Utility Offerings Due.
Two utility mortgage bond issue
scheduled for sale next week 81
$2.150.O00 by the Worcests
(MassD Gas Light Co. on Monda
and $4,000. 900 by Northern Stats
Power Mimi on Tuesday.
HollingsWorth g. Whitney C,
of Boston registered with tn
Securities & Exchange Commits
sion an offering of $8,500,000
new debentures and 1910 share
of no par common stock. A bank
ing group will underwrite tt
issues privately. Proceeds will
used to expand the company
paper mill at Mobile, Ala.
Long term Treasury Obligation
generally were steady in ligf
over r-the-counter trading durin
the week. The Federal Reser,
System net sales of Governmer
bonds In the week ended Wednes
day totaled $71 100000.
Conmodifv Prirae