Evening star., 1949-09-25
Labor Troubles Force
Bond Prices Lower
Except for Utilities
By H. c. Johnson
Associated Press Market Writer

troubles plagued the corporate
bond market this week. Only pub.
lie utility issues proved able tt
disregard a strike in one basic in.
dustry and a threatened walkout
in another.
Devaluation OF the pound ster.
ling and other foreign currencies
was the chief topic of conversation
in financial districts, but had little
or no effect on corporate loar
prices. The foreign dollar bonds
of the devaluing countries went
into partial eclipse, however.
The Associated Press average oil
20 rails lost 3 of a point for the
weeks work, closing at a compo-
site price of 90.6. Industrials were
off 2 at 1926, foreign dollar issues
dropped 3 at 70.3 and low-yield
bonds were unchanged at I'LL.
Utility issues, however, gained
/ of APPOINT to close at 104.3. The
remarkable earnings records of
the public utilities this year has
made them virtually impervious to
advise economic news.
Rail Issues Decline.
Rail obligations stood to lose
the most by the coal walkout that
began Monday. Although the in
dustry reported it had coal enough
on hand for a 60-day stand, the
carriers Immediately felt the loss
of coal traffic.
Prospects of a steel strike put
another dent in rail bond prices
since steel and steel products make
up the bulk of the carriers freight
After a couple of dark days. the
steel picture grew brighter and
rails and other corporates enjoyed
a good-sized rally Thursday when
steel management and labor
agreed to resume contract talks
The rally, while spirited. was
hardly sufficient to Offset the
downward price pull during the
other days Of the week.
Canadian railroads were SUBJ
jected to the double drag Of cur
rency devaluation and prospec-
tive loss of traffic. No individual
Canadian rail issue was able to
show a profit for the week.
Weeks Volume Small.
Trading volume for the five
days was $14,225,000. a low figure
but not much worse than the
week before when turnover was
only $14,339,500.
There was very little activity.
from the point of view of actual
sales, in over-the-counter trading
in United States Treasury bonds.
Bid prices advanced during the
first three days of the session.
then dropped back in the last two
Leaving most long term issues
just about where they started.
With not a single bond issue
scheduled to come to market next
week, corporations again are look
ing to equity financing for funds.
In this field. two corporations will
offer major stock issues totaling
nearly $50.000.000.
An underwriting syndicate is
making public offering Tuesday
of 100000 new shares of $1OO par
cumulative preferred stock and
100000 shares of $5 par common
of Tennessee Gas Transmission
Co. To its holders Of record Tues
day, American Gas g. Electric Co.
is offering 498.081 shares of $40
par common.
Tax Exempt List Grows.
According to Daily Bond Buy
err" the coming weeks list of tax
exempts amounts to $115,414,000
nearly double this weeks $64,-
839, 900.
Bond Buyers figure. incidently,
does not include an issue of ST.
100000 of bonds of Pennsylvania
Turnpike Commission than an un-
derwriting group expects to have
ready Tuesday for public offering.
Proceeds of the sale will be used
to finance the western extension
of the Pennsylvania Turnpike.
The biggest issue up for COM
petitive bidding is North Caro-
lina's $4,000, 900 of bonds for road
improvements that will be mar