Show SECURITIES ARE OFFERED Market Evidences Appetite Appe Appe- Appetite Appetite tite for Domestic Utilities BY nI BYRON nIRO SELLER Special Correspondent of The Standard Standard Examiner Examiner Copyright 1927 Consolidated Press Association NEW lEW YORK Nov 26 This This has been an Interesting week eek in the tho market notwithstanding ing the comparatively quiet tone in bonds The average erace has not va va- varied varied ried Importantly from a week eek ago for domestic issues and while for for- foreign foreign eign obligations are a shade low low- lower er er the change Is too small to be significant The lower scale of ot activity in seasoned Issues s has been due to the he large volume of new offerings The total for the week wee was nearly which was the largest I the week wee 1 ending October 21 1 I and ad compares with a week eel ago and about in inthe Inthe Inthe the corresponding week of 1923 ISSUES WELL WELL- ABSORBED The surprising thing is not that the advance in the older bonds was checked but that the effect was as ae small as it was wai The new financing was well absorbed also regardless of the low yields on ore some of ot the larger issues The most important new bond Issue as IlS well as the largest indus Indus- industrial Industrial trial trl offering of 1927 was the 75 Youngstown Sheet and Tube first mortgage due 1978 These were priced at to yield about per cent and the pro pro- proceeds proceeds proceeds were to be bo used largely to refund outstanding Indebtedness now paying a much higher rate ot of interest Just as u a sidelight on these refunding operations now so ec common this company will save a j year ear In interest charges by b the substitution of the new bonds bonde for the old The rhe Youngs Youngs- Youngstown town offering is also noteworthy for the fact that it was priced at ata ata ata a premium There are many com corn comparable parable bonds with 5 per cent coupons s selling at premiums but butery very ery few fe have been brought out re recently re- re recently recently at prices above e par lar REDEEM BONDS This year by the way is going to break breal all records for amount of bond redemptions It now is es estimated es- es estimated estimated that over 1500 will III have been retired by the tho end endot of ot 1927 Some Somo of these of ot course have been paid off oft without new fi financing fl fi- financing some lome have been paid off oCt offin of ofIn in part and others have ha been re refunded re- re refunded refunded funded at lower lover rates In any case it has been all to the advantage of ot the debtor but it has been hard hardon on ore the creditor who has been forced to find new employment for his Ills money at a time Ume when hen security prices were ere steadily rising and yields correspondingly declining The only solution was either cither to ac accept ac- ac accept a lower return or to sacrifice quality From a 3 speculative viewpoint the event of ot the tho week in the bond market was the tho sensational advance of ot the new Hygrade Food Products C s offered at 99 2 1 to the tho amount of ot 1 The Tho bonds jumped 22 points In the first days day's dealings In fn them on the curb exchange and later laler in the week weel they sold Bold 40 points above the of- of offering of of- offering fering figure This would be a a. spec spec- spectacular spectacular performance in a stock to say nothing of a bond The Tho ex explanation ex- ex explanation explanation is 18 that the bonds carried convertible privileges into common stock which the market appraised as much more valuable than did the underwriters UTILITY APPETITE The only other new issue that re requires reo re- quires mention Is the Public Service Electric and Gas 4 2 1 Is I's s priced two points below par This is still another instance of a funding re-funding operation di c d ned to lower charges to the borrower and timed Umed to take advantage of ot the public appetite for tor utility ties tie Turning to the foreign field Ger Ger- German German man bonds have been steadier There Is 11 still Ull much talk about which shall take preference reparations reparations or service on German Gorman ex ex- external ex- ex external external loans but the situation has been clarified to a certain extent The French attitude has hall been un- un unofficially un un- unofficially officially stated to be that they will not object to German foreign boi- boi borrowings which promise to Increase production and that to permit doubt about the tho service on such euch I loans loan would be such auch a menace to German credit as would ot of Itself I Imperil reparations reparation This Is a a. sane cane stand but it leaves open th the Uon as to what is and what is Ie not a 0 productive loan RAILS R VALUE ALlm HIGHER EIt There has haa been no change in money all the week Call Can funds have ruled at 3 12 2 per cent and have been easy eay to obtain at that rate The stock market was ir irregular Ir- Ir Irregular irregular regular before the holiday turning strong tron thereafter The theory that stocks cannot go o down as long as there la is so much Investment capi capi- capital capital tal Is however not ca easy euy y to fit Into tho the facts It does dou not explain why hy the railroad shares should e sell ull ll on en enso so much higher a a. yield basis bouls than the corresponding industrials That this is the case a comparison of ot leading railroad stocks such as Atchison and Union Pacific with in in- industrials like National Biscuit Woolworth and General Electric clearly shows Not ot only do the rails rail yield more at the market but earnings are capitalized at a much lower rate It Is true that rail rail- railroad railroad road profits are aro limited by govern govern- government government rn ov ment regulation but It is equally true that their Income is more sta sta- sta ble be through good times time and bad The rise in the higher grade pub pub- pubic lb ic c utility stocks brings up the same question It has now gone one o ao o far that only a 0 little more store than 4 per percent percent percent cent Is to be realized on the market price This Thill may bo be discounting an investment future but It look looks a more like Ike speculating than Investing In |