Los Angeles herald., 1906-07-28
Rv Associai,d Prena.

NEW YORK, July 27.--The stock
market gave good demonstration of
its absorptive power today in face OF
numerous sales to realize on the week S
con siderable rise. The strong front Of
fered by the market to this selling was
the more notable in view OF its cen
tering on st. Paul and Southern Pa
cific, which are effective leaders of mar
ket sentiment and likely to influence
the whole market by sympathy. The
effective counteracting influence to this
realizing and enormous and aggr essive
buying of the United States Steel
stocks, the unwieldy bulk OF which
makes them very difficult to move eff
fectively, but which are of correspond :
ing effect on sentiment when there is
a striking movement in them
The profit taking in Southern Pacific
below the high level of the week and
st. Paul was as much as three points
off, Effective disclaimers were made
today of the rumors of the passing of
hands which were circulated yesterday
to offset the disappointment over the
non-action of the St.~Paul directors on
the late financial plan. The effect of
to st. Paul itself although the rumors
were an influence in lifting the whole
market before.
The selling to realize extended to
other quarters of the list and affected
the transcontinental railroads gener-
ally as well as some of the eastern
trunk lines. Some of the stocks which
were subject to. this process recovered
later in view of the steady absorption
which met the offerings,
Speculative sentiment continued to
be largely dominated by the supposed
views and market operations of indi-
viduals and groups conspicuous in the
financial world. There were reports
current of the large earnings to be
shown for the current quarter by the
United States steel corporation in the
report due next Tuesday and the pros
poets of an early dividend on the stock
were believed to be improved from this
condition. But buying of the stock
was influenced to much greater extent
by the presence of ]. p. Morgan at his
by the attrbution to him of confident
opinions on the stock market and the
condition of the country and especially
of the steel industry. There were no
public utterances to confirm these re-
ports but professional traders professed
TO see full confirmation of them in the
stream of buying. orders for the United
states steel stocks which poured into
the market and which were denoted
Morgan buying" In the gossip of the
stock exchange
the promise of a strong bank statement
kept the speculative movement free
from obstacles on that account. Some
large disbursements made yesterday
converted the previous loss of the
banks 20 the subtreasury into small
gain But the returns from the interior
moyement are chiefly relied upon to
increase the cash showing of the banks
Preliminary estimates indicate gain
from this source aS high as 81 200. 600.
1T is suggested that as the New York
banks secured the largest portion of
the Panama canal bonds there have
heen some remittances from interior
hanks wishing to secure portions of
the bonds to secure new circulation.
Reports of extensive cutting of grain
rates by western railroads seemed not
to disturb Snecula tive confidence
The parallel strength and realizing
went on in the market throughout and
kent up to the closing.
Ronds were steady.
Total sales. par value. 81. .329, 00n.
United States 3s advanced Il per
cent on call