Omaha daily bee., 1906-08-03
NEW YORK STOCKS AND BONDS
Large Speculative Liquidation 0aurss an
Early Reaction in Prices.
POWER OF ABSORPTION DEMONSTRATED
Market soon Turns strong on
Reports of Increased Dividends
in Leading Railway
shares.

NEW YORK Aug 2.--Large specula-
tive liquidation was conducted In To-Day
the early reaction and the occasional hesi-
tation Of the movement But Striking
power of absorption was again demon
strated and strength revived in the mar
ket in the interval of the selling.
The tone of speculative sentiment vas
largely influenced by the movement OF
special stocks, owing to the couyiction
among operators that they were following
the leadership Of powerful groups OF cap
ments of these stocks. There was very
general confidence that far-reaching plans,
involving both corporation hnance ano
stock market operations, were reflected In
the movements of the market. Explicit
assertions were made Of the certainty OF
important dividend increases to be made
and of other plans to offer attractions
to stockholders, and IL was argued tnat
a concerted determination to awaken an
active interest in the securities market
was thus a seasonable d duction to b.
drawn from the course of Leading capi-
tslsts. The desirability OF more active
demand for securities TO take on large
accumulations in the hands Of bankers
and syndicates or to help in the notation
of new offerings which are seen TO be IN,
evitable is so well known and recognized
as to give plausibility to the current as
sumption. The more immediate action or
the large reduction Of the short interest
which resulted from the advance OF yes
terday, caused by the unexpected acuon
of the steel corporation directors In re-
suminR dividends on the common stock.
! The strong uplift to the market also Of
| fered attractive opportunities for taking
profits on the part of those who bought
/ heavily last week when the rise was still
/ in an incipient' stage. The rapid rise N1
/ st Paul early in the day and later DEM
! onstration in Reading were haruty d .
/ to Offset these influences. The aggressive
strength in the Hartman, Pacihcs proved
| more effective and served to restore the
! feeling of confidence that abundant means
] were back of the movement to stimulate
a speculation. ST. Paul was the center ot
| all kinds of rumors, including runor
! of an per cent dividend guarantee on
| the stock for control Of Union Pacihc and
| Southern Pacific, or supposed -competluve
! buying in the open market supposedly 2y
| the present control and the Union ftCIuC
| interests. The air was hlled with ruInoIs
1 of dividend increases also, pointing espe-
cially to Union Pacific Southern Paclnc,
! Atchison, Norfolk & Western. Chesapeake
q Ohio, Pressed Steel Car, and so on quite
| indefinitely. -, q.
| velopments. Foreign exchange continued
| TO harden Money on call continued easy,
although there was some calling OF large
| loans reported. The sub-treasury TOOK
large sums from the market on account ot
a payment of a note of the Central "a
cifc falling due and of payments OF sub
scriptions to Panama canal bonds. Fenu-
sylVania's good showing of June net earn
Ings helped the stock and the cut IN pas
senger fares on the system was uisIe, ,
garded The adjournment of directors
meetings without anticipated action dli
not ruff1e the confidence of operators anu
the late market showed no more than the
ordinary effects of room pront-taklhs
with the closing generally strong ana ac-
Ronds were eas.- Ia ~H'es, par
value s., e2S,O 900 United States bonds
were unchanged on call.
The following are the qao;SSions on tha