Los Angeles herald., 1906-08-10
Nv Associated Press.


NEW YORK, Aug. 9-The large buying
of Pennsylvania was again about the only
feature of strength in the stock market
Its influence in restraining the falling
tendency of prices elsewhere was less
effective than yesterday.
There was not much IL the way of news
developments to account for the change
in the markets tone and 1t was largely
due to the fact of the decline in prices
yesterday and the inference from that
fact that a distribution Of stocks was
going on from the hands of influential
capitalists The belief that they were fol
lowing such leadership sums up practic-
ally the whole motives OIL the recent
operations in the market on the part OF
the speculative element. The conviction
in that quarter that the great capitalists
of the country were accumulating stocks
originated about the time of the last
meeting of the Union Pacific directors
Special efforts had been made to secure
a quorum for that meeting and while IL
was announced that no action had been
taken on the question of the next dtVi-
dend, there was a widely disseminated
rumor that a decision had in fact been
arrived at which would be formally an
noUmced at some future meeting of the
executive committee.
Apparently speculative opinion had
hitched upon todays meeting of the
Union Pacific executive committee as the
one to announce the long expected devel-
opments upon which that stock had risen
for several weeks with sympathetic effect
on the whole tranScontinental group. The
adjournment of the committee today with
the announcement that only routine mat
ters had been considered seemed to shake
the belief in the intended increase in the
dividend and the Inauguration of divi-
dends on Southern Pacific.
The effect was similar to yesterdays
announcement of the departure of the
chairman of the St. Paul directors with
out the action on the expected plan fol
the Pacific coast extension
With confidence shaken in the truth OF
rumors which had played so important
part in the speculative advance in
prices the suspicious attitude toward the
movement which has been held in many
quarters from the outset was strength
ened. The expressed grounds for this
suspicion have been the supposed desire
of very large and well informed holders
of stocks to secure favorable basis for
distribution of their holdings.
The money market also gives decisive
evidence of the Tightening effect of the
beginning of the demand for the pur-
poses of the harvest. The calling of
loans placed here by western banks and
the increasing demand for actual cash
from the interior showed plainly that the
seasonable demand for funds now due was
setting in.
The payment of subscriptions for the
Panama canal bonds is also making the
banks losers on the sub-treasury opera
tions, the intended redeposit with the
banks of government funds being appar-
emily delayed in their influence upon the
banking reserves.
The rate for call loans went at high as 5
per cent today and the rates for time
loans also were appreciably higher. There
was sharp reaction, however, in the
foreign exchange market.
The late development in strength in
Southern Pacific offset to some extent the
effect of the weakness in Union Pacific.
and rally in prices repaired a part of
the extreme losses. The closing was
quite firm.
Bonds were steady. Total sales, par
value, S2,155, 900.
United States bonds were all unchanged
on call.