Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-09-18
GAVE PRICES BOOST
Big Folks OF Wall Street
Started Bull Movement.
CHANCE TO UNLOAD STOCK
Unloading Being Accomplished, Val.
ues sagged Again,
FOOLED THE PROFESSIONALS
Believing Genuine Bull Movement
Was Under Way, Bears Rushsd
to Cover Shorts.
CHANCE TO UNLOAD STOCK
FOOLED THE PROFESSIONALS

| to Cover Shorts.
/ BY W. g. Nicholas.
Special Correspondence Of The Star.
| NEW YORK, September II. 1910.
The large people Of Wall street start
ed of this week upon q program the
essence Of which was the ignoring Of
Roosevelt and all kinds Of politics. II
the carrying out Of this determination
stocks were marked up vigorously ant
the leaders even went SO far as to cele
brate the democratic triumph In Maine
| by a particularly energetic uplift in quo.
tations.
| The demonstration was so earnest on
it's face that a good many bears turned
tail incontinently and began covering
their shorts. This was a valuable aid
to the plan and for a.. time it fooled the
public into the belief that there was
| real substantial basis for the advance
and for the apparent change in sentiment
| from benumbed Indifference to gen.
uine hoopla bull movement.
| Strangely and with entire inconsistence
the market leaders. while protesting to
ignore politics, gave politics as the chief
| excuse for changing front and vN1ooping
| things up. Wednesday 1T was discovered
that while the chorus was loudly singing
and the band playing insiders were
quietly unloading. They succeeded In
| getting rid of comfortable lines of stocks
before the mass of professionals and
semi-professionals got on to what was
| being done.
Issue Bullish Literature. -
Meantime four out Of five commission
| and brokerage houses were sending out
| bullfsh literature and advising clients
| that the time had arrived when they
! could safely buy securities The public was
| slow in taking the hint, however, and, al
| though there was Increased activity on
the exchange, the great bulk of the Or
| ders originated from inside sources and
looked 100. very much like a mechanical eff
tort to stimulate interest. a little
break OF about one point late Wednes-
day afternoon filled the street with sus-
! picion that all might not be as 1t looked
| on the surface and that intending buyers
| might save money by holding off a little
| longer.
The more they tried to analyze the
Maine election the more the wise men and
| philosophers of Wall street failed to get
anywhere. The best they can do is to be-
come involved In a state of mental confu-
sion. No two opinions agree as to what
the thing means-whether 1t is a rebuff
to Roosevelt radicalism or an Endorsement
OF advance political views and q manifes-
the republican administration to bring
peace to the business world.
Think Unrest Widespread.
The consensus of revised judgment is
that the very evident political unrest is
widespread and that 1t spells continued
political agitation Of the most disturbing
kind. Trouble Is experienced in recon-
Cling this view Of the situation with tho
announced bullish impulse in the stock
market. With everybody stirred up and
nobody quite sure of the business and
political outlook, the rank and file of in
vestors and SPECTATORS are again inclin-
ing to the theory that possibly the rally
In prices was premature.
At the same time the admission is free
ly made that 1t is entirely within the
power of the banking syndicates and COM
binations to put stocks up several points
further and give themselves and their
friends a chance to distribute stocks to
better advantage than would have been
possible II the attempt had been made to
unload while the market remained in
state OF stagnation and trading was with
in unusually restricted limits. That is
the situation as 1t Is found today.
Agricultural Season Late.
The one bright feature is the assurance
Of bountiful agricultural production, al
though even in that respect the country
is not wholly out of the woods. The sea-
son Is two to three weeks late and a
considerable percentage of corn and cot
ton is still in danger of impairment
not enough to cut down the total a very
great deal, but sufficient to be a live
factor and to command the attention OF
nd nj no onv1o
In the background who have the money
to invest or to withhold. as the mood
seizes them. Western and southern rail-
roads are very busy moving the forward
end Of the crops, but so rar as can be
seen this early rush movement is to
transfer carry charges from the farmers
to the spectators, and this latter class is
already beginning to get cold feet over
the prospect.
Strange to say. speculative capital is
already shying at the doubtful honor of
paying these carrying charges on ware
house stocks taken over from the farm
ers at current high prices. This feeling
Is finding reflection in declining COM
modify prices at the big primary markets.
With general business slowing down
everywhere and employees in practically
every line OF industry discharging men
and shortening hours Of work, there
comes a certainty Of reduced buying
power and q long period OF enforced
economies ahead-the outlook for sus-
tanned high prices for commodities is not
generally regarded as gilt edged. What
there is in all this to justify advancing
stock markets IL something which IL not
clear to the common understanding. or
rather to the understanding Of common
people. That Is the fly In the ointment.
Publicity Bureaus Work Hard.
The publicity bureaus are trying to
make it appear that the railroads have
been making a great hit before the
interstate commerce commission, and
that there is now almost a certainty
that they will obtain permission to in
crease freight rates. As q matter of
fact, directly the opposite is the case.
The railroads have made a poor i'm
preston with their testimony and ex-
plantations, and under the direct and
embarrassing cross-examination Of at
torneys for shippers. as we'll as rep
resentatives of the government, the
railroad officials have exposed many
higher rates.
Admissions have been repeatedly
made on the witness stand that the
existing schedule of rates in the east
and west and south are full Of in
equalities, and that trusts and large
industrials are grossly favored. at the
expense. OF the general public. The
point has been made frequently that
the proposed new rates in no manner
remedy these inequalities, but rather
emphasize them. 1t has, furthermore, |
been shown throughout the entire in
quiry that there is radical need Of a |