The Birmingham age-herald., 1910-10-09
WALL STREET GAME
 IS PLAYED STRONG And Genuine Bullish Sentiment
 Is Developed THE PUBLIC TAKES HAND Representatives of Iron and Steel Trade Are Optimistic and Stock Prices Make sharp Advance-PoI-
 itics Discounted
THE PUBLIC TAKES HAND
By ". c. NICHOLAS

came in on larger scale than at any various pools and cliques got rid of a very considerable line of securities, both bonds and stocks. There was an appear ance of the real thing about the later stages of the rally and many really wise and experienced people were led to believe that the movement might have substan- tial basis and that 1t meant something besides the usual line of buncombe, guff and bluff. The rise was pushed along steadily from about the date Of the Maine election, and in some Of the lead CTS the advance amounted to to 10 points, Reading scoring the most i'm portant improvement among the active issues. It moved up 10 points.
 Union Pacific advanced 51s points, Bal timore and Ohio 51t, Chesapeake and lohio 8, Atchison points, and the other stocks along the list from to points lThe standards were sowest to get under lway and only covered about points Tn lactual ground covered Western Union was the star performer, making a gain of 14 points, but that was really an ex- ception which placed 1t in class by Itself.
 The rally represented a reawakening lof stock long dead in a speculative sense. It came in response to a realizing sense that Western Union ex-Gould was a much more valuable proposition than it ever had been while under the blight ing control of the former regime. It Is being re-established as a sterling money earner and Is getting back Into the posi- ton 1t held long, long ago, as something well worth while.N The innovation of the 50-word night message is alone increasing the revenues of the company $5,0oo,00o a year, and that is only one thing
 If 1t Is shown that the market can ab- sorb and stow away the 1000, 900 shares or more of inside stock that was unload ed on the advance the manipuators may put through another upward whirl. The market is just now going through the process of assimilation and the imme-- diate future of prices depends on how thoroughly and how easily the job Is done. The banking syndicates have stlll lremaining on hand large quantities of goods which they would like to unload, and If they see they can induce tho public to stay awhile around current prices or higher, the same dear, delightful public will be given opportunity to increase its cargo
 Take the case of Steel as an example of how things are done. It was quietly showed up from around e7 to 7o%, not very large or suspicious advance, but a pretty good thing after all, In the face of Ia very bad industrial situation and enough to attract outside trade on the exchange. All at once the stock had a burst of unusual activity. The first three days of this week it was traded in to the extent of about S00,000 shares within the price range of 691k and 7oa4. The bulk of the transactions were within one-fourth of point of 70; then the price broke off sharply to 69 and the manipulators sat back to see how the game would work out.
 The enormous trading mentioned was construed as distribution. By no stretch of the imagination could 1t be tortured into accumulation Somebody was get ting rid of the stuff in a wholesale way and the cunning professionals on the ex- change feel very sure inside sources can supply any sort of demands that may develop around these prices.
 Representatives of the iron and steel trade have strangely worked themselves lup into quite an optimistic frame of
 mind. With overproduction of pig iron staring them In the face, with orders falling off and all the big consumers buying only what they have to- the visi- ble outlook is discouraging, yet the large manufacturers. including the Steel Cor poration and leading independents, have gotten their heads together and decided that 1t would be possible to maintain prices and that all they had to do was to sit tight to get the business. The iron trade has these fits sometimes.
 Occasionally the hunch Is right some- times it isn't, and when it isn't there is almost always an uncomfortable state of demoralization in the industry. The Steel Corporation and most of the inde- pendents are running on 65 to e7 per cent of capacity, but when this Is stated 1t must be borne in mind that the 65 to e per cent Is on a capacity nearly, if not quite, double what 1t was six years ago
 From that angle 1t doesn't look so bad The corporation will probably show earnings for the third quarter close to 35,000000. That would make s115,0o0 600 for the first nine months of the year. If the net for the last quarter should not be above $3o,000,000 there would still be a net showing of 45,000, 900 for the year.
 That is away below January expecta- tions, but 1t would nevertheless be about $60, ,0O0000 above the fixed charges, and $45, ,0000 900 after dividends are paid on the common stock There would be left over for surplus and extraordinary expendi- lures a kIngly sum, although in view of the heavy outlays for extensions and new plant 1t could not be expected that surplus would be much, If any, the gainer. Indeed 1t would not be at all sur prisng if the corporation did not have to eat into its enormous cash surplus
 which now figures somewhere around
 $135. .O0O,0Oo.
 The street has been full of bear talk on Union Pacific. President Lovett is quoted as saying that the Union Pacific system would have to put through sl5o, coo 900 in new financing within year, al-
 though 1t is supposed to be earning vast sums over and above current require
 ments for maintenance, dividends and in- terest. These exuberant statements of current prosperity do not some way har- 3 monize with the glutinous demands for
 new money The Hill stocks are none 3 too strong, but there seems to have re- gently developed quite friendly feeling 5 for Atchison.
 | Something is expected from the Inter. state Commerce Commission very soon
 on that suspended order for a reduction on mountain rates and that something ] can hardly be bullish even though there 9 should be further extension of the tirnt , of grace.
 , With the increased population and ton
 mage in the west there cannot be much
 more delay In the beginning of a contin uous era of reduced rates from the ex , orbitant and oppressive figures which have so long ruled in that part of tht
 country.
 The banks help along these little minor bull campaigns, but they give 1t out colo