Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-10-09

| important Improvement among the
active issues. 1t moved up 10 points
Union Pacific advanced 5h points, Bal
timore and Ohio J1a, Chesapeake and Ohio
|8, AtchiSon points, and the other
stocks along the list from to points
The standards were slowest to get
under way and only covered about 2
points.
In actual ground covered Western
Union was the star performer. making a
gain of II points. but that was really
class by itself. The rally represented
a reawakening Of a stock long dead in
| a speculative sense. 1t came in re-
Spouse to a realizing sense that West
valuable proposition than it ever had
been while under the control Of the
| former regime.
Awaiting on Digestion.
If it is shown that the market can abb
sorb and stow away the 100000 shares
or more of inside stock that was unloaded
on the advance the manipulators may put
| through another upward whirl. The mar
ket is just now going through the pro-
cess of assimilation, and the i'm
mediate future OF prices depends on how
thoroughly and how easily the job is
| done.
The banking syndicates have still remain
which they would like to unload, and II
| they see they can induce the public to
stay awhile around current prices or
| higher the same dear. delightful public
| will be given opportunity to increase it's
| cargo. Take the case of steel as an
| example of how things are done. 1t
| was quietly showed up from around 81
to 7Os4. not very large or suspicious
| advance, but a pretty good thing after
| all, in the face of very bad industrial
situation and enough to attract outside
| trade on the exchange. All at once
the stock had burst Of unusual activity.
The first three days of this week
it was traded in to the extent of about
| 691a and T02. The bulk of the trans
| actions were within Il of a point of 20;
| then the price broke off sharply to GO, and
| the manipulators sat back to see how
| the game would work out. The enor-
| nous trading mentioned was construed
as distribution. BY no stretch OF the
| imagination could 1t be tortured into
accumulation. Somebody was getting rid
cunning professionals on the exchange
| feel very sure inside sources can supply
any sort of demands that may develop
around these prices.
Steel Folks Optimistic.
Representatives Of the iron and steel
| trade have strangely worked themselves
| up 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 buy
| ing only what they have to the visible out
| look is discoura ging, yet the large manu-
facturers. Including the steel trust 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 bunch is right; some
times it isn't, and when it isn't there is
almost always an uncomfortable state of
Generalization in the industry. The
steel trust and most of the independents
| are running on 6 to 81 per cent of ca
pacity. but when this IS stated 1t must
be borne in mind that the O. to 81 per
double what 1t was six years ago. From
that angle is doesn't look so bad.
The trust will probably show earnings
for the third quarter close to $3o, 100000.
| That would make $115.OOO.OO0 for the
first nine months OF the year. If the net
for the last quarter should not be above
$50 coo 600 there would still be q net
showing of $145,MO,O0O for the year.
That is away below January expectations.
but it would nevertheless be about $780,
OOO, 600 above the fixed charges. and $45,-
coo, 900 after dividends are paid on the
| common stock There would be left over
for surplus and extraordinary expendi-
lures a kingiy sum. although in view of
the heavy OUTLAWS for extensions and new
plant it could not be expected that sur
plus would be much, if any, the gamer.
| Indeed, II would not be at all surprising
| If the corporation did not have to eat into
| its enormous cash surplus, which now
| figures somewhere around $13o,OOO,OOO.
U. p. Needs Money.
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 $780,
| 100000 in new financing within year.
although it is supposed to be earning
vast sums over and above current re-
quirements for maintenance. dividends
and interest These exuberant statements
| of current prosperity do not some way
harmonize with the glutinous demands for
| new money.
| The Hill stocks are none too strong. but
there seems to have recently developed
quite friendly feeling for Atchison.
Something is expected from the interstate
commerce commission very soon on that
suspended order for a reduction on noun
tain rates. and that something can hard.
| ly be bullish, even though there should
| be further extension of the time of grace.
| With the increased population and tom
mage in the far west there cannot be
| much more delay In the beginning or a
| continuous era Of reduced rates from the
exorbtant and oppressive figures which
have SO long ruled in that part of the
| country.
Banks Discourage Speculation.
| The banks help along these little minor
bull campaigns, but they give 1t out cold
and fiat that they will not be parties to
the announcement Of broad speculative
activity which would impose upon them
the necessity of heavy financing. Their
chief interest in the stock market now
is to aid in finding market for some
of the collateral with which they are
| loaded down for account OF favored cli-
ents When speculative activity gets be-
yond that stage they pull in their horns.
| They have no money either now or in
prospective up to the end of the year for
| the financing of big gamble i'm stocks.
| The surplus reserve Is now down To "A
| sl,ocsttful. and ti:c.c i serious tE"fk