The Washington times., 1911-02-05

the familiar process of advancing
prices for the purpose of creating raw
orable opinions Of the security market
or, at least, of modifying extreme pes
simism. That the movement was pow
erfully supported is obvious, and that
1t was highly successful despite late
reaction in establishing higher range
of prices for practically everything on
the list, is equally apparent.
Where the campaign, to give 1t the
Wall Street name, fell short in the opin-
ion of many observers, was in its failure
to arouse widespread public interest OF
enlarge the participation of outsiders In
the security market, but that, as the
self-same authorities point out, Is not a
question which can be definitely deter
mined at this time. The general public
as is we'll known, is notoriously slow In
responding to a professional movement
but Wall Street holds as a tenet of Its
faith that the outsider has never yet
been able to resist the spectacle of ad-
vancing prices.
Improving Sentiment.
II must not be inferred that the
movement of the week was lacking In
substance, or was entirely barren of
results, for that is not the case. AL
though the market continued largely
professional, speculative sentiment was
much more cheerfully disposed, and
underlying the manipulation were some
actual developments of a highly faVor-
able character The real buying, to be
sure, represented a large volume OF
short covering operations, but pear
traders would not have retired as pre-
cipitatedly as they did, II they had'not
detected some signs of real Improve
ment, or IL they had regarded the move
ment as wholly unsupported.
In considering the rapidity of the ad-
vance In the early days of the week,
one should not overlook the strength
of the technical position, a feature COM
mented upon in this column on several
occasions recently, when attention was
directed to the fact that certain instl-
tutions and certain important opera
tors had taken a firm position, and a
large one at that, on the long side OF
tho market. and that the floating sup
ply of stocks was very much reduced In
the hands of the brokers. Some brokers
apparently thought 1t was time to ac-
uuIre a line of stocks, and such pur-
chases, together with the bull manipula-
ton. forced the sharp and extensive
advances, when the bearish operators
set about retiring their short commit
ments. y --t
: Large Operators Responsible.
Before passing on to a consideration
y. come of the actual developments OF
the week, it is interesting to note that'
although the speculative performance
WAS by common consent regarded as
campaign Of sentiment, no important
banking group was willing to stand
enonsor for it, and with one accord
tbssa attributed the increasing activity
and the sharp, advanceo to a certain
qroun of large operators. Leading COM
mission houses, such as customary
figure in important manlpulaliNe anu
pool operations, persisted IN saying Inat
the movement did not originate Win
any organized pool. Several OF thelh'
however. when asked as to the matter'
renlied smilingly We'll, the tips haEeht
come around yet, but we are LOOKING
for them any day."
Al the same time, however, the street
WAS filled with the customary ruinors
of buying by this or that hmportah.
financial group, which prooapiy poueht
very much lower down. one Is never
ble to convince Wall Street tnat the
"bip men" buy when everyone else ap-
Is selling out, and that tney
,au when stocks are advancing. IL
,,,o,,Id he vastly more important now
,rohablv for the rank and file IN the
straet 70 determine the identity Of the
,.rsons who sold stocks during the
veek than to busy itself over VINO were
,uvine them. 1t takes a seller 10 coni-
,lat. each buying operation on the eX-
,hanse. which somehow or other every
me seems to overlook when prices are
advancing.
Union Pacific Improvements.
OF the developments Of the week
which contributed to the more cheerful
sentiment, and (which served as tne
thief basis for the improvement IN
prices, the first position will doubtless
10 accorded to the action Of the Union
Pacific system in voting the expendi-
ure of $4,000 600 to be devoted by the
to completing the double
racking of the Union and Central Pa
,ific lines from Omaha through to San
francisco. This announcement, which
was made officially by Judge Lovett,
who thus takes a leaf out Of Mr.. Ha1fi-
mans book-for the project, as is we'll
xnown. was one Of Mr.. Harriman's
most cherished ideas for the future de-
,e,opment of the system-was well cal
,ulated to appeal to speculative senti-
nent and catch the popular fancy.
The expenditure of $75,00O,000 distrib-
tied over five years is not actually
,eavv for a system as large as the
rnion Pacific, but 1t has been so long
,ince any important railway has an
bounced an extensive plan for improve
nent involving large expenditure, and
Wall Streets mind has become polartzed
O such a degree over the theory that |
here would be and could be no extern |
i've expenditure until the question of
reight rate advances, the long and |
hort haul clause of the new railway |
i'll. and the industrial cases before the |
supreme Court were out Of the way, |
hat the announcement carried the spec |
,Iatiye element by storm, and has been |
made the basis of a. greater part of |
Wall Streets more hopeful feeling.
Better Railway Earnings.
OF greater Importance probably to the |
country as a whole, was a budget of |
satisfactory railways earnings for De-
ember, which came to hand during the |
- yxyb;Io the frafdc rat,trt1S ore he Il