Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-12-29
CORNEkING WHEAT.
The Irrcpresstble Keene Said to Be ut the
Hea0 OF Financially Posverf,sl Pool to
Raise the Price Of Wheat.
- m

fdsse the Price Of Wheat.
49,. New York Telegram, Dec. 23.l
In the Produce Exchange this morning, in
the absence of anything else to de-, most of
the merchants killed time by discussing the
probabilities of the impending corner in
wheat. Trade was almost at stand-still.
and the speculative clement of the exchange
was totally at sea as to tho prospects in the
near future. They did not know whether to
operate Tor an advance or decline, being op-
pressed with fears that if they did the for
mer they might chance upon broken mar
ket, While the latter course would place them
IN the power of the clique or pool, and rem
der them liable to a disastrous ttequeeze.''
Being asked as to the personnel of the
clique, leading grain merchant said to q
Telegram reporter: "Of course We can't
tell definitely, but the general impression is
that James Keene is at the head of the
clique, and that Rufus Hatch has something
to do with it. They and their friends are
said to control 5000, 900 bushels of grain in
Chicago. Of the II, OO0 900 afloat or in the
elevators at this port they also control a
large proportion-exactlyh how much 40 out
slider knows. All their Chicago wheat is
No. 2sprlng, the standard, and is held there
at $1.3O per bushel. Here
the same wheat is quoted at $1.46.
And right here I may mention q sing
ular fact. In the first place you should re,
member that the freight by rail on bushel
of wheat is "a cents, while the handling and
other expenses amount to four cents bnshel.
This should make the price $1.5S in New
York when it is $1.3O in Chicago, but our
actual quotation is $1.46. Secondly, the
same grade that is held here at $1.46 is SELL
ing at Liverpool to day at $1.42, which
shows that the demand in that market for
the present is light"
"Do you think there is heavy short inter-
est in the market?''
''That's what bothers US. We suppose
there is considerable short interest, but
cannot even approximately estimate its
amount. Thus far there is not what we call
corner in wheat, but the developments of
the next few days may show that there is.
Next month will tell the story. 1t is known,
however, that the parties who ore operating
the pool are financially strong, and that they
are still buying. Their chances of success
depend upon many circumstances shat can
not be certainly foreseen. Since September
last estimating the shipments from this
say, 10000, 900 bushels of grain.
"Now, the question is, will Europe need
any more grain for month to come? If
not, the stock held here for the rise will not
be needed, and the pool will be forced to
carry their wheat at a months expense of
about two cents per bushel. The very fact
that wheat is four cents per bushel lower in
Liverpool than in New York shows that the
demand there is far from being brisk
"Then the pool may lose heavily?''
market abroad and cannot squeeze the
shorts here they stand pretty good chance
of losing. Wheat is higher now than it
has been for many years, notwith-
standing the almost unprecedented
iareeness of the crops. But they have in
their favor the fact that the large quantities
of grain held by the farmers estimated at
about one-half the entire crop-cannot by
any possibility find its way to market at this
time of year."
"Are there not freight determinations in
favor of wheat shipped direct from Chicago
to Liverpool that in some part account for
the difference in price between that port and
this?"
ssOh, yes. The railroads do not dieorim-
mate in favor of individuals least they
say so-but they do discriminate in favor Of
their steamship connections. Wheat ship
ped from Chicago direct for Liverpool, can
be landed there for but little more than it
would cost to put it down in New York, for
both the railroads and steamship lines make
concessions for that sort of business. The
rate by steamship to Liverpool TO private
parties) is about four pence, but where the
corporations are concerned, and full cargoes
guaranteed, half this price is said to be often
taken.'