Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-11-07

The Profits of the Pork Deal of Armour
s. Co, at Chics go-How ,he Corner w as
Engineered Suckers Who Were
Taken In.
Chicago Times.
A gentleman who processes to know all
| about the Armour pork deal which has just
closed gave reporter for the Times the
benefit of his knowledge last evening for
the benefit of those who might be interest
ed, and there are few in this quarter of the
globe not interested in one way or another.
This corner" of which frequent mention
has been made in the news columns of this
journal, has been on for about six months.
1t has been one of the most successful deals
of the kind ever attempted. as we'll as the
most extensive and far-reaching in its oper-
atoms, netting the ''cornerers" many mil
lions of dollars profit. In giving history
of the deal it will be necessary to 60 back
into the summer of 1879, for it was then
that it started, the corner of 1880 being
simply continuation of the corner of q
year ago. In the summer of 1879 Mr.. Phil
| Armour and Mr.. John Plankinton, his part
ner in Milwaukee, went to Europe,
and while there they became
SATISFIED THAT PORK WAS GOOD THING TO
HAVE,
prices having declined sharply about that
time. They were abroad about two months,
| and during their absence they ordered the
purchase of an enormous amount of pro.
visions, including 100000 pounds of ribs,
wi or hon
and 10000 barrels of pork
at an average of only So
per barrel. On their return to America
in September they found the market
Strengthening. Prices went right up and on
their deal they realized profit of 100000
in the next two or three months. Pork ad-
vanced to $14 and ribs in proportion. They
had faith in the market, and, under the i'm
preston that the boom was going to con-
tinue, they loaded up again, after getting
out with the profit mentioned. Then came
the reaction and and the bottom dropped out
of the market, pork going from $14 to
1925 in spite or all that could be done to
bolster it. The $4,000, 900 went Pickering,
and another 100000 after it. Though
very neatly "holed,'' the members of the
firm refused to stay in the hole, but at once
set about retrieving the losses encountered
by reason of failure to appreciate
the force of the maxim, "let we'll enough
alone They sent agents through this
country and Europe. and from the reports
made satisfied themselves that the product
of the hog would be in demand for the en-
suing four months. They saw, or thought
they saw, that the country was entering
upon an era of great prosperity, and that of
their own volition values would advance
They accordingly determined to undertake
| the job of
| CoRNERING THE PORK MARKET OF THE WORLD.
They began 10 April to load up, purchasing
all the actual stock in market, there being
about 5000 barrels on hand in this city at
that time, and trifle over 100000 barrels
in store at other cities. This they bought
at prices ranging from $3.50 to $1,000, the
| average being about $40. In addition they
secured 'optIons" on 100000 barrels more
and then, having stocked the cards, they
sat quietly down on their deal and awaited
developments, taking occasion to let every
body know that they had all the ork in ex-
istence and a greal deal more. They set
the machine going in June and pork went
sailing. The manipplators of the deal had
laid their plans to force the price up to $40,
but they wanted it to go up gradually, SO
as to get as many "bears" on the hooks
as possible, but when it became apparent
to the traders and spectators that great
bull movement was on foot, prices
were run up with such rapidity that it was
feared the effect would be to brighten off
the 'shorts' and induce them to settle too
early in the game. To prevent such a move
the Armours threw nearly half million bar
rels on the market, and this served to check
the boom and keep it within their control,
and at the same time produce the impression
they desired, namely, that they could not or
dared not carry out the published pro-
gramme of forcing quotations 500. Fresh
fish caught on in great numbers, not only
here and in New York, but in every city and
town in the country, and became very bold
and greedy. Many who were frightened of
at the beginning of the rise, had turned
bulls, and it is noticed that when shorts take
to going long on any commodity they are
the most Unsuitable of bulls. They never
know when to let up; their voracity is
boundless. Thousands swan with the cur
rent, and, as is usually the case, it was rank
outsiders with more money than experience
in the wiles of speculation who were the
worst hurt, though hundreds of old traders
backed their belief that the Armours would
not De able TO carry the deal through suc.
cessfully and that crush was inevitable
from the very nature of things.
While the speculative market was
strengthening day by day, and week by
week, the cornerers were bending their
energies to
UNLOADING THEIR "sFoT'' POLK.
This was usually sold at figures consider
ably below nominal quotations, and as an
inducement to buy the trade was privately
assured by agents that the Armours would
protect them against loss. This stimulated
the demand, and the LIST of November caught
them with only about $4,000 barrels Of old
pork on hand, with prices high enough to
enable them to close out at o handsome
profit if they had felt disposed to stand
from under. In getting rid of their pork,
the expedient of stripping" about 10000
barrels WAS resorted to, and the meat put
out in this way. With the actual merchan-
ill., -lEl IL. j.