Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-07-12
BIG PORK DEAL.
One Firm Controlling all of the Product IN
the Country.-A Gigantic Corner.
lChicaon Times Inlu IN

70. was largely snOrb on hOg product ana
when value began to move upward it was
caught" for a considerable amount according
to popular report. Realizing the Improbable
ness of bearing" rising market the firm pre-
pared for '.long" campaign. For that matter
it is believed by many that the bear movement
spoken of was part of the original programme
and that the firm went on that tack merely for
the purpose of
FREEZING OUT THE LITTLE BULLS"
who had been teDaciously clinging to embsrrsss-
ingly formidable lots of pork, taking care to
hedge against lose. Subsequent events give
color to this theory. But be this as it may,
Armour & Co., as early as last December began
absorbing the entire hog product Of Chicago,
line that has been followed up to the present
time. The firm, with far sighted bust
ness capacity, long since commenced
the establishment of agencies throughout the
southern States and Europe, having discovered
the business could be carried on with greater
certainty of success that way than any other.
Probably no other establishment in the world
maintains such vast system of agencies, and
to this fact is due its ability to plan and carry
out movement so elaborate in its ramifcatiops
as this one has turned out to be. The firm is
in position to greatly influence il not en-
tirely
CONTROL THE PORK MARKET OF THE WORLD,
and there is no question that it is using its
great power now to the fullest extent.
Armour d Co. bought about IT, 900, 600 pounds
of short ribs, for March delivery, 12,CO00 600,
and since then purchases have ranged from A.
000,000 to 100000 pounds monthly. No
transaction was too great for the house to I'M
dertake. After the winter packing season was
over attention was directed to mess pork which
had heretofore been neglected, and immense
purchases of the barreled product were made.
The process of loading up was done very quiet
ly and under cover to a considerable extent
The market WAS dropping and depressed, and
it was while prices were at the lowest ebb that
the largest Investments were made. The bulk
of mess pork was bought in April and May.
when it was worth from 1925 to SO. SO. Not
content with absorbing everything in sight
Armour & Go. bought largely for future deiiv-
cry, taking everything that came along for
July, August. September. and October. The
operators were not seriously alarmed by the
activity displayed by the firm,-
as it is large dealer on Change at all times,
and the market did not begin to show the
slightest sign of excitement until about
month ago, or perhaps little longer. Then it
became bruited about that Armour & Co. had
all the pork. Even this did not greatly stimu-
late the market at once, but shortly thereafter
prices began to advance, and they have been
advancing ever since with the greatest of regu-
found themselves ''short" of this very interest
ing commodity, but one dreamed that the
"bull movement would be carried to the point
that has been already reached, and no special
inquiry was made as to the extent they were
collectively included. 1t is now ascertained
that of the 100000 barrels of cash pork in Chi
cago, this one firm holds not less than 165, goo
barrels, and may be more. 1t is also "long"
nearly $50, 900 barrels of August and Septem-
Der pork according to current reports, making
an enormous aggregate, approximating 45O, 900
barrels.
To handle this stupendous bulk of meats re-
quires almost unlimited resources. The cash
pork represents more than $4,000, 900 at present
prices. 1t probably cost in the neighborhood
of 81, 100000. This is SO much clear '.stuff !"
and to pay for it it was necessary to "put up"
There is no margin business in this. The op-
lions as matter of course represent less actual
cash, and as the market has gone right, it is
probable none at all was used. But it is safe
to say that the firm which undertook the con-
tract of bulling the meat markets of the world
went In prepared for different results and that
90, 100000 or 1000, 900 in loose change was
placed within easy reaching distance. Success
could not be foretold to certainty, and know
ing the market as men do who are Manipulating
this movement it would be within reasonable
bounds to fix the capital employed, or ready to
be employed, in the deal at $4,000,000 or
@0,UUU,UUU. lQ1S estimate Ia as llaDie 10 De De-
low above the limit.
AS the price OF pork went up from $40, on
or about the LIST of June, to $3.50 for August
delivery, point reached on Thursday, some
thing of the proportion of
THE COLOSSAL SCOOP
can be seen. 1t is estimated that the $50, 900
barrels of pork held by the coronerers were ac-
cumulated at an average cost of SlC@i0.50
fairly correct the profits ION paper) of the deal
can not be much less than So QUO, 900, up
to the present time. That figure may be too
high at the closing quotations on yesterday.
certainly no basing calculations upon Thurs
days quotations. the fiuctuatiOn of a few
cents per barrel makes no special
difference inasmuch as the firm is play
ing .svelvet." phrase in use among
worldly people siguifying money Won from
other fellows. Then again, it may be that the
So, 900, 600 is away below the actual profit, for
there is no telling how much more is held that
is put out of sight of the world in general. Of
the entire S13.369 barrels of pork packed here
during the winter season there is NO telling
how much has been quietly registered in New
York. The firm has unlimited facilities for
hiding as much of the pr, duct of the season as
may seem advisable. without being caught at
it. As 1T is seemingly the design of the mana
gers of the movement to eliminate the specu-
lation in August, there is no way of determin-
ing what stores of provisions may be held in
reserve.
THE NEW YORK AND EUROPEAN MARKETS
have moved in sympathy with the Chicago
market during the past month, though in tie
last sudden upward turn the advance has not
been go great there rs here. New York drags
reluctantly along, and on Thursday the diffur-
ence was SO marked that the opera ors who
we're short were kicking vigorously. They said
that values were so obviously fictitious here
that they would not settle on any such basis as
home quotations. but would take advantage of
the rules of the board of trade which provides
for an equitable adjustment by arbitration.
As prices have fallen from the extreme limits,
and the margin between New York and Chicago
quotations is narrowing, it may be unnecessa ~
to arbitrate extensively il at all.
Opinion as to the ability of Armour d Co.
to
CARRY THE CORNER THROUGH
to complete success by unloading or enforcing
settlements at top figures, is divided, but tie
belief is held by many that it can accomrh h
whatever it may have set out TO do. II is eaid
to control the New York market as well as the
Chicago market, and that it is purpOsely keep.
ing New York prices down to influence the
bears" to hold until the swell shall carry them
higher. This is certainly beautiful plan of
creating a belief in an unstable and weak mar
ket, and if it is part of the grand scheme it is
working admirably. The short" operators
are showing little disposition to settle at exist,
ing figures, feeling confident of break
in the near future Their
faith was greatly braoed yesterday
by ''rkliahle telegraphic adyices'' from Little
Rock, Mobile and other southern points, to- the
effect that Armours agents were trying to
rr1a En oil at ftrxrr ok, hat ka