Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1880-08-16
[Chicago Times, Aug. III

the Chicago board of trade was what was known
as the Keene deal. Those who fought it gen.
orally went broke" those who trie to follow
1t usually Caught on" at the wrong time, aud
those who were IN with il got beautifully left
Dozens of men have abandoned contemplated
trips to the seashore, other dozens wear their
winter clothes with the mercury in the nineties.
and SIT Might Have Been" is the song whistIed
by many man as be trudges down back
alley to q cheap restaurant, instead of going to
the club as of yore. As for Keene himself, there
is little danger of his ever selecting Chicago US
summer resort, as it was too hot for him here
even in May. Aud, granting that he could be
induced to come here again, it is highly prob
able that he would not go into partnership
With Jesse Hoyt in securing quarters. IL
rumors are good for anything as a foundation
for belief,
HgREE DOESN'T LOVE HoYr
with that gushing tenderness born OF limited
experience and unlimited confidence. And
even if he does, there ale certain men in Chi
cago who feel about it exactly as he doesn't,
| and charge Jesse with being the author of all
their woes.
The full history of the famous Keene deal
will probably never be written, as only two or
| three men know all about it, and they will
never tell. The public understands that James
keene and Jesse Hoyt entered into partnership
to control the wbea. market of Chicago and
Milwaukee; and practically Of the country;
and they bought millions OF bushels with mill
ions of dollars, ran the price up forty or fifty
cents.a bushel, sold some to break the market,
bought again, and for an entire year kept back
ing and filling In this way, until the price went
down to about where it started, and it was I'M
derstood that they are out of the deal. The
public also understands that several western
| men had hand in the deal, and that every one
of the principals. from Keene down, dropped
dollars like rain before he got out of it. But
the public does not, and never will, know just
how the ledgers stand, or precisely how the
| game was played. Enough may be CLEANED,
however, to give an intelligent idea.
Jesse Hoyt and his partner, Hazleton, last
year took it into their speculative heads to 30
| long" on wheat. Presently they found
| that
KEENE WAS "sHoRr,
aud either dreading his dollars or desiring his
aid, they approached him with view to in
ducing him to come over to their side and in
augurate national movement. Eeene at
length consented, exchanged his claws for
horns by paying q difference of few cents and
| biossomed out rs roaring bull. The plan was
| To get control, by actual purchase, of all the
| wheat in the market.
| Meanwhile it was found that few men re-
| siding in or near Chicago owned considerable
| wheat and money, and it was deemed advisable
TO identify them with the project. Accord
| ingly the venture was divided into quarters,
| Keene taking TWO, Hoyt one and the Chicago
| quintet one. The quintet. by the way, was
composed of Perry II. Smith, George l.. DIM
lap, Nathan Corwith, of Chicago, and Judge
Howe and u. G.. Simmons, of Kenosha. While
they were expected to furnish one fourth of the
funds. it was distinctly understood that they
| were TO have
| NO VOICE IN THE MANAGEMENT,
but we're to leave the control absolutely in the
hands of Keene and Hoyt. all this having
been arranged, the three-cornered combination
moved in force on the market Early in The
deal, 81 SOC, 900 was sent to the First National
bank as sort of retainer or earnest OF the 9TH
er millions that were to come. In O short time
1t was announced that Keene had 5000, 900
bushels of cash wheat; then he was credited
with four, six, ten millions; and eventually it
became evident that he had fifteen or sixteen
milions-that is to say, his triumvirate had
! that amount, half of which was his property.
| Nor was this enormous quantity all that was
under the control of the pool, syndicate, CON-
biuation, ring-call it by what name you will.
| ANGUS SMITH, OF MILWAUKEE,
possessed of keen perceptiTe faculties and
Keene and his compatriots and being satisfied
that it was possible for them to dictate the
price of wheat to the world, concluded to fall
INTO line, or to use Dundrearyism, to ''aock
by himself" Accordingly lhe purchased mil
hon bushels or more, and felt comfortable.
When the KeeIe crowd learned of his posses
| sessions, fearing that he might be able at any
time. were he SO inclined, to thwart their little
| schemes of drop and catch, they made strenu-
eff, 10 70 ind L.
one of them. This he peremptoriy declined
10 do, preferring to manage his own business;
but after repeated solicitations he was in.
duced to form au alliance, offensive and defen-
sive, in accordance with which he was to
so with the pooi,-to sell when it sold and buy
when IL bought. and in proportion to the
respective Investments. 1t is believed that
Angus Smith lived up to his agreement; it is
also believed that he is very sorry that be
entered into tin short, that he measures his
grief by hundreds OF thousands of dollars.
Thus, ard in other ways. Keone & Co. got
control OF by far the greater portion of the
wheat in the Northwest. Their faith was
pinned to reports of widespread disaster TO
the crop in the wheat growing portions of Eu-
rope. Europe must depend upon America,
they reasoned, aud must pay the price demand
ed. 1t is quite likely that their programme
might have been a remunerative one but for
the
QUESTIONABLE METEOROLOGICAL BY THE BEARS
to break it up. Finding themselves squeezed
nigh unto death, they flooded the grain marts
OF Europe with circulars setting forth that a
gigantic ring had been formed In this conntrv
to defTaud the grain buyers of Europe; that
the barns. elevators and warehouses were
pethoric with wheat, but that it was controlled
by the ring; that vessels lay rottins in the
docks because the ring refused to allow sim
gle bushel of the cereal to be sent abroad
Europe first became alarmed, then in
dignant, then contrary, and determined
TO live on corn, oats, potatoes anything but
wheat-until such time az the embargo should
have been removed She would NOT buy wheat
to arrive; or, if she did, she would not paw as
much for it as for spot wheat. The owners %
American wheat were put to great trouble aud
expense to counterfeit the effect of thess re-
ports, but it is asserted that they finally sue
ceeded in finding a foreign market which en-.
abled them to dispose of their steck az better |
figures than obtained here at the time of ship
ment. What little was not cent abroad was
sold to shippers and millers at home.
But this is anticipating. The deal ran along |
with varying success until in May last at which |
time !
KEENE co. PROPOSED TO UNLOAD.
Early in the month it became apparent to close |
observers that such move was on foot and |
the bears made a final rally in self defense, de-
terminiug to break the market and settle at |
their own prices. This being the case, some of |
the confidential advisers of Keene urged him
to extend h4deal SO as to cover the month of
June; TO buy literally of cash wheat aud op-
tions, and leave wide margin of differences |
for the shorts. The suggestion was favorablv
received by Keene. Hoyt was somewhat averse
to 1T at first, but eventually yielded assent, and
it was understood that Hazleton, Hoyt's part
ner in Chicago, should proceed to carry out the
agreement. 1t should have been stated before
that. some time prior to this, keene had trans.
ferred the control of the deal to Hoyt, who was
running it through Hazleton. And right here
les the ground for the intimation that Keene
Doesn't love Hoyt as well as he did. II "a
BROADLY asserted that
HoYr VIOLATED HIS AGREEMENT.
At first, it is said, he made a show of buyino