The Northern Pacific farmer. [volume] (Wadena, Minn.) 1878-1885, 1880-11-25
CONTROLLING THE PORK MARKET
How Amour Brothers.. Of Chicago
Made 80 ,OOO. O<sO by This Years Op-
cratiOnS
n. Y. World.

Made 80 ,OOt'. OsO by This Years Np-
cratiOns
N. Y. World
The inside history of the great Ar
mour ''pork corner in which the firm
made profit of 81 100000, was pub
lished there recently. The history of
the operations goes back to the sum-
mer of 1879, at which time Phil Ar
mour and his Milwaukee partner,
John Plankington, went to Europe
with the intention of cornering the
pork market of the world. They were
aboard about two months and during
their absence ordered the purchase Of
an enormous amount of provisions,
including 100000 pounds of ribs,
bought at less than II cents per pound,
and 15O, 900 barrels of pork at any aver
age of only SIS per barrel. On their re-
turn to America in September they
found the market STRENGTHENING. Prices
went up and they realized a profit of
$2,9O0,OO0- In the next two or three
months pork advance to $14 barrel,
and ribs in proportion. Under the i'm
preston that the boom was going to
continue they made further purchases.
Then came the reaction, pork going
from $14 to 1925 in the spite of all that
could be done to bolster it. The &c.
100000 went and another $1,000, 600
after it. The members of the firm at
once set about retrieving their losses,
and sent agents through this country and
Europe land for the reports made satisf-
ed themselves that the product of the
hog would be in demand for the ensuing
four months. They began in April to
purchase all the actual stock in market
about 225. 900 barrels on hand here and
a triae over 100000 barrels in store
in other cities. This they bought at
ranging from $3.50 to $1,000, the aver
age being about $40. In addition they
secured "options" on 100000 barrels
more and then awaited developments.
They took occasion to let everybody
know that they had all the pork in ex-
lstence and a great deal more. The
manipulators had laid their plans to
force the price up to 500, but they
wanted it to so up gradually. But
when it became apparent to the traders
and spectators that great bull move
ment was on foot, prices were run up
with such rapidity that it was feared
the effect would trighten off the
"shorts" and induce them to settle too
early. To prevent such move the
Armours threw nearly a half million
barrels on the market, and this served
to check the boom and kept it within
their control, and at the same time
produce the impression that they
could not or did not carry out their
published programme of forcing quota
tons to $40. Operations were no,
alone confined to America. but all of Eu.
rope was taken in, and wherever men
were found willing to sell pork they did
not have, the Armours were gracious
ly accommodating. They knew that
they held all the pork and that those
who had sold them the article would
have to come to them for it or settle
the differences. The amount of money
that was placed against this game wa;
enormous. In striking this balance
the lucky owners of the "brace" find
that they have made not less than ST.
100000. In other words, they got
back the $3,00O0OO lost when pork
went down last winter and $4,000, OO(
besides. The Wall street dealers tee!
as hard as their western brethren IN
misfortune, and vast sum of New
York money is placed to the credit OF
the ChicapO th1111s -