Little Falls transcript. [volume] (Little Falls, Morrison County, Minn.) 1876-1894, 1880-07-16
BIG PORK DEAL.

BIG PORK DEAL.
One Firms CohtrotltssgaA Of tho Product In
the Cossaerv.-A Gigantic Corner.
Chicago Times, July 10.J
EARLY last winter, and for that matter during
the fall months, the great house Of Armour l.
Co. was largely s'short' on hog product and
when value began to move upward it was
Caught for considerable amount according
to popular report. Realizing the Improbable
ness Of bearing" . rising market the firm pre-
pared for along" campaign. For that matter
1t ls 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
FREEzINa OUT THE LITTLE ssBULIs" .
who had been tenaciously clinging to embarrass-
ingly formidable lots of pork, taking care to
hedge against loss. Subsequent events give
color to tkis theory. But be this as it may,
Armour q Co., as early as last December began
absorbing the entire hog product of Chicago, 3
line that has been followed up to the present
time. The trm,. with far sighted bust
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 o vast system of agencies and
to this fact is due its ability to plan and carry
out a movement SO elaborate in its ramifcations
az this one has turned out to be. The firm is
in position to greatly influence if not en-
thsly
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 & %. bought about 16 OOO, 900 pounds
of short ribs, for March delivery, $4,000 600,
and since then purchases have ranged from A.
0OO. 900 to G,OOO.000 pounds monthly. No
transaction was too great for the house to un-
dertake. After the winter packing season waa
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
when it was worth from S9.25 to $40. 80. Not
content with absorbing everything in sight
Armour & Go. bought largely for future deliv.
ery 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 alarge dealer on Change at all times,
and the market did not begin to show the
slightest sign of excitement until about a
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
a srs1 hs since with the greatest Of
fOnN0 If int
ing commodity, but no 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 200, 900 barrels of cash pork in Chi
cago, this one firm holds not less than l65, 600
barrels. and may be more. 1t is also ''long''
nearly 100000 barrels of August and Septem-
Der pork according to current reports, making
an enormous aggregate, approximating 450, 600
barrels.
To handle this stupendous bulk of meats re-
quires almost unlimited resources. The cash
pork represents more than 50 0OO, 900 at present
prices: ro It probably cost in the neighborhood
of 81, 75O, 600. 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-
tions 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
$2,C00, 600 or 100000 in loose change was
placed within easy reaching distance. Success
could not be foretold to certainty, and know.
ing the market rs 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 $4.0OO, 600 o,
$5, 600 600. This estimate ia as liable to be be.
low as above the limit.
AS the price Of pork went up from $40, on
or about the lst of June, to 1880 for August
delivery, point reached on Thursday, some.
thing of the proportion of
THE COLOSSAL SCOOP
can be seen. 1t is estimated that the 45O, OOO
barrels of pork held by the eoronerers were &C.
per barrel, and, assuming this average to be
can not be much less than $4,000, 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 fuctuation of few
cents per barrel makes no special
ing velvet" q phrase in use among
worldly people signifying money Won from
other fellows. Then again, it may be that the
81, OOO, 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 313, 1863 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 product of the season as
may Seem advisable, without being caught at
it. As it 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 the
last sudden upward turn the advance has not
been so great there "a here. New York draqs
reluctantly along, and on Thursday the differ
ence was so marked that the operators who
were 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 unnecessary
to arbitrate extensively if at all.
Opinion as to the ability of Armour & Co.
to
CARRY THE CORNER THROUGH
to complete success by unloading or enforcing
settlements at top figures, is di vided, but the