The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1880-08-06
A Boom i'm Hogs.
A CHICAGO HOUSE CORNERS THE MARKET
TREMENDOUS SPECULATION.
baltimore AmericanI

baltimore Americana
That there was big "coTDer" in pork
in Chicago has been well known among the
business community for a week or two past,
and most thoroughly and especially appre-
cated by the dealers in provisions. The
rami6cations o. the manipulatOrs OF this
huge scheme for controlling the market for
pork extend, however, far beyond Chicago.
They reach all over the country, and abroad
as WE'LL and TO say that since April 2lst the
price in Chicago has risen from $40 per
barrel to SIS. 40, while in Baltimore il has
advanced in the same time from S1l.5O to
SIS, and all along the coast and in the Eu-
ropean markets similar advances have been
made, is to demonstrate the widespread in
terest the story OF this corner" possesses.
Il is a tale, too, of daring and
GIGANTIC SPECULATION,
that may be read attentiyely even by those
who are not consumers Of the products OF
that useful but muchmaligned beast, the
hog. As told from time TO time by the Chi
capo papers it read 10 the eastern ear as sa-
yorjng somewhat OF the giant pine and
boundless prairie order OF narrative; but
representative OF the american was ycster-
day assured by leading Baltimore dealers in
provisions that, judging from their know
ledge of the condition OF the trade and
their information from the different GEN.
| Tres, the story that one house in Chicago
and its agents controlled the pork markets
| of the world was not exaggerated. AS FOL
| the Baltimore market, it, as all Others, is
following the beck Of these ChcagOans. AS
for the future, from all that can be seen at
present, it depended upon "Phil. Ar
m0ur."
This gentleman is the head of the house
of Armour e. Co., Of Chicago, always pro-
minent in the trade; now, it seems, para.
mount. During last autumn and the early
part OF winter they were
| HEAVILY SHORT on HOG PRODUCTS -
so the story goes-and the result OF their
operations was apparently loss, though
| by some il is believed that this 50 bear y
| clmpaign was only a preliminary move
ment preparatory 10 the change OF base
made afterwards. AS is now done by so
MANY large firms in various trades Though
by none perhaps to such an extent), Ar
mour a. Co. long ago established system
of agencies East and South, and In Europe.
Towards the first OF the year they began To
buy largely and in different directions. In
the first three months their purchases are
said TO have aggregated nearly 100000
mounds OF short ribs, and since then they
are said to have bought from 1000, 00(
TO 5000, 900 per month. "No transac
ton was too great for the house to
undertake." says one report. "Every.
thing was taken that was offered" When
the winter packing season was over, they
went into mess-pork largely but very
quietly. Most OF the purchases were-made
In April and May, when the market was de-
pressed and the prices were from 1925 tC
$1,000 per barrel. Then they bought heavily
for future delivery, taking in large mum
bers of options for July, August, Septem
her, and October. And now IL Is stated
thai the house holds not less than nine
tenths OF
THE "CAsH" PORK
in Chicago, and is "long" nearly 250,00(
barrels OF August and September pork
The money required TO deal to this extent
!. very great. The I" cash" pork probabl,
cost about S1,750,000, and it is calculated
THAT preparations were made before the
huge scheme was entered into to secure, il
necessary, the sum OF $4,000 900 or more.
1t is estimated that the cornerers hole
100000 barrels OF pork, cash and future
and that the average cost was Sl0@$l0.50 ;
barrel. At Yesterdays figures there would
be profit in this of 81, 25O, 900, if the figure.
could be realized for such stock, which
of course, is impossible. But the price
keeps moving upwards, and, while those
who talk Of $40 are laughed at, they remeD
Der that at $40 per barrel prophecy OF Sl;
was secuted at Us strongly. And Armour
connections with other cities are Of such ;
character as TO induce an uneasy feeling q!
to the actual state OF affairs Ia regard L
ownership of stock at all the leading mar
kets. Its believed that his control Of tn,
New York and other coast markets Is al
most as complete as II is OF Chicago, ant
the stock in New York August I'd was onl,
45,500 barrels, against 101, 100 barrels las
year. Since the LIST OF June
THE HIGH PRICES ~
have induced increased shipments Of bog
: TO Chicago, and from March LIST to July I'll
l,6I0.000 hogs were put away, agains
100000 Tor the same period last year, bu
mess-pork made after the LIST Of March 1.
, not deliverable on contracts. The dealings
! 10 futures Ia Chicago have been very large
J and the excitement In the trade is spread.
ing 10 outsiders, who would like share IN
good thing II 1t can be had. Balti
moreans are conservative but the boys
here have been taxing "fyer0 or tWc