Savannah morning news. [volume] (Savannah) 1868-1887, 1882-09-11
SQUEEZING THE SHORTS.
Sensation In Chicago Produce Circles
Decision Of Ghe July Wheat Conn
mittee-The Price Claimed 30 be too
HIgh-Ths shorts go 20 she Courts.
cnteaqo Dt.pateh. September 5th

The sensation of TO-DAY Ia produce circles
was the report of the committee on July
wheat. They fixed the price at 81 35, which
was about the top point claimed by the
longs, though wheat sold at 81 36 at the
close of trading on the last day OF the
month. OF course there was a good deal
OF talk about It; in fact, it was almost i'm
possible to get folks to talk sbOu anything
else. The point was made by the dissatis-
fed ones that the decision OF the cOmmitte ee
is not valid, as that BODY was appointed 10
determine or find the true and legitimate
value of wheat, whereas the report of the
committee states the appointment to
have been for the purpose OF fixing a set
tling price. 1t was stated that the matter
will be carried into the courts. Perhaps it
is Just as well that It should be carried up,
so as to give the courts an opportunity to
determine what is essential 10 the validity
of commercial contract. II is well that
the board start fair on this point on enter
ing the new building. The committee de-
cisfon was q great surprise TO the bears.
The testimony Of eli the witnesses had been
fixed upon lower price for July wheat
than the one approved, vet the committee
decided upon 81 35 as a basis. The protests
were loud and deep, and that the shorts will
refuse to settle and will appeal to the courts
is very probable. They say the figure is
exorbttsnt, being only one cent lower than
that to which wheat was advanced by the
clique. Many say the committee was ''fxed"
from the start.
s'YOu want to know II there is much feel
ing In this msttersn said a prominent Board
Of Trade man this afternoon, referring to the
question OF fixing the settling prices by the
committee on July wheat. "Well should
say there was, and plenty OF It. No hesita-
ton about expressing It, either"
"What do the shorts think about t.?
Whv, they characterize It ss an out and out
steal, and don't iutend to submit gracefully
and bow to the decision OF the committee,
which, they argue, was made clearly in the
Interests OF corners. The fun has barely
commenced. The shorts have absolutely
refused to settle at the committees price,
and viii 90 to law about it at once You
see A. NJ. Wright: he csn give you all the
points on the subject. He IS
busy to dav marshsll'g the forces OF
the shorts prepsra OrV to taking le-
gal action. There are about fifty
OF them gathered together somewhere,
and with the assistance OF lawyers, are get
ting their applications prepared for injunc-
tions, restraining the Directors Of the Board
of Trade from enforcing the corner rule,
or from suspending them for refusing to
obey it. The principal operators on the
short side are A. NJ. Wright & Co., VIII
liam T. Baker & Co, Culver & Co., and
MeDermid, Russ q Co. Their claim that
July spring wheat at 81 30 Is too high seems
reasonable enough when winter wheat is
worth only about 81 bushel, snd It looks
very probable that the Superior Courts will
take similar view when the arguments on
the applications for injunctions are heard
These applications will most likely be heard
some time this week. AS | said before, the
hottest times are yet to come " .
Four suits were to-day begun in the Supe-
rior Court for an injunction to res rain the
payment OF margins under the decision OF
the July Wheat Committee. In two of the
suits the complaiusnts are A. NJ. Wright &
Co and W. T. Baker q Co., and the two
other suits cover deals on the open board.
The complaints sllege manipulation of the
market by Armour & Kershsw to force up
the price Of wheat to a fictitious point in
order to,sdueeze the short sellers, and charge
that the appointment OF q settling commit
tee wss Illegal. Injunctions were issued by
Judge Jameson, of the Superior Court, in
bonds Of $15, 600 In each case. All this is
fun for the banks, which have from 50, ,00O,-
600 to "a. 900, 600 in their vaults in the shape
Of margins, which will be available for loans
and discounts for year or more, until the
litigation is decided. t..5E