Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1882-12-04
H2HCELUG Rates.
Thc Fail in Corn Causes the Failure Of
Prominent Chicago House.
SHORT SIX MILLION BUSHELS.
AGenerai Weakness Developed in All
the Markets.
TX MILLION BUSHELS.
CHICAGO.
Especial Telegram to the Globe. !


CHICAGO, Dec. PA decided futter was
created il the corn pit on the board of
trade to-day by the announcement that one
OF the most prominent commission houses,
Kreigh q Davis, grain and p revision opera
tors, had suspended payment at noon. 1t
had been rumored for several days past
that the firm was buying heavily of year
corn, and the recent fall in the price of
that article led to inquiries as to their
ability to cover their purchases. Those
who doubted were told they were buying
for a syndicate, and nothing more was
thought of the matter until the failure was
announced. Both members of the firm
were found at their Office in the Union
building by the GLOBE representative and
asked for statement of their
liabilities. Mr.. Kreigh said that he did
not know the amount, and he refused to
make even an approximation. The cause
of the failure, he said, was from heavy
purchases OF corn, and he added that if
the party it was bought for had settled his
account the failure would not have b%ea
necessary. Who the party was he refused
to say, and he refused to give the names
of any of his creditors. Other members
of the board who were spoken to in regard
to, the matter, agreed that the failure was
caused by the fall in the price of corn.
The firms liabilities, they thought, could
not be very large, and were distributed in
firms in the same business. The
individual members of the unfortunate
firm were m embers of the board when the
partnership was formed about five years
ago. Mr.. Kreigh has been in the provision
business for thirty years, and was one of
the original board. Kreigh & Davis own
about 100000, and are short about 6,OOO,-
600 bushels Of year corn.
The failure of E. S. & Q. w. Richards,
grain and provision dealers, is also ru-
mored. There has been an unusual drop
in the price of corn that seemed hardly
anticipated. Inc November deal ended
Wednesday. and there was no session of
the board Thursday.
Cash corn closed Wednesday at
about 66 cents bushel, and
opened at 591s cents for cash, De-
cember and year. 1t then advanced
to 5912 cents. The bears pitched on to it,
and broke down in famous onslaught. It
went down to 57I cents bushel, break
of over cents. The alley was again lively
and full of conflicting opinions and ru-
mors. The fact is, it is to the interest of
botn bulls and bears to hammer the corn
market lower, and they will do so. The
receipts were large, but it was shipments
from the country intended to arrive here
last Wednesday in time for the shorts in
the November squeeze. tits also certain
that but little of this will, or does, inspect
at No. grade. 1t goes mostly as rejected
corn. In few days, at the outside. the
receipts will be nothing to speak of,
and then comes the time for tie
bulls, or rather for the CLIQUE
supposed to be formed to bull corn A
prominent bull predicts as low price as
81 cents for December and year corn in
side of ten days, and then as high price
as 70 cents for January. It is fact that
no receipts will come in until prices are
doomed.
The board of real estate managers held
meeting and notified the board of direct
Ors that they would be ready to allow the
laying of the corner stone for the new
building after Dec. 8, and the latter will
at once take steps to have grand jubilee
over the affair.
The anti-corner rule on the board of
trade was repealed to-day. In future
trades must be settled at the quo tations
on the day of maturity, and those who de-
fault will be compelled to pay or go off of
the floor.
Philip Armour said: II think it is a
good thing. 1t will double the value of
membership tickets in the estimation of
the business public. A man who would
make a trade, whether he sells or buys. is
engaged in legitimate transaction, and
knows what he has to expect. Trading
becomes again legitimate transaction"
Mr.. McDermott, of McDermott s. Russ.
didn't care to express an opinion, but
thought there ought to be some rule re-
stricting corners, but that lately in force
did not meet the demands of the hoard,
no decision of the committees appointed
satisfying all parties.
MIR. Bell, of Randall & Bell, thought the
abrogation of the rule bad move. cts
very pretty for Mr.. Armour and
other millionaires to step in and control
the Market" he added. "But the result of
these frequent corners is to create distrust
among traders. In my Judgment there
isn't 10 per cent. of the business done in
wheat that thsre formerly was. The ma
jority of our customers deal on small mar
gins, and the result of corner is generally
to freeze them out"
VIM. L. Hancock: "This action will put
stop to the practices which have brought
tho board into disrepute in some quarters.
There will be no less trading than before
and operators will soon be less timid than
they have been heretofore"
On Change to-day corn was active but
lower for cash and seller the year, although
frmer and 1{c higher for January and
May. Cash lots $40 lower, and year 25sc
lower. January closed at $3.50, and May
at 541zc. No. 2..or regular wheat was
quiet but firmer at 1sc@4c higher. Oats
T@Ac lower. Provisions were moder-
ately active, but closed shade lower than