The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1883-06-18

chicago, June 16.--- -: Please close
all trades yoH have with us
McGEocH & Co.
The message was plain "Uncle Peter
McGoech, the king of cornerers in lard, had
failed. There was no way of learning at
once the particulars of his embarrassment
Members of the firms FASTENED to the board
of trade to sell the stock that they had pre-
viously sold to McGeoch, and which his note
said he could not take The policy that pre-
vailed was to sell as quickly as possible, in or
der to clear the books and have funds to meet
other trades. All the firms holding
McGeoch's paper entered the deals, prefer
ring to suffer from the decline in the market
rather than hold over the stock that was sub
ject of contracts. Many of the firms prepared
a statement of their relations to McGeoch,
and it was used in private consultations, be-
ing the only way in which an idea of the
cause OF character of the failure could be OBJ
tanned New York and other strong COM
mercial points were notified of the embarrass-
ment, and sent orders to their Chicago rep
resentatives to close out on declining mar
ket all of the stock in which McGeoch was
interested, but to hold other deals out of the
influence of the failure A few of the messages
said that decline of no less than cents
ought to effect a disinterested deal, but that
if the price was going below that to let loose
of everything at the best figure
The excitement on change, when the wild
rumors that had been flying about were found
to be ineontrovertible and positive facts, was
simply tremendous Traders and operators
rushed frantieally hither and thither, yelling
at the tops of their voices, and TIE two pits
,ls.l
struggling, and frantic mass of bowling
humanity. Those on the right side of the
market were boistarously jubilant and laughed
ceaselessly in extravagant glee, while the
beaten bulls were a picture of despair. Knots
of the latter species of animal gathered to
gether in different parts of the room, and ever
and anon one of them would make rush for
the pit and join in the bowling throng, and
presently emerge again, looking, if possible,
more despairing than ever. The air was filled
with all sorts of wild and improbable rumors
failure and suspension, but toward noon the of
feeling grew a trife easier, owing to the
slight reaction in prices. The crowds of set
thing clerks and messenger boys kept stream
ing necessarily backward and forward among
coatless and perspiring operators who per
.ambulated the Hobbies, turning the whole
building for awhile into a veritable pandemo-
nium. E
The drop in prices was tremendous, the
lard, which closed last night at $11, 1716 per
100 pounds for July, selling down to 500
this morning. It recovered somewhat, how
ever, during the forenoon, running up again
to 1890 and remaining there
Mr.. McGeoch was on hand at his office
somewhat subdued, but cheerful and I'M
aurried. He declined to make known the
amount of his option losses, but is the owner
Of 1876 COG tierces of lard for which the money
has been paid over, and on which he has lost
$3.50, 900. II guess had better not say how
far am out on my option trade" he said.
Il haven't got minute to spare to talk to
you anyway, but | expect the option bust
ness viii right itself before long. That's all
l care to say at present
Outwardly the great manipulation of prices
was none the worse for his fall A clerk be-
ing asked how much the firm was Tong" ON
the commodity remarked dolefully, We're
busted, That all there is about il, ~ and turned
away
THE failure was entirely unanticipated,n
said Mr. John L. Peck, of Peck & Bausher.
mo one had any idea that McGeoch would
who were backing him were far too strong to
let him drop McGeoch has always been
looked upon as such safe man that the news
was a shock to all of u.s.
MY contracts with McGeoch cost me ST.
$780, said broker at the board of trade,
land am very lncly, for had just got out
of big deal with him | think his failure is
dashed outrage The board of trade is to
blame for it. McGeoch Everingham & Co
have been in box for several days. The
board has patted them on the back and en-
couraged them to make deals which they could
not stand It has given the committee of
investigation that devoted its sessions
| to buIncombe work Is the Fowler Brothers
investigation q farce3 1t amt what the pub
| lie thinks it is. Peter McGeoch was CARRYING
a heavy stock of the lard that he rejected.
| Do you think he would cut his own throat out
| of pure honesty, as he must necessarily do if
he proves that the brand is not straight His
ring saw that he was going under They gave
him the committee to bolster up his influence
and to enable him to ward off settling for the
deal until be was able to do it. 1t was an
| outrage on the Fowlers, of course ~
when the sales opened up on the board to
day they were confined to such stock as was
affeUted by the embarrassment After the
| decline of nearly 3 cents a pound Phil
| Armour n. X. FairbAnk, and b. Z.
| Hutchinson began to buy heavily, They
had taken up nearly all the stock on
the market before anybody knew what was
going on, and then they they let the prices
advance only at a slow rate. They made
millions The men who lose are small dealers
anG young firms that could not ward off the
effects Of the deal, but had TO have the money
that was looked up with McGeoch The
fuctuatior feaehed ~ per cent. 1t was the
greatest chance for speculation that have
seen en- the boord for long time,
There is more in that rejection
than anybody suspects. The vindi-
cation of such heavy brand of lard would
be good card for it. But don't think that
was the motive of the transaction There is
no pure lard sold on any board Of trade in
the country, and every dealer knows it,"
None of the partners of the firm of N. K.
Falrbank & Co could be seen, as they were
all too busy to talk to anybody One of the
heads of the office however, said that the big
collapse would have very depressing effect
on che market, and that there was no know
ing how far the panic might spread. He
ccnij not say whether the firm had any trades
with NcGeoch, but remarked, with com
Portable smile that N K. & Co wouldn't be
likely to ioso any great amount through the
dodstne.
II was believed in mercantile circles this
moving that the total loss of Mc(3eocf
wStld exceed 81 0O0, 600 while the aggregate
, amount sustained by the bulls" would prob
l