St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1884-04-26
A VETERAN SCALPER
Gives Away the Grain Deal to Globe
Man Visiting the Chicago Call
Board.
The Big Four, The Banks and the Rail
roads United in Manipulating the
Markets.
Especial Telegram to the Globe. i


CHICAGO, April 25.-''The situation is just
this: We've lost our outside business and the
market to-day is under the influence of about
twenty men, all local members of the board
of trade.'' The speaker was veteran mem-
Der of the board of trade and a man who has
helped to manipulate more corners in Chica-
90 in the past twenty-five years than almost
any other one individual. His conversation
was addressed to a visiting GLOBE cores
pendent in the call board yesterday, and he
continued:
GAS [ was saying, we've lost our outside bus
mess; these men l speak Of are heavy cap
italists. They get together at night and they
say, we will put the market so-and-so to-
morrow, and they do it. If they draw out
side speculation good enough, if not they
dodge and skin the local operator. Why,
look at last weeks shipment of wheat from
Chicago! At the same ratio it will take five
months to get clear of the stock on hand, to
say nothing of the receipts. We have in store
here now of wheat and flour an amount equal
to last years. exports, and still they don't take
our wheat and no man outside of Chicago dare
use his money on this market, if he knew
any thing about the deal-that is GA present
values or on what he heretofore considered
as safe property. They know it isn't safe to
scalp on a set up deal. The fact is that the
board froze out the bucket shops and board
members are now employed in exactly the
out Last week the gang had out big line
and becoming scared they undertook to
cover. Hence the bulge"
''Who is at the bottom of it?'
"Well, 1 will tell you; but don't use my
name in any connection. At the bottom Of
the deal or behind it are Charley Singer,
Nat Jones, n. B. Ream and Jack Cudahy.
These men constitute the big four in the
background. Now the ostensible parties
who do the buying are Hutchinson, Phil.
Armour and Sid Kent. They work the deals.
This crowd control the stock in store and the
crops. Now back of these is a mightier in
| fuence. The banks are carrying the
property for just the charges. They can
only loan money at five per cent. on ordi-
nary securities, but on a scalp corner they
realize from twenty to twenty-five per cent.
Then comes another lever, which
but few are aware of. Mind
you, three factors, the gang, the
banks and the railroads are together. Look
at the latter! They own this property, and
why? will tell you. No locomotive can
hanl one hundred pounds of wheat or corn
to New York for twelve and one-half cents
on legitimate basis, without losing money
1t is the tonnage interest that is doing the
business, and the railroads must own the
property before they will haul it to the sea-
board at such rates. Look at the reverse
The western roads get from twenty to TWEEN
ty-fve cents per hundred pounds for hauling
from Missouri river points to Chicago. You
can see, then, how the railroads, the banks
and the clique work the deal together. For
tunately, the producers this year are safe.
They have sold their wheat as a rule, and are
out of the market. It was railroad money
that broke the market for the reason that to
carry wheat to the seaboard they were compell-
ed to own the property.