St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1885-06-23
An Inside Story of the Big Packers Rea-
sons for Going Into the st. Paul
Directory.
Enormous Quantities of the Stock Being
Bought and Put Away as an
Investment.
A Lively Day in Cereals--The Longs
Reported Selling Heavily
of Wheat,
The Market Closing Slightly Lower
Than on Saturday--Stocks
and Finance.
Chicago.

stocks?" Wall street wants to know. For
ten DAYS private wires between Chicago and
New York have carried little else than
questions or comments or theories on this
point The Gotham crowd have very
good reason for pushing their inquiries.
Some Of them have dabbled in wheat or
pork or ribs or lard. Some OF them, III
times past, have had the hardihood TO sell
the very property that was owned by the
great packer, and that lay in his ware
houses. They know how he protected his
cellars then. They very well understand
how vigorous thing his protection Is.
They have not even experienced anything
like it in Wall street, so now they want,
above all other things, to know If he pro-
poses to treat his st. Paul stock just as he
does the $40, 600, 900 of product he manu-
features annually ChicagoanS have an
swered the question by their conduct.
They began rushing buying orders over
their wires the moment they learned OF
Armour'S entrance into the
ST. PAUL DIRECTORY.
The purchases by Sam Allerton and his fol-
lowing, bv n K Fairbank. by Sid Kent,
by Marshall Field, by Roche, and by the
clients of Lester Il Co. and the other Chi
cago brokerage houses have aggregated
something like 100000 shares. There
never before in any speculative movement
was such rallying of Western men as fol-
lowed the election of Armour to director
ship in the st. Paul. Before that operators
here, just as was the case at New York,
took all sort of positions on II. Some would
not touch it, many were short OF 1t, more
of them stuck to it. On the very day of his
election Lester & Co. covered for their prin-
cipals upward Of $4,000 shares and went
II Ivy
through Lester & Co. that the stock has
been lifted. Every other Chicago house
followed the example, until half the gossip
of Wall street now is devoted to the bull
craze at Chicago over MitchelGS railroad.
''The appearance Of Armour in the.St. Paul
board" said gentleman who is cogniZant
Of all the facts, ''inaugurated a great move
ment to get vast holding in the property,
to improve it, to run it on mercantile prin-
ciples
AND TO PROTECT IT
from its stock-jobbing enemies. Rocka-
Teller, as those know who have been in
the secrets of the road, has for a long time
held very large block of the stock. While
Mr.. MilIbank was alive Mitchell and Mill
bank and Rockefeller were allied to protect
the property. When Millbank died the
great oil man and the venerable Scotch
Dd1lkSE cast dDOuG 1OI q StIOuS Will
resources and fine business instincts, to take
MilIbank's place. They found that man in
Armour. He was conferred with. He
made careful inspection of every mile of
the great road. 1t was pointed out to him
that on the 4, 800 miles of road there was an
Indebtedness of only $50, 600 per mile, while
the Indebtedness Of the Northwestern was
$40, 900: of the Chicago, Burlington &
Quincy S41, 900, and Of the Rock Island
$43, 900 per mile. He was shown that the
ST. Paul owned all the elevators all along
its line, all it's Pullman cars, all its terminal
facilities, and that not line in its system
was leased. 1t was explained to him that
5000 miles of the system, made up Of roads
originally separate, had been
BOUGHT BY THE ST. PAUL,
only after they had become bankrupt, and
at prices vastly below their cost Armour
finally decided the opportunity for invest
ment good one and joined them. Ever since
tNew York. quietly each day about 10, 900
shares of the stock of the road have been
bought. paid for and taken out Of the mar
ket Put away said Mr.. Armour HIM
self, in speaking of his operations. Just as
a man puts potatoes in his cellar There
is no scramble for the shares, not a single
certificate is bought on margins and there is
no plan at all to squeeze the short seller.
But for two weeks all the stock that came
out and that could be had without unduly adj
vancimg the figures has been taken and paid
for. These shares were not bought to sell
again on trifling advance, for if they were
they would be registered in the names of
the purchasers so that the world might be
made aware of the prospects of an advance
and rush in and hasten it. Armour, con-
tinued this authority, goes into St. Paul
stock because he has decided that at the
present prices it is the
BEST POSSIBLE INVESTMENT
he can make, the best property to stand on
and to leave his family when he is gone
Nobody ever knew him to spout a barrel
OF pork to borrow money. Nobody will
ever hear of his stock being put up any
where as collateral. Armour believes that
with the same business methods that he
and Rockefeller, and Mitchell and Plankin-
ton follow in their private business, st. Paul
stock can be doubled in value in twelve
months. AS he himself puts it: The
stock since Millbank died has had no
father. It has been pounded, and kicked,
and jumped on by short selling stock
gamblers, until it was half dead. If any
kicking is done now, It'll not be all
on one side.'s1 Ninety-nine per cent. of the
produce shipments into the Northwest are
made by Armour & Co. sit is not likely.n
continued the speaker, ''that Armour will
forget the ST. Paul road. Neither is he the
man to demand, because of official position,
more concessions than outsiders. He
formed the Continental bank here, but got
out OF it in year, because, as he explained,
inside the bank he did not have the face to
fight for close rates, outside of it he would
make all the demand he chose.'"
THE GRAIN MARKET.
Wheat opened somewhat easier than at
the close of the market Saturday, and after
moderate fluctuations declined about 1c
from which there was partial recovery,
quotations at o'clock showing a loss dur
ing the morning session of about nc. The
tone was weaker this morning than for some
days past, owing to liberal realizing sales
by holders, induced partly by the difficulty
with which the market has recently been
held from going to lower range and partly
by thereceipt of good many dispatches
advising some improvement in condition of
the crops in Indiana and Kansas. Latest
adviees from the laSt-named state CONTRA
dict the alleged improvement in the outlook.
but this was insufficient to counterfeit the
weakness which had previously prevailed.
Public cables advised rather firm foreign
markets, but there were reports of private
ady1ceS later quoting some decline. New
York was inactive and dull The crop news
was said to be generally more favorable.
On the afternoon board there was a rather
easier feeling at the opening, but under fair
local demand the market slightly improved
and the close is unchanged from that of the
morning session. The close indicated a
decline of about &c for the day, at ss1Sc
June, S914c July, 91Ic August, 9Olc Sep
TENDER.
CORN WAS STEADILY HELD
during the morning session the demand for