St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1891-09-23
THE CHICAGO END.
Ten Million Bushels of Corn Said
to Be Involved.

TO be involved.
CHICAGO, Sept. 22.-rhe effect of the
failure of s. V. White & Co. was dis
counted Ill the lower figures which pre-
vailed at the opening of the board here
this morning and subsequent trading led
to advances in all the pits. Before
business began the secretary OF the
board gave notice that White & Co,
flnding themselves unable 10 meet their
Obligations, desired those who had
trades with them to close them OUT
under the rules.
This announcement, though uneX-
pecteu In some quarters, created q con-
Sternation for moment. especially in
the corn pits, where the firm had the
heaviest line OF open trades. This firm
was known to be the leading one OF the
band OF brokers who have been repre-
senting the clique in the bull deal
which has been running in September
and October corn for several weeks.
Many millions of bushels Of the Sep
TENDER and October futures have been
bought by this mysterious syndicate,
whose Identity traders have in vain
tried to disclose, but whose names NAV
come out as the result Of to-day's fail
ure.
OF course, the corn pit was the center
OF attraction, and wild scene was en-
acted the moment the bell tapped.
Traders clambered over each other in
their efforts to I've heard, and all sorts of
prices were asked and bid at the same
moment. October, In which most OF the
unsettled trades existed, closed early at
5155c, and at the start there were a
few trades at and around 4Sc for
that future; but sellers quickly
advanced their prices, and it was not
until 49(94914c was reached that trading
actually became active, and, in spite of
a recession of = penny in the price at
Liverpool, the market was strong. and
between 49c and 1890 an immense
amount of grain was bought in But
the excitement then began to quiet
down, and September, the other bull
future, which closed at 5234c Yesterday,
opened at SOC and sold down to 49c dur
ing the same time. The open trades in
this month were not so numerous as i'm
October, because, as it is understood,
about 30 per cent of them had already
been settled by the delivery of the cash
article. Much of this still remains in
this market, and is looked upon as
menace to cash prices. White K Co.
had line of trades in wheat, but not
nearly so large as those in corn, for the
deals IN the wheat pit were soon closed
out. The firm also had some deals In
provisions, but they were not numerous,
and were soon closed out. October pork,
which closed yesterday at $l0.371t,
opened at sl0.25, sold down to 5000 and
rallied TO Sl0.35.
The impression on the board seems 70
be that the effect of the failure has
spent its force, unless other complica-
tons not now foreseen follow. One es-
innate of the amount of corn involved
IN the deal puts it at 100000 bushels,
and the average loss on it at 10 cents
per busheI, or Sl,000,00O; but this is
mere guesswork, Certain it is how
ever, that the amount OF corn brought
out from the presumably empty cribs
in the corn belt has been many times
more than was expected. In the latter
part of July and the first of August,
when this deal was I'm its earlier stages,
there was talk of corn famine before
the arrival Of supplies from the next
crop. There was scarcely any corn in
the elevators, the receipts were insig-
nliicant and cash corn brought Il marked
premium. The situation doubtless
suggested the corner which has Just
proved so disastrous. AS far as can be
learned the losses here are light, as
local traders have fought shy of the
deal from the beginning, confning their
operations mostly to other futures than
the manipulated ones.
On the application Of Arthur w. Al
len, Judge Gresham this evening ap-
pointed the Illinois Trust and Savings
bank receiver of the firm of S. Y. White
x Co., the Chicago branch of the New
York concern. The Chicago house is
composed of the members OF the New
York concern, S. V. Whites son, Ar
thur White, and Arthur w. Allen, the
resident manager and the partner who
applied to have the receiver appointed.
The bill was very brief, reciting the Or
ganization of the firm April 10. 1889. and
that By reason of the assignment of the
New York firm the Chicago branch was
unable to continue business and had be-
come insolvent. Attorney Prussing
said tonight that the assets
and liabilities cannot yet be
ascertaIned, but the transactions
in grain reached into the millions.
The failure, he added. is due to the con-
tinued bulling of September and Octo-
Der corn. you see, after ALL" said Mr..
Prussing, sit was not old Hutch that
was working the market. The corn
was purchased here for cash, and the
enormous sums required to buy it were
raised by the firm among the banks, the
security being the corn itself. The re-
ceiver was appointed in order to pre-
vent some creditors from attaching
some assets, and thus freezing out 9TH
ers to whom the firm is indebted. We
will know better tomorrow how we
stand. The failure shows, however,
that the farmers did not hold back their
corn, because if they had this would not
have happened"
No sooner had the announcement of
White d Co.'s assignment been made
public than Chicago creditors began an
assault on local assets through the state
courts. During the afternoon several
attachments, representing small claims,
were fled.
Republican Convention.
Linz @ n. c. ~ m ID