St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1892-02-20
MOVED BY MILLIONS,
Bonanza Kings With Surplus
Cash Taking a Big Inter-
est in Wheat.
Nearly 100000 Cleaned
Up and Laid Away Since
the Deals Began.
Mackay, Rockefeller, Col.
North and Others Said to
Be Principals.
Careful Calculations on the
Needs Of the World Pre-
coded Action.

NEW DIRK, FEB. 19.-At irregular IN
tervals during the last two or three
years the wheat markets have
been disturbed by secret manipula-
ton on a gigantic scale. In each
instance the manipulation stopped as
quietly and mysteriously as it began,
and in each instance q great sum was
taken out of the Chicago and New
York wheat market since 1888. and
passed to the credit of the manipulative
combination or person. The pool, ac-
cording to the Times of today, is again
in the market The finger of suspicion
has been pointed directly toward p. ID.
Armour. of Chicago, and his brother,
III. o. Armour, of New York, as the
principals.
1t was story without foundation, but
it does not follow that p. d. and III. o.
Armour would not run a deal for some
body else If there was an assurance of
$1,000 in commissions in it, with I'M
limited capital back of the enterprise.
Jim Keene was also mentioned as one
Of the men in the deal. and it is not GER
tain that John w. Mackey is not one of
the friendly offices Of
a Mutual Friend,
John d. Rockefeller. the directors of
the Standard Oil millions, together with
Col. James t. North, the $50, 900, 900 nj
trate king, and the brightest of the big
bonanza" millionaireS, who several
years ago sought to see how their sur
plus, otherwise idle, might be employed
to advantage, the manipulation of the
grain markets of New York and Chicago
would be the mereSt child'S play.
A great wheat pool was formed and
has been doing business for the last
four or five months. Up to the Begin
ming of the new year the combine
played for a decline; but since then it
seems to have been shaping its course
in the other direction. They sent
corps of agents to the Russian famine
districts and another set of men TO take
observations in other fields. The re-
ports that were forwarded represented
the facts to be worse than the most
sensational word painter had thought of.
The commercial significance of the
disclosure became clear. A study of
the needs of the importing countries for
the next six months satisfied the manlp-
ulators that every bushel America
u. l..
unless another mOnStrOuS crop should
follow that of 1892, the chances, based on
natural causes, favored
High Range of Prices
for twelve months ahead. 1t was upon
such theories and conclusions that the
programme was changed about the
middle of last December and a bull
campaign determined upon. At the
nv ~ f,x,a ,fxy.
the Chicago board of trade that are
carrying heavy lines of wheat which do
not usually cut much of a figure in the
grain trade. These houses for weeks
have been absorbing the offerings of
this market.
In no case were the brokers acting
for these houses permitted to bid for
property-that is. bid the market up in
order to get wheat. The object has
been clearly to accumulate as
large line as possible without
attracting notice. Numberless little
concerns are long from 100000
TO 5000 bushels, each of whose books
usually show open trades in $4,000 to
100000 bushels. On the breaks they
have been called viciously for margins,
always responding cheerfully and
promptly. rarely ''calling back" the
is desired to protest against demands
deemed unnecessarily severe.
Work Quietly Done.
The larger houses have also been
favored to moderate extent with CLIQUE
buying orders, but not enough TO attract
attention. 1t is given out in explana-
ton when any one asks "Who is buying
all this wheat?' that the foreigners rep
int hot
were certain to be "shaken out" This
belief has helped to keep the market
weak, and make it easier to accumulate
contracts on the buying side. Sentiment
was all one way. and it was the common
expectation to see wheat 90 down to rs
or so cents. Why it did not so break
was mystery.
Wheat that stands sold upon the books
of the commission houses OH the Chica-
20 board of trade at present aggregate
100000 or S0,000.000 bushels. Now
what does an open interest of 70.000,00O
or SO,OOO,OO0 bushels represent? Sup
pose that 30.00G,00O bushels represents
wheat In Western warehouses, "sold
against in Chicago as hedge to pro-
tect holders of cash property against de-
pretty good authority that there are less
than 100000 bushels in public and
private warehouses in the West. The
actual open speculative short interest
in the Chicag market is approximately
$4,000, 900 bushels, which amount must
be bought in upon the open market, be-
cause it cannot be
Delivered I'm Substance.
An addition to the $4,000, 600 bushels
purely speculative short interest. In
Chicago there are similar open interests
for possibly an equal amount in the
combined markets of st. Louis, Toledo.
New York and Liverpool. The big pool
has the wheat contracts. Its agents have
been buying all the wheat that the bears
have cared to sell for future delivery in
all the great public markets of the
world. 1t has more millions of money
back of it than any speculative combi-
nation of modern times.
Should the crop prospects turn out
poorly, and the farmers from that cause.
or because of belief that congress is
going to legislate wheat to SIPS a
bushel. shut down on deliveries, as thew
are already reported to he doing in In
diana. Ohio, Illinois and Missouri. or
should the old world get greedy for our
moderate reserves in sight, the clique
may conclude to put OH the screws. Not
% per cent of the wheat sold for Nav
delivery in the several speculative mar
kets could be delivered. The contracts
are valid. however, and the courts hold
that if the short seller cannot deliver
the goods he agrees to he must paw
damages to the buyers. The game is
absolutely in the hands of the giant
manipulators.