Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1892-02-06
THE SHORT SELLER.
He IS THE ANARCHIST OF THIS coUN-
TRY TO-DAY.
So Says Western Pork-Pscker Before the
House Committee on Agriculture
Other Aat,-Op,ion Talk.
(By telegraph to the Dispasch.l

WASHINGTON, February 5.-"The short
seller is to-day the anarchist OF America"
said Mr.. John Whitaker. large pork.
packer of St. LOUIS, No.. and Wichita.
Kans.. to-day IN an address 10 the House
Committee on Agriculture 10 advocacy OF
the anti-op.ion bill. He asserted that un-
questionably the tendency OF short "
selling was TO depress prices and 10
interfere with legitimate trade. Pro-
ducers. he argued. we're sufferers
from the sellers short. and ne wished
these anarchists to be wiped out.
He made one exception. We produced 10
coffee. and for that reason be believed IN
option selling in coffee. That gave the
American citizen cheaper coffee, a. II ena-
bled the price to be fixed by sales OK q
large quantity Of coffee that was not IN
existence Short-selling in any article OF
home production, however, he would make
a statutory crime.
AsTo COTTON.
In answer to question by Mr.. Lewis OF
Mississippi. Mr.. Whitaker said that In hrs
judgment this fictitious selling produced
an abnormal condition Of the market
mand. Cotton, he believed. would nave
for short selling by the bears.
Mr.. Lewis: In your opinion. then, eight
and a halt million bales IS not an over
production?
Mr.. Whitaker said he was not cotton
expert and could not answer that ques.
ton hut he thought, If investigated, 1T
would be found that the S,J0J,0OO bales
produced would have had the damaging
effect it has bad on the price but for short
callt.,,. nd qualification nf rnmQrnrIQ
reports of over-production and small con-
sumption. He frequently received letters
from Europe saying the writers could pay
better prices for meats If the American
market could only be kept steady. But
this market could not be kept steady when
the cash price was being pulled down by
sales for future delivery by every Tom,
Dick, and Harry.
REGULATION OF THE MARKET.
BY Mr.. Moses, of Georgia: You think,
then, the price of commodities is governed
by the amount of fictitious offerings?
MIR. Whitaker: Undoubtedly.
Mr.. Moses: Do you hold that the mar
ket is not regulated by the law OF supply
and demand?
Mr.. Whitaker: Yes, sir.
Mr.. Moses Why is it, then, that when
reports like Bradstreet's or the gov
eminent reports are given out, showing a
large estimated crop, prices go down
Mr.. Whitaker They work that on the
large crop.
Mr.. Moses: And rice-rasa, il the crop
is small, prices 60 up
Mr.. Whitaker Not so much. Prices
60 up little.
SUPPLY AND DEMAND.
Mr.. Moses called attention to the fact
that as general rule, when the port re-
ceipts Of cotton were very large, prices
went down, and when the receipts were
very small prices went up; and 80 with
car-receipts of wheat.
MIR. Whitaker admitted that the re-
ceipts operated in that way TO certain
extent. but said that his observation was
that information that had q tendency to
send the market upward did not effect 1t
to the same extent as information that
tended to send IL down.
TOUCHING CORNERS.
Mr.. Moses: If meat transactions were
confined to real products only, could not
the western packers form trust, get con-
troll OF the actual products, and put tho
price away beyond the reach OF the con-
sumers? Could not Armour, for instance,
with his millions of money, get control
of all or enough of the wheat to control
the price and send 1t up TO - bushels
Mr.. Whittaker.did not believe, In the first
place, that that would be good policy, and
in the second place did not believe the
combination necessary to success could be
formed.
MIR. Lewis: Have not most of the men
who attempted TO corner the market been
broken!
Mr.. Whitaker: believe so.
Mr. Moses Have not they been broken
by short sellersl
Mr.. Whitaker did not know as to that.
no SPECIAL REPORT FOR BROKERS.
Representative Livingstone, OF Georgia,
who was present, asked If it were not true
that two reports were sent out by the pro-
duce exchanges-one a public report and
another private report to brokers, which
gave the latter an advantage.
Mr.. Whitaker replied in the negative,
so far as grain and provisions were con-
cerned.
Anumber of questions were asked with
reference 10 the option business with the
purpose of ascertaining whether or not
there were as many buyers as sellers in
tins speculation.
MIR. Whitaker said that III the last eight
or ten years the speculative business had
grown immensely and be thought there
were more sellers than buyers.
BANKERS PROTEST.
Chairman Hatch has received protest
from the New Orleans bankers against the
anti-option bill. The bankers say that if
the bill becomes a law it will do immense
damage to the business in cotton and
grain and hog products, reduce SATELLITES
of values, and work great injury. As
bankers. they consider their risk in ad-
vGncing on such property very much less
than was the case prior TO the inaugura-
ton of the present method OF doing bust
ness.
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