The weekly register. [volume] (Point Pleasant, Va. [W. Va.]) 1862-1909, 1892-03-01
Grain Market Manipulations by
MuIti-Millionaires.
The Armours, John D. Rockefeller
and Colonel North
Said to Be Back of the Colossal
Corner in Wheat


The New York Times Claims to Have
1 discovered the Cause OF the Irregular
Disturbances In the wheat Markets
within the Past Few xears-seeret
1Ianipnlations on Gigantic scale.
How Their Knowledge Was Obtained
and How They Propose to Use It.
NEW YORK, Feb. 20.-At irregular in
tervals during the last two or three
I years the wheat markets have been dis
turbed by secret manipulation on a gil
/ gantic scale. In each instance tne
manipulation stopped as quietly and
mysteriously as it began, and in each
instance n great sum was taken from
the speculative capital engaged in the
| grain trade. At least SO, 600 in
money has been taken out OF the Chi
cago and New York wheat markets
since 1888 and passed to the credit of
this manipulative combination or person.
Again at Work.
The pool, according to The Times. is
again in the market. The finger of suspi-
cion has been pointedly directed toward
/ p ID. Armour, of Chicago, and his
brother. III. o. Armour, of New York,
as the princinals. 1t was story with
out foundation. But it does not follow
that p. d. and Fl. o. Armour would not
run a deal for somebody else if there
was an assurance of $1,000, 600 IN COM
missions in it, with unlimited capital
back of the enterprise.
Others In the Deal.
Jim Keene was also mentioned as one
of the men in the deal, and it is not
certain that John Mackay is not one of
the partners IN the clique. Through the
friendly offices of a mutual friend, John
ID. Rockefeller, the director of the
/ Standard Oil millions. together with
Colonel James I. North, the $50, ,000, 900
nitrate king, and the brightest of the
..big bonanza" millionaires who several
years ago sought to see how their sur
| plus and otherwise idle funds might be
employed to advantage, the manipula-
ton of the grain markets of New York
and Chicago would be to them the
merest child's play.
A great wheat pool was formed, and
has Eeen doing business for the last four
/ or five months. Up to the turn of the
new year the combine played for de-
cline, but since then 1t seems to have
been shaping its course in the other di-
rection.
They sent corps of agents to the
Russian famine districts and another set
of men to take observations in other
| fields The reports that were forwarded
represented the facts to be worse than
the most sensational word painter had
Depicted. Over 40,000.0O0 people We're
and % per cent. of that number would
certainly starve unless helped.
Commercial Significance.
The commercial significance of the
disclosures became clear. a study of the
needs of the importing countries for the
next six months satisfied the manipulate
ors that every bushel America could
rr.a
would be wanted and that unless an
| other lnonstrous crop should follow that
/ of 1892 the chances, based on natural
causes favored high range of prices
! for the months ahead. 1t was upon such
theories and conclusions that the pro-
last December and a bull campaign de-
termined upon.
| There are at the present time twenty
or more houses on the Chicago board of
trade that are carrying heavy lines of
wheat which do not usually cut much
of 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 at
wheat. The object has been clearly to
accumulate as large a line as possible
without attracting notice.
1
from 500, 900 to 100000 bushels, each
of whose books usually show open
| trades in $4,000 to 400, 900 bushels. On
the breaks they have been called vicious
| iy for margins, always responding cheer
| fully, especially rarely calling back,
the procedure commonly adopted when
It Is desired to protest against demands
| deemed unnecessarily severe.
The larger houses have also been fa-
yored to moderate extent with the
clique buying orders, but not enough to
attract attention. 1t is given out in ex-
PLANTATION that when anyone asks 'swho
| Is buying this wheat y that the foreign
that they We're certain to be shaken
ont"
This general belief has helped to keep
| the market weak and made it easier to
accumulate contracts on the buying side.
Sentiment was all one way, and it was
common expectation to see wheat go
| down to seventy-five or eighty cents.
| Why it did not so break was a mystery
The wheat that stands sold upon ths
books of the commission houses on the
Chicago board of trade at present aggre-
gate 10000, 600 or S0, ,O00, 900 bushels.
Now, what does an open interest of TO-
600, 600, or so. 900 600 bushels represent?
Suppose that $1,000, 900 bushels repre-
sent wheat IN western warehouses s.sold
against in Chicago as hedge to protect
holders Of cash property against declines
IN the market? 1t is claimed ON pretty
| good authority that there are less than
40. .000. 900 bushels in public and private
warehouses in the west.
The actual open speculative short I'M
terest IN the Chicago market is approxi-
mately $4,000, 900 bushels, which amount
must be bought in upon the open
market, because it can not be delivered
IL substance. In addition to the 80, ,00O,-
600 bushels purely speculative short in
terest m 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 dared to sell,
for futnre delivery IN all the great pub
hc markets of the world. It has more
millions In money back of it than any
speculative combination of modern
times
May Reach 91-25.