Grand Rapids herald. [volume] (Grand Rapids, Mich.) 1892-1959, 1893-08-02


CHioAao. Aug. John Cedahy. the
great packer and famous speenlAtos.
failed today He nad bs'en hard pfc~ssd
for several days. but kis resources we're
- Immense that t Was thought 10
might pull through. When the saspen-
sion II j. q. Steeyer 4 Co Was an
nounced earlier in the day the Whispered
comment wac that IL Jack" Cudahy
had not been at the end of this string
he would not have let his old partner
and confidential adviser SO 90 the wall.
Their business relations have been 40
close as those of Two brothers could
well b..
just what the extent Il the loss wall
be cannot now he determined. but II ls
the general belief among those who are
in position 10 be posted that Cudsh.'s
future is complete and that he did not
lie down until every avenue for raising n
dollar was closed against him. he bas
been drumming hard for money for
three days and calling on old frieads 10
see him through "a the extent q their
ability.
Within forty minutes ~ the closing
hour on the board II trade. Secretary
Stone stepped 10 the gallery and raped
for attention. Something Was going -
drop.
"All those who have trades with John
Cudahy viii please close them out"
came in measured tones just hush
OF a second and then the bedlan broke
loose. Brokers realized that IL meant
the failure ~ one of the largest packing
houses in America and in the world.
The three Cudahys are intimately con
nected ia their business ventures The
john Cudahy company. the Omaha
packing houses and those IN MilsauAee
all are the property OF the trio. frovis-
ion products were made 10 feel the loss
in no uncertain manner. Lard. which
had sold for s115 and down Ia tgo0
dropped to 81 in less than SIX secondA
Pork mad suffered earlier IN the scssson.
80 a JO-cent setback was sufficient All
values suffered severely from the shock
Wheat slntnped and the backbone Was
out II the market. Then on the heels
os this came the announcement ~ the
suspension of Wright X Haughey an
old and very respected firm on the floor.
Prices went further down the hill kits
struck 800 point and September
, wheat went of 10 5e cents. bat latce
there was little reaction and pork got
up above the ell mark.
John Cudahy. universally known as
Jack wss practically lorn in pack
ing house, and since he first hllnked AZ
the light 81 day his tastes. his talents
and environment have been dislincfiyely
speculative. With his brothers. mike"
and Pat he began his career in the
stocky ards, his employer being T.. Ar.
nour. From the bottom of the ladder
he climbed steadily. mastering every de
tail of the great business. he began
specuiating almost a. soop as he had
drawn his first weeks wages and before
he was fairly entitled d. shave ne was
recognized as AN operator .! unusual
skill and un0ucstionsblc nerve. For a
time he Kls content 10 pls! satellite 90
Armour. hut later he awakened 10 the
fact that the tips of that worthy gentle
man were not always reliable. and when
the time came be 'coppercd" them IN a
deal OF CONSIDERABLE magnitude. thereby
taking unto himself the heat sum II
SJOpD0. while his partner. Chaplin.
against whose advice the deal Was made,
went broke and soon after died "a a
broken heart.
This was Jack" Cudahy's first big
stake. and with Il he purchased HE
partners interest IN the packing house
and thereafter travckd in single har-
ness. 4 little later he associated HIM
self in speculative operations with y. Is.
keam. MAJ" Jones and Billy" Linn.
They were fairly successful. but almost
lost their all in breaking Peter Nc.
,scogh IN his celebrated land corner.
IL was a close call. bat the quartet
pulled out With pooled profits % s2.tpl.-
Gee. For thre,, -four years the big
Four" were the controlling power on tho
board of trade. Cudshy IN the cam.
paign cleared about s.10oa.ooo Later
he with his three associates gave frm
10 the style Of trading known a. Invest
ment short selling" keeping cut enor
nous lines ~ that wheat. turning is
IL over month after month and pulling
out the carrying charges which aver
aged &c per bushoi per month. OF cuurse
there was money ~ u.
Ultimately Cudahy suboriinnted bis
board epeculsfions 20 his legitimate
business until he and his brother "Nike"
owned chain o; d-pzeu packing.
houses and employed more nsen than
an other tFm an the business.