The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-08-02
Prominent Chicago Spectators Buried
Under an Avalanche of Mess Pork.
Prices Dropped Nearly 80 Per Cent. and the
Mauipulaters, Being Unable TO Obtain Money
for Margins, Went Down in the Crash.
Packer Cudahy, Worth S1S.OOO.OOO. and
Other Big Brokers Forced TO the Wall.
Government Bonds So Low that New York
Banks viii Increase Their Circulating Notes
Influx of told Yesterdays Failures


THE PORK BUBBLE BURSTS.
And Overwheims "Jack" Cudahy and Other
Big Chicago Provision Dealers
CHICAGO, Aug. 1.-To-day was one OF the
most disastrous in the history of the Board
of Trade in this city. Wealthy firms and
individuals were bowled over like nine
pins, and the prices of hog products wens
tumblinQ like an avalanche. Dealers on
the Chicago board are accustomed to ex-
citing scenes and kaleidoscope changes in
values. for this market seems to be the
storm center where both the upward and
downward push in the price of the worlds
food products is most severely felt; but old
members of the board who had been
through the whirl and clatter of many q
collapsing corner in both grain and pro-
visions, actually stood aghast at the rapid.
ity with which the price of mess pork went
down. A sheer drop of SS.25 pei
barrel inside of three-quarters of al
hour is enough TO take away the
breath of old Stentor himself, but then old
Stentor. In the vuigarism of the street. "ia
not In il" with some of the howlers on the
Board Of Trade. His deepest tones would
sound like consumptive whine beside
the roar which goes up on the board when
shere is any thing exciting on. hush.
however near the opening this morning
when Secretary stone appeared on the bal.
cony of the trading room and notified all
concerned that those having trades with
the well-known provision brokerage hrms
of j. q. Steever q Co., 4. W. Bailey 81 Co.
and A. Helmholz IL Co. should proceed 70
close them out the silence lasted for O
second after the close of the announcement
md p1uh fu rno
provision pit.
As early as last March it became apparent
TO the trade that mess pork was being
"bulied" through these houses, and IL soon
became noised about In the provision trade
that A. NJ. Wright was behind the deal A
year before he started a corner in RIBS. and.
with the help of John Cudahy. carried IL
through to success. making large amount
Of money. Apparently, according to the gen.
eral opinion on the board, he has started
to run q similar deal in mess pork. The
collapse has been looked for for some time.
and. as the monetary situation became moro
and more strained, and the borrowing OF
money to put up In margins more and moro
difficult. every body not Interested In the
deal drew out, leaving the market so dull
that there was scarcely enough business to
establish quotations
EFFECT OF COLLAPSE.
When the bubble finally burst the prices
were so small that 1T was next to impossi.
BILE to find them. The first offer heard by
the quotation official after the announce.
ment of the failure was $751; per barrel,
against e19 at the close yesterday; the next
was s1s then $3.50 Seeing that the el8
man was overwhelmed with customers
anxious to supply his want the price went
OF 80 cents to 81 at time. with very little
hesitation at any time. till PORK touched
Sl0.50. O loss of SS.25 per barrel IN forty
m n a Ia N o. m
1t IS reliably vouched for that sale was
made al hIgh as Sl9 and as low as $40.
drop OF SO, or nearly 90 per cent. or
s450.o 900 on visible supply of $4,000 bar:
rele. Then the market became Quieter, and
good buying at the enormous decline car
Tied the price back to S12 aud subsequens
events had only temporary effect on II.
Things were moving along with omlnous
smoOthnesss when another and heavier
shock came in the announcement by the
secretary in quick succession of the failures
OF the North American Provision Company.
packing concern with capital OF guar.
ter of million dollars. in which Jack"
Cudahy was largely interested. of Wright
~ Haughey. a respectable firm chiefly en-
gaged in the receiving and shipping OF
wheat but w no were understood TO be in
provision PIT, aud finally of Cudahy him
self. the great packer and daring operator
in PROVISIONS, q man In terested in the pack
ing trade in half q dozen States,
including plants at Chicago. Mill
waukee. Omaha. Louisville and Nash
vile; y man whose wealth had recently
been estimated at no less than SlSOC0. .0OO.
of which about s20o0,000 was made in q
deal In ribs last fall lt was not doubted
that he had used every means of raising
money before Lying down." or that ho
had lent q helping hand TO his friend.
Charlie Wright. before the final pinch
came. But the financial moose was drawn
tighter and tighter; he had q big deal on in
lard. and was interested In ribs. and tho
strain became too great TO bear. The An
nounoement of Cudshy's failure had
scarcely died on the secretary's lips before
the storm broke loose again. this time In
the lard crowd. That commodity had held
pork. but 1t in turn mounted the toboggan
and went down as If self-lu bricated. The
price for September wae s.. 20 per tierce In
the early trading; 1t was SO within six
minutes after Cudahy's failure
nounced. and Septembe short ribs which
sold early at S7.25 per hundred pounds.
broke to $5.6,l ". Before the close. how.
ever. both rallied. the former 10 Sae21,
the latter TO $3.50.
1t was said by one close 90 Mr.. Cuiahy
that his private affairs were entirely sepa-
rate from his partnership matters, and that
the various companies which he controls
and In which he Is interested with his two
brothers. Mike" and Pat" NOS di-
rectiy affected by the failure. Ii 10 esti.
mated that the losses on the pork alleged
to have been bonght for Wright. are be-
tween 100000 and S500000 No one pro-
tends to estimate Cudahy's Losses.
"Charlie" Wrigh declares that Cudahy and
ested with him in his deal. and that the
trouble came about because they would
not put mp any more marglns 30 far as
the trade is concerned. Ar. Fairbank 10 not