The sun. [volume] (New York [N.Y.]) 1833-1916, 1893-08-02
DOWN GOES THE PLUNGER.
JOHN CUDAuY, oHICAGo,s BIG sPEo.
ULAToR, FAILS

Result OF Unfortunate Speculation o. q
Colossal Scnle-Eedinm Breaks I.oosA
When the News II Announced on Il,
Hoard OF Trade-whent Tumbies Ewes
Lower, and tho Visible Supply OF Mess
Pork shrinks 100000 In Valve In a
Minutes = Cudahy IL Not to Ne Seen.
CHICAGO. Aug. John Cudahy. the great
packer and famous speculator. failed to-day.
He had been hard pressed for several days. bus
his resources were so immense that Il was
thought he might pull through. When the
suspension OF J. G. Steever a Co. was an
nounced earlier In the day. the whispered
comment was that II Jack Cudahy had not
been at the end OF his string he would not have
let his old partner GO to the wall. Their busi-
ness relations have been as close as those Of
brothers.
1t was feared that before the end Of the ses-
sion greater sensation was in store. and tho
fear proved we'll grounded. The failure OF
John Cudahy was the direct result Of unfor-
tunate speculation on q colossal scale. Cudahy
made $l,5oO.000 In provisions last fall. and
lost two or three times as much in wheat last
spring. He is interested in packing houses In
Chicago. Wisconsin. Iowa. Nebraska. and Kan
sas. and had to use vast sums OF money In tho
legitimate branches Of business. packing. and
distribution. His great resources were drained
to support his speculative ventures.
Loss than month ago ]. @. steever estf-
mated Cudahy's fortune at Sl8000000. A
fortune even that big whom spread out over
five States. is inadequate to such an emer.
gency as that which confronted the great
Spectator at this time. The embarrassment
Of A. W. Wright to- day was due to the exhaus-
tion OF Cudahy's means for raising cash. and
when he went down he carried with him half
dozen firms.
& Co.. L W. Bailey Co.. A. Helmholz Co..
Provision Company.
The result OF the Cudahy failure seemingly
was almost as disastrous to tho Board OF Trade
interests rs the collapse Of the Harper concern
six years ago. Within forty minutes OF the
closing hour Secretary Stone stepped to the
gallery and raped for attention.
"All those who have trades with John Cud-
ally will please close them out" came In meas.
ured tones.
Then Bedlam broke loose Brokers realized
that 1t meant the failure OF one OF the largest
packing houses in the world. The three Cudahys
are intimately connected in all their business
ventures The John Cudahy Company. the
Omaha packing houses. and those in Milwau-
kee are the property OF the trio. Provision
products were made to feel tho loss in no un-
certain manner. Lard. which had sold for
So 70 and down to 5000. dropped to SO In
less than six seconds. Pork had suffered
earlier in the session, SO o 50-cent setback
was sufficient. All values suffered severely
from the shock. Wheat slumped and the back
bone was out OF the market
Then on the heels OF this. came the an
nouncemont OF tho suspension OF Wright d
Hughey. an old and very much respected
firm. Prices went further down tho hill Ribs
struck $500 point and went of to 5SK cents.
but later there was little reaction. and pork
got above the $12 mark within two minutes OF
the close. Prices for wheat retrograded and
struck tho owest point OF the day. 5Sk cents.
At the close August wheat lost its props and
sold at 55'.c.. with 5Shc asked for the Sep
TENDER product. Pork was off to $12 n barrel.
and lard and ribs closed at S6.62k and So 22h.
September pork dropped from S19.25. last
nights closing price. to $1,000 per barrel
within forty-fve minutes. and the crowds IN
the galleries were treated to O scene Of excite-
ment that reminded one OF old days.
AS result OF tho drop Of S675 per barrel In
September pork. Secretary Stone received mo-
tice from the brokers named to have trades on
their outstanding orders closed.
The busy mart became deathly still as Mr..
Stone ascended the balcony to road out the
firms that had failed. Brokers were dazed.
They had expected failures from the direction
OF the cereal pits. but here was o grist from tho
pork holders. But one reason could be assigned
by any Board OF Trade men. and that was that
the great manipulation OF pork. Charley
Wright. was in dire distress.
Immediately the rumor became bruited that
Wright was carrying weight that might
4, io hoo ha hrpt ham cd
Previous to the opening the brokers had tho
tips that something was to happen. One bid
was made the moment Of the opening at $40.
% cents lower than the closing price OF pork
yesterday. Pandemonium seized the pit. The
entire crowd Of excited. shouting. and nervous
brokers became sellers. and the extraordinary
of sales being made at q decline Of
80 cents per barrel oach moment until the $lo
mark was reached was presented.
The slump OF S3.25 caught upon slight
point Of favor and was momentarily impedod
But the transactions lacked vim. So weak was
the market that In all the transactions made
the sess n61 pssaRi nS
With scarcely any notice the market fell OF
to $3.50 ut one clip. and thence with a bound
The session consumed the packed slices OF the
porkor could be- had at 5000.
Here upon Visible supply Of $4,000 bar;
se ching Ss' Over s40O 900 In forty min.
ut es. and all because Of the rumor that the
man who has been manipulating pork Tor six
months had failed.
While the brokers who failed to-day. and
who were known to be the agents OF Charley
Wright. were long on pork for Wright, they
were short for tho Spectator on the wheat
market. The first effect o! the announcement
OF the failures in the wheat pit was o decline
q i, cents in September wheat But upon
The discovery that The closing up OF the open
trades OF the failed brokers meant the buying
Ia OF 5OO, 900 bushels OF short, wheat tho mar
ket advanced again even higher than 1t had
been before the, announcement. Before the
wheat WAS selling at about COX
cents. and It Immediately fell to 5Sn cents.
but ten minutes later ID reacted to 001s cents.
Just What tho extent Of the loss will be can
not now DO determined, but 1t is the general
belief am ona those who are in n position to be
pos, ell that Cudnhy's failure Is complete, and
hat he did not lie down until every avenue for
raising dollar was closed against him. He
has been drumming hard Tor money for three
lays. and calling on old friends to sea him
through to the extent Of their ability. In or
he Board OF Ira O end OF his business. his
packing houses were closed down hore and
elsewhere some time ago. and every effort was
made 10 raise money on every bit OF collateral
ii is now apparent that Charley Wright and