The record-union., 1893-08-02
Special to the RECoRD-UNIoN.

CHICAGO, Aug. 1.-To-day was one of
the most disastrous IN the history
of the Board of Trade here
Wealthy firms and individuals were
bowled over like nine-pins, and prices of
hog products tumbled like an avalanche.
Old members who had been through the
turmoil of many a collapsed corner in
both grain and provisions locke ed aghast at
the rapidity with which the price of mess
pork went down. A sheer drop of IS -
Der barrel inside of three-quarters OF an
hour is something not witnessed every
day.
soon after the opening this morning
Secretary Stone appeared in the balcony
and announced that those having trades
with the well-known firms of J. c.
Steever q Co., E. w. Bailey q Co., and
\. Helmholz II Co., should close them
out. Up went mighty roar from the pro-
vision pit.
As early as last March it became ap-
parent to the trade that mess pork was
being bulled through these houses, and it
soon became noised about that y. w.
Wright, known on the board as
Charley Wright, was behind the deal.
The year before he and John Cudahy
carried through deal in ribs which
netted them about two millions.
The condition of the money market for
some time past made it difficult to obtain
The necessary funds to carry on the
enormous deals which had been playing
havoc with the leaders of this one, and
AS the situation became more strained
everybody not near the head of the deal
drew out, leaving the market so dun
there was scarcely enough business to es-
tahlish quotations. When the bubble
finally burst to-day the pieces were so
small that it was next to impossible to
lind them.
The first offer heard by the quotation
officials after the announcement of the
failures was SIS - per barrel, against
Sl9 at the close yesterday. The next bid
was $40, then SIT 50, and 50 it went fifty
cents to a dollar at a time till the price
touched SO 50-a loss of IS % per barrel
in forty minutes. This was a drop of
nearly 80 per cent, or S450,00O on visible
supply of $4,000 barrels. Then the
reaction carried the price back
10 Sl2, and thus things were NOV
ing along smoothly, when suddenly
came thunderclap in the shape of the
announcement in quick succession of the
failures of the North American Provision
Company, packing concern, with cap
ital of a quarter of million, in which
John Cudahy was largely interested; OF
Wright & HaUghey. a broker firm, chiefly
engaged in receiving and shipping wheat,
but who were understood to be interested
4Io,
pit, and finally of Cudahy himself, the
great packer and daring operator in pro-
visions, man interested in the packing
trade in half a dozen States, including
plants in Chicago, Milwaukee, Omaha,
Louisville and Nashville; a man whose
wealth had recently been estimated at
not less than SlS,000,000. 1t was not
doubted that he had used every means of
raising money before laying down."
The announcement of this failure was
scarcely made when a furious storm
broke loose in the lard crowd. Septem-
ber was 50 IS in early trading. 1t was S6
within six minutes after the announce
ment of Cudahys failure. September
short ribs broke from 81 p to s. So. Be-
fore the close, however, both rallied, lard
TO ST 62l and ribs to S6 30.
1t was said by one close to Cudahy that
his private affairs were entirely separate
from his partnership affairs, and that the
various companies which he controls and
in which he is interested with his two
brothers are not directly affected by the
failure.
1t is estimated that the losses on pork
to have been bought for Wright are
nearly half a million. No one pretends
to estimate Cudahy's losses. Wright de-
clares that Cudahy and \. X Fairbank
were both interested with him, and the
trouble came about because they would
not put more margins. Fairbank in an
interview this evening said he had lost
some money. but was all right.