The morning call., 1894-03-29
DECLINE TO ACT.
MCGlauflin Receives a
Setback.
THE SHORTS AGAIN ON TOP.
Marginal Values Will Not Be
Raised.
WISH OF THE EXCHANGE IGNORED
Interesting Statistics Which Show
the Inaccuracy of Government
Crop Reports.

WCCh dSOs SdihCu oDOuleu d lOb hUu
then went into the Exchange Association
meeting and passed resolution asking the
board of directors to rescind previous
action and raise the value of wheat for
marginal purposes to 81 10 per GENITAL.
Then, after the meeting adjourned, they
gathered in groups on the curbstone, ex-
changed congratulations and praised each
other for the way in which they had
downed that clique that wants to run
everything"
The members of the "clique" did not do
any talking, but they did do a heap think
ing. aud before sunrise bit upon plan by
which the victory OF the ''longs" could be
be made short-lived and rendered ineffe
tual during its life.
THE CALL in IT'S account of the general
meeting told exclusively of the plan ar
ranged by the Shorts" and announced
that the directors would completely
ignore the action of the association.
Well. the directors met yesterday after
noon, and by their action proved the
accuracy of THE CALLS prediction.
Chairman Laumeister called the meet
ing to order, and Immediately the partici-
pants began a discussion of the resolution
requesting them to raise the esta bllshed
marginal value.
One or two directors favored such action,
but the majority were strongly opposed to
it. and as votes are what count In affairs
of that sort of course the majority won
and caused the following bulletin to be
prepared and pasted in the rooms of the
call hoard:
AFTER a careful consideration of the
resolution adopted at the spec al meeting
of the members of the San Francisco Pro-
duce Exchange Call Board Association
held on the 22d of March, recommending
that the value for marginal purposes for
May wheat be placed al 81 10 per GENITAL,
the board OF directors, at meeting held
this day. unanimously came to the conclu-
sion that it would be inadvisable. on ac-
count of the state OF the foreign market to
make any change for the present in the
value for marginal purposes already es-
tablished."
After taking this action the directors
filed out on to the cur bstone, and then the
Shorts" took their turn at shouting and
congratulations, while the "longs" made
themselves as scarce as rain showers in
August.
Just what effect the decision will have
on the existing condition of affairs lis
difficult 10 surmIse.
The men who will be called on TO de-
liver more wheat in May than they now
control declare that the directors are
possessed of SolOmon's wisdom and hail
them as the saviOrs OF the Produce Ex-
change. Incidentally they also say some
thing Of the joy they feel at being relieved
of the unpleasant duty of putting up addl-
tional marginal mud" to the amount of
several hundred thousand dollars, but then
they only do this in the privacy of their
Offices, for public parade of this joy
might lay them open to charge Of favor
Ing personal and selfish interests.
Or course the brokers who are long on
May wheat declare the whole thing an out
rage and have serious misgivings that 1t
may result in the disruption of the ex-
change.
They attribute the action to personal mo-
tives entirely and boot the idea that the
English market affected the decision in any
way. The old story of the director who
owes several thousand dollars to "short"
broker and who votes on all questions as
his creditor directs Is also given in ex-
planation of the position maintained by
the board, but then the men who are
''long" feel quite angry aud perhaps say
some things which they don't really mean.
The decision dissipates every hope the
"longs," and McGlauflIn in particular,
entertained that a portion of the money
deposited by them to cover their margins
would be returned.
The only way in which they may now
obtain redress is by carrying the fight into
the courts, and there Is a likelihood that
should an attempt to do this be made the
Judge would declare the Produce Ex-
change business q gamble and throw the
case out of court.
An endeavor to learn what action Nc
Glaufiin & Co. would take proved un-
availing
81 don't know just what we will do,"
said Eugene Bresse, a member of the firm.
'for we have not had time to consider the
matter.
THE directors deliberately ignored the
expressed wishes of majority of the
association. and 1t is all rot for them to
say that their action was governed by the
condition of the London market Why,
on the very day of the general meeting
they declared just what they intended
doing, and that was long before any one
could tell what might happen in any
market"
Louis McGlaufiin is playing a star en-
gagement on exchange Just now.
The other brokers watch him as a cat
watches mouse and his every move is
taken as an indication that some new deal
is being hatched.
Last Monday he and Bresse made a
plunge in barley and bought quite GUAM
tity to be delivered in December
Immediately the rumor became current
that the barley market was TO he "bulled,"
and business was brought to a standstill
while men discussed the affair.
The result of such an effort was figured
out in half dozen ways, each one Of
which gave additional strength to the story.
and finally when matters quieted down
bit ii was accepted as foregone conclu-
sion that a new deal was on.
"Oi course corner In barley is con-
templated," explained one man. who
seemed to know all about everything, "and
these fellows will make money out of the
affair.
'In good year the barley crop amounts
TO ah0ut BOO 600 TONS and with tho \, N linn