The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-05-30
A GREAT UNDERTAKING.
The S. III. Wood Produce Company, of
Minneapolis. Successfully Carry
Out Their Plan of Insuring In
yesfors Agains Loss Who Buy

The s. III. Wood Produce Company, of
minneapolis. Successfully Carry
Out Their Plan of Insurine In
vestors Agains Loss Who Buy
Wheat at Present Prices.
Several months ago the S. H. Wood Pro-
duce Company, grain brokers of Minneap-
oils and New York, offered to buy May
wheat for their customers, and guarantee
the customers against loss on May list, pro-
vding the markets did not go up so that
customers could sell out at a profit before
that time
To outsiders the undertaking seemed a
risky one. but while the markets have
been badly demoralized, the S. H. Wood
Produce Company have carried their con-
tracts through successfully, and deserve
full credit for their part in the transaction
for they have saved good many investors
who would have lost had it not been for
their guarantees.
A reporter for The Representative called
at the office of the S. H. Wood Produce
Company yesterday, and had long talk
with Mr. Wood, the manager, during which
time he shown a large pife of guaran-
tee statements, stamped, redeemed and
Cancelled, and also the checks and drafts
which have come back through the banks
showing how and when the guarantees
were paid.
Speaking of the transactions, Mr.. Wood
said: "Our original offer to guarantee
against loss was for only 100000 bushels,
but the plan became so popular with our
customers that we had at one time nearly
500 900 bushels guaranteed. The advance of
nearly nine cents bushel in April enabled
a good many of our customers to sell out
at a profit, and which, of course brought
them a profit, and relieved us of part of
our burden. We began settling these con-
tracts about the 25th of April, and have
paid them up right along as promptly as
it was possible to do so in SO large trans
action There are a few contracts which
have not come in yet, but the great bulk
of our guarantees have been PAID and the
others will be, as fast as presented"
Speaking of the risk, Mr.. Wood said:
"Our plan is simple one, and the risk
is not as large as is generally supposed
We do not guarantee all speculauons, ana
we limit the amount of our guarantees
to 100000 bushels. We do not guarantee
more than 10000 for any single customer,
so that we can give every customer an OPP
portunity to have part of his holdings guar
anteed. Our charges for guaranteeing are
81 80 per each 1000 bushels when a five
cent margin is used; $3.50 for a four cent
margin, and $625 for a three cent margin.
In addition to this we get 10 per cent of
the profits made on purchase. This gives
us double commission, especially when a
customer makes a profit, and at the present
low prices with a five cent margin the risk
not great.
The reason spectators lose 50 much
money buyng wheat is usually because
they use too light margin They want
to buy 1000 bushels of wheat with only
$40 or 500. BY our guarantee plan they use
good margin in the first place, and if any
more is needed, we put it up for them.
During the great run Of liquidation in
March we protected our own and our GUS
toner's interests by hedging and buying
privileges, SO that We have saved our Gus
toners from loss by our guarantees and
have made money ourselves
We are the only brokers in the city who
dare to thus share in the risk with our
customers, and almost the only brokers
who have real estate back of us, n addi-
ton to our working capital, and our success
under the guarantee plan is highly crafty
ing both to us and our customers. We are
now Offering to guarantee customers against
loss who buy December wheat at the pres
ent low price, and I believe they will make
20 cents on a bushel on it.
The company have suite of six pleas
ant offices on the ninth floor of the Guaran-
ty Loan building, but their business has
grown SO large that they are considering
the question Of removing to larger rooms
on the ground floor, or to the Bank of Min
neaplis building.