The morning call., 1894-03-24
SALE OF THEIR INTERESTS.
Significance of the Warehouse
Transfer.
INTENTIONS OF THE PURCHASER.
A Belief That McNear May Attempt
to Control the Shipping of
Wheat.

tirement from active business affairs of
Starr & Co. and the purchase OF the Port
Costa wheat-sheds by George W. MeNear
which was made exclusively iu The CALL
proved the sensation of yesterday among
the members of the Produce Exchange.
For many weeks the rumor that Abra-
ham Starr and his associates were prepar-
ing 10 bid adieu to the commercial world
had been current, but as no one had sue
ceeded in tracing the story to a reliable
source but little faith was placed in ii.
The deal of a day or two ago. however. es-
tablishes the fact beyond all doubt.
1; being Good Friday no effort was N ade
TO do any business on Change and the
brokers did nothing but stand around and
discuss he Starr-McNear transfer of in.
terest. Many reasons for the sale were
advanced and many explanations of its
significance we're offered. Some saw in
the deal that McNear-Starr had combined
and predicted that all sorts Of things
would happen in consequence of the rOm-
bination. while others seemed inclined to
believe that lack Of ready money figured
10 the affair somewhere.
The opinion of the majority of men on
Change seemed to be that Starr & Co. had
decided TO 90 out Of the wheat business and
that the sale of the warehouses was the
first step IN that direction.
In support Of this opinion II is argued
that there are many existing reasons why
the big -four firm should want 10 retire.
To begin with. the men who compose it
are, as rule. quite well on, and with
them the necessity OF remaining in mer-
20 m in rH N
ence does not exist.
Then, 1t is asserted that the condition
of the market here has much to do with
the transaction. There is little or no profit
iu wheat now. nor is there likely to be for
several years to come. The market is gut
ted with material. and prices cannot help
but remain at bedrock.
The nearest solutiun to the affair is one
which comes from man who is brought
in daily contact with Starr & Co.'s house,
and knows thing or two about the affairs
of thu concern.
The whole truth of the matter" said
he ''is that the house is preparing TO re-
tire from active participation in the wheat
business.
"The members of the firm have a vast
amount of money invested, from which
they are receiving little or no interest, and
the feeling exists that perhaps his money
could be put to some more advantageous
use. therefore an endeavor is being made
to get possession of some of it by unload
ing the stock in which it is invested
az hardly believe the story that the
company is going out of business alto
gether, for / can see no reason why they
should do so. Their milling interests are
quite valuable and bring in good returns.
In addition TO this but little trouble is
experienced in managing the mills; every
thing about them is so system atically
arranged"
While people on the outside are doing
lots Of guessing and worrying over the
transaction. those directly interested ap-
peared not to be bit concerned. George
W. MeNear clings to the belief that the
matter is of no public interest and refuses
fatty 10 discuss it. he maintains that it
is purely business arrangement between
him and Starr & Co., and that a confidence
would be betrayed in making the particu-
lars known.
With Starr & Co. it is the same story.
At their office the statement is made that
nothing of general interest has transpired.
That McNear has the warehouses.
though. everybody admits, and that is
about the only thing that any one will
admit.
Whether the Port Costa and Wheatport
property was bought outright or simply
leased is hard to say, but in all probability
McNear's right to it is secured by bill
of sale.
The amount paid can only be surmised.
Several weeks ago. when the warehouses
were first offered for sale, Jacob Eppinger
was sent for and asked to buy them. Il
was explained that the places could be had
for 100000. and that the Starr Company
was quite anxious to sell. Eppinger de-
clined to take the property. and then nego-
tiations were opened with McNear.
As much curiosity has been aroused by
the action of McNear in buying the PROD
eriy as by STAIRS action in selling.
The acquisition of the sheds place Nc
Near virtually in control of the wheat
shipping of the State and establishes
strong mon opoly, for all wheat that is
shipped from this section of the country |.
loaded at Port Costa, Il being much
cheaper to load ship there than in this
city.
In the minds Of some persons the pur.
chase has created the belief that McNear
is preparing for another plunge into the
wheat market similar to the one he made
not very long ago. Then he bought W heat
right and left and was fast gaining a con-
trolling interest in the market He was
eventually compelled to stop, however,
because of his inability to secure storage
room.
During his former plunge McNear char
tered about every wheat vessel that headed
for this port, and had he been in a posi-
ito n 10 carry out his plans he would have
ended with quite an addition 10 his bank
account. Tue purchase of the Starr ware
honses gives color tn the belief that Sec
oud plunge is being arranged.