The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-04-05
THE WAR RESUMED
More Trouble Among the
Wheat Brokers.
McGlaufiin's Deal in May Wheat
Threatens to Disrupt the Call
Board Association.

The trouble between the bulls" and
"bears" OF the San Francisco Produce
Exchange Call Board Association is rap
idly assuming grave proportions and threat
ems to prove quite disastrous TO the men
who dabb!e in cereals unless some sort OF
agreement be soon patched up.
In consequence OF the opinion furnished
Charles S. Laumeister by his attorneys,
Dorm & Dorm, TO the effect that the action
of the board of directors in fixing a value
on wheat for marginal purposes below the
price for which the grain was selling in
the market was i'll advised and not to the
best interests of the exchange, that gentle
man yesterday rendered his resignation as
Il mem Der and president of the board OF
directors, and signitied his determination
of retiring from the association altogether.
While the action of Mr.. Laumeister did
not prove a surprise 1t did create consider
able CONSERVATION on Change and was the
cause of much discussion.
Laumeister has been looked upon as the
important member of the directors and his
opinions at all times carried with them
considerable weight. Therefore his resig-
nation, by which he virtually pronounces
himself as opposed to the directors and a
supporter of the pulls" is deemed of
much significance.
When the wheat deal row in progress
was inaugurated and Louis McGaufin be-
gan TO pnSh up the price of Nav wheat a
number of brokers who found themselves
short and in position where they could
easily be squeezed put their heads together
TO arrange some plan which might eXtri-
cate them from their difficulties.
Among the rules established for the
government of business in the call board
is one which gives the directors the right
to establish value for marginal purposes
whenever they deem such an action neces-
sary in order TO prevent Hlegitimate
ambling on Change.
This rule was adopted Immediately after
the DreS bach failure, and in order to pre-
vent another such fiasco, but no one ever
thought OF enforcing 1t until the Nc
Glauflin deal was well under way.
Then the little coterie OF brokers who
were short hit upon the rule as a way out
of their difficulties, and by means of a
petition had the directors assemble and
fix marginal value.
Before this was done, Laumeister, as
president OF tie board. submitted the rule
in question TO the associations attorneys
tor Interpretation. and received a reply
quite favora Bile 20 the short-enders.
The marginal value fixed by the board
was 81 o., figure 10 cents below the price
for which May wheat was then selling.
This action the men who were losing on
wheat declared an unjust one, and Pres-
dent Laumeister acqulesred In the deelar-
alton, asserting that it was manifestiy un-
fair and designed for the purpose OF help
ing the shorts and crushing the men who
were manipulating the deal.
In discussing the matter at the time he
stated that in his opinion the board had
not the right to make fish of one and flesh
of the other, and that IL protective meas
ures were necessary they should be so
arranged as TO afford equal protection TO
all concerned
Later on Mr.. Laumelster took quite an
active part in arranging for the general
meeting of the association which was held
q snort time ago. and at tho time of the
gathering strongly supported the resolu-
ton, which was eventually adapted. and
which contained a request TO the directors
to raise the value for marginal purposes
Of May wheat TO 81 10.
When the directors met week ago they
completely ignored the request of the gen.
eral assembly and decided 10 hold the
price at 81 o.
Ii was this action which brought about
Mr.. Laumeister's resignation and which
may bring disaster to the Call Board as
ISOLATION.
When questioned concerning his reslg-
nation MIR. LaumeiSter SAID:
81 do not approve of the stand taken NV
the board of directors, and consequently
feel that [ should sever my connections
with them. As president Of the board one
would naturally suppose | could WELD
some Influence, but this did NOT prove TO be
the case. My associates naither listened
to nor needed my advice. Therefore, there
was nothing left for me to do but step
down and out. In doing this | believe
am acting for the best. The action of the
directors was not fair, nor in my opinion
was it legal. and by retiring from the board
] show my dsapproval OF what has been
done"
The stand taken by Laumeister meets
with the approval of very large number
of the members OF the associa ton. and
this fact may create considerable trouble.
Those who side with the retiring presi-
dent declare that the action of the direc-
tors has been anything but fair, and insist
that they were governed solely by desire
to save few dollars TO themselves and
their friends and not by any belief that
the condition of affairs on Change de-
manded extraordinary legislation. They
also declare their intention of forcing the
board of management into giving all
hands square deal or Withdrawing from
the association. In reply 10 all this the
directors say nothing. but they are appar-
emily not disturbed. 1t long ago become
generally understood that the men VINO
managed affairs on Change usually sue
ceeded in doing just almost as they de-
sired, but whether they can do so now or
not remains to be seem. That they will
try to is quite certain.