The morning call., 1894-03-21
MEMBERS REBEL.
Produce Exchange Men
Who Want Justice.
NEW TURN IN THE DEAL.
McGlauflin Has Friends in the
Majority.
PROTEST AGAINST DIRECTORS.
A Second Big Check Meets Ruling
of the I" Short" Board, and
Trouble Is Expected.
PROTEST AGAINST DIRECTORS.

Affairs took a most unexpected turn yes
terday in the Produce Exchange with re-
gard TO the trouble betN cen McGaufiin
and the "shorts" over margins on May
wheat.
When the call opened in the morning
there was nothing apparent to indicate a
change in the attitude taken by the mauip-
ulatorS of the deal which has caused many
brokers considerable uneasiness. Nc
Glauf1in had refused to comply with a
ruling of the board of directors placing
the marginal value Of May wheat at 81 05
per GENITAL. And prospects for legal con-
test were as clear as on the previous day,
when the chief "bull" declared he would
fight the directors in the courts for making
a bylaw that Disseminated against him
uDjustly. He is the principal purchaser
in the exchange at present, as he leads
the big wheat deal, in the course of
which several members of the exchange
took chances and sold May wheat that
they did not possess, believing that some
thing would turn up before May and ;hey
could buy at reduced prices. Quite re-
Gently, however. they found all this wheat
cornered by McGlaufiin. and they grew
distracted.
L. Kaufman and Henry Slnsheimer oil S
Koshland d Co., and they are members of
the board of directors. They thought it
was eminently proper to frame and en-
force law in their own personal interest
and aimed directly at NJ Glaut1in plaring
the marginal value of Nav wheat al 81 O5
AFTER McGlauf II had bought immense
quantities at 81 y and 81 15 The d fer
ence he was compelled TO depnsit in a
bank specified by thr Exchange. and in
addition 81 was paid in on every ton he
purchased. For such a regulation it is ex.
plain that the margin is taken as secur-
liy for the performance of contracts.
Without a vault full of money broker
would be forced under in short time. But
McGlaufin deposited $4,000 and then re-
fused TO pay more tor covering contracts
made las Friday. He said the case would
be decided in court as 10 whether a few
shorts who are directors could legislate
in their own favor. So this morning the
following notice was posted on the board
TO meet him hall way:
SAN FRANCISCO PRODUCE EXCHANGE CALI
BOARD ASSOCIATION.
] lie caller having been instructed by thr
president not TO buy in or sell OH tor account
OF dsllDquentS any seller May wheat affected
by the disagreement as to the value Tor mar
glnal purposes Of such wheat. as fixed by the
bo I'd of directors, II is order, d thai such iu-
structions continue in force for the 2Olh of
March only.
In accordance with sections and OF rule
II all contracs for seller May wheat must be
margined 10 81 % Ter ceDtai, all such margins
TO be deposited with the San Francisco Produce
Exchange {. S. LAUMEIsTER, President.
7. c. FRIEDLANDER, Secretary.
San Francisco, MaIcn 19, 1894.
This virtually shut hlm out from further
operations and Implied a threat that hIs
contracts would be sold peremptorly if
the Friday contracts, on which he was
delinquent, were not margiDed. Z nding
that the directors were determined 10 fght
a bitter battle, he gave President Lau-
Inelster certified check of 100000 yes
terday to cover his contracts. The second
check was surprise To the shorts, who
are now more puzzled than ever about
McGlaufiin's hackers.
In the afternoon another notice was
posted alongside the official one but It
came from a different source. The last act
of the directors has not met with approval
from maj rity OF The call board, and in
1act it has raised a strong feeling of d s.
trust, perhaps, or contempt for the way in
which The short" directors have tried tn
save themselves by making r one-sided
and oppressive law against the bulls. Some
OF The best men got up the following peti-
tion. which was quickly signed and hung
up defantly:
SAN FRANCISCO, March 20, 1894
To the President of the San Francisco
Produce ETchdIge Call Board association:
We respectfully request you to Gail an ex ra
metting of this association, provided for 10
article V, section /, of the constitution of the
slider and advise regarding the action taken