The morning call., 1894-03-18
MCGLAUFLlN MAD.
Defies Produce Exchange
Directors.
REPUDIATES WHEAT RULES.
But Puts Up 100000 Security
Under Protest.
WHEAT RULES.
THE REDUCED MARGINAL PRICE
An Excited Market on Friday Fol-
lowed by Reactionary Frost.
Opposite Views.

1T is nothing but an attempt at dead.
cold steal on the part of those directors
who are short and / won't submit to it,
declared Lewis w. McGlaufiin, the grain
broker. yesterday with emphasis. and his
partner, Eugene A. Bresse, brother OF
Louis c. Bresse. ex-senator James g.
Fairs secretary, assepted with evident
warmth.
The warmth of the partners was caused
by the action of the directors of the Prod
| uce Exchange in regard to May wheat
futures. On Friday May wheat jumped
from 81 10 to 81 1515, 400 tons going at
! the latter figure. LII all, enormous tran
sactions were effected on FRIDAY. the mar
| ginal Price being then 81 10 per GENITAL on
seller May wheat.
The directors became alarmed at the eX-
| tent of the transactions by the bulls, and
| after The afternoon call they met and had
the following gDifirant notice posted:
At meeting of tile board OF dIrec Ors OF the
| san Francisco Produce Exchange Call Board
| Association held this day, the values for mar
giual purposes for seller May wheaI was, under
Section Of rule u, fixed al 81 % per GENITAL,
| and section 3 of rule II was declared IN force
until otherwise ordered
This announcement, aimed apparently
at large, seemed to strike one firm. Nc
GlaufiD 81 Co.. the brokers, have lung
been supposed 10 represent syndicate
which Is trying to corner wheat In tins
market. On Friday their sales were cred
IDLY reported TO amount from 5000 10
80, 900 tons. In consequence of the reduc-
tiOn IN the marginal price, the syndicate
would have to put up about $4,000 to
cover the difference between 81 % and the
selling price, 81 1872
Accordingly. McGIauflin & Co. made a
big kick.
I'VE object under our attorneys adj
vice." said the partners yesterday. Here
is letter from our attorney, W. ,. Good
fellow, in which be advises us that the
action of the directors was interested and
therefore illegal.
"Our position is that of the seven d.
= rectors who have made this rule at least
three are known shorts. They are
l Eppinger, Kaufman and Sinsheimer.
o Here are contracts proving it. They are
not only shorts but the heaviest shorts on
3 the market They have prevailed on one
other. who is probably short. TO stand IN
with them, and now proceed 10 make rules
I to suit themselves.
d III any one says we have Tepudiated our
D obligations l wish 10 deny it. We have
, given ample security. All we intend to dc
is to IIotest against the interested ruling
of directors. vino are also shorts"
Elsewhere it was learned that Eugene
A. Bresse had rendered bis check fol
100000 crossed under protest." to the
|
firms margins.
]. Kaufman, one of the directors, de-
MED that there WAS any personal Interest
involved.
There is plainly an attempt being m de
to manipulate he market for speculative
purposes" said he, lust as at the time Of
the famous Dresb bach wheat deal, ana he
directors have exercised their power Il
arrest 1t.
'McGlanfln has been manipulating The
market. l doubt very much if 5000 tom
have been actually bought and sold, as ht
has probably beer buying and selling
from and TO himself through brokers.
1--WE act under section 3, rule II, which
q reads as follows:
. When the price on call on any article o
, | future Is higher or lower than the margina
/, ! value as determined by the board of directors
neither party TO the contract can collect add
| tional margins or contrac standing al the fig
uTe named by the board; but on other contract
: made at or standing at price different TO tn
8 marginal value as above determined the selle
or buyer, as the case may be. can demand tina
h the difference between said price and said vau
u shall Immediately be made good, as In the cas-
= of other additional margins, and under iii
rules governing the collection of other adj
tlOnal margins, except that amounts so caet
) must be deposited in the same manner with TIL
j. San Francisco Produce Exchange as OTigina
. | deposits.
"What will happen IL McGlauflin per
sists in his refusal to pay his margins?"
y "We should proceed under the rules
y | Rule IL has the following:
> Should either party to any contract fail 4
: deposit the required original deposit Thin Til
mex ensuing one banking hour after deman;
e shall have been made, IL shall be at the option
OF The OF her party thereto to close the same
after due notice in writing shall have beef
: given, by purchase or sale through the Gale
4 |