The San Francisco call., 1895-05-23
SHARP ADVANCE IN WHEAT,
The Sluggish Local Market
Is the Result of
Combine.
FAIR SYNDICATE HOLDINGS.
The Shippers VIII Not Handle This
Grain Except at Their Own
Figures.

The wheat situation in San Francisco is
remarkable in many respects. Regardless
of the iact that Eastern and foreign mar
kets have been steadily on the rise for the
past ten days the local quotations have
shown no appreciable difference one way
or the other, except during the last two or
three days.
Yesterday the market advanced cents
over a similar rise of the day before. Out
side of these two spasmodic efforts the
market has not kept pace with the Eastern
and foreign boom.
On the street it is said that this some
what peculiar condition of affairs is due to
the famous Fair purchase, now commonly
known as the Syndicate wheat" 1t is
said that the wheat at Port Costa, over
200, 900 tons, is a constant menace to the
local market and for that reason quotations
here have not advanced in like proportion
with Chicago and New York. Another
reason assigned by the knowing ones for
the sluggish local condition is the enor-
nous freight rates-35 shillings from here
to Europe.
The syndicate, however, seems to be the
real cause of the trouble. 1t is rumored on
Change that the principal ship-owners
have agreed among themselves not to buy
any of the Fair wheat except at their own
figures. This silent warfare, whether
there is any truth in the reported ship
pers' combine or not, has forced the quota
tions steadily down and all through fear
that the syndicate" might throw its
200 900 tons on the market at any moment.
The shippers, it is stated, have practically
chartered all the ships in port or to arrive
here for the next ninety days, and for that
reason nobody will buy it and the holders
cannot ship it themselves, except at ruin
GUS rates. The holders at present are in
what might very properly be called a box.
On this point, man prominent on
Change and closely related to the famous
syndicate" said yesterday:
Il don't wish to have my name used, for
certain business reasons, but l am firmly
of the opinion that the shippers have
formed combine. They ali deny thi,
very vigorously, but everything certainly
points that way now. There is no use de-
nying the fact that the shippers hold the
whip handle now, but 1 think the other
side will have an inning before very long.
1.-The syndicate, as it is called, is in no
very great hurry to dispose of its holdings,
and they can afford to wait until freight
rates get near the reasonable line. Sixty
days ago the rate was only 25 shillings to
Europe, while to-day it is 80. l feel per-
fectly sure that if those in charge Of the
Fair wheat should throw ii on the market,
freight rates would at once advance to
40 and even 90 shllllngs. l am of the opin-
ion that it is this fight or combine of ship
pers that has caused the local market to
remain at practically the same thing"
Wheat wentup on call yesterday SIC per
GENITAL, in sympathy with an advance at
Liverpool and an extra squirt at Chicago.
No one seems to know the cause of the
sharp advance. 1t is probable that re-
ported "bull" squeeze by Armour & Co. of
Chicago and supposed shortage in the
Argentine crop of % per cent may have
had something to do with it. Shipping
wheat advanced from S7H cents to 80 and
9014 cents yesterday.
II. Dutard, who is in with McGlaufiin &
Co. on the syndicate deal, declined to dis
cuss the wheat situation.
81 am simply an agent for McGlauflin &
Co., and consequently am not in a position
to express an opinion on the price OF
wheat, said Mr. Dutard yesterday. when
we have any wheat to sell, guess there
will be plenty OF buyers, but at the present
time we are not in the market. l have nc
opinion about the price of wheat or what
figure the syndicate cuts in it, for the
simple reason that am only an agent"