Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1895-09-12
GRIP ON WHEAT MARKET.
Elevator Combine Holds the
Key to the Situa-
.a ton.
Prices Lowered and Grain
. Held for a Future
Advance.
Big Profits in Storage an
Incentive for Keeping
Product.


Product.
The Chicago Chronicle of the 9Th inst.
gives the following statement OF the
cause of the present low price of wheat:
In the face of the strongest price,
conditions, steady slump
in grain quotations has been manifested
for weeks. Reasons for this paradox
have been advanced, but 1t now devel-
ops that the artificial decline was
largely, il not entirely, brought about by
q strong combination Of the big elevator
men of Chicago, Minneapolis and Du-
luth, three cities controlling one.hal of
the country's gram. The objects of this
alleged "triple alliance" are to make
storage rates aud also to buy grain at
the unnaturallv low prices prevailing, 90
as to profit by the inevitable increase,
leaving the farmer, of course, poorer
than ever.
The recent low prices Of grain, particu-
larly wheat, have been a source of Won
derment IN commercial circles. The
visible supply has been diminishing to
point where it Is little more than half
what it WAS year ago. On Tuesday of
this week the visible supply showed an
increase for tho first time since Decem-
Der. During the last seven weeks of
this year there has been loss of over
8 100000 bushels in the visible supply of
wheat. whereas in the corresponding
period last year there was gain of
100000 bushels.
RECEIPTS FALLING SHORT.
Receipts at all primary markets have
fallen away below those OF last year.
The record Of the past nine weeks show
2O,6O 900 bushels r. ceived at all primary
points. against over 100000 received
during the same time IN 1894, and nearly
100000 n 1893. In no year OF the last
ten have receipts been SO light for the
same period as this year. Nothwith-
standing, wheat has meanwhile declined
from S21s cents to So cents on the Chi
cagO markets.
There has been food of bear news
poured into Chicago from early in May
to the present, but as the true conditions
became known it was whispered on the
Board OF Trade that there was some
thing below the surface which the aver
age business nan could not fathom.
Though prices have ruled low the ele-
vator people have been insisting upon
getting u premium of One-half cent over
the September option price for wheat for
immediate delivery, and yesterday it was
difficult to buy even at a higher pre-
MUM. go anxious are the elevator owners
to retain the grain in their houses.
Winter wheat, either in quality or
quantity, did not come up to expecta
tiOns Of the elevator men. 1t is said. Of
late years very little spring wheat has
been coming into Chicago, and or this
account radical measures we're needed to
bring wheat here. Finding that winter
wheat did not come, and that spring
wheat would have to be- relied upon to
fill the elevators, it is believed that the
elevator interests deemed it absolutely
necessary to 60 into the field ss buyers
in order to fill mp their depleted bins.
BEAR WPoKTs ON CROPS.
The elevator combination has corps
Of crop experts which sends full private
advices as to cop conditions. From the
deluge OF messages given to the public
in the last slz or eight weeks there Is
room for the assumption that perhaps
some OF this Information was sent here
for a purp,se. The great bulk of the
news has BEN on the bear side OF the
market. Th, elevator interests here
and in the northwest possess unlimited
credit and wealth. Money has been
plentiful in ts banks, and it was easy to
borrow at lowrates all the capital neces-
ssry in the eldeasor to bring the new
wheat crop t. accumulative centers.
1t is readily seen that there Is double
incentive for this alleged com blnat;on.
First, rates OF storage ss at present in
vogue, whie oneroua to the trade. are
profitable 20 the warehouses; and the
relatively lew price OF wheat 10 q further
incentive to activity. because with the
acknowledged great shortage in old sup
plies and aso in the new crop, with the |
poor quality OF winter wheat, there is |
good reason for believing that eventually |
prices will rule materially higher. In
the history of the trade, with the excep.
tion Of the last year or two, prices nave
hardly been as low as now.
At present the unemployed warehouse
of the supposed elevator COM
bine is about as follows:
Bushels.
Chicago. 10000 600
$4,000 600 |
Duluth. .a 100000
Iotal....". .......................5,,o 81, 100000 |
PROFITS IN STORAGE.
The Chicago storage rate Is cent
per bushel tor each ten days. For all
the empty bins this means s1450OO for