The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1897-12-22
HE WILL LOSE A MILLION
Armour Gets Sadly Pinched in
the Big Wheat Deal.
HE HAD TO PAY DEARLY
Performed the Marvellous Feat of Bring
ing Six Million Bushels OF High
Grade Cash Wheat to Chicago
in Defiance OF Rules.


following concerning the present situa-
tion in the December wheat deal: Dec.
81 settling day" on the board of trade.
will witness the elimination of the gi-
gantic Leiter-Armour deal. The trade
will not be surprised then to learn that
Armour will lose a clear 81 ,ooo, 900 on
the deal. True, he has performed the
marvellous feat of bringing 5000, 900
bushels of high grade cash wheat to
this city In defiance of all settled rules
of commerce, but that act may result
in nothing more substantial than glory
Ii is growing belief on change that
Armour had to pay dearly for bringing
the big volume of wheat to this city,
and that his short selling will cost him
about IL or 20 cents a bushel. By set
tlement day the deal will have been
fought to finish and only the formali-
ties will remain to be observed. The
present status of the case is about as
follows:
I'm July the Letter clique began its
operations in a formidable manner by
the gobbling up OF July wheat at 63
cents. The amount in its possession
was variously estimated at from 5,000.-
900 to 100000 bushels. No matter
what the actual amount of its holdings
was, 1t was large enough to boost the
price and emphasize the growing for
eign demand. The price of July wheat
rose to 7S cents and when between 10
and 70 cents the Letter clique sold out
its stock of July and transferred a por-
ton of ii to September. pocketing by
the transaction the premium which at
that time existed, between July and
September wheat. When September
came around the clique repeated its
bulliSh tactics, and accumulated at 81
cents a large amount of September
wheat, estimated as high as IL 900 900
hnGheiE d1yipnr fnfG
the foreign situation was brought out
more boldly. September successfully
had rocketed In short time up to 80
cents. The large part of the holding
was transferred 10 December with an
other handsome premium To put away
and considerable bulk was sold out
right for big profits The present line
of 100000 bushels of December wheat,
which the Letter clique is caring for.
was bought from the elevator people at
from 81 to SO cents bushel At one
time the clique had an opportunity TO
sell the immense holding at a profit of
nearly 90 cents.
Armour, seaverans, Peavy and the
Central Elevator company were the
people who sold wheat TO the Letter
clique. Armours shortage was only
guessed at until the great shipments
of wheat from Duluth by vessels and
rail showed the sensational amount of
contracts in store. The amount said to
have been brought here Is nearly $780,
900 bushels. and that Is regarded as the
amount of Armour's shortage. The
other shorts did the same that Mr.. Ar
mour has accomplished. although not
upon so large a scale. Mr.. Armour sent
out his people toe bring in wheat suffi-
eient 10 satisfy his contracts for de-
livery; he was face to face with tough
problem. Had he been unable to secure
wheat. which he is now credited with
havirg brought here, he would have
been compelled to pay to Letter the
difference between the price at which
he sold the wheat TO Letter and the
market price upon the day of delivery
snasmuch as Mr.. French of the Letter
crowd insists that the December wheat
in the clique's hands did not cost on
an average. more than 80 cents a BUSH
el. and assuming that the market price
would be 81 a bushel on the final day
of the month, when Ii is necessary for
Mr. Armour to deliver what he sold To
Letter he would have been compelled
to pay the latter 10 cents on every
bushei he could not actually deliver
The rules Of the board are iron-clad
on this subject and there is no re-
course.
Now that Armour has secured fully
as much cash wheat as nc sold for de-
livery this morning, there will be no
such contingency to face. 1t was in
uTlHElHS the wheat TO THIS city Wnen 1t
was scarce. when hardly any was to be
had. that the test of strength comes In.
That Rubicon has been safely crossed
by Armour. At what sacrifice he saved
his business honor is known only to
himself. The costs are represented In
freight charges. private settlement for
cargoes already chartered for other
ports and to-day's displacement OF
great buiks of wheat which were not
designed for shipment to this city
The remainder of the shorts who
sold to French are generally regarded
as safely within cover. 1t Is confident
1y predicted that the clique will get all
the wheat which 1t bought. II Armour
has been buying for other houses which
played the bear side Of the market. it
is not known TO outside trade and rio
general belief is that Armour bought
cash wheat for Armour x Co. first and