The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1897-12-17
SHORTAGE ON INSURANCE.
BULL CLIQUE MAY NOT BE ABLE
TO PROTECT THE
WHEAT.
PUBLIC CURIOSITY MUST WAIT.
Boss of the Long Side Declines to
Explain How Much Wheat
He Holds.

the interesting theory which has been
developed in the excitement and I'M
certainty Of the December wheat deal.
One Of the bits Of gossip which has
been circulated during the last few
days. possibly with some intention Of
influencing the market, has had refer
ence to a supposititious deal in insur-
ance. Whenever the stock of grain IN
Chicago becomes unusually heavy, the
Armour people find it difficult to Sc
cure sufficient insurance to protect
their Goose island plant. Without the
annex now in construction the regular
houses there have capacity Of 100000
bushels. The houses and the contents
when filled exhaust the line of insur-
ance which can be written in Chicago
and the owners are frequently forced
to go outside Of Chicago for surplus
lines. The present contents Of the
plant are 2,565.000 bushels of wheat,
1,492.OOO bushels of corn, and 100000
bushels Of fax, with smaller quanti-
ties of rye and barley. The Armour
people have been making efforts to get
surplus lines wherever they could pick
them up, and have been securing in
surance by cable from Europe.
The gossip has been as to what might
happen should Armour take occasion
to run corner in insurance at the end
Of the month. The theorists have
pointed out that having exhausted all
lines of insurance to be secured on his
houses, he might deliver grain out at
the end of the month and refuse to re-
lease Of any insurance written. In
that case. the people who had wheat
delivered to them would be at least
temporarily without protection, and
would have trouble at the banks from
which they were borrowing money.
Such situation might entirely demon
alize the market and cause holders to
sacrifice their property rather than to
| take chances.
LETTER LAYING Low.
In an interview, Joseph Letter, who.
is at the head of the December wheat
deal, said he expected to pay cash for
all wheat delivered TO him and ship it
out of Chicago. How much wheat do
1 expect to get?" he said in response
to question. THAT is getting a little
too exact. The elevator people say
that l will get all the wheat L have
bought. If say how much cash wheat
L expect to get then everybody will
know as we'll as 1 do about how much
wheat have bought. L will keep that
to myself My plan Is to ship my
property away. 1 did that in the fall,
and 1t was successful. 1 can get a
great deal cheaper storage rate at
Buffalo or at New York or at Boston
than | can here. The lakes are closed,
but the grain can be sent all-rail about
as cheap as it could have been sent by
lake and rail. Most of it will go out
That has been settled. Corner talk is
ridiculous. There isn't any corner; a
corner has never been contemplated:
there won't be any"
There is still much speculation as to
how much wheat will be loaded upon
Letter and his associates. There is an
idea that Letter has 100000 bushels
bought. and if these figures are re-
allied, there will be still left shorts to
the extent of 100000 bushels to help
pay toward the campaign expenses.
Letter has unquestionably forced some
settlements already.
1t is said that Armour will deliver
almost 100000 bushels and Seaverns &
Weare and the other elevator people
will probably contribute 100000 bush
els. The delivery of the cash wheat on
the December contracts may end the
campaign ana II may not Letter may
ship his wheat, sell it, and take his loss
or his profits, as it turns out. But the
shipment of so large a line of wheat
would be pretty certain to bull the jan
uary and the May futures, and Letter
may turn up as a holder of those
months. That is the play the pit ex-
poets, in case the wheat stock is moved
away.
Mr. Armour was asked as to his
views on the situation. and dictated
the following:
wheat l believe it will all be wanted
in the end. Values at the moment here
In Chicago, are, perhaps, a little ficti-
tious, but it will all regulate itself in
time. The consumer undoubtedly will
buy this wheat, and he will ultimately
buy 1t at higher than the present
prices"