The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-12-22
From Four to Fifteen Million Bushels
Alleged to Have Been Delivered TO
tAe Head of the Bull Clique.
NO FIGHT WITH THE PORK MAN
ARMOUR SIMPLY SOLD WHEAT AND
LETTER PURCHASED 1T.
What the Two Principals in the Big
TransactiOn Say The Provision
Dealers Loss Placed at $1,OOO,OOO.

CHICAGO, Dec. PA mere incident, 1
assure you. We are now practically out Of
the whole matter. We have a little wheat
yet to deliver; the necessary bushels are
ready for delivery when the proper time
approaches for the filling of these compare
lively small outstanding contracts, and
there's an end Of the affair in so far as we
are concerned"
Thus with characteristic terseness, does
p d. Armour define his position in these
the closing days of one of the biggest wheat
deals that has marked the history of the
Board of Trade. Joseph Letter, his youthful
opponent, is just as calm and confident in
his expressions as the big provision man.
Mr. Armour sold wheat" he declares, land
bought of him. That is all. There was
battle. 1t was a common almost elementary
business transaction. 1 shall sell the wheat
which l have purchased when the need of
the foreign market demands it. 1 shall sell
at profit, and that's the closing chapter
of my part of the story"
These statements, coming from the princi-
pals in the December wheat deal, have
caused much comment in Board of Trade
circles. VIII Joseph Letter make a profit
on the round 100000 bushels of real wheat
which has been placed in his hands by the
provision man? Isl now the question The
report is going the rounds that the whole
affair was productive of results indicating
a big Armour-IIeiter combine. In many
minds this rumor was given credepce. The
manipulation of the local market bysI.efter
agents pulling the wires from the Liverpool
end was recited over and over. This idea,
however is ridiculed by the majority of
traders Some members of the board say
that Letter has secured 100000 bushels of
the cereal. Others place the figure as high
as 15,OO0OOO while the more conservative are
willing to admit that half the latter amount
is nearer the correct estimate. Mr.. Letter
asserts that just as much of this will go
abroad as the foreign market calls for if
they pay him his price,
Some folks on the board think / can't
transport grain eastward by rail without
loss do they?n said Mr. Letter ''We1l pos
slbly they can't, but I'm willing to play out
my end of the game along my own lines
and l may differ with these prophets consid-
erably." Mr.. Letters father. whose millions
are supposed to be back of his sons deal.
is now in Chicago, having arrived from the
East yesterday.
ARMOUR'S ALLEGED LOSS.
The Post prints the following concern
ing &c present situation: Dec. 81, set
ting DAY on the Board of Trade, will wit
ness the elimination of the gigantic Letter
Armour deadlock The trade will not be
surprised to learn that Armour will lose
clear 81 900 on the deal. Throughout he
has performed the marvellous feat of bring
ing 100000 bushels of high-grade cash
wheat to this city in defiance of all settled
rules of commerce.; that act may result in
nothing more substantial than glory. It is
q growing belief on Change that Mr.. Ar
mour had to pay dearly for bringing the
big volume of wheat to this city, and that
his short selling will cost him about Is or
20 cents bushel. BY settlement day the
deal will have been fought to a finish, and
only. the formalities will remain to be OBJ
served.
"The present status of the case is about
as follows: In July the Letter clique began
it's operations in formidable manner by
gobbling UP July wheat at 63 cents. The
amount in it's possession was variously esti-
mated at from 100000 to 100000 bushels.
No matter what the actual amount of its
holdings, it was large enough to boost the
price and emphasize the growing foreign
demand. The price of July wheat rose to
7S cents, and between 70 and 70 cents the
Letter clique sold out it's stock of July and
transferred a portion of it 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 60 cents a vast
amount of September wheat, estimated as
high as II, 900 COO bushels. 1t was during
this month that the foreign situation was
brought out more boldly. September sky
rocketed in q short time up to go cents. A
large portion of the holding was transferred
to December, with another handsome prem
ium to put away, and a considerable bulk
was sold outright for big profit.
CHANCE TO SELL AT BIG PROFIT.
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 a bushe At
one time the clique had an opportunity to
sell this immense holding at a profit of
nearly 20 cents a bushel. Armour. Seaverns,
Peavy and the Central Elevator Company
were the people who sold wheat to the
Letter clique. Armour's shortage was only
guessed at NTH the great shipments of
wheat from Duluth by vessel and rail
showed in the sensationally large increase
of the contract stocks IN store. The amount
said to have been brought here Is nearly
100000 bushels, and that is regarded as the
amount of Armour's shortage. The other
shorts did the same thing that Mr.. Armour
has accomplished, although not upon so
large a scale.
Before Mr.. Armour sent out his appeal
TO bring in wheat sufficient to satisfy his
contracts for delivery. he was face to face
with tough problem. Had he been unable
to secure the wheat which he is now cred
tied with having 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 on the day of delivery. Inasmuch 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 bushel, and assuming that
the market price would be 81 a bushel on
the final day OF the month, when IL is nec-
essary for Armour to deliver what he sold
TO Letter he would have been compelled. to
pay the latter 10 cents on every bushel he
could not actually deliver. The rules of the
board are irOnclad on this subject and
there Is no recourse. Now that Armour
has secured fully as much wheat he sold
for delivery this month"; there will be no
such contingency to face 1t was in bring
scarce. when hardly any was to be had
that the test of strength came in. That
rubicon has been safely crL used by Armour.
At what sacrifice ne saved his business
honor is known only to himself. The costs
are mostly represented in freight charges
private settlements for cargoes already
chartered for other ports and the disp.ace-
not designed for shipment TO this city The
remainder Of the shorts who sold to French
arc generally regarded as safely within
cover. II is confidently predicted that the
clique Will get all the wheat which it
bought. II Armour had been buying for