The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1898-06-04
LETTERS WHEAT DEAL
Most StupendOus in the His
tory of Grain Trading.
FIVE TO SEVEN MILLIONS
Is His Profit--HoW CirCum-
stances Aided ShrewdneSs,

ever witnessed. 1t mas Deen Tar reaching
almost beyond conception in its magni
tude, financial resources and proht
when all the May is closed up" said Jo-
segh Letter the other day, Il shall nave
handled approximately 100000 bushels
1 have merchandise 25 900, 1000 bushels
since Sept. l.
The profits to date are estimated at
from IS, 100000 to S7,00OO 900. His banker
who has intimated knowledge Of his opera
tons. makes the outside figure. There are
still in the vicinity Of 10000 900 bushels OF
wheat to be disposed Of But even at
loss Of 50 cents a bushel on this, which is
not at all probable, the result would leave
him over $1,000, 900 ahead.
Letters entrance into wheat speculation
commenced April 2, 1897, when be gave an
order through George B. French to buy
100000 bushels for May delivery at 727s
cents The lowest purchase was at 64A on
June IS, 1897. His first deal was with a
view of helping French out From a small
beginning, a line Of 100000 bushels was
accumulated for May and sod out at a
profit. July was bought at a discount Of
to Is cents. The market was going very
slowly those days and when prices ad
vanced. the whole line Of about 70oG,@0
bushels was sold out at a profit OF
over $500. 600. For a day or two in July last
year they considered the price high
enough. Il was then up to IS cents. The
sudden development Of foreign demand
however. induced French who was manag
ing the deal. to take the buying side again
Wheat for September delivery was pur
chased, and on August Il the price ad
vanced amid the widest excitement to 81
This marked an era of bull speculation
that has been prevalent ever since. AS
fast as one line was sold out, it was re-
placed with contracts for other months
at lower figures. The speculative world
had been accustomed for years to ordinary
advances, bear markets and heavy carry
ing charges. It took many months to re-
educate the trade, and many operators
have not yet been able to get well around
20 the idea of trading in a market where
the bulls get the carrying charged. Ever
since Letter has been in the market he has
collected instead of paying carrying char
ges the cash wheat being at a premium
WHICH gave MN Tic dtlN dilLdSt.
At first Letter was looked upon as a no.
vice with long bank account, and was
not expected to last a great while. 1t was
the popular idea, in the trade, that when
he ran against the cash wheat his trouble
had only commenced. In September he
took 100000 bushels of cash wheat, ship
ped it to Liverpool. and sold it out at a
handsome profit, and then changed z $50 600
bushels to December contracts, getting
the latter at a large discount. In Decem-
Der. Letter expected to get only 5000 O00
bushels on his contracts, but as the price
advanced to 81 in the early part of the
month it gave Armour, Weare and Peavey
ana others heavy elevator operators in the
Northwest an opportunity which they had
not had in seven years, to sell wheat above
81. Theresuh was that Letter had to take
10000 600 bushels. The average price for
December was 81 cents.
Then he turned his attention to contracts
for May delivery. and. according to his
own statement, swelled his operations 10
90 100000 bushels. In March and April his
cash holdings in Chicago, Duluth Min
neapolis, New ork and at Liverpool ag-
gregated 10000 900 bushels. There wera
times in March when attempts were made
to break the price for May delivery, and
he was compelled to buy 1000 900 bushels
in three days at S101lA TO s1O7. That was
the only time during his entire operation
that his interests were at all imperilled.
In one single half hour he put up $5oo0)0
in margins. and within a week deposited
81 Oo0. 900, mostly in City Railway and Bur
lington stock. with two banks 20 secure
lonas. mo man in the west has the il
uuid assets that the Letters possess" said
q banker at that time; they have owe
$4,000, Oo0'' Letters idea in arranging 70
financial assistance was on the same plan
Of the Indiana farmer who in the early
days went 10 buy land. His wife told him
to get plenty while ne was getting it
He secured double the amount he expected
to use. so that should occasion require he
would not have to get out and hustle IN
the last hour The failure 10 follow on
this policy has been one of the real cause
of many failures in the past
The showing Of financial strength back
ed by nerve and disregard for quantities
which IS one Of Letters peculiariues, mas
been one secret of his success. He has not
made conditions, but has taken adyan
tage OF them. assuming risk that an ox
perienced trader would not and which
many considered at times would result
in serious losses. He has bought wheat
when others thought that ne should be
selling. supporting the market at critical
periods and selling when buyers clamored
for it.
- y.t.o- Ass sbf-oc5 N nm nln
bushels Of wheat from Chicago since last
September. 100000 bushels being shipped
since January l. In January he let con-
tract 70 the Lehigh Valley for 100000
bushels, and inside of a month his con-
tracts with other lines were for an equal
quantity. he has handled the greater
part Of his vast business himself, having
an unusual appetite for details. \ year
evo he knew nothing az all ABOUT the bust
ness. Now he could give many Of the old
est hands pointers. Ills largest single
transactfon was the sale OF 900 90
bushels TO a French house, and at another
time he sold 2o00. 900 bushels. He has been
the only man IN the wheat trade who has
ever secured 81 a bushel profit. \ COM
mission man in telling his experience re
Gently said: ! bought So.eoo bushels OF
wheat for Letter and rendered him an
account Of $250.ooo profit" Letter. him
self. in speaking Of MS profits recently,
said that he had made g cents IN one
instance, and that all his profits had been
on the cash property. HIS speculative
deals would have brought in comparative
" small returns compared wiki the risN-
It was me shortage IN tire foreign crops