The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1898-06-17

AND ERSTWRIaE "wHEAT KING" "
His Big Deal Has Proved An UnIucky One,
and His Losses are Severe-Sensationa
Declines in Chicago and the Northwest.

CHICAGO, June l3.-This was
day OF excitement and wild rumors
in the Chicago wheat pit. A reverse
that looks like Waterloo has come
to the young Napoleon of finance"
Joseph Letter.
At first there was a wild tumble of
prices on the boaru, July wheat sell
ing lie from Saturdays close, while
September lost 458c and December
31sc, but all made little recovery
before the close.
1t was given out that Letter had
ordered his deals all closed, and that
the selling rush was the result of the
execution of this order, accompanied
as 1t was by flood of rumors con-
cerning the stability of the big bull
movement, which for months has
been the important factor in Board
of Trade dealings. One of these
rumOrs was that Letter had been de-
serted by some of his associates in
the campaign. In the meantime
Letters wheat was being tumbled
overheard and prices had become
demOralized.
Later in the day Letter made NJ
attempt to conceal the fact that he
had sold out all his holdings in fu-
tures-prObably six million or eight
million bushels here. 1t came out
that he had transferred most of his
trades in futures to other well-known
houses, and that they were pretty
well protected by margins, 80 that
whatever losses there would be
would fall upon Letter. His cash
wheat, one report said, was trans.
ferred to Armour, but later story
was that it would be "trusteed" and
handled in such way as to prevent
the slump which would be inevita.
BILE If it were all thrown on the mar.
ket at once.
1t is estimated that during the day
8,000,000 to 10000, 900 bushels of Lei.
ter wheat, optional and visible, were
sold to the account OF the "youne
Napoleon" This is supposed tC
have consisted chiefly of options in
September, July and June wheat
stored in Minneapolis, St. Paul, Du.
luth and Chicago. 1t was said or
the floor that the bankers of the
Northwest who have been carrying
the Northw estern bull clique refus
ed to carry their burden for longer
time, and the calls had been made
by Northwestern dealers, particu
larly the Minneapolis interests, fol
margins down to SOC. These, it il
said, were followed by calls upor
Letter here to margin his whea
holdings down to Soc,
Mr.. Letter had about 4,000,00t
bushels of cash wheat on hand
much of which he is said to havt
disposed of at loss. Later it was re
ported that l.. u. Letter, when askeC
by his son for more money, haC
refused to be drawn further into thC
wheat deal, and thus compelled tn,
latter to let go large line of hi
holdings in order to satisfy his ware
house creditors and marginal de
mands.
Representative of the Northwes
tern interests appear to have pre-
cipitated the crisis by coming t,
Chicago Saturday and learning tina
l.. u. Letter would not advance an,
more money on his sons account
NlIs bOlbCl . llldO IL
has not made an assignment, but i
was admitted tonight that the Lei
ter interests had been "trusteed.
Joseph Letter entered the marke
April 2, 1897, and Immediately after
ward the pressure of tremendou
power was felt, but no man kneN
whose was the hand. Letters frs
order was negotiated by Broke
t George B. French. 1t was for 100
r 900 bushels of May wheat at 707s
: per bushel. Then his orders cam
thick and fast. The cheapest whea
bought by Letter was 100000 bush
, els, bought June Is, 1897, for Sep
tember delivery, at 6424c. ..
The deal ran fourteen month";
during which time the price {
wheat was down to 64Ac in Junt
1897, and up to $l.85 in May, 189
7 1t involved at one time an intere'
+ of more than 35,OO0,00O bushels {
wheat.