The Wichita daily eagle., 1898-01-05
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00e 900 bushels Mr.. Armour did not have
| this amount OF wheat, or even any con-
ridera5le part Of il, in store at that time,
cut he relied upon MS ability as a mer-
chant 10 get il, and in this ne was not
disappointed. The price al which ne
sold to Letter and the price ne was fin
ally compelled 10 pay in order to make
good his contracts form a secret known
only to the two principals and their con-
! fl3er,ial agents, and they will not tell.
I II it could De ascertained then the profits
OF the bull campaign might be accurately
figured. Other elevator owners followed
/ Mr.. Armour's example. The Weares,
/ Seaverneses, and men OF like high stand
/ ing in the trade sold freely, and the buy
! ing was all done on account OF Letter.
/ He took everything offered ard called
! for mere. From first to last his cry was
Wheat. More wheat. Bring OF your
! wheat"
PREDICAArENT OF SHORTS.
| This was the situation at the opening
Of December, with the price firmly fixed
I at about 96 cents. Letter was long TO-
J coo, 600 bushels, stocks were decreasing
/ every day, an dtiFe capacity Of the lake
marine was taxed 70 the utmost in car
/ rying the grain for export. Winter was
at hand, northwestern ports, from which
! the bulk OF the wheat needed by the
! elevator men must come, were begin
/ ming 10 freeze up. The outlook was a
J Arrl- g. -
! expectations. the strong market was
I not attracting shipments to Chicago, and
! it was evident something muc3 out OF
! the usual course must be attempted. 1t
! was then the magnificent equipment
( controlled 10y Mr.. Armour was put in ac-
/ ton. How his agents secured the
! northwest, bought 3,so0.O0O bushels Of
! wheat, overcarne the obstacles of un-
/ friendly nature, and got the grain into
J this city in time to save the business
reputation Of their chief has already
been graphically told in the Sunday Tri-
bune. 1t was an achievement unequal
ed in the commercial history OF Dte
world. 1t is said that during the hours
OF uncertainty preceding the actual re-
ceipN here OF the much wanted grain
-dr. Armour was at times nervous and
/ apprehensive. He had good reason to
be worried. Il was MT a matter of
money. He could pay out ten times the
amount involved without a twitch, but
in this instance it was d question Of
| keeping a business compact. Mr.. Ar
mour mad agreed TO deliver to Mr.. Lett
er 100000 bushels of contract grade
wheat before the close of the board on
December 81. He did SO, but ii was
tight squeeze-so close call that Mr.
Armour even now positively declines 10
discuss the transaction in any way.
RAKINK IN THE PROFITS.
Just before the Armour deliveries be-
gan, il was the Sth of December TO be
accurate, the shorts became greatly wor-
ried over the outlook and bid prices up
on themselves 70 $1.o9. This did not suit
ne Letter party. To let wheat remain
al that figure, or anything like it, was
open invitation TO holders all over the
country to ship their grain to Chicago.
TIE local market was SO far out Of
range with other points that there was
sure profit in buying in Minneapolis OF
Duluth. selling in this city. and forward
ing the wheat here by rail. This would
mean an avalanche Of cash grain TO be
bought and paid FOR, and at the same
time il would wipe out al chance OF
profit in the export trade by destroying
the parity OF the shipping and receiving
points. For a few hours Letter was in
a dilemma. He had big lot Of wheat
bought all the way from 81 70 50 cents.
To unload it at s1.09 meant big profit
on paper. but ii was also liable TO en-
danger the value Of ME actual grain
which ne wanted to turn into cash. At
the same time, 1t was even more dan
ger0us TO let the prevailing high prices
stand, as it might swamp the market.
II was a quee. predicaneflt this. of a
man being afraid TO let the value Of
commodity fwf1icn he was in absolute
control get too high, yet this IS Just the
position in which Joseph Letter found
himself on December s. He did no. hes
fate long. Sell wheat" was his order.
and it was dribbed out to the hungry
shorts in way which partially salts
fed them. snd the price was broken 10
SlO7. and from that to s1.Ol. Letter TAX
ing nice, big bundle Of money. and al
TIE time insisting ne would rather have
the grain.
ONE NAN GETS THE WHEAT.
Amour's deliveries began December
l.. and for three days wheat was thrown
al Letter by the boatl0sd. He accepted
/, in 1000 600 bushel lots ard paid for it
with certified checks on sae Illinois
Trust and Savings bank. When Ar
mour got through the other elevator
men took q hand in the game, and for
a week Letter vas kept busy paying for
the grain delivered on December ac-
count At the c.5se ne ned aoouc S,ODo.-
001 bushels and said he wes sorry the
amount was not Twice Is large. Once
again the trade was surprised. With
<1e passing Of 50 mach wheat in settle
ment % trades q Break n vslues was
looked for. but Dscs-nber hung Sub
oo--lly around the dollar mark. I was
argued tasS Letter must have al the
whezt le cared 70 carry through tae
winter. and. With ehis source q buying
cut of, t1e market ought to weaken.
But II di1n; for several days. al least
MT until The Letters repeated tasir sell
ing tactics and turned more profits into
cash
According % popular belief re detiv-
cries Of S.6o0. .ooo bushes IzfS a 2.eo1. 90
bushel shortage 70 be sete.ed tor. and, as
there was no way to get t5is grain int3
Chicago, predictions were made taat re
s,lo-ts would have merry time making