New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-06-14
mously rich man. and has had great sfrect,on

III some or the banks for a good deal or casn
wheat or course. he will look out for these.
The question is how much further he wifi go.
1t Is quite possible that young Letters open
interest In wheat. in spite Of the vast selling
done to-day. aggregates ten million bushels.
largely cash wheat. The depreciation on this
has easily been 81. 100000 within the last forty
eight hours. and 1t is possible that the Letter
holding since the last day of May has shrunk
in value S5.000000 Cash wheat on the last day
OF May was around 81 3d. and then per-
mitted to drop to 81 Is. Cash wheat to-day
was 81 cents
Letter has evidently taken good care OF his
Chicago brokers. Not one Of them failed.
Allen Grier and Cellar who have been his prin-
cipal brokers. transferred a good many trades
to-day. but that Just to relieve them from
the tension OF margin calling. They say to-
night that they are all right. Armour TOOK the
cash wheat Chicago is going to escape wei,
unless 1t should hit some Of the banks. but IL
is understood that these institutions have the
name Of l.. q. Letter. which Is ample security
against any possible loss The interest now VIII
be in the Northwest to see what the develop
ments are UP there.
HISTORY OF THE DEAL.
The Letter deal began in April, 1897. 1t in
VOWED at one time 35O0000O bushels Of wheat
Letter owned as much as II. 100000 bushels OF
cash wheat at one time He has handled al
gan. lie was favored by the crop failure abroad
and vastly favored by the outbreak of the war
1t supposed that the war had given him a
profit that could not possibly be swallowed up
by the losses on such cash wheat as he might
have left.
1t develops now that his cash holdings shrunk
tremendously and rapidly that all his vast
paper profits were more than swallowed up
HIS chief embarrassment Of late has been MS
huge interest at Minneapolis and Duluth. joint
account with Pillsbury and Peavey. There was
/ 81
winter wheat and the splendid advance In crop
prospects made 1t impossible to maintain prices
up there.
Tonight the seaboard reports eighty carloads
of cash wheat sold for export Perhaps the
foreigner will come in at these low prices ana
help to liquidate the Letter estate.
Letters trouble began in variety or ways
and in many quarters His drafts against cash
wheat shipped at high prices began to trouble
against wheat on a basis Of 81 % hushel does
not look well TO the acceptor when the price Oh
cash wheat is around a dollar Letters trou-
bles however were most serious up In the
Northwest where he has had his big holding
since the close of the May deal here. He had
about five million bushels Of cash wheat at Min
million bushels of IL through one concern at Du-
luth. million bushels Of wheat bought OF
one elevator concern at Minneapolis at 81 4o
showed a loss of almost S0OOOOO last night.
PAID BIG PRICES.
Persons who have had a chance to get look
at Letters holdings say that the prices he paid
recently for wheat in the Northwest were as
founding 1t was probably desperate effort to
support cash prices everywhere and to protect
his bills Of ladng.
! II was no secret among the few closest to the
Letters that the refusal Of the father to furnish
his son further capital was due 10 the discovery
| that the younger man had not followed out the
! plan agreed upon in May. when the elder put
up 81 600 900 in securities TO see the deal
through the crisis at that time. The father
made that sacrifice Loyalty, but 1t was under
stood then that every effort Of the young man
should be toward liquidation. There developed
within the last few days the knowledge that
new new pisRs in IN the Northwest That discovery
! precipiatcd the crisis.
TO BE KEPT OUT OF COURT.
Letters big creditors, the holders OF his cash
wheat, believe that they can liquidate his es-
tate without any legal proceedings. The banks
| and the Northwestern elevator concerns who
| hold the cash wheat for Letters account have
entered into friendly agreement to allow the
Illinois Trust and Savings Bank to handle the
whole block. cash grain estate ie the meanest
sort Of one to qudate. 1t drags and drags
It cannot be closed in a hurry 1t has TO be
done deliberately. The buyer we'll understands
The best sort Of authority gave it last night that
the Letter interest In wheat, spot and futures
| to-day before the opening aggregated 14OOO0O0
bushels. That was three times as large as any
body would have guessed 1t, for no bull ever
had the opportunity to liquidate that Letter had
in May
why didn't Letter sell when the foreigner
was crazy to buy?" was the question the grain
Spectator was asking yesterday. He began to
bull wheat in the sixties, saw II sell at almost
81 had an opportunity to sell at Paris and
Liverpool prices. the highest In twenty years,
yet after fourteen months experience he goes
broke" with 14.0OO,OO0 bushels left on his hands.
THE EFFECT ON THE MARKET HERE.
No apAYN tyOrrcrS LIKELY pE CARRIED
DOWN BY LETTERS TROUBLES.
The troubles OF Joseph Letter and his friends IN
the West had naturally controlling and democrat
izing influence prices in the local wheat market,
and the large estimate OF the Government crop re-
| port. with the excellent weather conditions and the
favorable reports from all the wheat regions of the
world contributed TO the decline. There much
excitement In the trade here over the startling
news from Chicago. but far could be learned
none OF the local grain houses likely to be car
ried down. AS TO Mr.. Letter himself while the
| news OF his embarrassment was a surprise the
| general opinion was that after all his apparent
profits could not have been accepted real long
as he was still heavily interested in various OPP
lions on the steadily declining market. AS one ex-
| perienced operator put II: ITS easier TO make
d corner than to get out Of 1t after you have made
IT," and he gave some interesting ILLUSTRATIONS
The july delivery in Chicago. which touched 81 %
May 10. was quoted as low as % cents yes'er-
day morning h nrea ae OF On Genus saed Closing at
70 cents net loss for the day OF cents. Hero the
| July option broke IN cents, on extensive anu
formerly identified with the Letter interests, and
by representatives Of English and continental grain
| houses There was some bullish news. but II
| availed nothing check the fever OF liquidation
induced by the rumors from chicago. IL was said
markets of the United States and Western Europe
| and this helped on the selling movement on the
decline a large number Of stop loss orders were
reached. and the closing out OF these speculatye
|
close the market rallied reports OF heavy export
business, the July closing at 50 cents bushel; a
net loss for the day Of 9aa cents IL sold at 81 81
| on May 10. The September and December deiiv-
cries broke IN sympathy with tho July Septcmbel