The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-06-15
RESCUED BY ARMOUR
JOSEPH LETTER SAVED BY HIS MOST
FORMIDABLE COMPETITOR.
His Immense Holdings of Cash Wheat
I'm the Northwest Purchased by p. ID.
ArmOur-Attachment at New York.

CHICAGO, June 14.-P. d. Armour to-day
bought all of Joseph Letters cash wheat in
the Northwest, amounting to 100000 or
100000 bushels. Semi-authoritative infor-
nation is also obtained that Armour will
take up all of Letters wheat. 1t is generally
admitted that the sale to Armour clears the
atmosphere to a considerable extent, and if
trustees are necessary to liquidate the rest
of Letters cash wheat in this city, New
York, af1oat and in European storehouses,
1t will not require much time to dispose of
the remaining 100000 bushels. There will
apparently be little difficulty in winding UP
the deal, inasmuch as it is authoritatively
stated that more bids have been received
for all cash wheat than Letter has. There
is fair prospect that Letters creditors will
lose nothing.
The traditional irony of fate was comment
ed on among traders to-day when it was
learned that Mr.. Armour, who was at one
time Letters most formidable competitor,
now comes to the rescue. How much Ar
mour paid Letter for the immense holdings
of cash wheat in the Northwest has not been
made public.
1t was learned tonight that the arrange
ments completed to-day whereby the load of
cash wheat which brought the Letter grain
deal' to a sudden termination yesterday
was formed by banks which have loaned
money to Letter, jr., on his grain. Armour
& Co. are to take up the deal where Letter
dropped it, and by acting as agents for the
pool of banks carry out Letters plans for
merchandising his grain. Armour does not
assume the ownership of grain in any sense,
but will simply place the machinery of his
business at the disposal of the banks inter-
ested. and it is believed all claims will be
liquidated, after which an equity will be es-
tablished between Letter and Armour.
The Importance of the deal has dwindled
considerably owing to the fact that Letters
cash holdings are now stated to have been
only trife over five million bushels. This
amount will be easy to handle. Armour has
named Alexander Geddes & Co. to take
charge of all sales to England and of wheat
afioat for that country Through his own
agents and the French house of Stickney &
Co continental shipments will be handled
Foreigners bid freely for wheat to-day and
Mr.. Armour expressed the belief that a
good market would be found for all the
grain placed in his hands
Letters holdings in July and September
futures have, it is understood, been liqui-
dated This line amounted to considerably
over ten million bushels, and was thrown
upon the market yesterday and to-day. An
nouncement of the plan for liquidation of
the cash holdings through Armour caused a
firmer feeling on the Board of Trade Plen-
~ of selling was done by Letter brokers
but the market showed such an improved
cGne 9e p that the line was
mates can be placed upon Joseph Letter S
losses, 1t is not generally Thought, however,
An fts er n
York by Lohrke & Co.. the grain ex-
porters, against Joseph Letter was served
to-day, but was released by Lohrke when
the arrangement with Armour & Co. was
completed
President Mitchell, of the Illinois Trust
and Savings Bank, which probably holds
Letters warehouse "a
bills of lading. said to-day that an assign
ment of Letters assets was unnecessary in
asmuch as none of the banks had advanced
money on the grain within and cents of
the lowest point at which wheat has sold
since the Letter campaign began.
Joseph Letter, speaking of the collapse of
his wheat deal, says: 1T is A case where
the tail has begun to wag the dog. This
statement has its Illustration in the fact
that futures began breaking faster than
cash wheat declined. Logically, the condl-
ton should have been exactly the reverse.
For several days-in fact, / may say for
some weeks-cash wheat has been slow sale.
especially in the Northwest and around mill
this has been offset by a fair degree of ae-
tivity at the seahoard in response to an
inquiry from the other side. but the local
markets have been decidedly inclined TO
drag There has been a steady marketing
of cash wheat. but | cannot say TO the
quantities in which ii has gone into home
consumption or abroad for foreign use.
Il see no objection to stating that all my
holdings of futures have been disposed of.
- SOpu NCoi vi SbSSip mas come To HE on
the general subject of alleged treacherous
conduct o. the pert of Northwestern grain
interests, Shich / have always heretofore
considered friendly to me in a personal and
business way, but | have nothing whatever
to say on this subject. If in the history of
the deal there have been events to which
the public is entitled. 1t is more than likely
Z the facts Will come out in good time, but
not from me. | have no complaints to make
or charges to prefer against those with
whom l have been doing business. IL is
source OF considerable satisfaction 10 me
that my affairs for the moment, more or
less tangled, are in fair way of settlement
without the Intervention of trustee, or
without invoking the machinery of the
court as would be necessary in the case of
an assignment.
The Chicago trade will all he taken care
of-in fact, / may say II has already been
protected-for ! am even on the market so
far as September contracts are concerned
The cash wheat business will be transacted
through Alexander Geddes for the benefit
of the banks which have an interest in il
and which will act in concert. The June
wheat, representing the cash wheat In this
market, Will be carried by Armour q Co
The treatment / have received at the
hands of Mr.. Armour is in the highest de-
gree considerate. courteous and compliment
tary. Nothing could have exceeded Mr. Ar
mour's generosity In his offers OF financial
help, which were. to an extent. covering any
possible requirement on my part. II is par
tieularly gratifying 10 be the recipient of
this kind Of treatment at this particular
the business and personal relations between
Mr.. Armour and myself are not as strained
as they have been represented to be-