The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1898-08-01
100000 Bushels Tied Up.

Besides the sl6,000000 Of securities ware
house certificates representing 100000
bushels Of cash wheat, purchased at an
average cost of 81 per buShcl and stored at
various points had been deposited as col
lateral on loans made at the rate of 30
cents q bushel.
The necessity for this Will be apparent
when It is known that the Letters We're ut
one time carrying as much as 35O30,O1O
bushels. on a large share of which the mar
gin calls were heavy and frequent. As the
market slid off after the collapse the bank
ers notified tho Letters that something
must be done to avoid a general smash.
The security was ample so long as there
was no wild break. and this was prevented
by trusteeing the immense stocks of wheat
ana turning them over to Z. d. Armour
to dispose of on commission.
If these l2,00O eco bushels of wheat could
have been sold within Il reasonable time.
L. H. Letter would have had no uneasiness
"pout me recovery of his $4,000 goo worth of
STOCKS and bonds, and there would have
81 p. no mnoItSStIe disposal of real estate.
nut II was not possible to sell this wheat
AZ me markets of the world had been
overloaded by Joe Letters big cxp0rts,
made last fan, ana there was n, rbauc6
TO dispose of the cash grain, excopt in
ueudl!n$ 1t out in small lots for Consume
In ,be "1l,ch was slow and unsatsractory.
~ t"e meantime. carrying charges at the
rate or 10 cents It bushcl per wear mad 10
zoe pug making monthly outlay of $780,
w to De met In addition to tie i1tnrpGf ON
the borrowed money SO the b4nI,cr5 soma
weeks ago, told Mr.. Letter that ne must
arr&ilSe TO- take up his loans, or they would
40 O"'"PelIeo 10 close some of Them out.
Resort to Mortgages.
1t was This that forced the mortgaging
OF one batch, and the selling of two more
lots Of the Letter realty Incidentally II
was also the cause Of converting Joseph
Letter from a happy. e0sy-going. dashIng
young leiIoW INTO a CareWOru haraSsed-
Ioohlhs man, with a seamy, wrinlllcd face.
L. H. Letters first move when notified by
ohe banks to protect his loans, was to
ahaIyze his position He found himself the
owner Of tWcnty-siX pieces Of business
realty in Chicago, worth. according to
former Mayor SWifts tax commission
.4S2. That these figures are far below
the real value is proven by the sale for
cash to Marshall Field of one piece at
$2,looo00 that was listed by the commission
at $1.14S.210
The $l6o00,000 of securities deposited as
collateral for 600 in loans are ali Of
big dividend paying Kind, and MI Letter
undoubtedly argued that 1t would be better
TO dispose OF some of his realty at a fair
VauualIon than to sacrifice such T. per cent
STOCKS as Chicago City Railway shares,
This, too, was more 10 the liking of the
5anisS, which preferred to get their money
back quietly, rather thau run the risk Of
dumping lot OF securities on the market
Plan To Save the Cash Wheat.
by selling some of his realty, Mr. Letter
could redeem his securities, stop the iuter-
est on the loans. and then allow his L. 600
O00 bushels of cash wa at to b. closed out
ana thus seccre the rclcase Of moro cap.-
tai and MAX" another saving Of $4,000 a
month
In this dilemma Marshall Field came to
the front and paid lim $4,000 in caen for
1ra Nd Ftr,fl 81