The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-06-14
LETTERS BIG POOL
HAS COLLAPSED.

CHICAGO. June 13-This has been q
day OF excitement and rum3r in the Chi
cage wheat pit a reverse that looks
ike a Waterloo has come to the ''Yorng
Napoleon of finance" Joseph Letter. Al
first there was wild tumble OF prices
on the board. Jaly wheat selling down
IL cents from Saturdays close. while
September lost AS cents and December
SIS cents but ali made a little recovery
before the close.
II was given out that Letter ilad or
dered his deals all closed. anj a selling
rush was the result of the execution of
this order accompanied as Ii was by A
fiooc OF rumors concerning the stability
OF the big bull movement. which for
months has been the important factor on
board Of trade dealings. One of these
rumors WAS that Letter had been deserted
by some OF his associates in the cam
paign. In the meantime Letters whea.
WAS being tunb.ed. and prices were be-
coming demoraiizei. Later In the day
Letter made no attempt 10 co1cea! the
fact that he had se.d out all his holdings
in futures, probably 100000 or s.oeo.0
bushels Of wheat. II came out that he
had transferred most Of his trades in
futures 10 other we'll known business
houses. and that they were pretty well
protected by margins, so that whatever
losses there were would fail upon Letter
His cash wheat. one report sad. was
transferred TO Armour. but a later story
was tha, 1t would be trusted" and
handled IN such n way as 10 oreven. the
slump which would be inevitable IL II
were all thrown on the market at once.
Before the fnai close the panic partly
subsided ard July reacted cents, Sep
tember selling up Il. cents and December
making cents rally, selling u shade
above September, where It was cent
under Saturday.
None of the principals on the Letter
crisis was willing to discuss :he causes
which led to his abd.cation. and the most
plausible txplana t:on that can be Of
fered at this time IS. therefore. circum-
stant.al and speculative The first indi-
cation OF approaching dissolution in the
the announcement was made that all his
cash ana June wheat had been trans
ferTcd by Allen. Grier Sellar. Letter
brokers. 10 Philip ID. Armour, aad that
the September option. Of which Letter was
a heavy holder, had been transferred 10
Lamson Bros. Thess reported transac-
tons gave rise to eonjectures that soon
developed into i panic. NJ the outset
= Was rum0red that Letter was trying
% get out Of tho market, but the fact
that Allen, Grser & Sellar rad transferred
their trades to hanson Bros instead OF
selling out directly. aroused the suspicion
that Letter Was hard pressed and was
endeavor.ng 10 dispose Of his immense
holdings. without disclosing the causes
Of his sudden withdrawal from the pit
After the close Of business Saturday.
millions q bushels of September wheat
puts" were sold IN the vicinity of 1@'z
cents. I,ams3n Bros. apparently having
large orders for this line. Shortly before
the opening Of the board % trade today
brokers supposed 10 be acting fer Letter
were ready sellers. The PUT price was
speedily reached. and Letter. Il the Lam
sons were really ac;lpg for him, was en-
ahled 20 dispose OF millions ot wheat
on the sale of puts" whereas. II
the actual wheat had beer sold in the
market there would have been even more
Of a break Had Allen, Grier * Sellar
made the sa.eS the street would have
suspected a ruse hc;. coming tro-n Lam
sen Bros. there was ID such Indication
a. . the IDENTITY Of me seller.
II is estimated raat during the day from
So.oea 20 Io.e"a0s3 bushels Of Letter
wheat. optional and vislb;e, were sold 70
the accoua; Of the Young Napoleon"
Tbs 5s suppose! 10 have consisted cA'sly
o: o2;lors In September. jay cad june
wheat. stored IN Minneapolis. s. Paul.
Duluth and Chicago. /, vas staled on he
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