River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1898-06-16
LETTER is A LOSER.
Surrenders 10. 900, 900 Bushels of
Wheat to His Creditors.
Market Drops from Two to Ten Cents
Soon as News Was Received
History of the
Deal

Chicago. June 14.-Joseph Letter has
surrendered to his creditors 100000
bushels of wheat. His grain deal, be-
ginning April ., 1897. has collapsed.
/ His estimated loss is S5,000,O00. On
wheat owned May 81 Mr.. Letter might
have realized a profit of S4,500.000.
/ Since then the market has declined,
4 and, financial support which he had
! hitherto received being withdrawn, he
retired on the best terms possible. His
! creditors are financial institutions in
/ Chicago. ST. Paul, Minneapolis, Duluth
and New York city. These concerns
lent money on his wheat at so cents or
less busheL They are amply protect
! ed. The Illinois Trust and Savings
bank probably will be selected as
/ trustee for the Letter grain and place
! one or two broker representatives in the
/ market.
! Effect on the Market.
The effect on the market when the
news of the collapse came was that
/ June wheat fell off 10 cents, July II
cents. September 27s cents and De-
1 cember 3Ts cents. A rally followed the
! decline on the announcement that no
/ assignment would take place and that
the cash wheat would not be slaugh-
| tered.
Accurate figures as to Mr.. Letters
holdings when he decided to liquidate
are difficult to secure. The best esti-
mates indicate that he has 10000, 900
| bushels of wheat in Duluth and Mime
/ apolis, 100000 bushels en- route to Eu-
rope and 100000 bushels in or en-
route to New York. Mr.. Letter will not
make an assignment and court proceed
| ings for the settlement Of his grain ac-
count will not be necessary.
Decline in wheat Flour.
Wheat flour was on the toboggan slide
Monday. Late in the afternoon it came
down from six dollars and landed on
the $3.50 mark. There are those who
think that the landing was insecure and
that another drop will be announced
before the week is over. The prime
cause of the fall to $3.50 a barrel was
the great decline in cash wheat at Min
neapolis Monday. The drop was not al
together unexpected by Chicago -four
men, several Of whom had predicted
such as soon as the rumor that Letter
had succumbed took wings. There is n
feeling that the Letter stir on the board
of trade will cause the price of flour to
go down TO five dollars a barrel before
closing-up time on Saturday.
Panic at Minneapolis.
Minneapolis, Mimi, June IA. - The
biggest panic known to the wheat trade
here occurred Monday. Everybody APP
peared to have July wheat to dump into
the maelstrom and prices dropped two
cents or more at a jump, losing 10 cents
in the first two hours and keeping up
the break until it had slumped 20 cents,
to % cents.
Chronology of the Letter Deal.
April 2. 1S97-He buys his first wheat at
72ssc.
June 1s 1S97-He pays lowest price, CSC
July. 1S97-Wheat trade scents corner. Z"
September, 1S97-Leiter recoFnized as
principal.
December. 1s97-Complaints of rigid grain
Inspection.
December H. 1S97-Seven weeks Duluth
shipments foot 100000 bushels.
December Is, 1s97-Armour delivers first
900 600 bushels for December
February 8, 1S9S-Two million bushels
started east by rail.
March 10. 1S9S-Trade talks Of a mar
ginal price"
March "a, 1S9S-Talk Of Armour-Leiter
compact.
April 26. 1S9S-May wheat sells at $l.25
May 5, 1S9S-May wheat sells at S15o.
May 10, 1S9S-May wheat sells at top price
$1S5.
May 81 1S9S-Nay wheat breaks 50 cents
June 10, 1885 Government predicts $40 900,
900 bushels crop.
June 10. lS9s-Leiter closes his deal; price
collapses to 707sc.