The Wichita daily eagle., 1898-01-05
ne intends to make the shorts hump

porter. He said:
There is a great misconception az to
the nature Of our operations in wheat.
We are not gambling; if we were We
would settle differences, take our pay
in cash, and let the cash grain take care
OF ITSELF. In this event ii would be 10
our interest 10 make prices here IN Chi
cago as high as possible. But We are
not in that kind of deal. We are mer-
chandiZing wheat; buying II here and
selling it for consumption abroad. We
are not trying TO squeeze shorts, nor ID
distress anybody financially. 1 nope
every man VINO has sold wheat 70 US has
made money out OF it. We certainly
have ample reason 10 feed satisfied with
our operations. They have been profit
a'ble, have been coniucted on strictly
legitimate lines as business venture,
and are entirely without ordinary spec
ulative feature. We want every bushel
of wheat we have bought, and stand
ready TO pay cash fo- it. The delivery
OF 100000 or 5000, 600 bushels is mere
bagsteiie. Everybody mas got his money.
we are not asking any favors, and don't
propose to ask any"
In this may be found good explara-
ton for the dragging and declining mar
ket "a the end Of the month, a market
the same in all essential particulars as
that which prevailed when the Septem-
Der option was closed. With all the ac-
tual wheat in sight bought and paid for,
and TO desire TO harass the shorts, there
was no excuse for booming values. The
Letter policy has won friends TO the
young Napoleon OF the wheat trade, and
ne will have valuable assistance in any
future operate ne may undertake.
Marked lenienoy has been shown in the
calling Of margins, and there has been
courtesy and fair treatment for the op-
position. All this is very nice, but il has
a profitable commercial side So long as
the market was not unduly boosted in
December Mr.. Letter was able 10 buy the
May option more cheaply than he could
possibly have done had the bulge been
started, and ii is in the May trade ne
must now find the strongest protection
for the values Of mis- cash wheat.
HOW THE DEAL NOW STANDS.
Jan. l, 1898, finds Mr.. Letter the owner
OF some 5000, 900 bushels or more OF ac-
tual bona fide wheat, all of which is in
store in Chicago elevators, and the most
OF which must remain there until navi-
CATION opens in the spring. Some of it
IS being worked out by rail. but there is
not likely TO be any big movement until
the marine season starts. To carry this
wheat until April will entail Storage and
insurance charges averaging to ~
cents bushel perhaps more. The stor-
age rate alone is one-quarter OF a cent a
bushel for each ten days or fraction
Thereof, and is practically all OF the
100000 bushels now owned by Letter
was delivered TO him in the middle OF
December this item itself will amount to
2al cents a bushel. or total OF s220. .C0o.
Mr.. Letter says this wheat is already
sold for export, or at least a great part
Of it, at price which puts him above
worrying over the mere carrying charges
The elevator men slrug their shoulders,
say it is none Of their business whether
there is profit in the grain or not, and
go ahead exacting their toll of one-quar-
ter cent bushel every ten days.
THE PROFITS.
Letters real profits. aside from what
money he has secured from closing out
long stuff on bulges, depends entirely
upon the success ne has In turning all
of these 5000, 600 bushels OF wheat into
cash. On the face Of the deal IL looks
like a gain Of s2000.000 or more. but in
a trade of this kind the profits are never
really safe until the grain is out OF the
way. All kinds of wild stories are told
regarding the amount of money Mr.. Lei i
ter mas made in the transaction, bu; he
encourages none OF them. The most he
will admit is that he has made a profit.
and OF satisfactory size. bu. the seeker
for details gets nothing beyond this.
Owing 10 the fact OF a stiff buying OF
May, and the holding of the 5000. 900
bushels, veterans OF the trade expect the
deal to be swung over into that month.
The May option will be settled before
the new crop receipts can come in. con-
sumption and seeding demands will ma
teria.ly reduce stocks. ard, taken alto
gethsr. the situation seems 10 warrant
the prediction that the Letters will have
another swing at wheat in the spring.
Alexander Geddes, who has acted as
their shipping agent. IS credited with the
assertion thai the May delivery will sell
as higa as 81. Even Mr. Armour retl-
cent OF all features Of the deal, says:
the people who own this wheat will
probably :e able to work il of for more
thsn i cost them. II viii be needed for
consumption, and the outlook seems 70
indicate higher prices"
There is another interesting feature 70
the big trade. When Mr.. Armour p
his wonderful buriness machinery in op-
Grafton and gathered in 5000, 900 bushels
OF wheat from the northwest, consider
able os Z came from the bins of nillers
like Pillsoury. Washburn and Peavey.
who had bought il originally for grint-
ing purposes. The transfer 20 Armour
EFF them short ot good grain and some
o. the millers are already beginning to
inquire for new stocks They must have
wheat or close down their mills, and the
latter alternative IS not otbe considered
as long az the grain can BE- had any rea-
sonable figure. IS tie difference in cost
can De recouped BY advancing the p-lce
OF -four. There IS lots OF wheat in the
country. most Of !: good enough fo- MILL
ing OF seed. but only a small percentage
q L passes Inspection as contrsc; grade I
How small th.s percentage Is may De TN
sEirei from the visible supply figures.
Tbs wear the Ca,csgo stocks are $50
90 bushes. last year they were 3.5o0.-
90 bushels. ani 81 1895 =. 90. GO bushels
BENFTT TO FARMERS
Contrary u cus,om. tae cash grain |
has soii at a premium o. OF even terms
With futures ever since TIE Letter deal