The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-06-14
NAPOLEON of the Wheat Pit Finds a
Waterloo.
LETTER FORCED TO UNLOAD
EIGHT MILLION BUSHELS.
Sold at a Loss and Bankers Take
Charge of His Cash Holdings
Papa Letter Refused to Put Up
Any More Money-Deal Involved
Thirty-five Million Bushels.

the Chicago wheat pit. A reverse that
looks like a waterloo has come to the
Young Napoleon Of finance" Joseph
Letter. At first there was a wild
tumble of prices on the board, July
wheat selling down IL cents from
Saturdays close, while September lost
Az and December 37s cents, but all
made a little recovery before the close.
1t was given out that Letter had
ordered his deals all closed and
selling rush was the result of execution
of this order, accompanied as it was by
a flood Of rumors concerning the sta
bility 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 campaign.
In the meantime Letters wheat was
being tumbled and prices were becom-
ing demoralized. Later in the DAY
Letter made no attempt to conceal the
fact that he had sold out all his hold
ings in futures, probably 6,0OO,Oo0 or o.
GOO 900 bushels of wheat. 1t came out
that he had transformed most of his
trades in futures to other we'll known
business houses and that they were
pretty we'll protected by margins, SO
that whatever losses there were would
fall upon Letter. His cash wheat, one
report said, was transferred 10
Armour, but a later story was that 1t
would be trusted" and handled IN
such a way as to prevent the slump
which would be inevitable if it were all
thrown on the market at once.
Before the final close the panic
partly subsidized and july reacted
cents, September selling up IA cents
and December making 2 cents rally,
selling a shade above September, where
it was l cent under Saturday
None of the principals on the Letter
crisis were willing to discuss the
causes which led to his abdicatlon ana
the most plausible explanation thal can
be offered at this time is. therefore,
circumstantiaI and speculative. The
first indication Of approaching dlssolu-
ton in the Letter regime came this
morning when the announcement was
made that all his cash and June wheat
had been transferred by Allen, Grler
& Sellar, Letters brokers, to PhlHp
D. Armour and that the September
option of which Letter was a heavy
holder had been transferred 10 LdnlsoAi
Bros.
1t is estimated that during the day
from 5000. 900 to 100000 bushels OF
Letter wheat optional and visible, were
sold to the account of the Dung
Napoleon" This is supposed to nave
consisted chiefly of options in Septem-
Der. July and June wheat, stored in
Minneapolis, st. Paul, Duluth and
Chicago.
It was stated on the floor that the
bankers of the northwest who have
been carrying the northwestern Dun
CLIQUE refused to carry their burden
for a longer time, and that calls had
been made by northwestern dealers,
particularly the Minneapolis interests
1nT7rC These
is said. were followed by calls upon
Letter here to margin his wheat hold
ings down to so cents. Mr.. Letter mad
about 1000. 600 bushels of cash wheat
on hand. much of which he is said TO
have disposed of at a loss.
Later it was reported that L. u. Lei
ter. when asked by his son for more
money, had refused 10 be drawn Lur-
Their into the wheat deal, and thus
compelled the latter to let go a large
line Of his holdings in order to satisfy
his warehouse creditors and marginal
demands.
Representatives of the northwestern
interests appear to have preclpltated
the crisis by coming TO Chicago Satur-
day and learning that L. u. Letter
would not advance any more money on
his sons account
Mr.. Letters friends insist that he has
not made an assignment, but it was
admitted tonight that the Letter in
terest had been trusted"
K. Joseph Letter could not be To-
Gated tonight. L. z. Letter was seen,
but positively declined to say word.
Joseph Letter entered the market
April 2, 1897, and Immediately after
wards the pressure of a tremendous
power was felt, but no man knew
whose was the hand. Letters first order
was negotiated b. Broker George b.
French. 1t was for 100000 bushels of
May wheat at T07s cents per bushel.
Then orders came thick and fast. The
cheapest wheat bought by Letter was
SOC. 900 bushels bought June is, 1897 for
September delivery. at 64M cents. The
deal ran IA months, during which time
the price Of wheat was down to 64A,
in June, 1897, and up to $1.S5 in May,
1898. 1t involved at one time an in
terest of more than 35,000,o00 bushels Of
wheat.
Joseph Letter this morning frankly
admitted that he had lost money How
much he would not say. He had not
the time to go into details.
1t was said that Letters heaviest
losses came in his European venture
Reports of good crops in view across
the water had a depressing effect upon
the foreign market and hence the
shrinkage in the value of the cereal
merchandised to European ports.
ENORMOUS HOLDINGS.
The Illinois Trust and Savings bank
probably will be selected trustee for
the Letter grain, and will place one or
two broker representatives in the mar
ket. Accurate figures as to Mr.. Letters
holdings when he decided TO houidate
are difficult to secure. The best esti-
mates indicate that he has 100000
II Ill Af in
1eapolis, 100000 bushels en- route to
Europe, and 100000 bushels in or en-
route to New York. Mr.. Letter will
not make an assignment and court pro-
ceedings for the settlement of his grain
account will not be necessary.
John J. Mitchell, president of the IL
linois Trust and Savings bank, said to-
night: Mr.. Letter has not, and will not
fail No assignment in the settlement
of his affairs will be necessary. L. u.
Letter, having been acquainted with the
status of Joseph Letter in the market,
demanded that the deal end now, so
steps for a settlement were taken i'm
mediately. The banks are well pro-
tected, and there will not be q dollar
lost. I know that no bank lent m2-ey
on his wheat at over so cents per bus ell.
Most of the Chicago banks are lenders,
also those in Minneapolis and Duluth,
and some in New yo-lk.
THE question of selecting a trustee
has not been decided. 1t may be found
that a trustee is not necessary. Prob
ably one or two brokers' will be chosen
to represent the interests of the cred
itors in the market. But these matters
of detail will not be disposed of, and
viii not be handled so as to produce
uncertain market conditions. The
banks can afford to hold 1t, if reces-
sary, and there is nothing in the en-
tire transactionNto occasion alarm