Kansas City journal. [volume] (Kansas City, Mo.) 1897-1928, 1898-02-17
DICTATES PRICES FOR MAY, AS
WELL AS FOR CASH WHEAT.
SHORTS IN A STATE OF ALARM
SENT MAY Up NEARLY 4 CENTS IN
EFFORTS TO COVER.
May Closed at S1.Oj Ia Yesterday, the
Highest Since 1~S91-Lciter and
Armour Have Locke Horns
Again in the North
west.

Chicago. Feb. 16.-May wheat sold up a
few minutes before the closing to-day to
Sl.oSasc. and closed excited at $1.G;i.c, an
advance of 3Ac over yesterday. July, which
mas been almost stagnant for some time.
was heavily traded in, especially during the
last hour of business. and was sent up to
S'l2c, the advance in that delivery being
equal to the gain in May. On the curb "a
few minutes after closing, S1.O5s was bid
for May. while call" prices were at 81. 1Ols.
The prices for May to-day are the high
est that have ruled for that option since
1871. There appeared to be but one factor
in the market-the almost complete control
that Joseph Letter has of May. 1t was "a
struggle of shorts all day to cover, with
very little wheat offering. and that from
TIE outside. though there was some local
selling against privileges. The market was
very excited toward the close. many shorts
who had hitherto held out being driven to
cover by the heavy calls for margins. Gu
ban news added to the uncertainty of the
situation. but had little apparent effect.
There was a wild market on the curb
after the regular close. apparently owing
TO the Cuban situation. May, which closed
at sl.OSh, sold as high as sl.O6, closing at
Sl.0o. July was bid up to Ole. The curb price
made the advance for the day 5 to Z cents
per bushel. Puts and calls were traded in
at II cents spread on the May option.
Philip D. Armour said tonight: Letter
can put May wheat to s1.O if he wants to.
He has only to keep still and do nothing;
the shorts will do the rest. There will be
good prices for wheat for another year at
any rate. These matters go in long runs,
years Of plenty and then of scarcity. This
wheat will go out at SIPS. The turn has
not been alone in wheat; it has been in
everything. We took shipping room for
100000 bushels Of wheat for export to-day.
We bought wheat at Minneapolis, and are
buying everywhere We can. We are not
hedging a bushel of it. We are not afraid
to move wheat abroad without hedging it
and to wait for the consumptive markets
to follow. We expect to see them pass u.s.
The Evening Post to-day says:
Joseph Letter has securely cornered the
May wheat market. plays fast and loose
With the fears of a tremendous short
interest. and is showing himself to be by
all odds the most remarkable factor ever
encountered in the local market.
Once more the battle between Armour
and Letter is being witnessed. Vague ru-
n'crs from the Northwest showing that
some big forces were at work there re-
vealed themselves to-day in the shape of
facts. Armour sent his brokers to the
Northwest section some days ago to buy
all the cash wheat in sight. 1t is held Ar
mour wants to return an equivalent for the
wheat which, despite his denials, it is as
serted he borrowed from Peavy to deliver
to Letter on December contracts.
No sooner did Letter hear of this flank
movement than he began TO plan a coup.
To-day instructions were forwarded TO all
Of Letters brokers in the Northwest to fol-
low up Armour's agents and bid .. 3 and 4
cents higher than Armour on all wheat Of
fered to the, latter.
although aAfmour denies the report of
authority for the statement that Armour
placed a check for $1,000. 900 in the North
western National bank. payable to the or
der of Peavy. to insure the return of a vast
quantity of wheat which Armour secured
frcm Peavy to cover his December short
line. To what extent Armour has obtained
cash wheat to cancel these obligations is a
matter OF conjecture. But one fact is GER
tain, and that Is. Armour had to pay a
| premium and had to wrestle hard with
Letters agents to secure cash wheat in
the Northwest