The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-05-15

OES2S<sO7f'W FsO-sf'0 ~ sf9OFsS~<f0
eratlons In the pit. the farmers have
| profited by his dealings TO the extent or
H5oOo8, GO. This estimate Is based on an
average advance of 90 cents per bnshei
for the producers over the prices obtained
In recent years. The latest gossip 8 that
he Is noe interested In the July market IN
Chicago. He has large interest. how
ever, with the elevator and flour kings
OF the Northwest. Peavey and Pillsbury
are running corner In July wheat AT the
head of the lakes. As Latter controlled
nearly all OF the cash wheat in that re-
gior. no was taken INTO the deal. The
speculative profits of this campaign do
not figure In the estimate Of profits named
above. Already the men who sold wheat
sliorg for July delivery IN the Northwest
are beginning to feel the effects OF their
rashness. The price has fiuctuated from
l. cents 10 Is cents above the Chicago
price during the last two weeks
Letter has taught the wheat trade
new style Of campaign. He made millions
for the West by demonstrating that the
bears could be beaten. He has. accom-
pl.shed what a Quartette of California mil
lIonaires failed 10 do. Fair. Mackay.
Keene and Ralston lost fortunes In COM
batting Chicago bears. Letter has made
himself within enc year the most inter-
esting personality In the commercial world.
Letter began his famous deal in April.
1897. There had not been a bull campaign
worthy of the name since the Russian
famine OF 1891. John Cudahy tried the long
side IN the spring OF 1893. and lost money.
He began buying May wheat around 10
cents, and accumulated a line estimated
by soma as high as 20. 900. 90. This buying
put the price 10 81 cents. Then he began
/ To get out. Partridge was short 5000 0oG
and got frightened. The Partridge COW
ering saved Cudahy's fortune.
April TO- 1897. July wheat was 'Jow." at
hz cents. Letters buying and the war
scare put Il to 66ts cents In two days.
Between April 10 and July Letter bought
100000 bushels OF wheat for July deliv-
cry. There was little wheat delivered to
him on these contracts. The men who
sold Il to him under 20 cents had to set
tie or buy X back In the pit at from 10
10 Y cents. This $4,000 bushels - said
20 have been bought at an average OF es
cents II was said 10 have been sold at
an average OF rs cents, giving a profit OF
cents a bushei This made an indicated
profit OF $seocco. or this. brokers' COM
missions. carrying charges ana other ex-
penses amounted to at least $4,000 50 that
on July 81, 1897. Letter had 4 clean profit OF
$4,000 10 his credit. One week thereafter
no purchased a piece OF real estate on
Adams street. near la Sale. paying $780,
ofo for II. Early In July the foreign de-
mand began 10 be felt. Although July
wheat was up in the 1ns September wheat
was in a condition OF collapse around 6
cents. The premium was en;ic.ng. and
Letter began 10 buy wheat for September
delivery. When che July deal was closed
~ the expiration OF that option. Septem-
Der wheat. under the incentive OF the Lei
| ter purchases ana the export demand
had advanced from stis cents on July
| 10 7sss cents on July 81
Did Not Come West.
| Letters agents did not come TO Wash
| Ington to buy wheat, bat the railroad ship
| ments eastward OF the product OF this
state delivered. sooner or iater. a great deal
| Of q into the elevators where Letter was
| IN control. His December and September
| deals saw him with is.0o.oae bushels.
| Letters purchases of December whea.
began under 30 cents. but were made all
| the way ny IN 81. where he force! the
market The young plunger was almost
| wrecked In the campaign In this option.
| Armour resolved TO teach him u lesson.
| He sold 10 Letter sca,Qoo bushels OF wheat
/ through various brokers at a price between
| Y. and Is cents. There WAS no wheat in
| Chicago 10 I'll tho contract The wonder
| fnl resources Of the Armour business wers
| then deveieped. Armour's agents secured
| the entire West. brought millions upon
| millions 81 bushels into MINNEAPOLIS and
I
| trains and boats 81 Chicago. where IL
/ was dumped on Letter.
The profits cf the previous deal vera
/ quickly catCu uP il protecting the market
| and paying fer the millions Armour de-
/ Hverea. Arrangements with hanks wvrs
f. made for loans as high AZ xleo..esi with
| securities ard whea; "a collateral Armour
| did rot believe Letter could pay for thu
/ millions Of bushels Of wheat which the bull
| leaders contract called fer, but. 10 the
| astcnishment OF the 'sold Man OF La Sals
| street. the money was ferthoomsng
| Then the weuaeg was. What vii, he 10
| with it~' meaning tire wheat. The trade
| wAs not long left in doubt Letter az once
| began enormous shipments TO the sea-
| hoard. which were followed by the char
| teriug ~ a vast amount % ocean room.
/ The wheat which Armour delivered guder
| ST Is now bringing 81 80 in Liverpool Car
| rSinx charges. storage and insurance cost
| h,u S.Se day for no DAYS. Ills cash
! holdings were estimated at ie.sass.c bash
/ rls IN Chicago and ssaaa bushels in the
| Northwest. THE apparent proat was 10
| ceHts A hushel. mich on 11a9,aco bushels
! meant 81 sa,aa pui of this be not only
| paid ss.aae fer Fixed charges. hut fully
| saSHaHe for freight charges and sSsleSo In
| brokers' cernn sSseas. IL total Of ssT0dsA
| This left an apparent profit cf $Ssa.Sssa
| Al this time Letter was compelled 10 bay
| Nav wheat Ia the pat 10 protect BIS cash
/ holdings.
! u had cos, Armour heavy SUN 20
| Art0< his rsiltscns 2: wheat from, she North
| wsst and 3cssyez i; 10 Latter This an
1 aok seem 90 deter him. lie again entered
| .he eoagest and hTxan 70 sci May waeat.
! az he had previously sold December. Pro
secsins ;as ps!ee sAs costly exess!rasos