The evening herald. [volume] (Shenandoah, Pa.) 1891-1966, 1898-06-14
JON LETTERS WATERLOO
The Chicago Wheat Gambler Comes
aesp. to Grief in His Deal.
FATHER REFUSED MORE MONEY,

As Result the "Young Napoleon of
Finance" was Forced to Release
Largely ofHis Holdings, which Havo
Now Been "Trusteed."
Chicago, June 14.-Yesterday was a
day of excitement and wild rumors in
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
II cents from Saturdays close, while
September lost 45s cents and Decem-
Der S7k cents, but all made a little re-
covery before the close. 1t was given
out that Letter had ordered his deals
all closed, and that the selling rush
was the result of the 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 in board Of trade dealings. one
of these rumors was that Letter had
been deserted by some of his assist
ants in the campaign. In the mean
time Letters wheat was being tumbled
overheard and prices had become de-
moPalized
Later I'm the day Letter made no at
tempt to conceal the fact that he had
sold out all his holdings in futures
probably 5000, 600 or S,OOO,0 900 bushels
1t came out that he had transferred
most of his trades IN futures to other
we'll known houses, and that they
were pretty well protected by margins
Nk+ho
would fall upon Letter. His cash wheat,
one report said, was transferred to Ar
mour. but later story was that it
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 partially sub
sided, and July reacted 4 cents, Sep
tember selling UP ia, and December
making cents rally, selling a shade
above September, where it was l cent
undsr Saturday.
None of the principals in the Letter
crisis is willing to discuss the causes
which led to his abdicatiOn, and the
most plausible explanation that can be
offered at this time is therefore. cir
cumstantial and speculative. The first
indication of approaching dissolution
in the Letter regime came in the
morning, when the announcement was
made that all his cash and June wheat
had been transferred by Allen, Greer &
cellar, Letters brokers, to Philip d.
Armour, and that the September op'
tion, of which Letter was a heavy
holdAr, had been transferred to Lam
son Brothers. These reported transac.
tions gave rise to conjectures that soon
developed into a panic. At the outset
It was rumored that Letter was trying
to get out of the market, but the fact
that Allen, Greer & cellar had trans
ferred their trades to Lamson Brothers,
instead of selling out directly, aroused
the suspicion that Letter was hard
pressed and was endeavoring to dispose
of his immense holdings without dis
closing the causes of his sudden with
drawal from the pit.
At the close of business Saturday
millions of bushels Of September wheat
puts" were sold in the vicinity of 72la
cents, Lamson Brothers apparently
having large orders for this line
Shortly before the opening of the board
of trade yesterday brokers supposed ia
be acting for Letter were ready sellers
The put price was speedily reached
and Letter, If the LamSOns were actlnG
for him, was enabled to dispose OF
millions of wheat on the sale of puts
whereas If the actual wheat had been
sold in the market there would have
been even more severe break.
1t Is estimated that during the day
from 5000, 900 to 10, 900 bushels OF
Letter wheat, optional and visible were
sold to the account of the young Ma
poleon." This is supposed to have
consisted chiefly Of options in Septem-
Der, July and June wheat stored in
Minneapolis st. Paul, Duluth and Chi
cago. 1t was reported during the day
that L. u. Letter, when asked by his
son for more money, had refused to be
drawn further into the wheat deal, AM
thus compelled the latter to let go 4
large line of his holdings in order tC
satisfy his warehouse creditors ant
marginal demands.
Mr. Letters friends insist that he hal
not made an assignment, but it was
admitted that the Letter interests had
been "trusteed."