The Wichita daily eagle., 1898-01-05


Everybody Until 1t TraDspired That He
Was In the Market Not as a Gambler
But as Merchant, Bnyirg the Real
Thing With Real Money for a Real De-
mand Cleared Three-Qusrtcrs of a
Million While Learning How.
Chicago, Jan. Z-The Tribune says:
SO fsr as the December option is con
cerned the great Leiter-Arnour wheat
deal, which has monopolized the afteu-
ton OF the Chicago board of trade for
weeks past, is at an end. Honors are
easy between the two principals in the
fight. Mr. Armour has delivered the
wheat he sold, and it is now earning
him Storage charges at the rate OF three
fourths of a cent busnel month. Mr.
Letter has received the wheat ne bought,
and is holding it until the opportunity
offers for shipment abroad. And in the
meantime everybody interested In the
trade is wondering what THE next move
IN the mammoth game Of chance will
be.
For a deal OF such gigantic size the
windup Of the December option was a
dreary fzzle. No attempt was made TO
advance prices or squeeze shorts. In
stead OF having red not time on final
delivery day, with roars OF triumphant
bulls and shrieks from badly gored bears
the floor Of the exchange ON La Sale
street was almost funeral-nke in its
stiffness and solemnity. Values were
allowed to drop sharply, and those who
wanted TO cover their trades were per-
nitted TO DO 50 unmoested. Two weeks
a go ecember wheat sold at s1.09. On
Friday, with an admitted shortage in
sales, with the entire contract stocks
of over S.00o.o 900 bushels tied up in the
hands I one man, and he an avowed
advocate Of higher prices, the price
was down TO 95 cents. Veterans ou the
board, men grizzled in the mysteries Of
option trading, could not understand the
peculiar situation, and said 50 frankly.
STRANGE FROM THE START.
1t has been strange deal from the
start, something parelleled in the his
story Of grain speculation Mt. Letter
had methods OF his own, original and
radfc2fy different from those Of any OF
the long line OF brainy traders who pre-
ceded him, and they came as surprise
to those with whom he entered into
dealings. But the Letter way was sur
prise merely because the people not in
the secret were uDprepared for it; the
Innovation was a novelty which lost its
merit when the system was once eX-
planned why, Of course. that's simple
enough was the comment on all sides
when it was given out that Joseph Lett
e. was actually merchandising the wheat
and not depending upon squeezing
shorts for his profits, but nobody
thought of doing 50 bold a thing until
this nervy young man took 1t up.
While large part Of the board OF
trade business consists Of legitimate
uansa ctions between buyers and sellers
IN which actual delivery OF the comnlodi-
" traded in Is contemplated there are
times when spectators use the machin-
cry OF the exchange for the purpose OF
manipulation They buy and sell, not
that a transfer Of grain may be made,
but solely to secure a settlement Of the
differences in price, the unlucky ones
squaring accounts by making good their
losses. John 3. Lyon, Deacon White,
Partridge, ''Old Hutch" and Jim
Keene. were speculators. They bought
stuff they did not want, or sold stuff
they did not own, with the one intent OF
influencing values, and their operations
were usually OF powerful immensity. So
accustomed mas the trade become to this
kind Of dealing that the advent into the
pits Of man who buys or sells grains or
provisions by the millions Of dollars
worth without legitimate use for them
is accepted as evidence of gambling
deal, a margin transaction in which The
operator Is taking the chance OF forcing
the losers to settle with MIN at his own
price This was the estimate placed
upon Joseph Letter when he began his
deal ON the board, and right here is
where some OF the men who opposed him
made a serious mistake
LETTER AND HIS TACTICS.
Joseph Letter had his own ideas about
the grain trade and one Of these was
thSt money could be made in the me--
chandizing Of wheat and all element Of
chance. aside from ordinary business
fisk, removed. Nearly year ago Mr..
Letter and his father made a compre-
hensive survey OF the situation. They
found a large shortage in European
crops and the stocks at nome greatly de-
pleped. They next asceTtained by per-
souai investigation that Crest Britain
and Europe would require al the wheat
the United States could spare, provid-
ed the yield OF 1897 was not phenomen-
ally heavy. As il turned out the last
crop was a small one and this made their
position al the stronger. Before max
Ing a move here arrangements were
made for agents to handle wheat in
milton bushel lots abroad, transporta-
ton was secured, and a big casl capital
accumulated in the Illinois Trust nj
Savings bank. This done the Letters
were ready to begin buying wheat. Now
neither Joseph Letter nor his father had
ever appeared on the floor OF the board
as traders and they did not propose 10
10 SO. They wanted broker, a capable, |
honest man OF quick action and clear
Judgment, and they found him in George
B. French, VINO was connected with the
b, okerage firm OF Allen. Grier & Zelle-. |
Mr.. French and Mr.. Letter hSd been coll |
iege mates At Harvard, social intimsJes |
Geo r Barse. Pres H Waite. Sec-Treas. |
DADcE Live Stock
Commission Co., |