The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1899-05-15
WHEAT SPECULATIONS
CAUSE HIS DOWNFALL
Gone to Kl0ndike to Retrieve His
Fortunes.
All His Property Attached By Cred
itors Observation-Disclosures Presi-
dency of Stake and Puts His
Father In Charge of Logan Post
office-Notifies His Families They
Will Have to Rustic For Them
selves-Regarded as Unfortunate.

Orson Smith, one of the most proIni-
nent citizens of northern Utah, presi-
dent of Cache stake of Zion. and post
master of Logan City, is fleeing from
his creditors.
! He turned the postoffice over to his
father. resigned his position in the
dominant church. sent his family word
that they would have to rustic for
| themselves, boarded a steamer at Seat
tie and is now on his way to the Klon-
dixie.
The prominence of Orson Smith IN
business. religious and political circles
| in the state makes his disappearance
under such circumstances a sensation
of more than ordinary interest
For about two years Mr.. Smith has
been buying wheat from the farmers of
Cache valley and storing it for specu-
lative purposes. He has had the idea
that great food famine was imminent
and that wheat would bring fabulous
sums within a year or so. Not only did
he invest heavily himself. mOrtgaging
and borrowing from personal friends
without security to this end, but he
counSeled the farmers of the county to-
place their crops in his keeping, that
all might reap the harvest of his pre-
diction.
A year ago and more he was buying
wheat at so, 80 and even as high as 81
cents per bushel. He refus ed to sell
when wheat reached the top notch on
the 18th of last May. believing it would
go still higher. When it fell he refused
to let go. and urged others to hold on,
as he believed it would rise again to
the figure it had previously reached.
Then the Letter bubble bursted. and
Smith was forced to unload considera-
bic wheat at 90 and so cents.
Built Bio Cranaries-
To carry out his plans, great gran
aries We're constructed in different
parts of the valley, one of the largest
being on his residence lot in Logan.
When he was compelled to sell, the loss
was augmented by the expense of stor-
age, frequent handling, granary con-
struction and interest on borrowed
capital.
In that one transaction he lost over
$4,000, it is believed. But when the fall
threShing began he proposed to take
more wheat some of it on his own ac-
count, paying a percentage down, the
balance to be paid when the grain was
sold. Still counting upon the expected
famine, and telling his people that
wheat was bound to rise to s1.75 or 81
per bushel under a Republican admin
iStratiOn, he convinced many to whom
he owed money on the former deal. and
many others. that he could make u
fortune for himself and small fortunes
for each of them if they would join
with him and let him store their wheat
in San Francisco, where immediate
advantage might be taken of any rise
in price.
The agreement was that any one
who so desired could at any time with
draw their wheat and sell it at the cur
rent price. Not many found any in
ducement to sell, for the market was
unfavorable. and those who did with
draw he charged per cent for
handling the grain.
In time he might have come out in
fairly good shape, although no one
knows how much time il would have
taken. But he had too many irons i'm
the fire. The duties of his ecclesiastical
position were heavy, and all that one
man can attend to in justice to himself
and those under him. But Mr. Smith
was interested in a gold mine in Ne
vada, that he spent much time and
some money on; he was always an
active Republican politician; he was
postmaster at Logan. which of itself
should have required his full time and
attention; he was a member Of the
Brigham Young college board of trus-
tees, an institution that lost consider
able money through its connection with
him; he recently applied for and OBJ
tanned the local agency of a we'll
hicle house, and consequently had to
neglect the wheat business, as he did
everything else.
He turned the matter of looking af-
ter the stored wheat to young man in
Logan, who lacked experience and could
never master his employers way of
doing business; the young man was
honest and watchful. but as Smith
never knew how he stood either with
the Cache valley farmers or with the
California warehouse people. the young
man couldn't find out, and finally gave
il up as a bad job.
Departed From Utah.
Then Smith went to San Francisco
to have an accounting. He found that
the wheat had consumed itself in stor-
age bills and that he was ruined and
that all who had confided in him had
suffered to that extent. This was about
ten or twelve days ago.
Desperation seems to have seized him
then. He was not heard from for
week. Then he wrote from Seattle lust
as he was ready TO ship for the Klon-
like. From the tone of his letters he
to perceive his errors and de-
plore his lack of judgment very keenly
To his councillors in the stake presi-
ieney he babe farewell and told them
ne could not return to face the want
and misery he had brought upon so
many poor people. widows and small
farmers. who relied upon him TO help
Them out of their financial difficulties.
He wrote TO the high council of Cache
stake. rendering his resignation as
president of the organization
His letter to his family contained an
Unjust reflection upon his neighbors, for
L contained the bitter assurance that
hey were not only left in want and
shame. but that their old friends would
urn their backs upon them henceforth.
No one who knows the disposition of
the people of Logan would have said
his. No one who knows them will be-
ieve it. AS one prominent business
nan of Cache said yesterday, in dis.
,ussing the regretable affair:
No one can blame his children or his