The Butte inter mountain. [volume] (Butte, Mont.) 1901-1912, 1902-01-14
GEORGE PHILIPS GETS ON WRONG
SIDE OF MARKET.
GRAIN BELONGS TO CUSTOMERS
Said to Be Still in Good Financial Con-
dition--Failure Caused Much Excite
ment in the Pit for Time But
Market Finally Rallied.
(By Associated Press.)

Chicago, Jan. IA notice was posted
at the opening of the board OF trade to-
day calling for the closing of all open
deals with George II. Phillips, the former
corn king A heavy call for extra
margins is said to have been the cause.
The call was made yesterday after
noon, and Philips and his staff worked
all night over the firms books The
trouble is said to have been due to a
31a-cent >reak In rye yesterday.
Phillips is credited with holding line
of 100000 bushels of this cereal, mostly
in May options. The break yesterday
was caused by sale OF only $4,000
bushels.
Phillips is said 10 have on his books
also from 100000 to 100000 bushels of
May wheat and about 100000 bushels of
May corn.
The effect of the notice was instan-
taneous, the whole list opening Of
sharply.
Wheat opened 1Gl1ac lower corn A@lc
lower and oats nearly cent lower.
Made Effort Outside Pit.
Mr.. Phillips opened negotiations with
elevator men before the opening of the
board In an endeavor to dispose of his
rye outside the pit. The negotiations
fell through, and May rye, which closed
yesterday at 86Ac opened at sales from
81 to 60 cents. The whole Phillips line
was dumped into the market.
Brokers acting for Armour & Co., how
ever, bought nearly all of 1t, and the
merket rallied in consequence sharply
to 65 cents. Members of Mr.. Phillips
staff stated that he was still In good
financial condition.
II. Hubert, Phillips office manager,
declared that 1t was the suddenness OF
the call for the extra 10 per cent margins
which had embarrassed Mr.. Phillips.
He stated that Phillips had trade but
little on his own account, the grain for
the most part belonging to customers.
Later Jacob Ringer, attorney for Mr..
Phillips, gave out a statement, saying
that his client had been practically
wiped off the financial slate.
He Is broke" said Mr.. Ringer. Men
whom he worsted in former deals went
after him and they got him."
His Own Statement.
Phillips gave out a statement in part
as follows: '"Fhe amount involved in my
trouble of today IL about 100000. My
customers had their trades well mar
gined and IL the trades closed out to-
day bring fair price, can meet all my
obligations
II was long about 100000 bushels of
rye, 100000 bushels wheat and 900 900
bushels corn, and oats. Saturday a
member of the board interested In break
Ing the rye market, sent notices calling
for an extra margin of 10 per cent on
rye.
This naturally caused selling orders
Monday and the representative of the
member mentioned finding the market
bare of orders, forced the market down
cents. This was done in a moment and
the news flashed all over the country
causing CONSERVATION among holders of
rye contracts, many OF whom sold on a
weak market.
"a decline of cent in wheat, coupled
with rumors rejecting on my strength,
resulted in unusually heavy calls for
margins. ! was for the moment unpre-
pared and the only alternative left was
to close out.
II have no excuse to offer and no
complaint to make"