Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1902-01-16
PHILLIPS
IS ROUTED
AGAIN
TROUBLE WAS RESULT OF 8 1-2
CENT BREAK MONDAY IN RYE.
SUDDEN CALL FOR
MARGINS.

CHICAGO. January IA notice was
posted at the opening of the board of
trade today 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 of the posting of
the notice.
The call was made yesterday afternoon
and Phillips and his staff worked all
night over the firms books. The trouble
is said to have been due TO a 3 1-2c break
I'm rye yesterday.
Phillips Is credited with holding line of
100000 bushels of this cereal. mostly in
May options. The break yesterday was
caused by a sale of only $4,000 bushels.
Phillips is said to have on his books also
from four to five million bushels of May
wheat and about 900 bushels OF May
corn 1t was said that the elevator in
terests would take over Phillips entire
line Of rye at figure close to the market.
The effect of the notice posted by Sec
rotary Stone was instantaneous, the whole
list opening of sharply. Wheat opened l
to ! 1-2c lower: corn 1-2 to lc down, and
oats nearly a cent depressed. Mr.. Phillips
could not be seen following the announce.
ment of the closing of his deals, but MEM
bers Of his staff stated that he was still
I'm good financial condition.
II. Hurlburt Phillips office manager,
declared that It was the suddenness of the
call for the extra 10 per cent margins
which had embarrassed Mr.. Phillips. He
stated that Phillips had traded but little
on his own account the grain for the most
part belonging to customers.
Phillips opened negotiations with ele-
vator men before the opening of the board
In an endeavor 10 dispose of his rye out
side the pit. The negotiations fell through
and May rye, which closed yesterday at
sc Sac opened with sales from oil to 6O
cents The whole Phillips line was dump
ed into the market. Brokers acting for
Armour & Co, however, bought nearly all
of IL, and the market, in consequence raj
/ lied sharply to CSC.
Later Jacob Ringer. attorney for Mr.
Phillips. gave out a statement saying that
his client had been practically wiped on
the financial slate.
"He is broke" said Mr.. Ringer; "men
whom he worsted in former deals went
after him and they got him.
Mr.. Phillips gave out a statement IN
part as follows:
THE amount involved in my trouble OF
Today is about $4,000. Ny customers had
their trades well margined and If the
trades closed out today bring a fair price
can meet all my obligations. was
long about 100000 rye. 100000 wheat
and 100000 corn. and oats. Saturday a
member OF the board interested in back
ing rye sent notices calling for an extra
margin of 10 per cent on rye. This natur-
ally 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 yesterday and the news
flashed all over the country, caused con-
sternGtion among holders of rye contracts.
many of whom sold on weak market. A
decline OF l cent In wheat coupled with
rumors rejecting on my strength, resulted
I'm unusually heavy calls for margins. /
was for the moment unprepsred and the
only alternative left was to close out.
nave no excuses to offer and no complaints
to make"