Evening star., 1902-01-14
"Corn King Posted On Chicago
Board of Trade.
BREAK In RTE CAUSED FAILURE
Estimated That About $4,000
VIII Cover the losses.
CLIENTS WORST SUFFERERS

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 H. Phillips, the former
"ccrn 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 after
noon and Phillips and his staff worked all
night over the firms books. The trouble is
said to have been due to 31a-cent break
in rye yesterday. Phillips is credited with
holding q line of 100000 bushels of this
cereal, mostly in May options. The break
yesterday was caused by a sale of only
10000 bushels. Phillips is said to have on
his books also from 100000 to 5000 .0OO
bushels of May wheat and about 5000, 900
bushels of May corn.
Tried to Effect Settlement
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 65s4 cents,
opened with sales from I'll to 60 cents The
whole Phillips line was dumped into the
market. Brokers acting for Armour & Co.,
however, bought nearly all of it and the
market in consequence rallied sharply to
TO cents.
The effect of the notice posted by Sec
retary Stone was instantaneous the whole
list opening off sharply. Wheat open ed J. to
1lac. lower; corn u to 1c. down, and oats
nearly cent depressed. Mr.. Phillips could
not be seen following the announcement of
the closing of his deals, but members of his
staff stated that he was still IN good fnan-
cial condition.
H. Hulburt Phillips office manager. de-
clared that it was the suddenness of the
call Tor the extra 10 per cent margins which
mad embarrassed Mr.. Phillips. He stated
that Phillips had traded but little on hi.
own account, the grain for the most par
belonging to customers.
Later jacob Ringer, attorney for Mr.,
Phlilips, gave out Statement saying that
ms ms client had been practically wiped on
Mr.. Ringer. Men whom he worsted in
former deals went after him, and they got
him.
Mr.. Phillips gave out statement in part
as follows:
Amount Involved About 500, O,OOO
The amount involved in my trouble of
today is about 100000 My customers had
their trades well margiped, and if the
trades closed out today bring a fair price
can meet all my obligations. was long
about 100000 rye, 100000 wheat and 6oO-
eVo corn and oats. Saturday a member of
the board interested in breaking the rye
market sent notices calling for an extra
margin of 10 per cent on rye. This natur-
ally caused selling orders Monday, and a
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 hold
ers of rye contracts, many of whom sold
on weak market A decline of cent in
wheat, coupled with rumors rejecting ON
my strength, resulted in unusually heavy
cans Tor margins. l was for the moment
uEprepared. and the only alternative left
was to close out. l have no excuses to offer
and no complaints to make"