The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-01-14
The Former Corn King Seems
Down to Stay Down.
RYE IN THE KERNEL
Heavy Call. for Extra Margins
Made on Phillips.
HE IS WIPED OFF THE SLATE
Panicky Feeling Develops In the
Chicago Grain Pits in Con-
sequence.

Chicago, Jan. IA notice was posted
at the opening of the board of trade CALI.
ing for the closing of all open deals
corn king
A heavy call for extra margins is said
to have, been the cause for the posting
OF the notice. The call was made yester-
day afternoon and Phillips and his staff
worked all night over the firms books.
The trouble is said to have been due to
31z cent break in rye yesterday. Phil
lips is credited with holding line Of
100000 bushels, mostly in May options.
The break was caused by a sale of only
$4,000 bushels. Phillips is said to have
on his books also from four to five mil
lion bushels of May wheat and about
100000 bushels of May corn.
The effect of the notice posted by Sec
rotary StoAe was instantaneous, the
whole list opening off sharply. Wheat
opened 1@1R cents lower; corn " to
l cent down, and oats nearly a cent de-
| pressed. Mr.. Phillips could not be seen
following the announcement of the clos
Ing of his deals, but members of his
staff stated that he was still in good
financial condition. H. Hubert, Phil
| lips 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.
| Phlll1ps opened negotiations with ele-
yator men before the opening of the board
1 In an endeavor to dispose of his rye out
side the pit. The negotiations fell
through, and May rye, which closed yes
| terday at 66Ac, opened with sales from
| Gle to 6Oc. The whole Phillips line was
dumped into the market Brokers acting
for Armour & Co., however, bought near
! ~ all OF 1t, and the market in conse-
quence rallied sharply to IS cents.
/ Wiped Off the Financial Slate.
Jacob Ringer, attorney for Mr.. Phillips
gave out statement saying that his
/ client had been practically wiped off the
financial slate.
4 He is broke said Mr.. Ringer. "Mer
whom he worsted in former deals went
+ after htEasand hey got i'm. e
Mr.. Phillips gave out a statement, il
Z! part, as follows:
The amount involved in my trouble of to-
i day is about $4,000. My customers had thei,
trades we'll margined; and if the trades CLOSED
out to-day bring a fair price can meet al
my obligations. was "long" about 1000 OO
/ rye, 5,000,G0O wheat and 900 corn and oats
Saturday member Of the board interested III
| breaking 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 mon
/ toned, finding the market bare of orders
forced the market down cents. This wa,
done In moment, and the news, flashed al
over the country, caused. CONSERVATION among
holders of rye contracts, many of whom solt
on a weak market, A decline of 1 cent IL
wheat, coupled with rumors rejecting on m.
strength resulted in unusually heavy CALL
for margins. I was for the moment unpre
pared. and the only alternative left was t,
close out. have no excuses to offer and n,
complaints to make.