The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1902-01-16
AGAIN HIT HARD
GEORGE RI. PHILLIPS, FORMER
"coRN KING" FORCED TO
CLOSE OPEN DEALS.
SAID TO BE "LONG" ON RYE
Diq Break in That Cereal Resulted in a
Heavy Call for Extra Margins Which
Phillips Was Unable to Meet-In.
Simultaneous Drop of Cent or More
in the Price of Wheat, Corn, Oats
and Rye.

in the Price of Wheat, Corn, Oats
and Rye.
Chicago, Jan. ia notice was
posted at the opening of the board of
trade calling for the closing of all
open deals with George H. Phillips.
the former corn king"
A heavy call for extra margins ID
said to have been the cause for the
posting of the notice. The call was
made Monday afternoon and Phillips
and bis staff worked all night over the
firms books. The trouble is said to
have been due to 81 cent break in
rye Monday. Phillips is credited with
holding line of 100000 bushels,
mostly in May options. The break was
caused by sale of only $4,000 bush.
els. Phillips is said to have on his
books also from 100000 to 100000
bushels of May wheat and about 3,O00,-
900 bushels of May corn.
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
Monday at 66A cents, opened with
sales from 81 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 IS cents.
The effect of the notice posted by
Secretary Stone was instantaneous, the
whole list opening off sharply. Wheat
opened 1 to 1 IL cents lower; corn, "
to 1 cent 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 financial condition.
Says Phillips Is "Broke."
Later Jacob Ringer, attorney for Mr..
Phillips, gave out 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."
H. Hubert, 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,
grain for the most part belonging to
customers.
Mr.. Phillips gave out statement, in
part as follows:
THE amount involved in my trouble
is about 100000. My customers had
their trades we'll margined, and if the
trades closed out bring fair price l
can meet all my obligations. l was
long about 10000 bushels of rye,
100000 bushels of wheat and 100000
bushels of 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 naturally caused
selling orders Monday, and the repre-
sentative of the member mentioned,
finding the market bare of orders,
forced the market down 8 cents. This
was done in moment, and the news
flashed all over the country, caused
CONSERVATION among holders of rye
contracts, many of whom sold on a
weak market. A decline of 1 cent in
wheat, coupled with rumors rejecting
on my strength, resulted in unusually
heavy calls for margins. I was for the
moment unprepared and the only al
tentative left was to close out. have
no excuses to offer and no complaints
to make"