The Grenada sentinel. [volume] (Grenada, Miss.) 1868-1955, 1902-01-18
OFT THE FINANCIAL SLATE.
Phillips the Erstwhile "Corn King"
of Chicago, Is Again Com
PEELED to Abdicate.
HIS ATTORNEY DECLARES He is BROKE,
men whom He WOrsted in Former
Deals Went After Him and Got
Him-Ca1ied On for Heavy Mar
gins ON Trades and Couldn't Make
Good.

Chicago, Jan. IA notice was
posted at the opening of the board
of trade, Tuesday, calling for the
closing of all open deals with George
IL. 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 Monday afternoon, and Phil
lips and his staff worked all night
over the firms books. The trouble is
said to have been due to a 49, cent
break in rye Monday. Phillips is
credited with holding Il line of $780,
900 bushels of this cereal, mostly in
May options. The break, Monday,
was caused by a sab 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.
Negotiations Fell Through.
phillips opened negotiations with
elevator men before the opening of
the board in an endeavor to dispose
of his rye outside the pit. The nego-
tiations fell through and May rye,
which closed Monday at 66A, opened
with sales from 81 to so. The whole
Phillips line was dumped into the
market. Brokers acting for Armour
& Co., however, bought nearly all of
1t and the market in consequence raj
lied sharply to IS.
An instantaneous Eject.
The effect of the notice posted by
Secretary Stone was instantaneous,
the whole list opening off sharply.
Wheat opened to 1h cents lower,
corr "a to 1 cent down, and oats
nearly a cent depressed. Mr.. Phil
lips 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.
H. Hubert, Phillips Office man.
ager, declared that it was the sud-
denness of the call for the extra ten
per cent. margins which had embar-
raised Mr.. Phillips. He stated that
Phillips had traded but little on his
own account, the grain for the most
part belonging to customers.
on the Financial Slate.
Later, Jacob Ringer, attorney for
Mr.. Phillips, gave out a statement
saving that his client had been prac'
tically 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."
Mr.. Phillips Statement.
Mr.. Phillips gave out a statement
in part as follows: "The amount in
volved in my trouble of to-day is
about 100000. My customers hat
their trades well margined, and if the
trades closed out to-day bring a fail
price l can meet all my obligations
/ was long about 100000 rye, 5,
GOO. 900 wheat and 0 10000 corn ant
oats. Saturday a member of the
board interested in breaking the rye
market sent notices calling for al
extra margin of ten per cen on rye
This naturally caused selling order:
Monday and the representative of Thu
member mentioned, finding the mar
! ket bare Of orders, forced the mar
ket down three cents. This was dom
, in a moment, and the news flashed
all over the country caused conster
nation among holders of rye contracts
! many of whom sold on a weak mar
, ket. A decline of one cent in wheat
: coupled with rumors rejecting on m,
: strength, resulted in unusually heav,
: calls for margins. 1 was for thu
moment unprepared and the only al
: Tentative left vas to close out.
have no excuse to offer and no com
plants to make"