Los Angeles herald., 1905-04-23
FRENz|ED SCENES
IN WHEAT PIT.
CHICAGO BROKERS FRANTIC
OVER SLUMP IN PRICES
MAY WHEAT DROPS II 1-2C.
Widest Scenes Ever Witnessed on the
Floor of Exchange-John w.
Gates Sold Heavily to
Save Himself
BY Associated Press.

BY Associated Press.
CHICAGO, April 22.-Wheat for May
delivery sold here yesterday at 99Rc
a bushel. a sheer decline of 111sc from
the closing quotations on Thursday,
the last previous session of the board
of trade.
Excitement seldom paralleled ac-
companied the sensational slump
The cause of the break was an ap-
parent abandonment of the supposed
gigantic effort of John w. Gates and
other Wall street operators today to
corner the trade in May wheat.
Today, as on Thursday, millions of
bushels of May wheat were thrown
on the market. AS a result the price
of the May option started downward
instantly when the gong sounded for
the beginning of business. The wild
downward plunge continued through
out the day, with the exception of
one or two slight rallies.
During the last moments of trading
one of the few upturns occurred and
the final figure was $1.00 d bushel.
Under active support from Armour
g. Co. the July option in wheat eX-
perienced only a small loss, the net
decline for the day being ssc. Corn,
oats and provisions were wholly un-
disturbed by the furry, closing prices
to-day DtlllS pidClTNetlly ltCAiIiNhl Ni'ii
the latest quotations of Thursday.
1t seemed to most traders to be
evident from the start that the Gates
coterie had withdrawn support from
May wheat. Opening quotations on
May We're off 1 to 2 cents, at $l.OS to
$1.09 July was shade lower to 40
nc higher, at S73sc to S7ssc. Within
five minutes May had sold down to
$1.O7
From all sides May wheat was Of
fered for sale, but the only buyers
appeared to be traders with special
lines to cover. Houses that have here
tofore been presumably operating for
the so-called Wall street crowd were
heavy sellers today from the outset
and as trading progressed the offer
ings from such quarters increased in
volume.
At the same time the July option
was in active demand from Armour.
This condition of affairs was coinci-
dent with a report that representa-
tives of Gates and Armour at secret
meeting had made a joint agreement to
liquidate May holdings and switch
into the July option, thus forming a
basis for a deal in July wheat by
means of which any possible loss from
the attempted squeeze" in May might
be offset.
With startling rapidity the price of
May kept IuHlDlllB HedulOilS, ElNlllB
hardly so much as breathing time to
the traders who had been caught on
the wrong side of the market.
Scenes in the pit were among the
widest ever witnessed on the floor
traders shouting themselves frantic In
an effort to make or break prices. The
lowest point of the day was reached
a few minutes before the close the
price touching 9S12c, clean drop of
11hc from Thursdays final quotations.
The clang of the bell for the close
of business, however, caught the mar
ket at the traditionally magic ideal,
81 a bushel.
While May was experiencing such a
downward whirl the price of later de-
liveries dropped only trifle, July SELL
ing off to S63sc. In addition to the
slump in May, predictions of rain
throughout the wheat belt had a weak
ening influence on the July option.
The close for July was firm at S6&@
S6sc.
General opinion tonight is to the eff
feet that Gates and his friends emerged
from the battle with little if any actual
loss. Gossip insists that they effected
an alliance with Armour and other
leading traders whereby the Gates |
party, while obliged summarily to
liquidate May wheat on an enormous
scale today, We're nevertheless pro-
tected by their prior operations and |
by their allies in both May and later
options. Another view of the situation,
according to some observers, is that
the new grouping of astute spectators,
including the redoubtable Gates has
cleared the road for a Still more gi- |
gantic corner in wheat for delivery |
during July. Tonight 1t was estimated
that five million bushels of the May de- |
livery were uNloaded here and at Min
neapolis.
The extraordinary developments I'm |
the wheat pit reduced trading In the !