The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-04-23
BIG BREAK IN NAY WHEAT.
COLLAPSE or THE LONG DRAWN
OUT GATES DEAL.


House Chef Of the Near Forces.
CHICAGO, April 32.-There was a Sensa-
tional decline In May wheat on the Board
Of Trade to-day, and just before the close
the price broke TO es1< cents, III cents
under yesterdays closing All doubt that
this was the final collapse Of the long drawn
out Gates May deal was dispelled by this
last savage drive, which put the price well
under the 81 mark. There was q little
rally on last trades, and the closing quota
ton was 81, or an even break Of 10 cents
for the day Most Of the 5000, 900 bushels
OF wheat hquidated in the break Of cents
last Thursday was under that figure. All
Of the sales to-day from 500 down TO osT
cents represented losses Of from cents
TO i5H cents a bushel.
Early this week, when John ". Gates
was forced to leave the oity by the death
OF his father, II appeared that the entire
deal had been turned over TO the manage
ment Of the Armour Valentine house After
the close to-day, when the action Of the
market was surveyed by the best judges In
the trade, they were ready 10 ooncede that
the losses on the entire bull campaign In
May wheat must foot up In the millions
IN addition 10 the direct Losses on the selling
out Of the wheat, there Ia an enormous
expense bill 70 be footed by the Wall Street
leader.
The feet were cut from under the holders
OF May wheat at the opening this morning
and with such a bold sweep that IL took
away the breath Of the speculative traders
and left many people who were expecting
TO get out Of May at high figure 10 founder
along and sell their property as best they
| could on a sinking market
The herceness Of the attack on May
can be judged from the action Of the price,
which was at Sll0 at the close on Thursday.
II opened at Sl.o9 and 81 .0s this morning,
sold at Sl.07 in the same breath, hada quick
rebound to 1851 and then started on the
1oboggan, which landed the price at Si.O2K
before midday.
Pit experts declare that from 700 900
to 100000 bushels Of May wheat lines
were thrown on the market In two hours
this morning. The Logan house alone
sold 100000 bushels on the decline, The
Gates clique brokers sold all they could
at all stages Of the game to anybody and
everybody who would buy.
1t did not look like desperate selling, but
a determined effort to let go Of the wheat
TO the best advantage possible on a market
which had no foundation for May contracts.
When the May. prices reached Sos there
was buying OF perhaps 10000 bushels
Of wheat by S. II. Woodbury. a Co., the
Gates brokers, as II to check the rapid
decline. After the price had dropped 10
u OK II recovered a little 70 81 .os.
The feature Of the selling this morning
was that all the big cash houses. the j,
Rosenbaum Grain Company, Nye-Jenks and
other large concerns, which appea red to be
loaded with cash wheat to dump into the
Gates deal at fancy figures, found the market
going away from them and proceeded to
unload, adding to the wheat on the deolin-
ing market. Heavy buying Of July wheat
for a few days past and the fear Of foreign
political complications held the market in
check on that month, which at the low point
was only one cent under the previous close.
This deal, engineered by John w. Gates
and others in Wall Street, began last fall,
when the blight Of black rust struck the
spring wheat States Of the Northwest and
made Il appear that there was to be q radical
shortage In the wheat supply Of the country.
Prices had a sensational advance week
after week until the elimination Of the adj
vance two months ago at N.2lH. Since
that time the May price has fiuctuAted
between si.i3 and N.ls, with commission
people warning their customers 10 keep out
Of the deal.
Frequent interviews with John w. Gates
and some OF his assistants conveyed the
impression that the price would surely 60
70 81 so. or possibly $3.50, in final squeeze
Of the big short sellers, This 1t was that
induced 30 many speculaton here and
elsewhere TO Join the bull side with the
expectation Of making big money when the
final squeeze OF the shorts came. This
also induced powerful cash grain concerns
10 accumulate all the contract wheat
possible and keep Il somewhat under cover
ready for sale and delivery on the May
contracts when the price reached fancy
figures. These speculative tailers and
these cash people alike we're caught in the
fierce break Of the market to-day, and had
70 get out in most cases with severe losses
instead Of the expected big profits.
Associated with John ". Gates in the
bull campaign we're Isaac l.. Elwood Daniel
@. Reid, Charles NJ. Schwab, @. w. Spencer
(the st, Louis leader, A. D. Thompson
1.-THE Duluth leader. Henry L. little OF the
great Pillsbury Milling interests at Mime
apolis, Robert Pringle, John Sickel and
other local leaders in Chicago.
1t has been acknowledged throughout the
deal that the chief Of the bear forces was
the ACKNOWLEDGEMENTS house. The Pea
vey Grain Company. Harris-Sootten, Rosen-
baum Grain Company. Nye-Jenks and other
strong local interests we're arrayed on the
bear side.
AS the deal stands to-day, probably In
final collapse, II looks like a heavy loss for
the bull operators. 1t has been figured
that the 10000 900 bushels Of wheat at one
time held by the Gates and allied interests
cost something like an average Of til4 q
bushel.