Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1905-05-17

100000. II the remaining $4,000, O0(
bushels are marketed as we'll, which
Is far from likely, the loss would fig
ure $2,OOO,OOO.
Side Lights on Deal.
Many sidelights probably will b,
thrown on the big deal by the devel
opments of the near future. It MAJ
transpire that the May wheat nominal
ly owned by the Pillsbury compan,
at Minneapolis. by Thomson at Duluth
and by c. H. Spencer at st. Louis wal
In reality for the Gates party, ant
that the deal in contemplation was a.
comprehensive as the great marke
centers.
In such event the losses centered or
Gates and his following probably will
be much greater in speculative way
as there were large speculative MAY
holdings in all of these markets. ant
all have recently suffered nearly al
much as Chicago. It may transpire
also that the holdings in these larger
cities have been dumped on Gates
in Chicago, or that Gates. in his at
tempt to liquidate here. has caught
these outside holders mapping.
Chief losses in the Chicago Local
trade fell on wealthy spectators and
| their followers, who had assumed that
the Gates deal would be carried
through and the shorts be made to set
tie at fancy prices. Other losses to
commission houses are in prospective
and will fall on those houses that
transacted the business of the high
rollers who followed Gates.
1t is claimed that the retirement
on May l of Walter Comstock, one
of the houses handling much of the
Gates business, was entirely due to
the illness of the active partner. The
same claim was made for Theron LO
gan, who retires from the firm of 10
gan & Bryan, which also did consid
cradle business from time to time fol-
Gates. though not classified as a clique
house.
Story Of Wreck and Ruin.
The history of corners" in both
wheat and corn is one of wreck and
disaster. Some corners" in commO.
dities, it is true, have gone through
successfully, but all the great ones
have cost those who engineered them
dear in the end.
Jim" Keene, who had taken some
SIS, 100000 to New York from the Pa
cific coast in the early '70s and added
some millions thereto in Wall street,
was one Of the first of the big op-
orators to learn something from the
Chicago market. In partnership with
Jesse Hoyt, in 1879, he attempted to
tie up the wheat market in America.
on the prospect of crop shortage IN
Europe.
For a year Keene and Hoyt had the
market at their mercy. Prices jump
ed from 81 to $3.50, and when the
latter price was reached Keene want.
ed to close out. But they held on,
and in the last of the following May
the corner broke. There was a loss
of $6,0O0,OOO, which for time sent
Mr.. Keene out of the market.
In June, 1887, the memorable Gin.
cinnati combination to corner wheat,
led by Edward l.. Harper, developed
prices. Prices were advanced from
so 5-S cents to 90A cents, but the mar.
ket collapsed, the price declining to
65 cents. In the Harper deal margin
calls were responded to slowly during
the closing days. When the crash
came margins were at a minimum,
and the break in prices swept seven
teen large and influential firms out
of existence and seriously crippled
many more.
Then, as now, few suspected that
the line of wheat owned was as large
as it finally developed Extended
short selling throughout one line Of
commission houses Offset the effect
in the market of the scattered lines
of long wheat held through many 9th.
ers, and there were frequent shifts
of the holdings to cover the deal up.
Claims have since been made that
Harper was acting for wealthy prin.
cipals, who finally abandoned him,
selling short through other houses,
from whom they collected their pro-
fits, and leaving Harper with looted
national bank and a penitentiary sen.
tence.
"OId Hutch" a Victim.
B. P. Hutchinson, "Old Hutch" one
of the shrewdest members of the Chi.
cago board of trade, saw badly dam.
aged crop of wheat ahead in 1888,
with little reserve Before his plan
was suspected he had cornered Sep.
TENDER wheat, forcing the price up to
50. On the last day of September
the highest price was reached, and
the following day it broke to $1.O2.
The next day, however, it rallied 10
$1.20, and "Old Hutch" then could
have gotten out at profit, but he
tried to "whipsaw" the market by sell.
ing December wheat short. When he
tried to cover he found himself a
financial wreck.
S. V. C"Deacon") White, of New
York stock exchange, saw great OPP
portunity in corn in 1891. He pur.
chased 100000 in options and cash
deliveries, but just when it appeared
the available supply had been corner
ed and prices were soaring 100000
bushels of September ap-
peared and broke the corner, with
losses of millions.
The Spectator Letter corner in
wheat, in many respects the most
celebrated of all corners, ended in dis.
aster, because Joseph Letter was I'm
able to stop when he had won. Jos.
eph Letter, then 20 years old, backed
by the millions of his father, the late
Levi Y. Letter, started to corner the
market in April. 1897. He accumulat-
ed 100000 bushels of cash wheat,
stored in the elevators of the north.
west, and had options and futures that
brought his holdings up to 100000
bushels. For Is months he ruled the
until his pape, profits were
estimated at $4,5OO,O00.
f,< h. L. u T.. y.