Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-04-23
CLIMAX TO WHEATDEAL
DARING EFFORT OF GATES AND
ASSOCIATES ENDED IN SLUMP.

CHICAGO, April 22.-One of the most
celebrated deals ever known on the Chi
cago board of trade came to a climax to-
day y daring effort by John w Gates
and associates to control all of the wheat
available in America for delivery during
the month of May was apparently ended
today with wholesale sacrifice of pros
pectlve profits to escape possible huge
losses on existing investments.
Incidentally, the result was one of the
widest sessions ever witnessed in the
Chicago wheat pit. At one time prices
showed a loss of liz cents a bushel for
the day. the price of the option being
driven down in a sensational series of
rushes to 9S1a cents per bushel The clos
ing quotation was 81, as against $1.23 less
than six weeks ago.
General opinion tonight is to the effect
that Gates and his friends emerged from
the battle with but little, If any, actual
financial loss.
How Leaders Escaped Loss.
Gossip insists that they effected an al
lance with Armour and other leading
traders whereby the Gates party. while
obliged to summarily liquidate May
wheat on an enormous scale today, were,
nevertheless, fully protected through
prior and concurrent operations of the
allies in both May and later options. An
other view of the situation, according to
some Observers is that the new group
ing of astute spectators, including the
redoubtable Gates himself, has merely
cleared the decks for still more gigantic
corner in wheat delivery during July.
The idea is that the high price heretofore
prevailing for May wheat has induced
securing of the country by grain traders to
secure wheat to sell TO the bull leaders. BY
dropping the price 10 cents bushel today
the spectators, assumed to be in control,
In,- do oil hat nv
raked over for wheat to bring here, they
mean to buy it at a figure of their own
making. The rushing of the price down to-
day, it is argued, was more drastic action
than was for the moment at least, required
by the Gates and Armour interests, the re-
suit being that they accordingly jumped the
price back to 81 per bushel.
How Gates Figured.
The Gates, it is said, had figured that
the movement of wheat to market would
be practically exhausted before the month
OF May arrived. The factor that is alleged
to have caused them to give up the deal
was the steadiness with which heavy ship
ments from the interior continued-this and
the disappointing long drawn-out dullness
of the flour demand and the apparent I'M
concern of the millers.
Scenes attending today's startling decline
We're such as are seldom witnessed In the
world s greatest wheat pit Almost frenZied
in anxiety, the traders in the pit awaiting
! the opening of the bell huddled like steers
about to stampede.
The sound of the big bell was the signal
for mighty of voices, a din possibly
never before equaled, according to men who
were present at the stormy sessions that
marked the most exciting periods in the IA
nous Letter and Harper deals. Clothing was
torn, hats smashed and bodies bruised in
the frantic efforts of the traders to sell the
grain. Shorts had apparently completely
covered and longs, little and large. hurled
their grain at the hands that were closed
against it. Nobody seemed to want May
wheat above dollar.
Wild Roar in the Pit.
When $1,000 was reached the wild roar
that marked the opening was doubled in
volume. But while the nearby option was
plunging downward, there was a steady
T, buying movement going on in the July.
Brokers presumably working for Armour
and his associates, whether including Gates
or not, were taking on liberal lots of the
later option. In one hour alone 1t was esti-
ma ted that these brokers had bought more
than 100000 bushels.
This buying of July prompted frightened
shorts to cover, they believing the Gates
forces and the Armour crowd had COM
bined to bull the month at the expense of
the hard hammered May. Tonight 1t was
estima ted that 5000, GOO bushels of the May
delivery were unloaded here and at Mime
apolis.
Closing at Minneapolis.
MINNEAPOLIS. Mimi. April 22-Close:
Wheat-May, 977sc; July, 957sc.; September.
s3c. No. 1 hard, $l.02B; No. 1 northern.
$l.O07s; No. northern, 95Nc. Flour-First
patents, $.25a5.35; second patents s5O5a
6.15 first clears, Si.25a4.35; second clears
81 S5a29O. Bran, in bulk $12 so