The Washington times., 1905-04-24
GATES MAY HOLD
TRUMPS IN WHEAT
In a Position to Bother
MI. Armour.
CHANCE FOR COUP IN JULY
Packer Has Taken on Many Bushels
in Face Of Ideal Crop
Conditions.
CHANCE FOR COUP IN JULY

CHICAGO. April 24-The grand rush
to get out from under the May wheat
deal, engineered by the Gates party, con-
tinued its nerve-racaing course on the
Board of Trade this morning. That op-
ton opened at eS cents, a 2-cent break
frora Saturdays close. and, under the
stimulating influences of the shouters for
help, steadily bore away for the bot
tom, selling at s3A az 1899 o'clock, a
spread Of 5A cents for the hour.
In New York the break was SIS cents;
st. Louis and Duluth cents, and Min
neapoifs. cents.
Conditions were of the most panicky
sort. and it is figured that the Gates
campaign has cost its origfnators very
pretty. SUM of money. The deferred
| months, on the other hand. were held
fairly well in hand this morning, indicat-
ing that the Armour strength is behind
1t.
In the last fatal hours of the May
deal John w. Gates was forced to make
terms with Armour 20 minimize the
losses. 1t Is held by close observers
that Mr. CAFES is now in position to
make things highly interesting for MIR.
Armour and drive him to terms in the
| July deal
Long on July Wheat.
Armour is long on July wheat, just
how long no one but himself knows,
but within q week or two he has taken
on ten or twelve million bushels at an
average price of s739 cents. The price
now hoyers around this figure.
Crop conditions are ideal, and with no
setback a bumper crop will begin to
pour in before the end Of July. 1t is
believed that the supply of wheat will
drive the price to IS cents or lower.
All Of the Texas crop and the Kansas
hard winter wheat can be put into Chi
| cago before the end Of July. Other
| States in the southern tier viii con-
tribute largely to the supply. and there
| Is the hook upon which Mr.. Gates can
/ hang his proposition to Mr.. Armour to
walk up and make terms.
| 1t is supposed that Gates still has at
least 100000 bushels of May wheat.
II would be better TO sell this to Armour
at IS or 81 cents now than to hold It,
| pay elevator charges and insurance and
| take chances on a bumper crop and e
cents or less inside of thirteen weeks
| 1t Is held that the tables have been
! tniiiNO, anu tiieil IdttS - HOW III Il DUSi-
ton TO dictate the terms.
| Prospects for great wheat crop
were never brighter Weather condi-
/ tons have been perfect and dispatches
from Kentucky and States further
| south say the stand of winter wheat
| is superb. In the States further north
the plant is not far enough advanced to
be in danger of frost. Floods, rust and
blight are always perils, but The danger
| or Hoods is not nearly SO great as IL
was last season. This also eliminates
| much OF the danger of rust.
Public Kept Out.
One feature of the collapsed May cor
ner that seems to have escaped atten-
ticn is the fact that the public could
not break into the market and take q
hand. 1t has frequently been asked why
small! spectators did not take advan.
| tage of the top prices and sell short
Gates. with his millions of actual wflea1
| to deliver, would have welcomed this
promiscuous buying, and especially ir
the latter stages, for he could have de-
| ltvered the goods or demanded the ac
tuai wheat, as the case might have been
But the most potent reason was the
| total inability OF any one to trade II
| wheat. Commission houses, feeling Ger.
tain that the miliionaires back OF Gates
| would put the deal through, positively
refused TO take any wheat trades. They
| feared legal complications. for shorts
threatened to carry the matter into the
courts II they were squeezed too hard