Fergus County argus. [volume] (Lewistown, Mont.) 1886-1946, 1905-05-17
JOHN w. GATES
WHEATC0RNER
HOW IT WAS STARTED AND HOW
IT CAME TO
SMASH.

John w. Gates has met the fate Of
the illustrious line of predecessors
who have tried to corner wheat. The
Gates corner went to smash in Chi
cago recently. Gates, the erstwhile
invincible gambler in the realms Of
high finance. is invincible no longer
A kings ransom would look like 9
beggarly pittance alongside the losses
he meets through going against the
Chicago wheat crowd.
1t is the first serious reverse in the
meteoric speculative career of Mr.
Gates, who stepped forth from thu
suddenly achieved fame of a grea
organizer and captain of industry &
few years ago to startle the financia
world with his exploits in the stool
market. He went from Chicago ant
rugged markets that relieved the wise
men of Wall street of millions, and
he returned whence he emanated to
meet defeat at the wheat game.
Keene, "Old Hutcn, Deacon
White. Letter. and now Gates, have
contributed to the symposium that
records the disaster that comes to
those who seek to corner the staples
of life. The man who Is shrewd
enough to come out winner has yet
to try the game. 1t has proved too
much even for Gates luck, which had
come to the proverbial in everything
from draw poker to railroads.
Big 6eak In Price.
May wheat broke 11h cents on
April % and the days close found
the Gates holdings turned over to the
Armours for liquidation, and the TO-
tund manipulation out Of pocket there.
on something like $2,5O0,OOO.
That represented only a part of
his prospective losses, however, for
Gates was 'long" on several millions
OF bushels still to be delivered, pur-
chased when the price was way above
$1.1O per bushel. This line would
make more than enough bread to sup
ply the wants of Gates and his friends
OF the bull clique if they lived for
several centuries to come, and the
only thing he can do with it will be
sell 1t to the millers for what they
will give.
1t is more than probable that the
millers, who have been plucked by
the last eight months by the big
wheat gambler, will exact good round
penalty from Gates, for there is a
magnificent crop of new wheat hard
by. according to promise, and the -four
trade is not rushing enough to force
them to hurry about buying.
Gates Learns Geography.
1t Is Mr.. Gates reputation that he
plays all games we'll. He has been
taught few things in the Chicago
grain market, the main point being
that no matter how big and bright
an American citizen may be, he is
still not as large and bright as his
own great country. The relative pro-
portions of the two have reversed
since Mr.. Gates began his wheat deal
last fall. At that time Chicago look
ed like little annex to New York,
while Minneapolis, st. Louis and Kan
sas City looked like little hamlets or
wide places in the roadway. They all
look larger now, and Mr. Gates bank
account has shrunk correspondence.
The price that Mr.. Gates lieuten-
ants fixed for May wheat in the Chi
cago market made it conspicuous
target at which to direct the product
of the United States, and was just
barely below the point at which it
would become the target of the world.
1t was an impossible position, and the
target was speedily shot SO full of
holes that 1t was turned over to more
manipulators for atten-
ton. These have since been active
ly at work disposing OF the tattered
Visions Of Big Rake OF.
AS long as the wheat deal was
strictly gambling proposition the
Gates contingent did we'll. His man.
ayers figured that the other gamblers
could play the game as long as they
liked, but that when delivery day
drew near they would have to walk
up to the captains Office and settle
with a gambler greater than they and
at figures of his own making. 1t was
at this point that Mr. Gates discov-
cred that there was more of his coun-
try than could be seen from the OBJ
servatory of his private car. Stimuli
he made the discovery that
he was not dealing with gamblers, but
with merchants who promptly recog-
niZed good market when they saw
It.
The small gamblers who had at.
tempted to stand between the great
gambler and the great merchant were
ground to powder in the
clash. The little hamlets and the
wide spots in the roadway-the mar
row ones as well-began pouring
wheat into the Chicago market for
May delivery in trucking rills and
larger rivulets until it seemed the
food never would let up. Bravely the
price stood up and bravely the great
general went down into his pocket for
the same.
Day after day and night after night
the farmer and the miller sat up and
polished and hand picked their wheat
to make it acceptable to the great
benefactor. Playing the latter role
was a trifle new to Mr.. Gates, and it
began to grow tiresome. He effected
deal with President Valentine of
the Armour Grain company whereby
the whole business could be taken of
his hands.
Great Slaughter Begins.
The terms might have been trifle
hard, but the necessity was great,