Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1905-04-24
The Yates Corner Broken
at Great Loss.
Drop Of II IL Cents Per BusheI
in Chicago Market.
Millions Change Hands in Course OF
the Great Deal.

Chicago, April 23.-One of the most
extensive deals ever known on the chi
Caso board of trade came to Il Climax
Saturday. A daring effort by John W.
Gates and associates to control all OF
the wheat available i'm America for de-
livery during the month of May was
apparently ended, Saturday with a
wholesale sacrifice of prospective
profits to escape huge losses on exist
ing investments.
incidentally the result was one OF
the widest sessions ever witnessed in
the Chicago wheat pit. AT no time
Irices showed loss of II 1ac Il bushel
for the day. the price of the option be
ing driven down in a sensational Sc
lies of rushes to 9Siac per Dushel. The
closing quotation was 81, as against
Si.23 less than six weeks ago.
General opinion is to the effect that
Gates and his friends emerged from
financial loss.
Gossip insists that they effected an
alliance with Armour and other leading
traders whe reby the Gates party. while
obliged to summarily liquidate May
wheat on an enormous scale, Saturday,
were nevertheless, fully protected
through prior and concurrent opera
tons of the allies in both May and
later options.
Another view of the situation. ac-
cording to some observers. is that the
new grouping of astute spectators. in
Guiding Gates himself. has merely
oil still ri
gantic corner in wheat delivery during
July. The idea is that the high price
heretofore prevailing for May Wheat
has induced a securing of the country
by grain traders to secure wheat to
sell to the bull leaders.
BY dropping the price 10 cents a
buShei the spectators assumed to be
in control have made it clear that if
the country is raked over for wheat to
bring here they mean to buy it at a
figure of their own making. The rush.
ing of the price down. 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 BUSH
ell
The Gates party. it is said, had fig
ured that the movement of wheat to
market would be practically exhaust
ed 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 uncOncern of the millers.
Scenes attending Saturdays start
ling decline were such as seldom are
Witnessed in the worlds greatest wheat
pit. Almost frenZied in anxiety, the
traders i'll the pit awaiting the opening
bell huddled like steers about to
stampede.
The sound of the big bell was the
signal for Il mighty roar of voices,
din possibly never before equaled. ac-
cordng to men who were present at
the stormy sessions that marked the
most exciting periods in the famour
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 ana longs, nttle anu
large. hurled their grain at the hands
that were closed against it. Nobody
seemed to want May wheat above 81.
When 81 was reached the wild roar
that marked the opening was doubled
in volume. But while the nearby OPP
tion was plunging downward there
was steady buying movement going
on i'm the July.
Brokers. presumably working for Ar
mour ard his associates, whether in
Guiding Gates or not. were takiAg on
liberal lots of the later option. In one
hour alone it was estimated that these
brokers had bought more than $780,
900 bushels.
This buying of July prompted
frightened shorts to cover. they be-
licving that the Gates and Armour
crowds had combined to bull the
month at the expense of the hard
hammered May. BY night it was esti-
nlrted that 5000. 900 bushels of the May
delivery We're unloaded here and at