The Birmingham age-herald., 1905-04-23
May Wheat Deal Spectacular.

The May wheat deal promises to become spectacular. The play is on the Chicago
 board of trade, but the performers are scattered all over the country. The deal is being conducted under the manage ment of John w. Gates on behalf of him self and a number of very rich men, most of them westerners, but at the present time living in New York MT. Gates has command of all the money that may be needed. and as the shorts are also rich men, there is material for big fireworks. The Gates party has about 22,000,000 bushels of wheat bought for May delivery in Chicago. They control all the cash wheat in St. Louis and in Minneapolis and have made close can vass of available supplies in country ele- vators contributory to the Windy City. They have figured 1t out that they will not have to take and pay for more than 2,500,0 GOO bushels of No. ? wheat in addi- tion to the small stock of about 1,500 GOO qbushels nov in she Chicago elevators. This would make in the aggregate about 100000 bushels of cash property to take and pay for at the end of May.
 Assuming that the short interest will not be diminished to any extent, 1t would appear that the clique has 1t in it's power to squeeze the wind sellers to the extent of 17,000000 or l8000,000 bushels. The wheat bought by the clique Is understood
 to stand between $1.05 and $1 10. or only
 a few points below the ruling quota tions. As there are yet nearly six weeks
 before the maturity of the May contracts, it would obviously not be to the interest
 of the pool to pu. up prices to an extrav-
 agant point at this period as they would
 only be inviting the delivery of cash grain prematurely and putting themselves to the necessity of taking care of it. The bull programme Is understood to be
 to put the May wheat up to s1.25 or $13O
 few days before the end of May and give the shorts a chance tc come in at
 that price Those who want to make set
 clement will be allowed to do so, but if
 the shorts hold out the price will be
 showed to $1.5O or $1.75, or even higher,
 S2 being frequeitly mentioned as a pos siiblity.
 The three largest shorts are said to bs | N B. Ream of this city. formerly a star player on the Chicago board of trade; Ed Lichtenstein and Armour & Co. In | addition to these may be mentioned every l elevator man of consequence in the west and not few chronic grain bears Of the New York produce exchange Spencer of St. Louis is an ally of the clique and
 working in harmony with 1t, although not a member. He Is running an fndt-
 vidual deal in St Louis and has thor
 ough understanding with MT. Gates. The
 northwestern millers are scarce of wheat
 and are willing to do what they can to keep whatever spring wheat there is in | their section at home. Mir. Ream has
 made a number of killings fighting cor ners. Armour &s Co. are usually arrayed
 on the bull side of wheat speculation, but being in the elevator business they took | the other side on this occasion and sold | great quantities short against possible
 receipts. Lichtenstein made s2'O0QOOo in the bucket shop business and was taken l into membership on the Chicago board or 1 trade as the best means of making him | good. He has since cleaned up another
 g, ,000, 900. and before going abroad cou- pie of months ago deposited sS,oOoOoo In cash with Armour &sCo. to margin short sales of May wheat. He and MT. Ream are supposed to be short 5'Oo0-WO bushels | between them. They stand to get well pinched and stand to lose 70 cents a bushel or more.
 Bigger deals have been run on the Chi- | cago board of trade. but few have been | as substantially backed as this one is' | Should the deal prove an utter failure | the clique may lose s6.000OOO or ss.Wo'Wp- a sacrifice which could he met py the players without the siiRhtsst inena's-