The Detroit times., 1909-04-16
Of FLOUR
MAY GO TO $40
PER BARREL
Chicago Managers Of Milling Com
panies See No Relief From Present
Situation Due To Shortage in
the Worlds Supply.
pstten Sells May Wheat Freely and
Price of Options Dips
To 126 "a.

CHICAGO, April 1e.--James A.
Patten, the wheat speculator,
when shown the statement made
by Secretary OF Agriculture VIII
son that the present wheat sltua-
ton was due to manipulation and
speculation, said the govern
msnt's agents are not informed
obout grain and Wilson's state
mont 10 a farce. Patten said be-
fore many months there will be a
bread famine In England, France
and Germany. These countries
he said, need 10000, 900 bushels Of
wheat weekly and cannot Get II.
CHICAGO, April 16.-James A. Pat
ten, the wheat king" sold May wheat
freely during the morning and his OF
ferings were gobbled up eagerly at
first on the theory that he was about
TO start combined raid and shake
out Later. however. the market
weakened. dipping to 125 "a and then
recovering to 126, around which ngure
It remained during the morning. July
and September were also weak. Corn
and oats were strong.
According to the Chicago managers
Of the washburn-Grosby Co., the Pills
-Washburp Co. and the North
western Consolidated Milling Co..
which operate what are declared to
be the largest mills In the United
States and practically Ak the price OF
hour, there Is no relief in sight from
present conditions. They say there Is
every indication that the price OF -four
will continue to soar and may reach
$40 a barrel.
The managers OF the milling COM
panies deny there Is any combination
TO increase prices or to control busi-
ness. G. w. Dilworth, Chicago, man
ager OF the Washburn-Crosby Co, In
an interview today, said;
1T Is not the speculation In wheat
that Is Affecting -four at this time. The
price for wheat will be stiff all through
the summer. The United States has
crown a larger crop than a year ago.
but the worlds supply is short. There
Is q wheat, -four and bread famine In
Mexico. The price of Argentine wheat
Is 3l.25 and Of Canadian wheat $1.27.
Argentine shipments to Liverpool have
been abort and this has increased the
Liverpool demand for American ship
ments 4----e-.--
The result of this situation Ia APP
parent. 1t may sound strange to some
persons, but selling -four at 81 q bar
rel at present 10 selling below cost
IL requires five bushels Of wheat to
make barrel. Taken at $1.29 BUSH
ell the wheat In each barrel OF -four
costs $6.45. Add to that Sl.05 for sacks
or wood basins. freight. storage, de-
livery and selling and carrying ac-
counts. and II would bring the actual
cost of barrel OF -four up to $3.50.
The reason why we are now sell
ing at 81, below cost, Is that We were
not prepared for such rapid jumps
and could not prepare customers for
them.
1T IL difficult to say just what will
happen. II would not even venture
to say that there may not be wheat
and -four famine In the United States
when | look around at the condition
In the rest OF the world
Following the revelations that Jas.
A. Patten has been the recipient OF
hundreds OF threatening letters, II be-
came known that he has employed
body guard to be near him at all
hours OF the day and night to prevent
violence should any be offered.
The present wheat deal which has
pushed Patten into the limelight. has
also served to arouse cranks and per-
sons OF anarchistic tendencies all over
the country, with the result that many
fear Patterns life may be In danger.
Three men. Negro and two while
men, are constantly within call Of the
grain king and he never rides In his
automobile alone.
In the meantime the prospect or
congressional action directed at the
present wheat situation. combined
with the fact that wheat slumped SO
violently at the close yesterday. Gre
ated nervous feeling In the pit when
II opened today. The situation is re-
garded as critical by brokers. Some
believe yesterdays break presages the
final dissolution OF the Patterns So
called corner" while traders with
Gull tendencies declare II was only a
temporary setback occasioned by
oyerplaying OF the market by shorts.