The Mena weekly star., 1911-06-08
WHEAT SPECTATOR
CAUGHT SHORT
LsHyon Could Not Deliver 2O5,OOO
Bushels Called for in Chicago
Refuses TO State. What
He Will Lose.

st. Louis, May 1.-THE Lanyor
deal in May wheat ended yesterday
and William Lanyon is the posses
sor of half a million bushels, for
which he paid about half a million
dollars. This grain is stored in ell
evalors, and tho amount which
Lanyon stands to lose or gain de-
ponds upon what he can get for it
either by delivering it on contracts
in July or September, or selling il
TO consumers. Experts say he will
be lucky if he gets off with $780,
600 loss.
The closing price was 81 cents a
bushel, which was steady with the
close on Monday. Early in the day
the price advanced to 9i1a cents
but this gain was lost later, and
rarely in the history of the ex-
change has there been less show
of squeezing" shorts in an expir-
ing grain option.
Crops Look Good.
Early in the day Lanyon was on
the floor watching the blackbOards
and giving instructions to his brok-
ers. Traders here took q pessimis-
tic view of the Lanyon prospects
of getting rid of his wheat. The ex-
cellent crop outlook will initiate
against high prices, and the knowl-
edge that a long line of spot"
wheat hangs over the market will
make bulls chary of buying the
nearby options.
Lanyon, of course, is supposed to
have "hedged'' all his cash grain
with sales of July, so that he can
tell exactly what he will lose on
his transactions. But if it is de-
livered on that option, there is
likelihood of its being carried still
further into September, owing to
the stagnant condition Of the wheat
market. Brokers affiliated with
Lanyon say his purchases were not
in the nature of speculation, but
were made as an investment, as he
believes in the value and wishes to
dispose of the grain at an advance.
Developments went against the in
vestment, but the deal was reg
ular and legitimate one.
Some Big Winners.
Several traders here finished with
much more flying colors than Lam
yon. Chief among these was Dan
Miller, who has been consistent
bear for months, and is thought to
have made $4,000. Miller has dealt
more heavily in futures on this
market than any other trader dur
ing the recent options. Ralph Pen
dleton, an elevator owner, who
shipped $4,000 bushels of hard
wheat to Chicago last week, is
thought to have netted from 5 to
cents a bushel on his venture. f.
B. Price, another bear, is said to
have been big winner.
Lanyon lives at 4440 Lindell bou-
levard. He made his fortune in
the zinc and smelling business in
Kansas, chiefly in the Pittsburg dis
trict. His son Robert, Yale man,
married Miss Alice Lillian Ward, an
actress, three months ago. Lanyon
is not OF the spectacular type OF
speculator or plunger. Although
asked for his photograph by every
st. Louis newspaper, he has re-
peatedly refused to give it. Yes
terday in the grain pit, when he
observed that newspaper artists
were making sketches of him, ne
fled to a private room in the Mer-
chants Exchange.
Where LanyOn Lost.
Chicago, June All trades II
May wheat were settled on the af-
tefnoon delivery, except 2O5,OOC
bushels, which were defaulted OF
by Bennett & Co.. for William E
Lanyon, the st. Louis millionaire
who has been short wheat IN Chi
cago and long in st. Louis.
This default tied up some OF tn
other trades. James +. Bennett
head of Bennett & Co., stated tina
he had no alternative but to de-
fault on the instructions OF hi
client. Liberal margins are under
stood to have been called on the de-
faulting customer.
For some time st. Louis report
have reached here that Lanyon wa
TO deluge the Chicago market Will
wheat from St. Louis. One OF tn
most sensational of the reports wa
that Lanyon was going to break TN
corner here in the same way ina
Armour broke the Letter deal, an
that 1000 cars of wheat would D
delivered in Chicago.
Only Delivered 100000 Bushels.
An attempt was made to get som
of the wheat to Chicago, but II J
doubtful whether more than iOO,oo
bushels was brought here. Agent
of the st. Louis trader were SAID
have been trying to expedite IN
movements Of the grain into locs
elevators.
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