The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-07-12
CRASH FOLLOWS
PtUNGEs IN PIT"
James Petit Kills Himself After
Losing Over Million on Wheat
and Oats.


In the wheat and oats pits that culm'
mated in shortage OF nearly aseoo''
900 and In the tragic death OF James
Petit in the lake at Highland Park.
Revelation Of the extent to which Mr.
Petit. president and general manager
OF the Peavey Grain company was
involved with four Chicago banks ana
with his hackers. the Peavey interests
OF Minneapolis. lessened the force OF
denials that Mr.. Pettit's death was q
suicide.
The shortage In the grain company's
Affairs Ia not yet absolutely determin-
ed. The figures given by +. H. Peavey
q Co.. the parent company OF Mime
apolis, $1,O00.000. are considered
small. Local estimates run far above
that. II Is probable that the final
audit will show the shortage at nearly
half as much more.
Pettit's insurance II said to aggre-
gate $4,000 Of life and $4,000 OF &C
cident Insurance. II 10 believed the
accident companies viii contest pay.
ment.
Turn Assets Over 20 5ankH
It Il expected that r. II. Peavey 4
Co. viii turn over to committee OF
Chicago and Minneapolis bankers as
sets sufficient for protection OF the
81. 400. 900 Of outstanding commercial
paper. This viii be determined ut =
subsequent meeting OF the banking
creditors.
Participating in the loss are four
Chicago banks. the First National, the
Corn Exchange. the National City, and
the Bank Of Montreafs Chicago
branch. In addition. there IL consid-
cradle outstanding among other bank
ing institutions. commission houses.
and outside banks. The company's
paper was scattered over dozens OF
cities.
The local banks have named COM
mittee to clear up the business OF the
concern. made up of H. e. Otte and
Frank o. Wetmore. vicb-presidents
respectively Of the National City and
First National banks. and ]. M. Greeta,
Chicago manager OF the Bank Of Mont
real.
outaeneraisd by Pit Operators.
II now appears that from his en-
trance into the heavy dealing on the
board OF trade Mr.. Petit was outplay.
ed and outgeneraled by shrewd oper-
ators, far his interiors In his own field
OF administration. but SO clearly his
masters In the perilous strategy OF
the pit that there could be but one
end TO the fight.
When Petit bought, relying on his
long experience I'm other branches of
the grain business, prices fell Ike a
plummet. When he was driven to the
wall and sold out prices scared high
again When he played In wheat of any
delivery his temporary profits were
shot away. His masters In trading
strategy snatched away all he had
when ne tried oats. Whatever he
tried. and however bright his hopes
at the outset. the end was always the
same-profts gone, original capital
gone, hope gone, nerves wrecked
nothing left.
No One Knew Ne Was Whipped.
The marvel OF Il was that he was
able to hold up so long. Not a man
on the street knew that Jim" was
whipped. Not friend saw him lose
MS smile. Bankers loaned him money
and were glad to have the paper OF
prosperous concern like the Peavey
Grain company In hand. Even his
VIE and his physician, able to see
the evidences OF worry had no full
idea OF the frantic 6ffort he constant.
~ made to keep afoat.
Then suddenly entirely without
warning, came the collapse. His own
money had been swept away. the
paper Of the company had been sold
to bankers and brokers to cover his
own deals, and the company's audit.
which could not fail to reveal the
troubles, was less than week away.
He was ruined and had no way to
turn. Death brought the only rest he
has had from the worry OF financial
affairs practically since his entrance
into the lists Of the heavy traders.
Suspended One Day for Oats Deal.
Mr.. Pettits deals were not known
TO be large. He did everything quiet
~. He carried an unqnestioned rep.
utation for probity and ability. In
fact, II was his reputation that saw
ed him from heavy sentence for
technical irregularities In the May
oats deal of 1909, when he was
suspended for one day. His opera.
tons at the time were criticised Sc
yerely. and since then he had avoid
ed operations tending to give him
publicity.
II IL believed on the board of trade
that he began buying May wheat az
high AZ s1.15 last year, the highest
price, and held on until values shrank
TO the low Dos before liquidating.
Then he became q rampant bear, and
after some heavy losses sold wheat
from e0s to So. On the upturn he
sold steadily again, and refused to
cover until May wheat was high up
When he did cover he had TO buy at
81 and higher. This was as late as
the end OF May.
In oats he IL believed to have been
heavy loser Appearances made
traders believe he was on the bull
side, but these purchases were for
customers and northwestern account
Petit himself was a bear, selling
heavily, and sustaining losses when
the big advance was made on the
crop reports.
one Of the greatest "spreaders" In
the grain trade. In other words, ne
bought In one market and sold IN an
othcr. In trade circles IL was said
that such operations would break any
man II pursued long enough.
--------