Evening star., 1914-12-13
TELLS WHY HE LOST
IN HIS GRAIN DEAL
Joseph Letters Effort in 1893
to Corner Wheat in Chi
cago Recalled.
HIS DEFENSE IN COURT
AGAINST HEAVY CLAIM
Declares the Men Who Were Vir-
tually His Partners played
Judas" With Him.

CHICAGO. December 12-Thc plans
of Joseph Letters monumental effort
to corner wheat in 1895, when he ran
the price up to s1.S5 a bushei and
finally lost between ten and twelve
million dollars. were related in detail
by himself as witness today in Fed
eral Judge Humphreys court Letter
asserted that if the late F. H Peavey
and the late c. A. Pillsbury of Mime
apolis who he declared We're virtu-
ally his partners. had not released
grain on the Chicago market during
his operations he would have been sue
cessfuI
The Minneapolis grain men would not
put the alleged agreement i'll writing
he said. because they asserted ii was
criminal conspiracy" under the laws
of Minnesota and they did not wish to
sign anything which might be brought
against them later.
Letter who now lives in Washington,
is the son of the late Levi Z. Letter.
who sold millions of dollars worth of
downtown Chicago property to make
good his sons losses.
Letter took the witness stand to de-
fend himself in suit to recover $780,
93o, the principal and interest on two
notes which the Interior Elevator Com
pany and the Monarch Elevator Com
pany. the latter represented by Chester
w Lane OF NllnneapOtlS, say is owing
for wheat bought in 1895.
Tells of Conference
Asked what his occupation was in
1898, Mr.. Letter said he was more
busy running wheat deal than any
thing else He told of visit to Min
neapolis, where he said he conferred
with Mr.. Pillsbury and Mr.. Peavey. who
was president of the elevator COM
panies bringing suit. James Peavey.
brother of the latter. was also in the
conference. Mr.. Letter said.
I'VE composed statements of
grain we had on hand with the state
ments of the state and government.
said Mr.. Letter. I'VE found we had
more wheat than there was in the Wis
ibe supply, and / said: Let us
put this down in black and white.
then we will have something to
show exactly what we are going to
do and how we are going to do it, so
there shan't be any mistake or any
aftermath about this.
Messrs- Pllsbury and F. H. Peavey
reared up Immediately and said no; ti.ey
would not sign any agreement. as they
did not care to go to Jail 1 sad: No
more do l.; why this?
They said ii was a criminal con-
spiracy under the laws of Minnesota.
] said: Why. it looks like good deal.
| think We can take our chances on
that
They said they were willing to take
their chances. but they would not sign
the agreement.
Wanted to Squeeze the "Shorts."
Il told them I wanted it understood
that no wheat be shipped to Chicago,
as 1 had my May corner on. This was
agreed to. I said I didn't want the
shorts to get the wheat we mad so
they could deliver it to me in Chicago.
I told them I wanted to squeeze the
shorts and get all I could
Mr.. Letter asserted he paid Peavey &,
Co. "a couple of million dollars in
margins on these purchases.
Later when the wheat began to pour
into the Chicago market, Mr.. Letter
said. he told Mr.. Peavey he thought he
the man who was shipping it.
He got very mad said Mr.. Letter.
''and threatened all sorts of dire things.
He said he would burst the pool wide
open. and he did.
The suit on trial was filed in 1911,
but hearing did not begin until yester-
day In connection with the notes
Letter charged F, II. Peavy and the
"illsbury people of Minneapolis with
deceiving him. His defense is that the
elevator companies, were virtually in
partnership with him. having agreed
OF to sell grain in the Chicago market
"hile his big deal was on.
Says They played Judas"
They played Judas with me- he
testified. When the market broke 1
found that I owed one creditor-the
Illinois Trust and Savings Bank-be-
tween ten and twelve millions of dol
lars. Every cent of it and of other bills
has been paid / do not owe this one"
Letter said that he was in control of
EGf haN N-a
won had Peavy and the Pillsbury peo-
pie kept their promise to him.
Local traders still talk of the sensa-
tional conclusion of the deal Ice-crush-
ing tugs were used in smashing the ice
so that cargoes of wheat at the head of
the great lakes could be delivered to
Letter. who had run the price up TO a
maximum of s1.s5 bushel. Prodigies of