Daily capital journal. (Salem, Oregon) 1903-1919, 1917-05-12
SPECTATORS Turn Attention to
July and September Wheat
and Boost Il
JULY WENT UP 2S CENTS
AND SEPTEMBER UP 81
Closing Followed a Calling Of
Board Of Directors Before
U. 5. Attorney

Chicago, May 12-The closing of May
futures by the board of trade turned
the attention of Wheat spectators to
the July and September deliveries to-
day. They forced July up 2s cents
over the opening price to $2.75 and Sep.
tember up 81 cents to 1886, at the mar
ket IS close.
The committee set the prices at which
May trades must be settled at $3.1S a
bushel, last night s close. 1t is said
that one million bushels will be settled
at this figure. The directors of the
board Of trade asserted
The market was extremely nervous
as result of the board IS action Num-
erous longs sold at the outset and small
buying orders quickly lifted prices from
bottom levels.
Officials of the Chicago board of
trade, which fixes wheat prices for the
world, stopped trading in May futures
last night, following conference with
federal authorities.
A federal official said today that ac-
tion of the board prevented rise which
might have sent wheat to $40. For the
present, at least, July and September
Futures will not be affected.
Directors of the Minneapolis chamber
of commerce will meet there today to
decide whether to follow the action of
the Chicago board.
The crisis which brought about the
unprecedented action Of the board is
supposed to have resulted from;
Vast quantities of wheat being
bought that do not exist and cannot be
obtained;
Purchase of wheat that cannot be
found, by allied governments, and
Cinching the Shorts.
Mulcting of western traders, who are
credited with having sold to European
governments and others, wheat they
could not get, by eastern financiers
who knew true conditions.
The action that resulted in closing
the May market came swiftly. Allen G
Anderson, vice-chairman of the Royal
Food commission and r. I. Robson
chief buyer of foods for the common
"pot" that feeds Great Britain, France
and Italy, called upon Charles +. Clyne
United States district attorney yester
day. They were poined later by Robert
Childs, special district attorney il
charge of food investigations.
This meeting was secret and what
transuired there cannot be ascertained
The Englishmen, it is known, came di
rect to Chicago from Washington.
At the conclusion of the secret confer
enee, officials of the board of trade
were summoned. John r. Mouff, first
vice e-president; j. j. Stream, second
vice president; j. c. F. Merrill, j. HUI
bert Ware and Roderick NcKinnon re
sponded.
They were closeted with Clyne and
Childs for three hours, This confer
ence also is cloaked in mystery. 1t is
not known whether the federal officials
employed threats or appeals to parrot
ism.
Griffin Makes Statement.
Last night Joseuh P. Griffin, presi'
dent of the board, who earlier in the
day had been ordered to bed by his
physician, was called, and with his own
hand signed the notice stopping trad
ing. He also appointed a committee
consisting of James A. Patten, A. STAN
ford White and Hiram A. Sager, to fix
the settlement price.
Griffin issued formal statement
saying in part:
f'I should like to emphasize that spec
ulation has nothing whatever to do with
the action of the board of directors,
nor is speculation in any sense re.
sponsible for the high prices prevailing
for May wheat or the cash article. Gen
orally speaking, the speculator is not
interested in May wheat, his operations
being confined to the futre. 1t may
safely be stated that practically the en-.
tire interest in May wheat is restricted
to farmers, grain dealers, millers and
foreign governments.
"The recent hysteria over the food
situation has caused a stampede by con.
sumers in every direction and, while ii
is regrettable, it is nevertheless fact
that even leading governments of Eu'
rope seem to have become fearful as
to their future requirements.
owe are but market place
therefore the action of the board does
not interfere with the freedom of con
tract on the part of either the indi
vidual or government but compels those
requiring wheat for immediate consump
tion to make purchase from farmers ano
grain dealers"