Jasper County Democrat, Volume 14, Number 61, Rensselaer, Jasper County, 4 November 1911 — CHICAGO WHEAT CORNER ALLEGED [ARTICLE]

CHICAGO WHEAT CORNER ALLEGED

Uncle Sam Scents Effort to Control Prices. AFFECTS LARGE PART OF SUPPLY Government Said to Be About to Ask QranW Jury to Restrain Armour Grain Company from Disposing of Receipts. Chicago, Nov. 3. —Centering in Chicago and extending to Minneapolis, Duluth, Buffalo and Baltimore, an alleged corner in wheat, by which it is declared 60 pe» cent of the country’s wheat supply is controlled, has been under investigation by federal agents, and the results may be presented to various grand juries within a few days. To insure necessary evidence the government, it is declared, is about to ask the grand jury here to prevent the Armour Grain company, through which it is alleged those who control the corner operate, from transferring or disposing of any of its warehouse receipts

It is declared that the investigators for the department of justice claim i they have conclusive evidence that of the €2,000,000 bushels of wheat about 17,000,000 bushels are in Chicago grain elevators, while the rest is scattered in elevators elsewhere. It was also asserted that warehouse receipts for this grain were held as collateral by certain banks and that negotiations had already been begun with New York institutions to enable the Armour Grain company to negotiate these receipts. One of the plans of the government investigators, it is said, is to seize these receipts as evidence. It was believed by some that Adolph J. Lichstern. and the Armour Grain company had lost nearly $1,000,006 in their effort to send up the price of May and July wheat Over 26,000,000 bushels were said to have been left on their hands. It was this deal which directed the attention of the federal authorities to the grain markets. A St. Louis broker who was caught short was obliged to buy 100,000 bushels of wheat at $1.04*4 per bushel on the day following the one on which the price was 90 cents. Ke appealed to the'federal courts and Judge Kohlsaat ruled that he had jurisdiction to settle what was a fair price in a defaulted trade. This decision was followed by rumors of an investigation, which caused a break of several cents in the market It is now believed that a former stenographer of the weighmaster’s office of the board has given evidence to the government District Attorney James H. Wilkerson issued a statement as follows: “It would be the grossest breach of official duty for any government official to make any statement or give any information with reference to proposed grand jury proceedings. These proceedings by law are held secret”