THE PRICE OF WHEAT 253 



whole fleet of vessels, secured large contracts for delivery 

 abroad, and prepared to supply all comers at good prices. " 



Opposed to Leiter were the elevator interests, headed by 

 Philip Armour, as wily and dangerous opponent in a wheat deal 

 as could well be found. Leiter was endeavoring to establish his 

 corner by buying more wheat than Armour could deliver. Ar- 

 mour was endeavoring to deliver more wheat than Leiter could 

 pay for, and thus break his price. The battle for supremacy 

 which followed is one of the most spectacular in our commercial 

 history. Leiter soon held not only millions of bushels of actual 

 wheat, but also contracts for millions of bushels of the Decem- 

 ber delivery in Chicago. The latter were chiefly short sales by 

 Armour and the elevator people, who already held enormous 

 quantities of wheat, and who expected to deliver actual wheat 

 for every bushel contracted. Being in the elevator business, 

 they were thoroughly equipped for extensive buying and rapid 

 delivery. Their agents and those of Leiter frequently were 

 competitors in securing grain. With such competition, the price 

 of wheat began to jump. At every upward movement of the 

 price "grain appeared as if by magic." By December it was 

 thought that Leiter had the Chicago market cornered, but Ar- 

 mour used steel prowed tugs in plowing through the ice at the 

 head of the lakes, and made a midwinter movement by lake and 

 rail of 6,000,000 bushels from the interior. Unprecedented quan- 

 tities of wheat were poured into Chicago. With perfect equa- 

 nimity, Leiter not only paid for every bushel of it, but marked 

 the price up from 85 cents to $1.09. He is reported to have 

 taken over nine million bushels in one month. Armour was 

 able to deliver all that he had sold, and Leiter was able to pay 

 for all that he had bought. A great battle had been fought, but 

 which man out-generaled the other, and with whom was the 

 victory? The bond was paid, but just what its nominations 

 were will perhaps never be known. 



After the deal, Leiter owned enormous quantities of wheat. 

 He seemed in no haste to sell, however, and began buying May 

 wheat. His ambition seemed boundless, and his confidence un- 

 paralleled. The tension was great, and his movements were 

 watched by the trade and by the public with the intensest 

 interest. The foreign demand remained strong, and all of the 

 1 Emery, Econ. Jour.. 9:56. 



