Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1872-06-27
A GRAND COLLAPSE.
P. r. Chandler's Great ''COrner" on
Oats Explained.
Messrs. Chandler, POmerOy & NOyes,
of Chicago, "Out" About S25O,OOO.
From the Chicaco Tribune. June 10.


The Goat corner collapsed yesterday, the
price falling nearly ten cents per bushel in
the course Of two hours. The commercial
| public is already familiar with the main
| facts in the case. p. r. Chandler, Super
| intendent of the Union Stock Y ards in this
city, and father of the senior member OF
the firm of Chandler, POmeroy & Noyes,
| received information about a month ago
that there was practically no oats along the
line of one of our Western railroads.
Upon this information he must have
jumped at the conclusion that the
Western country all over was equally bare,
a conclusion which the sequel failed
to justify. He commenced buying all the
oats that were offered in this market at
current prices, and the holders, finding him
a willing buyer, naturally ran up the price
to 40 and Al cents per bUshel. Mr.. Chan
der, operating through the firm Of Chandler,
Pomeroy & Noyes, continued to buy, in
tending to ship the oats to New York; aud
the continued strength in that market
seemed to justify the action. Suddenly,
however, the New York market broke,
under the prospect of liberal receipts, and
Mr.. Chandler seems to have found him
self in a dilemma. A heavy loss stared
him in the face, unless he should make
herculean efforts to stage it of. He
determined upon the latter course, and
commenced selling what are technically
known as 'puts' right and left, agreeing
for the consideration of half a cent per
bushel that the buyer of this privilege
should have permission to deliver to him
oats at Al cents at any time during the
month Of June. 1t is estimated, from first
to last, that he sold privileges for as much
as 100000 bushels, receiving therefor
$4,000. He also bought oats as fast as
offered, paying II cents therefor, and keep
ing up the market price, although in New
York they declined in the meanwhile as
much as five or six cents per bushel.
The last feather that broke the CameTs
back is understood to have been a represen-
tation made two days ago to the moneyed
men who had been assisting Mr.. Chandler
that it was duty they owed to the North
west, and to this city in particular, that
they should not longer aid him in blocking
its commerce. 1t is understood that this
representation was efeCtual, and that init
nations were made TO Mr.. Chandler the day
before yesterday, and also to the parties who
were en- ineering a like corner in wheat,
that they could not count any longer upon
certain aid that had been furnished them.
This was whispered around among a few,
early yesterday morning, and the market
was very weak, the price declining from Il
cents to about So cents before the regular
session of Change commenced. The firm
Of Chandler, POmeroy Il NOyes, were, how
ever, receiving all the oats rendered at their
office up to IL o'clock, and paying certified
checks for them. At IL O'Clock they refused
to receive any more until 1 O'Clock, throw
ing themselves back upon the reserved
right of any member of the Board to do so
"a right seldom resorted to. The price OF
oats declined under this announcement 2
cents more up to l o'clock, a good many
people being afraid that payment would not
be resumed, while others were equally
confident that Mr.. Chandler would redeem
his obligations to the last dollar. At l
o'clock line of parties with receipts for
oats formed in front of the office
of Chandler, POmerOy & Noyes. in
Farwell's building, near the Board of
Trade, intending to present them; but the
holders quickly disbanded upon being in
formed that no more oats would be Is-
ceiVed that an attempt made to obtain
further pecuniRry aid by the firm had been
denied by the banks. When this news was
received on Change the price of oats fell
rapidly, touching 81 cents in the course of
a few minutes, making the whole drop of
the day 10 cents per bushel, or very nearly
% per cent upon the price in the morning.
The market closed a little frmer at about
313 cents.
The case, as it now stands, may be briefly
summed up thus: There are about 2,OOO,-
900 bushels of oats in store of this city,
most of which are held by the firm of
Chandler, POmeroy & NOyes, on which a
decline Of 10 cents on the bushel has been
suffered, so that, even if the firm repudiates
every one of their obligations, and are sus-
tanned in the act, there will be heavy loss
entailed upon them. The loss cannot be
less than $250,000, and may amount to
much more than that, and the sole profit
thus far is the $4,000 received
for the privileges. It has previously been
indicated that Mr.. Chandler is not a mem
Der Of the frm of Chandler, Pomeroy &
Moves, and the great question with many
of those who hold options or privileges is,
how far he can be made responsible for the
acts of the firm. There is, it is believed,
but one party-William Young & CO.-whO |
SlCC6EuGu III ODLdlLlllg JLG CAluOISCulclJ
of P. r. Chandler upon the contracts, all |
the contracts with the other parties |
being made out in the name of Chandler, |
& Noyes. Very few of the par
ties insisted upon margins being put up un-
I'll within the past few days, as the reputa- !
ton Of the q, N has always been A l; and |
there was very II tie doubt Of heir ability !
to fulfill any contract they might enter iAte, /
until the utter hopelessness Of this transac-
ton induced the more thoughtful members |
of the Boayd Of Trade TO change their Opin-
ion.
There is hope now that the glut in corn
under which Chicago has so long labored is
5OOR to be removed, and the price Of oats J
has fallen to something like point at which I
they can be shipped, and the holders viii !
find it to their interest to send them for
ward. The same remark is nearly true of /
wheat, and it is probable that before long
he embargo which has been for several
weeks laid upon wheat and oats in this mar
zet will have been removed, and our store
houses relieved from the pressure to which
hey have so long been subjected. Apart
rom the pecuniary aspect Of the case above