The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1874-08-04
THE ...CORSERs,, rssaRAIN.
Heavy Speculation In corn and os.
Chicago ACCOUNT OF OF TINE CORNER

ID gThiu SOt ny Wy SeL SiA 'fS
that city: .'.,e,s,......
"About the 1st OF June combination
was organized, extending from Des MONIES,
Town. to Chicago. New York, and large
house in Liverpool, England. to get control
of tho corn market aud handle the bal
ance of the crop of 1873. The market was
carefully canvassed by the men in this
/ combination, and the amount OF corn heid
hv farmers estimated as closely as was
nossible. In this, however, as the sequel
nroyes, the operators made miscalculatlon.
Il was supposed that the stock was much
smaller than it really was, and that they
were safe in beginning their mammoth ope-
rations. Really, the amount Of grain held
by farmers at that time was much greater
than at the same time in 1872. However,
they bought an immense amount for June
and July delivery, with the intention OF
ssqucezing' the Shorts at the end OF the
month of June. At the end Of June the re-
ceipts were coming in SO largely-over one
thousand carloads daly-from Illinois and
Iowa that the combination couldn't afford
to corner and advance the prices.
"The influx Of grain was too great for
them, and they couldn't clear themselves on
June transactions without putting a check
upon their operations and keeping prices
within bounds. For the time being, there
fore, the corner was Off, and those who were
not sharp enough to analyZe their motives
still held their confidence in the honesty Of
their transactions. The combination held
their trades for July, and then laid their
plans to extend their purchases for this
month. In other words, they spit on their
hands and took fresh bold,' while their vic
Tins nibbled unconsciously about the hook
on which they were so soon to be caught.
They were determined to accomplish at the
end Of July what they failed to do in June.
"After the Fourth of July the receipts
dropped off largely, and yet they were larger
than at the same time in 1873. Over four
hundred carloads daily were coming in, but
the bulls thought they could manipulate the
sstOck and these receipts, notwithstanding
they were greatly surprised at the manner in
| which the market held its own. They ham
died all the cash corn offered, and at the
same time continued to prosecute the move
mcnt, and succeeded in squeezing the deal
ers by increasing their purchases for July
delivery and keeping complete control Of
the market for cash grain.
Four prominent parties have figured in
this corner. Chief amongst them, in this
city, is Jack S,urges, as be is familiarly
known, or King jack as he may hereafter
be called He is one of the leading mem.
bers of the Board of Trade, and has always
been noted for his extensive dealings. He
has attended to the purchasing part of the
deal. Mr.. E. X. Bruce, another successful
operator, has had charge Of the shipping OF
grain to the East. The financial, or, rather,
banking operations of the combination have
been transacted through the Chicago branch
of the Bank of Montreal. The handling of
the corn in New York city, on its arrival
there, has been done by Jesse Hoyt ~ Co., 4
house back by unlimited capital.
"since the organization Of this combina-
! ton King Jack and bis associates have
handled something like 100000 bushels of
corn, all OF which has been bought, paid for,
handled and shipped from here TO New
| York. The bulk Of it has gone to Europe
from New York, but large consisnments
have gone to Montreal on account Of parties
interested in the deal. In all probability
although it is hard to arrive at Il correct esti-
mate in such mattcrs-the financial hIcknS
| OF the combination ranges between S15, 00O,-
900 and so, 000, 900. 1t is one of the strong.
est ever formed in the American grain mar
| ket.
lowing TO the mistake which these ope-
ritOrS found they had made i'll June, and
their consequent REIMBURSEMENT OF their
plans for the time being, other deal
| ers were thrown off their guard, and
| continued to extend their line OF shorts
| without any thought OF the conse-
! quences which would soon overtake them.
1lany settled at al opporlnne change OF the
market; but. as was shown by the heavy adj
| vance in price Yesterday, large number OF
short trades are Outstanding and unsettled.
"On Tuesday morning the pressure was
Hrc hrr, ht z haar fhan
been arranged. Prices opened at G3 cents,
and the combination marched their forces
upon the field. The figures were buoyed up
to Ga cents on Change. At the afternoon
board IS cents was reached, and on the curb
in the evening GS3 cents. This began to
open the eyes somewhat Of the more wary
operators, but they tuiled to catch the real
meaning of the transaction until yesterday.
Yesterday morning corn opened at GS3
cents, advanced to IS, and closed at - on
| Change, with settlements between parties
| outside the ring at to cents under the
market price. The call for margins to secure
trade was very large, and many who were
unable to put up were forced to settle their
deals. The market, on the cur0, closed ut ~
cents. This immense advance IN the price
of corn, as might be expected, threw con-
sternation into the camp Of the dealers who
were not looking for such developments, and
completely disorganized their forces. 1t is
estimated that fully one-balf of the Board
have been caught on the turn not expect
| ing that the combination would succeed IN
carrying out the operations 1t had on band.
| 1.-The amount of corn now in store is as
follows: Yellow, 1856 bushels; No. l,
%. 1874 bushels high mixed, 29S, 524 bushels;
No. 9, 1854 GAG bushels. Of this grain pro-
| badly four-tfths IL held by the combination
| which has brought about this corner.
"a good point has been developed ia con-
neclion with the matter on the part OF one of
the Board of Trade operators who does bust.
ness on Washington street, and who is him.
self pretty we'll posted 10 the corner bust
ness. Having corn for July sold to the COM
bination, and bought from other parties,
and, indirectly, from the combination, and
becoming suspicious that he would not be
able 10 make bis delivery at the last moment
on Friday afternoon, if the combination held
theirs off until the stroke of o'clock-and
thus be obliged to hold the corn at q severe
decline, and also to pay Fridays prices on
his July contracts-and to prevent all this,
adjoining King jacks place of business
on Monroe street. He will occupy this Office
on Friday afternoon, and, as soon as the
combination turns his purchases over to him,
he will, in turn, transfer his sales to them
before the close of business hours, and thus
save his shorts. A pretty clever trick, and
worthy TO be played by one corner king on
another.
at would be difficult to tell just now how
the matter will turn out at the close of the