Evening star. [volume] (Washington, D.C.) 1854-1972, 1884-10-18
STARTING A s.CORNER..
How They Are Carried Out On ,Chams
In Chicago.

\
There are few readers who do not have n pes-
erai Idea as TO what commercial corner Is. bul
many OF them may not be quite clear az 10 tn
various causes and effects and its Influence n.
trade generally. The Chicago Ne,rs saws. In
order to corner any article OF commerce IL ID
necessary to secure a Sufficient amount of tho
supply OF that article TO be able 10 dictate the
price at which IL win De sold. When the corner
In corn was started II seemed a bold thing TO
| attempt. In view or the large amoun, of corn
Oeing received from the country aud the gen.
| eral belief that the amount to fol,cw.was yerv
| large. DC Was a bold thing TO attempt but
| those who attempted and achieved n are NOT
only bold and experienced Spectators. hut pos
sess
ALMOST UNLIMITED CAPITAL.
which IL the main consideration. As an Illus-
tration of the nature Of Corners the present casa
viii serve as well as any. The temptation TO
control the corn market could hardly have
existed but for speculation. which guaranteed q
demand within a specified time Owing to the
high price OF corn during the season a great
many traders had sold short. with the expecta-
ton Of being able 10 bus Tor delivery at lower
price and good proflt. Consequently any
Spectator or clique Of spectators. who could
secure a controlling interest in the supply could
force these short sellers TO buy any price they
ehose TO nx- But for the vast amount OF specu-
n
corner would be much more difficult and tedious
OF accomplishment. as the holders OF the article
would have only the consumption demand to
depend on.
THE SUCCESSFUL Development
ana termination of a corner requires the utmost
caution and nnesse on the part of its operators
In Its earlier stages the fact OF its existence
must not be suspected by the generality Of
spectators, and especially by the shorts. As
quietly as possible the article TO be cornered
must be gathered in through so many channels
that no one viii know that IL is not purchased
| by hundred spectators in the secret. This is
done by employing a large number OF brokers'
VINO are supposed to be agents for as many diff
ferent parties. Gradually the crowd will begin
TO suspect the true condition of affairs and IL
the corner il not We'll matured its Operators
must boldly pay whatever price they must to
make their position secure. BY this time the
shorts have become
THOROUGHLY FRIGHTENED,
and attempt to purchase the amounts necessary
TO iii their contracts. But there is none of the
article for sale, and every time they ask for IL
the price goes up notch or two. They grow
frantic and fearful of great loss should they de-
lay much longer. bid wildly for the article.
which steadily increases in value. though hardly
trade is made. The small shorts are soon dis
posed or They have managed TO fill their con-
tracts, at great sacrifice. and are out OF the
deal But the game now left for the corner to
eaten is more obstinate, and il l. only by estab-
fishing fabulous values, like so cents bushel
Tor corn. for instance, that IL can compel rich
and powerful spectators to succumb to H.
The corner is the natural enemy of the short
seller and has demoralizng effect on specu-
iation generally. And il is more of an inconye-
nience to the customer than an aid to the pro-
ducer, for the reason that il affects the former
class instantly. while the latter, subject To the
action OF middlemen, who, aware OF the
caprciousness of such a market are obliged
to protect themselves by establishing a wide
margin. which leaves the producer but little
benefited.