The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1888-10-16
HOW OLDHUTCH WORKEDIT
THE BTG CORHJR m HIIEAT TFAS IN
ACCIDENT, IT rs SAD.


being asked on all sides. An approximate an
swer is easy. From Thursday noon to Satur-
day night he drew out OF the board Of trade
clearing house S975, 600 in certified checks. and
there is still = 100000 due him on unsettled
sales. Then, on Monday, when he unloaded
100000 bushels just 'tO ease the market" he
had an even 20 cents profit on every bushel,
which netted him $4,000 more. This
makes his winnings something like S2,375 600
cashed in and marker up for a bagatelle OF
S1,000,G00 more. But tho smoothest part of
the Whole business is the fact that Hutchinson
used the bears money to beat them with
sandbagged them with tleir own club as it
were.
When he started in to buy September wheat
it was selling at 50 cents, and it looked very
tempting to the old man. He felt satisfied
that ii was good for ten cents profit, and told
all the boys SO and "got the laugh" in return.
Hutchinson has been scalping the market for
an eigth or a quarter so long that the crowd
ridiculed the idea of his standing by deal for
any such money as ten cents q bushel, and
thought he was trying to steer them into one Of
his traps. But that was where they made a mis-
take. Hutchinson was in dead earnest. He had
studied the situation carefully, and saw there
was q great shortage IN the actual supply, and
that millcrs were having hard work TO get
enough decent grain to grind. His Judgment
told him that IL was very bad time 10 sell
to let the other chaps do it. Ills programme
had always been to buy on the breaks and sell
on the bulges and he didn't vary it much now
except to make sure every night that his stock
of wheat was little larger than it was in the
morning 1t was these tactics that confused
the crowd and made them feel sure that
Hutchinson was only scalping the market, as
usual. lie would start in say on a weak spot
end buy largely. This would naturally
strengthen values some, and then lie would
make them still frmer by bidding up J cent
for large lots. On the bulges that were sure
to follow some of his brokers would peddle
out about half his load in small lots, thus Sc
curing good average profit rs he went along
and preventing anything like a bad break.
When he had sold all he cared to through pri-
vate brokers, OF course and wanted to get
more cheap wheat he would sell a good-sized
lot openly, and the bears, willing to see values
decline. would help him pound them down.
On the break Hutchinson's brokers would
take in about double what had been sold, and
thus lie went on whip-sawing the deal right
along; not only raking in good profits on adj
vances which came without forcing but daily
adding to his big store of cash wheat.
The ten-cent mark he set out to reach was
passed. and still the price kept going up.
Hutchinson began to look about him, and
found that he not only owned all the wheat in
store, but that the shorts had sold him millions
of bushels they had no possible means of de-
livering. He had virtually cornered the
market without knowing or intending it. In
stead OF keeping the lacb TO himself ana DreaK-
ing half the brokers on the board by calling
margins on them, he went on the floor and
openly told everybody the situation, at the
same time inviting them to "come III out of
the vet TO everybody who asked his advice
he said: "Buy wheat" and when they went
back for more advice his only answer was,
"Buy more wheat
When all his friends had taken on line,
Hutchinson gave the screws turn and the
price went up two cents. This scared lot
Of flaa mol aiA To af,h tinr l.
vance of tho same amount the next day
brought some more of the wounded into
camp. Thus the deal was worked along ten
derby until Wednesday night Three days
only remained before setting time. and Hutch
concluded it was about time to see how mat
tiers stood. He had kept wheat from coming
into Chicago by sending good buying orders to
the big outside receiving points like Duluth,
and knew that he was safe from trouble in
that direction The only question
with him was how much Of
squeeze the shorts could stand? II
they were poor men he didn't want to
hurt them. This was made plain by the easy
manner in which he put the screws on. His
orders to Tom Seymour, and the other brokers
who were doing his business, were to give
every man show; don't hurt any one" There
WASH time, even after 1t was known that
the market was cornered, that the shorts
couldn't have settled on ten-cent loss, and
then taken the other side and played them
selves even. But they wouldn't have it that
way; they couldn't believe that one man had
accomplished what whole syndicates had failed
to do, and they still Dragged about getting
plenty Of wheat here by settling time" The
man they were buckiug against, however, had
n longer head on him than the Mr.. Harper of
Cincinnati, whose good greenbaeks they had
rGthlesSly taken but little over year before.
When Mr.. Harper ran his famous corner he
made the price OF wheat high enough here, but
he left il low at other points and thus left the
bars down, rs it were, through which food
OF grain came in, as If by his own invitation,
to swamp him. MIR. Hutchinson took care that
the price Of wheat Mt other receiving points
was kept So high that there was 10 induce
ment TO ship it to Chicago before Thursday,
and then it was too late
Well, the eventful day came, and when the
twenty-one cent jump didn't bring tho big
shorts in The old man was satisfied that he had
landed the men who had been cunning for bis
money FOR years. lie was after the famous
"biE four syndicates, consisting of Jack
Cudahy, Nat Jones, Charley Singer and ma
poleon" Il. Boam, and he cot them. Only
n short time before some OF the crowd
had relieved him OF over 100000 in
corn deal, and he was not disposed to be very
lenient with them. The details of the subse-
quent advance 10 &l.50. and then TO 80. are
we'll known. as is also the fact that beyond
two minor SUSPENSIONS there were no failures.
The terrific advance of 81 4 bushel in three
days, and the paying ont Of nearly 100000
in settlements without "lay-doWn" made it
evident that the shorts must be very rich men
OF they couldn't stand the racket.
Mr.. Cudahy is understood rs denying that he
was one OF the wounded, but Nh Hutchinson
refuses to corroborate him, and in a wheat
deal. as NJ poker, man S word doesn't 90 very
far, especially when there is y one-lollar
squeeze on, The evidence all points to the
big four" as tho principal losers, and. outside
OF speculative circles, there isn't much pity for
them. The chances are they don't need any,
as even this big losing won't llurs
their bank accounts much.-that is,
relatively speaking. Nobody and
particularly the farmers and country
spectators. is very sorry when short" gets
scotched This "big four syndicate have
made it a systematic business to sell the mar
ket "Short' for years, and by their gigantic
operations have kept prices fully 10 cents un-
der a legitimate basis In doing this, they
have not Gully injured the producer Of wheat
TO that extent, but have made dealiIg on the
board by Outsiders u very risky and unprofta-
Bile business For some unknown cause
probably because they can't understand how a
man can sell what he hasn't got nine-tenths
of the country spectators are bulls They
put In their money to buy an actual commodi-
~. but they generally get bag Of wind, the
seller taking his chances of being able to de-
press prices before settling day. And this is
why the countryman who monkeys OCCASION
ally with the buzl-Saw Of speculation should,