New-York tribune., 1891-09-23
HOW 1T AFFECTED CHICAGO.
THE TRADE GREATLY SURPRISED.
AN INSTANTANEOUS EFFECT on rRICEs-THE
MARKET AT THE CLOSE EXCEED
INGLY NERVOUS

does create the surprise here possibly that it did
at New-York. The trade here, however could
scarcely believe that White running deal for
his own account The surprise here is that, with
his experience he admits he was virtually trying
to corner September corn himself The failure of
the manipulation as money making enterprise be-
came apparent week ago. The possibility that
there might be a collapse not dreamed of until
late Monday when the banks at New-York refused
to honor certain Chicago drafts until 100000
additional margin had been supplied.
White began buying September corn here in
July at about SO cents. lie could have sold out
at a magnificent profit of 0 cents bushel in the
middle of August. He kept on buying, however
and the receipts kept on increasing. OF course
the weather had something to do with
the bull defeat. 1t is figured that White
was compelled to take 100000 bushels actual
corn and it is figured that he has 100000 of
this between here and New-York, and about 4.000,-
600 here. On this cash corn there was 10 great
loss except loss of profit, until This week. Since
September 10 prices have been dropping fast. 1t
became apparent about week ago that the losses
in the corn deal had become so heavy that the bull
manipulators had decided to drop it. The ship
ments of corn, however, went on, charters being
made as late as Monday for 1,0OO,o0 bushels.
The embarrassment of S. V. White IL Co. was
probably known definitely last Monday afternoon
to certain of the concerns here which were ship
ping for them. 1t is said to be a fact, however,
that there existed up to early this morning the
possibility that the concern would go through.
The announcement this morning to the trade,
however, was a complete surprise. The effect on
prices was instantaneous. September, which had
closed Monday at 50 ga, opened at AS 1-2
and sold as low as AZ IA. October
almost as much affected. 1t opened at
As and sold as low as AZ 1-2. The low prices
were made in the first thirty minutes. The break
really was not as far might have been eX
pected under the circumstances. Shippers stood
ready to make large purchases. Patton Brothers,
Boyden, BARTLETT Frazier. Coon and others took
the cash and the nearby deliveries at a decline
Of to cents Patton Brothers's purchases alone
aggregated almost million bushels.
After the excitement of the first hour was over,
the market became Unexpectedly steady. Scpem-
Der closed at 40 3-s October at 40 5-S. The
selling at the opening for the account of the sus-
pended firm was heavy. Milmine. BOdman,
Counselman and other concerns. which have been
holding less grain for clique account,
unloaded. The Ailmine selling was the heaviest
Of all. During the first hour it was much feared
that other failures would result. 1t was rather
expected that somebody at New.York was really
be compelled to give up. 1t was natural there
should be Some excitable gossip about concerns
which had been identified with the September
deal here. The gossip, however, all proved idle.
The noon hour went by here without any addi-
tional failures. This removed the local appre-
hensiOn Excited Tumors continued to come from
New-York, but none of them were verified The
effect however. was to limit the trading. The
close was on bull but exceedingly nervous mar
ket.
The ordinary announcements for the day were
of course ignored. The receipts, GIG cars, were
away under expectation. The estimates for
Wednesday were 400 cars Charters were made
for only 60.O00 bushels
The impression is that White was unable to
borrow money on the large amount of corn he had
on the lakes and canal There was also the theory
here that the corn deal had not alone brought
about his failure. The trade was not disposed to
believe that he was alone in the deal. Regarding
the future of there were differences of opinion
The shipping party was inclined to take hope
ful view TO believe that the demand would at
become large that the receipts would at
once become small. The speculative party in the
market took the view that the effect of this
deal would be no different from the effect of other
disastrous corners that there would be a dragging
that short sellers would be greatly elated.
Wheat naturally was affected by the collapse
of the corn bulls. 1t seemed TO be the case that
5. V. White & Co, were short rather than long on
wheat. That prevented any bad break in prices.
The opening was at decline of l l-2c.
from Monday; prices at one moment showed
decline of almost cents. The close showed
little recovery. December sold between 80 5-8
and 9S IS, and closed at o. The days trading
was not large. Although the closing Of the trade
here of 5. V. White & Co. seemed to cause more
buying than selling, the crowd nevertheless bore
in mind that the huge scalping operations by
the New-l Orkers, which had OF late been 50 often
successful ana 80 often on the bull Sldc had been
through this concern. That somewhat removed
their apprehensiOns possibly led 10 some short
selling.
Mr. Day, of the firm of Counselman & Day, de-
nies that they have had any dealings whatever
with the broken firm. On the application OF
Arthur W. Allen, Judge Gresham this afternoon
appointed the Illinois Trust and Savings Bank
receiver of the Chicago branch. The Chicago
house is composed of the NeW-i ork concern ana
S " Whites son, Arthur White and Arthur y.
Allen, the resident manager and the partner who
applied 10 have the receiver appointed The Ohl
was brief reciting the Organization Of the iilh
April b. 1880, and saying that by reason OF the
assi gnment Of tine New-Norf firm, the ChlcagC
branch was unable to continue business, and had
Attorney PrusSing said tonight that the assets
and liabilities cannot yet be ascertalned, but the
transactions in gran reached into the millions
The failure he added was due TO the continued
bulling of September and October corn.
You see after all" said Mr. Pussne, 1t
was not Old Hutch that was working the market
The corn was purchased here for cash and the
enormous sums required to buy it were raised
by the firm among the banks, the security being
the corn itself The receiver was appointed ~
order 10 prevent some creditors attaching some
assets and thus freezing out othen 10 whom the
firm is Indebted. We shall know better tomorrow
now we stand The failure shows however. that
the farmers did not hold back this corn, because
if they had this would not have happened.
No sooner had the announcement OF White ~
Co.'S assignment been made public than Cmcaao
creditors began an assault Local aSs"ts through
the State courts. During the afternoon several At
tachments representing small claims were med
A prominent operator said to-day: W hen the
clioue began 10 move the corn, mOnumeutauy Dad
tactics were used II was plain that whoever was
back of the deal did not know great deal about
Lr..i,l. rain fnr,Vnr1nd 10 Enstern markets. When