The sun. [volume] (New York [N.Y.]) 1833-1916, 1892-06-01
MAY CORN TAKES A BIG DROP
CosTER & MARLIN WE'RE UNDER TAND
WE'RE CRUSHED IN THE TUMBLE

They Bought All that Was OTersd Mt 81
Till Their Cheeks Were Protested, and
Then the Frice Dropped to Fifty Cents
some Brokers BADLY Kitten.
CHICAGO. May 31.-The gigantic deal in May
corn manipulated by Costcr & Martin fell
with crash on Change to-day. and tonight
the two young New York plungers are fiat
broke. panic on the floor was the result Of
the announcement OF their failure. and the
price Of May corn dropped from 81 to so cents.
at which Agure it finally closed in an instant
The suspended firm is not the only ono to lose
by the deal. Many brokers are involved. and
some estimates place the total losses close to a
million dollars. The firm was one OF the best
known in the city. both members being sup
posed to DO backed by Wall street exchange
men. They carried large account with tho
Bank OF Montreal and were considered imam
cially sound.
No intimation Of the failure was had on the
floor until IL 80 o'clock. when one OF the firms
checks came back from the bank without pay
ment. All the morning Coster Il Martin had
been buying In corn ut 81 per bushel until 1t
10 supposed they had purchased 100000 bush
els. The rumor OF the failure flew like Wild
fire. and a moment later was confirmed by
Secretary Stone OF the Board. who announced
that all business relations with Coster Il Martin
were of. This meant that that much OF the
100000 bushels Of May corn bought by them
at 81 would have to be resold. and the brokers
who had sold it would have to stand the loss.
This was where the rub came in.
The price dropped to 80 cents in less time
than 1t takes to tell it. and the great corner in
corn that pushed the shorts hard during tho
morning fell in heap. Many Of the brokers.
however. had received their r,, m1GGney. their
mission Company did not. and Is SAID to be u
heavy loser
At the very start OF to-day's trading 81 was
offered for May corn. Many. sales were made:
and still the manipulators Of the corner kent
III hs prize to
sold 10000 bushels q corn. Morton, 4
Worthington sold $4,000 bushels, and the
check for it was honorod by the bank. Ken
nett. Hopkins Il Co. were also among the lucky
ones. receiving payment for 10000 bushels
was las that that with til the wsare Commission, Com:
pany which was followed by the failure OF
The other firms said to have been associated
| with Coster \ Martin in the corner are Bart
| lett. Frazier \ Co; and r. +. Pratt, After the
failure the firms customers rushed to the
| office doors but were unable to gain admit
Both Martin and Coster have been engaged
| in speculation together in this city about
three years. They were fearless operators;
always appearing to have plenty of money and
attracting general attention by their big
deals. Had the CLIQUE, been able to carry
| the corner to a successful end corn would have
| tically at the mercy of those who held the
grain. During the early part of the day they
| we're pushed hard but kept clear Of the corn
| pit. in the hope that something in their favor
'Coster i Martin filed a formal assignment in
| the County Court this afternoon. but failed to
schedule the assets or liabilities. Morris Hoyle
| was appointed assignee to take charge OF the
firms business. $50
The firm OF Coster 4 Martin is ostensibly
composed Of two people; but it is well under d
they back Of the establishment from rEo whom m
| three Martin brothers in the concern. They
| live in, Riverside. keep fine establishments.
and mingle in good society Until tn. Tor
| ness honor became imperilled everybody con-
| sidered them sound and wealthy.
A pathetic incident of the collapse to-day
was the presence in the gallery Of Mrs. Coster
and Mrs. Martin. who had come to see the
| boys" clean up million. They were in high
| spirits at first. but gradually their faces
| heightened as their husbands showed signs OF
| distress. and when the crash came they burst
| into tears and fed from the scene