Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1892-06-01
THE BUSINESS WORLD.
a Gigantic Deal in May Corn That
Fell With a Sharp Crash.
YOUNG PLUNGERS GO FLAT BROKE.
They Could Not Keep Up the Price and
Failed for Thousands.
A PANIC OCCURS AMONG SPECTATORS

ESPECIAL TELEGRAM TO TIE DrsPATcH.l
CHICAGO, May 3L-The gigantic deal in
MAY corn manipulated by Coster & Martin
fell with crash on Change to-day, and to-
night the two young New York plungers are
fat broke.
A panic on the floor was the result of the
announcement of their failure and the price
of May corn dropped from 81 to 80 cents, at
which figure it finally closed in an instant.
The suspended firm is not the only one to
lose by the deal. Many brokers are in
volved 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 supposed to
be backed BY Wall Street Exchange men.
They carried large account with the Bank
of Montreal and were considered financially
sound. No intimation of the failure was
had on the floor until 11:30 o'clock, when
one OF the firms checks came back from the
bank without payment
Just Where the Rub Came In.
All the morning Coster & Martin had
been buying in corn at 81 per bushel until
it is supposed they had purchased 400, 600
bushels The rumor of the failure flew like
,rilld-fre and moment later was confirmed
10y Secretary Stone. of the Board,
who announced that all business
citations with Coster & Martin were
,f. This meant that much of the
100, 900 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 so cents in less time
than it takes to tell it, aud the great corner
in corn that pushed shorts hard during the
morning fell in a heap.
Many of the brokers, however, had re-
ceived their money, their checks having
been cashed. The Weare Commission
Company did not, and is said to be
a heavy loser. At the very start of to-day's
trading 81 was offered for May corn. Many
sales were made and still the manipu-
lators of the corner kept endeavor-
ing to boost the price, and to do
this bought at 81 everything in
sight Bovden sold 10, 900 bushels of corn,
Norton & Worthington sold 35, 900 bushels,
and the check for it was honored by the
bank. Kennett, Hopkins & Co. were also
among the lucky ones, receiving payment
for A, 900 bushels.
The next big deal that attracted attention
Yves that with the Weare Commission Com
pany, which was followed by the failure of
Coster & Martin.
The other firms said to have been asso-
ctated with Coster & Martin in the corner
R re Bartlett, Frazier & Co. and R. E. Pratt.
After the failure, the firms customers
rushed to the Office doors, but were unable
to gain admittance.
Spectators Three Years Old.
Both Martin q Coster have been en-
gagged 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 |
end corn would had sold far |
above 81, as the shorts were practically |
at the mercy of those who held the grain. |
During the early part of the day they were
pushed hard, but kept clear of the corn pit
in the hope that something in their favor
would turn up, and it did.
Coster & Martin filed a formal assign
nent in the county court this afternoon, but
Eailed to schedule their assets or liabilities.
Morris Hoyle was appointed assignee to
take charge of the firms business The firm
Of Coster & Martin is ostensibly composed
of two people, but it is we'll understood
that there were wealthier operators than
they back of the establishment, from whom
the sinews of war were derived
There are three Martin brothers in the
concern and they all came from the East
eight or nine months ago. The Martin
brothers lived in Riverside. They keep
fne establishmen and mingle in good So
,iety. Until their fortune suddenly col
lapsed to-day and their business honor be-
came impaired everybody considered them
sound and wealthy