Pierre weekly free press. (Pierre, S.D.) 1889-19??, 1892-06-09
WILD OVER CORN.
A Perfect Bedlam in the Chicago Corn
Pit. The Corner COrned BY
Shorts.
A Sudden Slump From $1.OO Per
Bushel to so Cents. One Firm
Pushed TO the Wall.
Coster 4 Martin Unable 10 Stand the
Tremendous Pressure. The
Shorts Gleeful.

Inc summation OF the corner in
May corn on the 3lst ult., resulted In
an extraordinary scene on the floor
OF the board OF trade. A dollar a
bushel was the price demanded by
the clique that had secured control of
1 nearly h the entire supply avasbe in
traders in the corn pit occupied every
inch of room and far exceeded the
wheat crowd IN dimensions, to say
nothing oflungpowec. Samuel Adams
and other clique brokers were inces.
sanity bidding 81, while Baxter and
another set howled offers at 81.
No such amount OF trading at 81 q
bushel for corn is remembered in the
history OF the trade in Chicago. In
1884 on the last day of September
81 was bid for corn, but that was at
the last instant OF the session. At
this session Kenneth. Hopkins sold
$4,000 bushels at 81, Norton. Worth.
ington 5000, and there were any
number OF 5000 bushel lots. The
people who were selling 81 corn to
the cliqueb brokers demanded the names
OF hepurchasers, and in every instance
"Coster & Martin" was the reply.
The receipts of corn included about
100000 bushels of contract corn,
which either went TO satisfy the short
interests, or at 81 abushel was loaded
on the manipulators OF the corner.
One short got in four trains OF corn,
and elaborate arrangements were
made to rush the cereal arriving at
last moment into the elevators, and
to Issue receipts in time for delivery
at the close OF the day g trading. Ele.
vators throughout the city were re.
ported working at full speed. The ap.
peals committee was said to be out
on the tracks in the rain reinspecting
corn and changing some. The scram.
bling was not alone by the inspectors
and brokers, but also by those charg-
ed to get receipts into the registers
office, and then to get the receipts de-
livered by 1:3O p. m. Fast horses
were used between the outlying eleva
tore, and in some instances special en-.
glnes.
In the midst OF the excitement the
situation suddenly changed. Within
less than two minutes the price drop.
ped so cents q bushel. The fall was
from the l dollar price fixed by the
clique, and at which they had given
the tip they would sc title with any and
everybody. The amount that was
crowded upon the clique at that price
had proved too much for their re-.
sources, however, and they were beat.
en- at their own game. The collapse
came shortly before noon. A check in
payment for the corn was offered on
the Weare Commission Company. A
demand that it be certified was not
acceded to promptly. Instantly the
market was deluged with offers otcorn
and the clique was swamped. The re.
fueal to certify to the checks OF Coster
e. Martin at one of the banks was
quickly followed by the announce
ment OF their failure, and all firms
having contracts with them made
haste to close out the trades in the
open pit. A bedlam of excitement en-
sued. The shorts, who 10 minutes be-
fore had been trembling at the unpre.
cedented settling figure raised by the
clique, now danced about in plee and
practically made their own prices.
The covering, however, raised the quo.
tation cents to 55.
Rumors ofother failures besides that
OF Coster & Martin, were heard, but
none were posted. The talk was re-
newed that the unfortunate firm had
unwittlngly caught some such whale
as Armour in their puny net and in
their efforts to land him had pulled
themselves into deep water without
go much as disturbing his serenity.
There were all sorts OF wild estimates
as to the losses sustained by Coster &
Martin. 1t was definitely known thai
in addition to the capital required to
carry through their deal up to the
present time, they needed half q mil
lion dollars or upwards to stand up
under the unexpectedly large amount
OF coru that was hurried into che CITY
in one way or another almost at the
last minute. They did not have the
ready cash to do it and down they
Went-rulned IN two minutes. Inter-
est in the other markets was dwarfted
by the May corn deal and for consid-
cradle time after the immense slump,
knots OF traders could be seen stand.
ing about the corn pit, wlpine the per.
SEPARATION from their faces and getting
their wits together, for they scarcely
knew what might come next.
At the Office of Coster & Martin, no
replies were at first made to inquiries
alter the collapse in the pit. The re.
tusal OF the banks to certify checks
was nevertheless promptly set down
by the trade rs irrefuta6le evidence
that the firm was. hopelessly broken
financially. Yet at the Office of the
involved firm no confirmation or de-
NAL could be elected. There was no
doubt OF the breaking OF the corner,
although from SO cents the price re.
bounded in the excitement to o5. Be.
fore ! O'Clock, the quotation was
even below the low water so. cent
mark, being 40 1.4c bid. Gossip cur.
rent that, assuming Coster q Martin
to be totally unable to make. good
their contracts, the loss to the trade
would be exceedingly heavy, the low.
est estimate on the days trade alone
being $25O,OOO. One estimate was
that nearly 1000 600 bushels of NAV
corn were sold to Coster & Martin