New-York tribune., 1902-07-16
GATES WINS S1,5OO,OOO.
But He Has A "CORPSE" OF
CORN TO DISPOSE OF.
FARMERS BROKE THE CORNER AND
FORCED THE COMMODITY
DOWN TO 651A

Chicago July 15.-The famous John W. Gates
corner Il July corn abruptly terminated to-day
when Il became known that shorts TO the extent
Of many millions OF bushels had effected private
ser-ements with Harris, Gates & Co., and that
TIE deal was an end. so far as the Steel
rnagaare was concerned. The July price re-
sponded to the settlement by e quick drop Of
l5z. cents 10 653L cents. Later It recovered
fraction and closed at 651z substantially the
price Of the cash article.
Just how many bushels were subject 10 pri-
7ate settlement VIII probably never be known,
nor Is there much chance that the Identity Of
the big feIlows'' n the trade, who doubtless
contributed literally 10 the fortunes OF Mr.. Gates
and the friends associated with him IN the deal
viii ever be positively known Mr.. Gates is IN
New-York- and Mr.. scotten. manager for the
Har-ts-Gares house. woulG admit only the set
tlenent by the outstanding shorts. Even the
fact Ct q termination Of the July deal was left
largely 10 inference, but the trade readily fg-
u-ed that, with the shorts practically al in,
nothing n the shape Of 4 corner could exist.
No special excitement attended the premature
puncturing OF the bubble by the man whose
property II was. The trade has all along ad-
rnitted that Mr.. Gates was right and also his
ability Go what he pleased with corn; and If
he chose 70 close the deal q couple Of weeks
by limitation there was no one TO say him nay.
The only unusual thing IN the pit prior 10 the
tine et which it became known the corner was
at al end was the unusual purchasing Of July
corr n small lots by various commission houses.
Pit trade during the day. however. was not
much more than 100000 bushels.
Manager Section would not discuss the settle
rnent price. This price, however was not a
matter Of decided interest 10 the trade gen.
orally. With the knowledge that Monday nights
closing price was 81 cents and the opening to-
day from T9 10 So the consensus of opinion
among the outsiders was that Mr. Gates had de-
rnanded either so or 81 cents from the people
who were foolish enough 70 sell him corn al
the way from 80 cents UP.
The length Of the line % July settled for by
shorts is also q matter of more or less con-
lecture. Mr.. scorten said that II was several
million bushels" and that the length Of the line
had never been overesCiraated- II has been
called as high as q. .OC0OO0 bushels, but more
generally 20.000.OO0 bushels. It is q matter Of
coulon knowledge that since # became possible
to make deliveries on July contracts the Harris
Gates people have taken in and paid for about
5000. 900 bushels. This would leave settlements
OF some Il. 600 900 bushels.
To form an estimate OF the apparent profit by
the deal would necessitate e knowledge OF the
average price at which the property was bought.
This can never be known unless some time later
M Gates chooses 70 divulge II. II is estimated.
however, by close observers of the transaction
that M Cates's profit VIII not exceed S1.5OO0OO.
This amount viii be divided Up among ten or
z dozen naiIlIonaires who were interested in the
deal Mr. Gates and his friends have pelWeen
10000 and 100000 bushels OF cash corn
OF which they must dispose before the corner
can be called absolutely settled This corn rep
resenrs the corpse" which n every corner ever
run has been the stumbling block to success.
If the average price Of the Herls-Gates holding
y7-nzyz vrz1 2
clique has on hand several millions OF bushels
OF corn which cost its holders in excess OF tne
present market price Right here is the salient
point VIII Il be necessary 70 market this large
holding Of corn al less than it cost?
The corner at one time promised many mill
ions Of profit and the farmer whose well filled
cribs ine the tracks OF nearly every railroad
entering Chicago is held responsible Ior the as
appointing ending OF the corner Ihere were
substantial reserves from the bumper crop OF
1900, and the large yield Of 1901 This corn
has been held for z satisfactory market Ihe
farmer did not begin 10 take advantage OF the
situation until the price Of July got UP In the
70s and when Il finally reached 50 cents the
Chicago market was deluged with cash corn.
For 4 while the Harris-Gates people kept the
market cleaned up. but steadily increasing
quantities began coming. and the prospect Of
loading Up with q lot Of 50 cent corn which
they might not be able later on 10 dispose OF at
over 80 cents became somewhat appalling.
without warning they withdrew all support.
settled with the shorts and closed the deal
The break in the Chicago corn corner did not
cause muc1 excitement al Lle SEOCuce
change IN this city yesterday. but there was
r-uch guessing and variety OF opinion as 10
the cause Of IL Several prominent operators in
corr said that the tumble in prices in Chicago
probably had been caused by liquidation and
withdrawal Of support by the Gates crowd II
vas said that the letting down OF prices might
have been intended 20 prevent too great rush
OF grain 10 the elevators in Chicago.
Operators IN the city were interested in
report that the New-York Glucose Company
was short 10000 bushels OF corr, which had
been shipped by Harris. Gates Co., by slow
steamers from Chicago. and II said that the
glucose company had taken measures 70 turn
Tie steamers back so as 70 make the deliveries
70 Harris, Gates & Co. at Chicago BEFORE the
end OF July. representative Of the glucose
company said: We owe Harris, Gates & CO.
10000 bushels OF July corn, and they owe Us
the same amount They have tried 10 prevent
our prompt delivery Of the corn intending 70
make Us buy the advanced price We snaIi
succeed IN delivering the corn, however ano
that will drive corn down TO 81 before we are
through with them"
John " Gates was at the office OF HarIls
Gates & Co. al No. 10 WaIl-st-, yesterday morn
ing but = was said there IN the afternoon L4at
he had left town again member OF Ae nFiH
said ne had no information 70 give ABOUT the
fan in Chicago prices