The Montgomery advertiser., 1902-07-16
FARMERS STOP
CORN CORNER
Profit of Gates Clique
Not Vast.
CASH ARTICLE ABUNDANT
When Prices Went Up the
Cribs Were Opened.
Premature Puncturing of the Bubble
Did Not Create Much Excite
ment-The Settlement Price
Matter Of Conjecture.
CASH ARTICLE ABUNDANT

Chicago. July 15.-The famous John w
Gates corner in July corn came to an
abrupt termination today when it be-
came known that shorts TO the extent of
a good many million bushels had effected
private settlements with Harris, Gates &
Co., and that the deal was at an end so
far as the steel magnate was concerned
The July price responded to the settle
ment by a quick drop of Is S-4 cents to
IS IA. Later 1t recovered a fraction and
closed at IS 1-2, substantially the price
of the cash article.
Just how many bushels were subject to
private settlement probably will never
be known. nor is there much chance that
the identity of the big fellows In the
trade who doubtless contributed hber-
ally to the fortunes of Mr.. Gates and the
friends associated with him in the deal
will ever be positively known. Mr..
Gates is at present in New York. and
Mr.. Scotch, manager for the Harris
Gates house, would admit only the fact
of a settlement by the outstanding shorts.
End of the Corner.
Even the fact of termination of the
But the trade readily figured that with
the shorts practically all in. nothing in
the shape of a corner could exist.
No special excitement attended the pre-
mature puncturing of the bubble by the
man whose property it was. The trade
has all along admitted Mr.. Gates was
right and also his ability to do what he
pleased with corn, and If he chose TO
close the deal a couple of weeks prior
to the time at which it would be ended
by limitation there was no one to say
Tha IN he
pit prior to the time at which 1T became
known the corner was at an end was the
unusual purchasing of July corn in small
lots by various commission houses. Pit
trade during the day, however, was not
much over 100000 bushels.
Manager Scotch would not discuss the
settlement price. This price, however,
was not matter of decided interest to
the trade generally With the knowledge
that Monday nights closing price was 81
cents and the opening today from 70 to
so cents. the consensus of opinion among
the outsiders was that Mr.. Gates had
demanded either so or 81 cents from the
people who were foolish enough to sell
him corn all the way from 90 cents up.
Length Of the Line.
The length" of the line of July set
tied for by shorts is also a matter Of
more or less conjecture. Mr.. Scotch
said it was several millions bushels"
and that the length of the line had never
been estimated. 1t has been called
as high as 25,000,000 bushels. but more
generally 2O,OOO.OOo bushels. 1t is a matter
Of common knowledge that since 1t be-
came possible to make deliveries on July
contracts the Harris-Gates people have
taken and paid for about 1900. 900 bushels.
This would leave settlements on some
100000 bushels.
To form an estimate of the apparent
profit by the deal would necessitate a
knowledge of the average price at which
the property was bought. This can never
be known unless some time later Mr..
Gates chooses to divulge It, 1t is esti-
mated. however, by close observers OF
the transaction that Mr. Gates's profit
will not exceed 81. 500 900. This amount
will be divided up between ten or a
dozen mllionaires who were interested
in the deal
Mr.. Gates and his friends have betwe en-
400 900 and 100000 of cash corn which
they must dispose of before the corner
can be called absolutely settled. This
corn represents the corpse" which in
every corner ever run has been the
stumbling block to success If the aver
age price OF the Harris-Gates holdings
should prove well up to the 70 cents point
the clique has on hand several million
bushels of corn, which cost its holders
in excess of the present market price
The Salient Point.
Right here is the salient point. Will it
be necessary to market this large hold
ing of corn at leass than it cost?
The corner at one time promised many
millions Of profit and thu farmers whose
well-flled cribs line the tracks of nearly
every railroad entering Chicago is held
responsible for the disappointing ending
Of the corner. There were substantial
reserves from the bumper crop Of 1900
and the large yield of 1901, This corn has
been held for a satisfactory market. The
farmer did not begin to take advantage
Of the situation until the price OF July
got up in the seventies and when 1t
finally reached 90 cents the Chicago mar
ket was deluged with cash corn. For a
while the Harris-Gates people kept the
market cleaned up. but steadily increas-
ing quantities began coming and the pros
pect of loading up with lot of so cent
corn which they might not be able later
TO dispose ot at over 90 cents became
somewhat appalling. Without warning
they withdrew all support. settled with
the shorts and closed the deal