The Savannah morning news., 1902-07-16
CORN CORNER CLOSED
SHORTS SETTLE WITH GATES AND
ARE LET DOWN EASY.
THE PRICE IS NOT STATED
BUT OUTSIDERS SAY GATES GOT so
OR 81 CENTS.

This Means n Profit to the Ring of
20 Cents n Bushel-FrOm 2O,0O0,O0
to 23,O0O,0GO Bushels the Estimated
Length of the Gates Line-PrOfit of
Gates and His Partners Not to Ex-
coed $1,000, 00O-Even This Depends
Upon Rings Ability to Dispose or
Large Holdings of Cash Corn.
Promised Millions of Profit Taken
by Farmers, Who Flooded Chicago
Market With Stored Grain.
Chicago, July 15.-The famous John
w. Gates corner in July corn came to
an abrupt termination to-day, when it
became known that shorts to the ex-
tent 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 mag
nate was concerned. The July price
responded to the settlement by a quick
drop of 15A cents to 65A Later it
recovered a fraction and closed at
651A, substantially the price of the
cash article.
Just how many bushels were subject
to private settlement will probably
never be known, nor is there much
chance that the identity of the big
fellows" in the trade, who doubtless
contributed literally to the fortunes
of Mr.. Gates and the friends asso-
ciated with him in the deal, will ever
be positively known.
No special excitement attended the
premature 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. Pit
trade during the day was not mucn
over 100000 bushels.
shorts Paid Eighty Cents.
Manager Section would not discuss
the settlement price. 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 go cents up. The
length" of line of July settled for by
shorts is also a matter of more or less
conjecture. Mr.. Section said it was
several million bushels and that the
length of the line had never been over
estimated. 1t has been called as high
as 25000000 bushls, but more generally
100000 900 bushels Since it became
possible to make deliveries on July
contracts the Harris Gates people have
been taken in and paid for about g.
600, 900 bushels. This would leave set
Elements on some 100000 bushels.
Profits a Million and "a Half.
IA a.
will not exceed $1,500,OO0. This amount
will be divided up between ten or a
dozen millionaires who were interested
in the deal. Mr.. Gates and his friends
have between 100000 and 5000, 900
bushels 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 remains the stumbling block to
success. If the average price of the
HarrisGates holding should prove well
up to the 20 cents point the clique has
on hand several million bushels of corn
which cost it's holders in excess of the
present market price. Right here is
the salient point. Will it be necessary
to market this large holding of corn
at less than it cost?
Farmers Got Big Gains.
They were at one time promised
many millions of profit, and the far
mer, whose well filled cribs line the
tracks of nearly every railroad enter
ing 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 adj
vantage of the situation until the price
of July got up in the 70s and when it
finally reached 90 cents the Chicago
market WIS deluged with cash corn.
For a while the Harris Gates people
kept the market cleaned up, but stead
lily increasing quantities began coming
end the prospect of loading up with a
lot of S0-cent corn which they might
not be able to dispose of later at over
60 cents became somewhat appalling.
Without warning they withdraw all
support. settled with the shorts and