Omaha daily bee., 1902-07-16
PriOs on Cereal Responds with Drop of
Nearly Sixteen Gents in Consequences.
PROFIT REACHES MILLION AND A HALF
Amount Will Be Divided Between Ten or
Dozen Millionaires in Deal.
CORNER PROMISED FORTUNES At ONE TIME
Men whose Well Filled Cribs Along
various Lines of Railroads Re-
spOnsibIe for Disappointing
Ending of the Corner.

CHICAGO, July 15.-The famous John w.
Gates corner on July corn came to an alb
rupt termination today, when It became
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 settlement by quick drop
OF 15% cents TO 6bA cents. Later It recov-
cred a fraction and closed at 65h cents,
substantially the price OF the cash article.
Just how many bushels were subject to
frivate 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 never be
positively known. Mr.. Gates is at present
in New York, and Mr.. scotten, manager for
the Harris-Gates house, would admit only
the fact OF the settlement by outstanding
shorts. Even the fact of termination Of
the July deal was left largely to inference,
but the trade readily figured that with the
shorts all practically in, nothing In the
shape Of corner could exist.
No special excitement attended the pre-
mature puncturng of the bubble by the
man whose property It was. The trade has
all along admitted that Mr.. Gates was right.
and also his ability to do what he pleased
with corn. and II he chose to close the deal
couple of weeks prior to the time at
which 1t would have ended by limitation
there was no one to say him nay. The only
unusual thing In the pit prior to the time
at which 1t became known that the corner
was at an end was the unusual purchasing
Of July corn in small lots by various COM
mission houses Pit trade during the day
was not much over 100000 bushels.
scotten Remains silent.
Manager scotten would not discuss the
settlement price. This price, however, was
not a matter of decided interest to the
trade generally.
With the knowledge that Monday nights
closing prices was 81 sents and the open
ing today from 70 to so cents. the con-
Bensus of opinion among the. outsiders
Yves that Mr.. Gates had demanded either
so OF 81 cents from the people who were
foolish enough to sell him corn all the way
from so cents up. The length of the line
OF July settled for by July shorts is alst
q matter of more or less conjecture. Mr.
Scotten said 1t was several million bush
els" and that the length Of the line hat
never been overestimated. 1t has beei
called as high as $4,000, 900 bushels, bu
@O1NSofpNN
matter Of common knowledge that since 1
became possible to make deliveries oil
the July contracts the Harris Gates peopl
have taken in and paid for about 5000 90
bushels. This would leave settlements ol
some II, 00A 600 bushels.
To form an estimate of an apparen
profit by the deal would necessitate
knowledge of the average price at whicl
the property was bought. This can neve
be known unless some time later Mr.. Gate
chooses to divulge It. 1t is estimated
however, by close observers of the transao
tion that Mr.. Gates profit will not excee
$500. 900. This amount will be divided be
tween ten or a dozen millonaires VIII
were interested In the deal, Mr.. Gates an
his friends have between 100000 an
5000. coo bushels OF cash corn which the
must dispose OF before the corner can b
called absolutely settled. This corn rep
resents the corpse which In every cor
Rer ever run has been the stumbling bloc
to success. II the average price of tn
Harris Gates holding should prove we'll u
to the 70 cents point, the clique has o
hand several million bushels of corn whic
cost its holders In excess Of the presen
market price. Right here is the salien
point. win 1t be necessary to market thi
large holding OF corn at less than It cost
CCrner Promised Millions.
The corner at one time promised man
millions OF profit, and the men whose well
filled cribs line the tracks of nearly ever
railroad entering Chicago are held respon
sible for the rather disappointing endin
OF the corner. There were substantial re
serves from the bumper crop of 1900 an
the yield of 1901, This corn was held fo
q satisfactory market. These holders di
not begin to take advantage Of the situa
ton until the price Of July got up in Ii
7O's, and when it finally reached 80 cen
the Chicago market was deluged with cas-
corn. For a while the Harris Gates peop
kept the market cleaned up. but steadi
increasing quantities began coming, an
the prospect OF loading up with lot
e0-cent corn, which they might not be ab
later to dispose Of At over so cents. b
came somewhat appalling. Without war;
ing they withdrew all support settled wit
tha ghorta and elOaad the deal