The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-07-16
shorts Squeezed Until They Cried
Enough, and Then Permitted to
Settle at About so Cents.
CORNER IS NOW A CORPSE
SPECULATIVE BUBBLE PUNCTURED
BY THE MAN WHO MADE 1T.
Its Demise Attended by No Special
Excitement on the Chicago
Board of Trade.

CHICAGO, July 15.-The famous John w.
rupt termination to-day, 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 quiet
drop of 1874 cents from 81 cents to 654c
Later it recovered a fraction and closed at
651zc, substantially the price of the cash ar
ticle.
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. Mr.. Gates is at present
in New York. and Mr.. Scotten manager for
the Harris-Gates house, would admit only
the fact of a settlement by the outstand-
ing shorts Even the fact of a termination
of the July deal was left largely to infer
ence But the trade readily figured that
with the shorts practically all in, nothing
in the shape of a corner could exist
NO EXCITEMENT.
No special excitement attended the pre-
mature puncturing of the bubble by the
man whose property il 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
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 un-
usual thing in the pit prior to the time at
which 1t became known the corner was at
end the unusual purchasing of July
corn in small Totes by various commission
houses. Pit trade during the day, however.
not much over 100000 bushels.
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 price was 81 cents
and the opening to-day from 70 to so. the
consensus of opinion among the outsiders
was that Mr.. Gates had demanded either so
or 81 cents from the people who were fool
ish enough TO sell him corn all the way
from 50 cents up.
The length" Of the line of July settled
for by shorts is also a matter of more or
less conjecture Mr.. Scotten said II was
several million bushels" and that the
length of the line had never been overes-
timated. 1t has been called as high as 25.-
100000 bushels. but more generally 10000. 600
bushels. 1t is matter OF common knowl-
edge that since it became possible TO make
deliveries on July contracts the Harris
/ Gates people have taken in and paid for
about 100000 bushels. This would leave set
Elements on some 100000 bushels.
ESTIMATE OF THE PROFIT
To form 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, II is estimated, how
ever. by close observers of the transaction
that Mr.. Gates's profit will not exceed
81, 10000. 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 4.Oo0.OO and 5000
600 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 ever
run has been the stumbling block to sue
/ cess. II the average price of the Harris
! Gates holding should prove we'll up to the