The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1902-07-30
GATES CLOSES CORN DEAL
Shorts Allowed to Settle at About
80 and Slump Follows.
FARMERS BROKE THE CORNER

The Clique which Ruled the Market Per-
NIT Settlement to Escape Having to
Load Up With Cash Grain-Farmsrs
Fail to Realize at tho High Priees-
Profits Estimated Mt d 100000.
Chicago.-John W. Gates has closed
out his corn deal on the Chicago
Board Of Trade. according to Samuel
Scotten, the managing partner Of the
firm Of Gates. Harris & Co. He stated
that settlements having been made by
the shorts. the deal was closed. rs Tar
as the New Workers were concerned.
and closed In d manner highly salts
factory to the men who ran 1t. From
an inside source 1t was learned that
the settlement was around eighty
cents. and the estimated PROFITS Of the
deal are close to $i.5OO.OOO.
Gates action was followed BY a
slump of fifteen and one-half cents
In the price Of July corn. and once
more the outsiders. particularly the
countryman and the farmer who had
hoped to realize high prices. have been
left rs the men to hold the bag.
Early In the day the bulls suddenly
refused to take July corn at the fancy
prices from the farmers and country.
men and elevator people who were
shipping It In quantities. and expect
ing to get eighty cents at least for 1t.
and the drop followed. the price being
knocked OF fifteen and one-half cents
during the day.
Gates never lost confidence when the
shorts were fighting him the hardest.
and when men of millions entered the
pit against him. he retained his easy
bearing and offered to bet $4,000 that
July corn would go to ninety cents.
Then, when no one would take his
wager. he sent the Price there just to
show his power. Then he let 1t sag
back a notch.
When the shorts began to act In a
manner one. Of the Gates partners
termed "welching." the new-crowned
corn king intimated he would settle for
eighty eight cents. That started I'll.
NOR that he was beaten. His reply
was the forced settlement which fol.
lowed.
To form an estimate of the apparent
profit by the deal would necessltate
a knowledge of the average price at
which the property was bought. This
can never be known unless Gates
chooses to divulge It. 1t Is estimated.
however. by close observers OF the
transaction that Mr.. Gates profit Will
not exceed $1.5O0.OOO. This amount
will be divided up between ten or a
dozen millionaires who were interested
In the deal.
The corner at one time promised
many millions OF profit. and the farmer
whose we'll filed cribs lined the tracks
Of nearly every railroad entering Chi
cago Is held responsible for Its early
closing. There were substantial re.
serves from the bumper crop OF 1900
and the large yield Of 1901. This corn
has been held for satisfactory mar.
ket. The farmer did not begin to take
advantage Of the situation until the
price Of July got up IL the seventies.
and when 1t finally reached ninety
cents the Chicago market was deluged
with cash corn.
For awhile the Harris Gates people
kept the market cleaned up, but stead.
lily increasing quantities began coming.
and the prospect Of loading up with a
lot Of eighty cent corn which they
might not be able to dispose OF at
over sixty cents became somewhat ap'
palling. Without warning they with
drew all support. settled with the
shorts and closed the deal.