The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1902-07-18
Corner in Corn Ends Abruptly
JOHN w. GATES GIGANTIC GAMBLE
MADE HIM A MILLION.
The Farmers Held Out and for That Rea-
son, 1t Is Said, the Profits Were
Not Heavier.


Chicago, July 15.-The famous
corner in July corn came to an ab-
rupt terminationS 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., 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 12a cents to 654.
Later it recovered a fraction and
closed at 65I, substantially the price
of the cash article.
Just how many bushels were SUBJ
iect to private settlement will proba-
bly, 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 men whose property 1t Was
The trade has all along admitted MIR.
Gates was right and also his ability
to do what he pleased with corn.
Pit trade during the day was not
much over 100000 bushels.
Manager Section would not dis
cuss the settlement price. The con-
census of opinion among the out
siders was that Mr.. Gates had de-
msnded either 80 or 81 cents from
the people who were foolish enough
to sell him corn all the way from 6O
cents up.
The 'length" of the line of July
settled for by shorts is also matter
of more or less conjecture. Mr..
Scotton said it was ''several million
bushels" and that the length OF the
line had never been over estimated
It has been called as high as 25,-
100000 bushels, but more generally
100000 bushels. Since it be-
came possible to make deliveries on
July contracts the Harris Gates peo-
ple have taken in and paid for about
5000, 900 bushels. This would leave
settlements of some 17,OOO,OOO bush
els. It is estimated that Mr.. Gates
profit will not exceed S1,5OO,OOO.
This amount will be divided up be-
tween ten or a dozen mlllionalres
who we're interested in the deal. Mr..
Gates and his friends have between
100000 and 100000 bushels Of
cash corn which they must dispose of
before the corner can he called abso-
lutely settled. This corn represents
the "corpse'' which in every corner
ever remains the tumtling block to
success. If the average price OF the
Harris Gates holding should prove
we'll up to the 70 per cent. point the
clique has on hand several million
bushels of corn which cost its hold
ers in excess of the present market
price. Right here is the salient
point. Will it be necessary to mar
ket this large holding of corn at less
than it cost?
The corner at one time promised
many millions of profit and the
farmer whose vel! filed cribs line
the tracks of nearly every railroad
entering Chicago is held responsible
for the disappointing ending OF the
corner. There were substantial re
serves from the bumper crop of l9OO
and the large yield of 1901. This
corn has been held for 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 it finally reached
80 cents the Chicago market was
deluged with cash corn. For a
while the Harris Gates people kept
the market cleaned up, but steadily
increasing quantities began coming
and the prospect of loading up with
q lot of 80 cents corn which they
might not be able to later dispose OF
| at over 60 cents became somewhat