Los Angeles herald., 1909-10-01
fRv Associated Press1

rivaling the famous Patten corner, the
price of oats for September delivery
was advanced to 80 cents, compared
with a closing of 441a cents yesterday.
With the knowledge there was a
short interest in that option, estimated
at 1000, 900 bushels, shorts bid furiously
for the grain at various times during
the day in an effort to close their ac-
counts before the expiration of the
time limit, this being the last day on
which deliveries could be made.
The sensational advance, which
makes a total gain for the week OF
more than 10 cents, was due to the
concentration of the bulk of the con-
tract grade grain in the hands of a
few leading spectators.
It was a neat and unexpected squeeze
of shorts that occasioned the startling
finale to the days deals in wheat.
Trade in Option Is Brisk
Trade in this option was rather brisk
during the forenoon, and there were
evidences of nervousness among shorts.
This interest was waiting until the
last moment, looking for a break.
They waited in vain. A small pool
was holding the scant supply of wheat
deliverable on September contracts,
and its grip began to hurt about
thirty minutes before the close.
one prominent firm, short 250,000
bushels, raised its bid cent. No wheat,
Two cents, 3 cents, cents, but still
no wheat
When the wheat began to come out
S1.19 had been bid. Some came out at
$1.20 from George Patten, a brother of
James A. Patten, the leader of the
recent big May wheat deal, and still
more recently a big figure in the New
York cotton market.
Shorts are estimated to have bought
between 100000 and 100000 bushels at
the inflated prices. No one in the pit
was hard hit with the exception OF
the firm alluded to, which was COM
PEELED to cover half million bushels.
How 1t Started
The excitement began suddenly this
morning. In a vague way there was
known TO be a short interest in wheat,
hut that some particular individual or
clique had secured control of the long
side was undreamed of.
The traders in control are said to
have held about 100000 bushels, while
the scattered short interest was esti-
mated at between 100000 and 100000.
In volume this does not begin to COM
pare with some deals which board of
trade history reveals, but in compact
efficiency 1t is said to be the peer of
any.
No colossal winnings or losses are
involved, although some of the weaker
shorts were hard hit when "shoestring"
resources were considered. The efforts
OF some of these to extricate themselves
during the last half hour were pitiful.
A small sum multiplied into compar-
atively heavy losses with distressing
rapidity. September was at S1.07 when
the riot of the shorts began. Condi-
tons had been bearish, and although
September has held sturdily in price,
shorts still believed the break would
come.
Receipts in the northwest continued
heavy and Europe refused to buy, a
situation equally followed by lower
prices. AS the final moment of the
trading month drew near and the break
did not materialize, the true condition
of affairs became apparent
One long with 5000 bushels to his
credit snatched his profit at $110, and
then watched what became of his sale
Changed Hands Rapidly
In the next thirty minutes it changed
hands tWenty-eight times on an ad-
Yancing scale. Brokerage commissions
alone on the various transfers aggre-
gated $3.50
One of the most influential traders on
the board waited until the top had been
reached and then delivered the actual
wheat at s1,20-100,00O bushels of it,
Little wheat came out until $1.1S was
reached, at this figure and above a
neat profit was garnered, deliveries
amounting to $4,000 bushels going to
scattered interests. 1t was necessary
to extend the delivery period three
times before the last amount was
squared.
While several firms are reported to
have profted by the deal, common re-
port credited control of September to
an eastern man. This trader is said
to have bought around a dollar and to
have recouped nicely money lost two
years ago in an attempted squeeze
which failed. He is likewise said to
have been the man who made July
shorts come to his terms at New York
last summer. In some quarters, it is
insisted that the deal was manipulate
ed in Chicago interests.
A furore in the oats pit monopolized
attention during the forenoon, but it's
lustre was dimmed later by the excite
ment in wheat. Covering Of about 1000
bushels of September oats sent the
price of that cereal up to fifty cants,
1-2 cents higher than the previous close.
At the top price elevator interests sold
heavily and the market reacted to 4S
cents, where it closed.