In the Harlem “corner,” which is referred to in another place, contracts to deliver at 110 were settled at 179.
About three million dollars were taken out of the pockets of the bears. Several prominent houses went down in the struggle. The result of the “corner” was that the bulls were saddled with the entire capital stock of the property.
One broker, who had sold calls at 150 and was requested to fulfil his contracts when the stock had advanced to 250, was very much in the same position as Glendower’s spirits, which were called from the vasty deep but would not come. “I don’t see anything here,” he said, “about delivering. You can call, but I don’t mind it.”
There were two “corners” in Harlem. The Common Council was cornered in one and the Legislature in the other.
In the Rock Island “corner” the bulls bought 20,000 shares more than existed, and the price rose from 110 to 150.
London financiers have a fearful horror of “corners.” Hence the London Stock Exchange is very chary about listing our railroads, especially those with a moderate number of shares.
“Corners” are seldom profitable, and the parties connected with them can hardly escape getting badly hurt unless they are prepared to own and carry the entire property. Even in that event, it is usually put out of the speculative market for a considerable time.
The Hudson “corner” was one of the most successful. It paid a profit of 12 per cent. There was a profit of 4½ on the Rock Island “corner.”
The first “corner” of which there is any record in Wall Street was in Morris Canal, an old “fancy” now almost forgotten except for its “corner.” It had been forced upward as fancies frequently are, until it was far above its intrinsic value, and several operators began to sell “short.”
After this operation had gone on for some time a pool was formed to protect it, and the pool bought it all up and locked it up in a trunk. The operation was new to the Street and the bears were astounded, but when called upon to settle they became furious, and accused the manipulators of the “corner” of entering into a conspiracy. The “bulls” asked the “bears” why they had sold what they did not possess and could not procure.