The Munsey Magazine, August 1909

Munsey's Magazine, August 1909 This issue of Munsey's Magazine (Vol. XLI, No. 5) features a substantial article by Isaac F. Marcosson titled "The Perilous Game of Cornering a Crop," examining wheat market manipulation through the Chicago Board of Trade. The article opens with James A. Patten's recent successful wheat corner, in which Patten accumulated approximately one-fourth of the visible wheat supply by May 1909, purchasing at an average of $1.08 per bushel and closing his position at $1.34, netting personal profits of at least $2.5 million. Patten attributes his success to recognizing genuine wheat scarcity rather than mere speculation. Marcosson then traces the history of commodity corners, contrasting Patten's profitable operation with earlier failed attempts. He documents John B. Lyon's 1872 wheat corner—operating with partners Thomas Chisholm, F.G. Diamond, and brokers Munn & Scott—which initially succeeded by depressing prices to eighty cents while secretly accumulating grain, then driving prices to $1.50. However, their greed prevented profitable closure, leading to eventual collapse. The article continues examining the destructive nature of corners, particularly their impact on consumers and producers beyond speculators.