The sun. [volume] (New York [N.Y.]) 1833-1916, 1878-03-10

The Grain Trade of Chicago.
Tho vast proportions Of the traffic in grain
| that centres in Chicago are not more note
| worthy than are the checks and guarantees
| to which it is now subject. only during The
last tw.kemonth has the legislation on this
subject been thoroughly carried out, and
| full exhibit of its workings is for the first
time furnished in the lately published re-
port Of the Illinois Warehouse Commission.
There is no doubt that the authority vested
IN tbs commission was Il novelty. If not u
positive anomaly. in law, but, ON the other
hand. the state of things in Chicago was
unprecedented. The quantity Of cereals re-
cciNcd in that city had made it the greatest
grain market in the world This business
created demand for means by which co.
lossal bulks could be- stored or handled and
these were found in the warehouses com
monty known rs ,Lerdfors. because the grain
is lifted into bins from the boat or ear by
machinery operated 10y steam. These ware
| houses are immense structures capable OF
holding from 3JoO0Oto ,OOo. 600 bushels at one
time and there are now not less than nineteen
! Of them in Chicago, having an aggregate ca
pacity Of lj.GOoGp0 bushels 1t wa early
lNAlN liillNT-tNl' ~ hN'l lNl NN' tuAll fhl-
.iynmcnt, and this gave rise To u system of
inspection and grazing by which the grain
| If different owners l. mixed. and rcccipts
issued for the number Of bushels which are
! negotiable AMI rcdeemublc In like kind upon
! demand This mode Of conducting the grain
! business wac iunuguratcd more than twenty
| years ngo, but il soon gave rise to vehement
| complaints on the part of shippers and pro-
! duc"rs. Ii was charged that the prices
oNactcl for storage Wcr" eXtortiOnatc, that
( tho inspection was careless and sometimes
fraudulent. and that the grain delivered
! was hN no means certain to agree ia quality
with that called FOR 10y the receipt II APP
| pears that in 1871. although there wcrc then
! in Chicago fourteen warehouses adapted 10
| THE traffic, these we're all controlled 10y nine
business firms. who. by mutual compact,
established the storage rates. The result
was that all the clcvating facilities through
which the vast productions OF seven or eight
! great states must pass on the way to the
-oaboard had become virtual monopoly.
Under these circumstances the Illinois
Legislature creatcd the Railroad and Ware
house Commission. one of whose functions
il To- control the INSPECTION 81 all grain re-
cei> eel and delivered at elevators and to fla
| tie price Of storage. The cou~titItiouality
Of the act, which II was cloAuod inter-
iercd with private property, wa@, of
course, strrnuOusly contested. and ii
was only about a year ago that the
statute was approved 10y the supreme
Court OF the United States. not without
strong dissenting opinion on tn" part ~ two
Of the Judges. Since that decision no at
tempt ha~ been made 10 thwart the official
inspectors. and accordingly their present re-
port mayb deemed an authentic statement
II the volume 81 the trade as well ~ an cN-
position 81 II, methods and oversight.
During the twclvomonth ending Oct. 81.
l777, the quantity Of grain inspected in store
from car and boat was upward of 7io0N,OoJ
bushels. Within the same period there wns
Inspected ont ~. store more than 6i.Olo,Ooo,
making grand total Of 13j.Oo,ooo officially
| inspected. We observe that the chief In
spcctor reports q larger amount Of grain re-
crlvcd than j. recorded 49, having gone into
store but this j. doubtlrs, accounted for by
the shipper arranging for through Ship
meat without breaking bulk. and alsobv the
grain Icing taken from the track for city
u-c. Further light will be thrown ON the
| Importance Of the duties dcyolving ON the
" 'llltilt@@l'il ny lll' lu'N NlNll nv
receipts registered during the last year.
and Hul soquentiy cancelled On Tia" removal
/ Of ia" grain repro cutod cash value of
nearly ~H.uo0p0o
Il would hr -,rMgr If, i'm all thi, wurl, of
Classification, requiring the best Judgment
IL experts. thorc Wrrc NO errors Of gradng
on differences of ViuV a. To- the correct dr-
cieiou. II appca- that the provision for
appeal ha, been turned Ia account in GER
tain ii lancc-; but these wrlr so few that
they but prove the general correctness of
the inspections Up o. August -. lSIi the
total nunh,r Of npprql- w.t. but oigi w.
fDur representing l"-, than one ear in each
one thoU7nul I'm nfty-~ix of thcsc ca-c.
the official findings wore Sustained. and in
tWmty-o4ht reversed. maiNug a change Of
only 29uJl bushels in an aggregate al
s2.o.o,ooo inspected up To- that date. II APP
pears that the kind oi grain Whose sorting
| gives rise 10 most dispute is barley. To
properly classify this cereal requires an "y-
tended experience. and tnoro i said 10 bc
always room for honest divergence" Of opin-
ion. Probably, too the wide variation in
price among the several grade. If barley
operated as an encouragement to contest
official distribution. A. To- rye there Was
NOS Single appeal, and in the ease of oats
tLrt were hul nine instances. II is proper
10 note" h.wrVor. that the number Of dis
rut~i inspections, largely ncrco eel during
the last two months covered by this report,
which may BE- a-cribcd To- the fact that a
considerable reduction was lately made in
the cost of appeal
Few pcrssn7 outside Of the grain trade
Nyltnt nj Il il 4.
served in the grading Of cereals. Oi winter
wheat for instance, there are no l,s- than
eight classes, each Of which must be duly
certified and consigned 10 a distinct bin in
the elevator. or spring wheat there are
four grades, of corn nine of oat5 lOur, and
az |'.seyiiY' Afh"pah czech iu'r"r'"r i1