The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-03-05
END OF AN INTERESTING FIGHT

: Great local interest attaches to the de-
cision vest rday of the United States SUI
preme court confirming the validity OF the
Illinois statute which makes option trad
ing in grain misdemeanor. Much mis-
conception of the actual scope Of the de-
cisiOn has arisen owing to the fact that
few outside the grain trade are famlnar
with the technical points. In consequence
the newspapers have been announcing
that trades in futures" are prohibited.
This is entirely erroneous. A farmer may
sell his crop as it stands-to he delivered
when harvested. Nothing can prevent.
An elevator man, miller, or anyone else
may buy wheat for delivery in May or
July. Such trades are futures. They are
in no way touched by the decision, which
merely reaffirmes the illegality of trading
in options, or in what are commonly
known as puts and calls" in Illinois.
The decision closes another chapter in
the fight of the Chicago board of trade
to maintain its supremacy. The fight be-
gan nearly fifteen years ago.
The Why and Wherefore.
At one time the Chicago board was
paramount. No other grain market was
worthy of consideration in comparison.
The Chicago board had one great
trouble. Bucket shops" were springing
up in Chicago, drawing away speculative
business and weakening the boards pres
tige. For ten years Chicago fought the
.bucket shops in the courts-now gain
ing an. advantage, now losing. Finally,
the "bucket shops received a knockout
blow, when the Chicago board secured the
passage of the statute the legality of
which has just been affirmed Chicago
was now on the way back to domination
But, meanwhile, a great milling center
had developed in the northwest. Elevator
storage OF 3O,OO00O0 bushels capacity had
been erected in Minneapolis; enormous
st ocks of grain were carried here, and
with many natural advantages, Minneapo-
lis had rapidly grown into a strong sec
onoary position as speculative market
The passing of the statute in question
threw more business here. and Chicago
men We're sorry it had ever passed. The
ne newspapers, trade periodicals, and even
foreign publications, began commenting
on the remarkable growth of Minneapolis
and The decline of Chicago. Soon the two
markets were neck and neck Something
mad to be done. The result was the entry
OF the Chicago crowd into the Milwaukee
market. -
The Milwaukee Revival.
Thirty years ago Milwaukee was a
great primary market. It lost its pres-
tlge, and for twenty years had been dead.
w ueH tue chicago crowd came I'D and
looked 1t over, they found cobwebs hang
ing from the ceiling of the exchange room.
Benches ran around the room on which
sat few long -whiskered men, doing.
smoking pipes and rising ever and anon
to go out for beer. sleepy hush was
over the room. Once in a while some one
oHered 4. May wheat A sale of 81
May was sensational Here was Chi
Cages chance. There was no law in Wis
consin prohibiting trading in puts and
calls" A short telegraph line was put
IN, and Chicago privilege traders began
sending their business to Milwaukee. The
results were wonderful. Milwaukee sud-
denly came to life. The old bewhiskered
fellows were, lost in the shuttle. A pit
was built and in an incredibly short time
Milwaukee was trading at the rate of
II, O00, 900 bushels day.
A Too Lusty Infant
To-day there is as much business being
done in, Milwaukee as in Chicago. The
pup has outgrown the dog, and the Chi
cago men who started the Milwaukee Man
to try to pull down Minneapolis, now
Ind that they must turn around and take
a rap at Milwaukee If they are to hold
their own with that market.
Meanwhile Minneapolis has grown
apace. The -four mills have been enlarged;
five millions have added to local eleva-
tor capacity; receipts of grains here last
year broke all records and memberships
In the Minneapolis chamber selling at
$500 up to short time ago, are now
selling at $4,000.
The decision OF the court means much