The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-09-17
CHICAGO LOSING
GRIP ON MARKET
EASTERN PUBLICATION ANAL
YES GRAIN SITUATION.
Western Cities Gradually Undermine
Chicago Thru Readjustment of Bas-
ing Points, and Rising Importance Of
Gulf Ports for Export Trade-De-
cline of Old Market Is Inevitable.

The gradual undermining of the Chi
cago grain trade and the impending
fall OF that market into a place rela-
lively unimportant, form the basis for
an article in the current number Of the
Business World, New York publica-
ton. 1t deals with facts already pref
ty well known. in the local grain trade,
but as it represents the impartial in
vestigations of an eastern man entirely
unconnected with the trade and carry
ing on. inquiry only for the purpose Of
obtaining material for business ar
ticle, it is interesting. The outline of
Chicago s decreasing Importance con-
firms in full the situation as seen from
the Minneapolis viewpoint. ..
Trade Center Shifts.
w. H. Tough, Jr., of New York uni
versity is the author. The Business
World sent Mr.. Tough out to write
about the grain trade in general, it's in
teresting features, the magnitude of
the business, methods of financing the
crops, etc. In the process of investi-
cation, however, facts and figures came
to light indicating to this observer that
the feature of Importance was to be
found in the shifting of the grain trade
center in the west.
Mr.~Lough says the Chicago Board of
Trade is moribund institution. He
notes the rise of Minneapolis, Duluth
| Kansas City and St. Louis. Some of
his statements are rather academic, but
his observations are highly interesting
| Chicago Will Decline.
It is his argument that speculation
follows the grain reserves and cannot
long subsist in Chicago if the dealings
in actual grain are transferred to other
markets. GAS it is now,' he writes
"the grain merchants Of Minneapolis
Duluth, St. Louis and Kansas City must
all look every business morning fol-
gin to transact business on their own
exchanges The ultimate cause Of
Chicago's. prestige lies in the immense
volume Of speculative dealings in that
city, which far overshadow In quality
and in influence the transactions il
actual grain.
It is only a matter Of few seasons
sas City will snatch from Chicago the
leadership in general grain receipts, in
Guiding corn and oats, as Minneapolis
has already done in wheat.
"But the moment that the city'
prestige as market for actual grain
departs will see also the loss Of he1
speculative business,'' says Mr.. Tough
'and the progressive decline OF thu
Chicago grain trade will finally cul
inmate in it's fau.''
Factors In Movement.
The author points out two factor.
adverse to Chicago. The first is tn,
much-d discussed growth Of the gulf ex
port trade at the expense Of the At
lantic seaboard, which is direct blow
to Chicago. The second is the less
known, but even more important ten
dency to extend the thru rate princi
pie of naming freight rates as far ives
as the Missouri river: At present, Chi
vantage from their position as basins
points east of the Mississippi river, bu
that advantage has already been threat
ened and is likely to be removed by tn
persistent efforts Of western cities VIII
realize its essential unfairness.