The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-03-18
CHICAGO GRAIN TRADE

S-o~oo~S NA30146v oooo-
From information transporting in Chi
cago and confirmed by prominent Chi
cago board of trade man recently on the
Minneapolis floor, it is learned that
there is strong undercurrent of dis
satisfaction over the present state of
affairs in the Chicago grain trade and
intense desire for some change for the
better. This is likely soon to crystalize
into movement for annullment of the
rule permitting the delivery Of Chicago
contract grain on Milwaukee sales. 1t
reads like very dry announcement.
But to the man in the grain trade it
means much and to the student of trans
portation problems and economic
changes in our country it is the final
acknowledgement by Chicago of the be.
ginning of the end. AS wheat market
Chicagois dying FAST
To cut 'out trade technicalities and
state it clearly, it may be said that if
one sells grain for future delivery in
Milwaukee, the tender Of a Chicago
warehouse receipt properly endorsed
and officially stamped, at time Of ma
turity Of contract, constitutes good de-
livery. To understand the situation
fully it must be remembered that Chi
cago, until recent years, dominated the
grain trade. So great was her power
and so vicious her assaults upon her
rivals, that her influence long remained
paramount, her reputation became world
wide, and to this day, when her bust
ness has shrunk to comparatively moth
ing, there are many the country over
who still think of Chicago as the center
of things in wheat trading.
Five years ago the decline really be-
gan. Minneapolis had risen into greater
prominence. Big spectators came in
here from outside and soon a trade was
on that .eclipsed Chicago. Her board Of
trade saw only one chance-a desperate
one. That was to revive the Milwau-
kee market. Milwaukee had once been
an important wheat market. For thirty
years she had been dead. To put new
life into a corpse was the Chicago
move, for, in the wars between differ
ent factions on the Chicago board, a
law had been passed in Illinois making
trading in privileges or "puts and
calls' illegal, and this business was
going away from Chicago to Mime
apolis and carrying other business with
| it. The Milwaukee market was opened
up. 1t was merely reflection of Chi
cago, but it served the purpose and
kept Chicago from falling to pieces.
Soon Milwaukee began to do more
business than Chicago and the screws
were put on. It was all right enough
to hold down Minneapolis by building
up Milwaukee, but quite another thing
to see Milwaukee coming into promi-
hence. By one means and another Mil
waukee has been kept going for five
years, coddled by Chicago in certain
degree, and promptly slapped back into
place when reaching the danger point
in size. : NS@
Meanwhile Chicago has had a hard
time Of it. Minneapolis has run her a
hot pace on the north, and the railroads
serving the gulf ports have been di
verting tonnage southwark from a large
territory formerly subservient. To &C
out and boom up trade in one quarter
while sitting on the safety valve of ex
panding business in another was not
an easy trick. To those who still think
of Chicago as a wheat market it will
seem incredible, but on Thursday Of las
, week only one car Of wheat was re
ceived there. Next day 5, and yester
, day 8. It would be foolish to writ,
down any comparisons with Minneapo
. lis receipts. AS well compare a pin
, head with a pumpkin.
Meanwhile Chicago has an important
! trade in corn and oats and othe
: coarse grains, but considerable bust
8 ness is being done in these grains i,
3 Milwaukee, and in Minneapolis Their
5 is a small scattering trade in oat
!, futures, which does not amount to any
= thing, but might run to large proper
a tions under some circumstances, an,
Q undoubtedly will in any case, in time
With the Chicago delivery clause ap
g plying in Milwaukee, sales of coars
8 grain futures may be made therH t.
I some advantage. Chicago cannot affor
to let two blades Of grass grow wher
v but one grew before, unless they gro1
s within her own confines. And so, i
J the movement comes to this point O
9 presentation to the Chicago directors
. Milwaukee will see action upon a prot
/. osition, not indeed to kill her off, flo
;. she is still essential to Chicago, but t
n MAIN her SO that she will never be abb
a to gather sufficient strength to tur
k against her progenitor.
3 1t is difficult to see how anythin
T.. but good to Minneapolis can come OF
Il of these disputes and internal squat
70 bles in Chicago that come to light 9
II intervals. Minneapolis has the mil
e that grind the wheat into -four and he
n whole grain business, cash trade an
speculation, has for it's foundation til
legitimate merchandising Of the grail