The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-09-02
CHICAGO's FALSE MOVE

the western commercial field is the
forced acknowledgment on the part of
the Chicago Board of Trade of defeat
in its efforts TO swing the grain mar
kets. of the country into line for it's
new commission rule. -.-.
Tho primarily technical grain trade
proposition, the failure Of the plan car
ries a wider significance. It shows that
the old story of pride leading to fall
sometimes works out in actuality.
proves that what has been said about
the increasing Importance Of Mime
apolis as grain market is true, and. to
the man who has no direct interest in
these things it carries illustration Of
the simple economic truth that it is
folly to stand in the way of natural
changes.
The decline Of the Chicago board has
been widely commented upon for two
years past. The east, the south. and
naturally the rival northwest have seen
it.. Chicago alone does not yet know
it.. 1t is difficult ever to make a Chi
cago business man see things as they
are seen from the outside. Years Of
triumphant commercial progress, of
growth unprecedented and Of accumu-
lation Of great wealth, have made that
city arrogant. Its business people par
take Of the spirit. Time is wasted that
is devoted to argument with the aver
age Chicago man upon any subject that
involves possible rivalry or equality in
anything commercial. Everybody out
side knows that the Chicago board has
seen it's best: days, and is on the de-
cline. Only the men on the Chicago
board do not yet fully realize it.
When the reports for 1905 showed
that the grain business of the lake city
had fallen off alarmingly, when the
Chicago firms occupying expansive and
expensive quarters were no longer able
to put up SO good front, when trade
both in cash grain and in the specula-
tive division had declined 50 that earn
ings had decreased materially, there
was a cry for a more even balance, for
something to restore the former equili-
brium.
Then arose genius. His plan was
simple. Chicago's commission charges
for doing business were 1sc a bushel
for buying and selling grain, the same
as in other markets. This financial
Napoleon would double up. People-who
traded in Chicago would be charged
Nc commissions instead of %c, and the
simplest mind could see that even if
trade was lighter there would be just
as much money for the brokers and
commission men.
The plan met with favor and was
adopted. The only wonder was that
some one had not thought of so simple
an expedient before. No one suggested
that there mi ght be back action to it.
No one directly concerned conceived of
such a thing, while for an outsider to
have advanced the thought would have
been useless, for no one would have
listened to it. Suggestion that posi-
bly-not even probably-but just pos
sibly, some Of the business might 60
elsewhere would have been received de-
Probabilities would not have
been analysed, for Chicago would not
have entertained the first contention.
AS Chicago went the outside trade
would have to co. Had not Chicago al
ways beaten the little markets into !
lines And if Minneapolis refused to
change, so much the worse for Mime
apolis. /.
Today the leading trader in Chicago
is circulating a petition on the board
praying for a return to former condi
tions, and one Of the largest grain firms
of Chicago has issued a circular letter
a copy Of which was received here yes
terday, setting forth the advantages of
the old way. The facts are cited that
Chicago has not profted, that business
is no longer in volume, that Chicago
memberships were about $4,000 each
when the Ac-commission rule was
and have since sold down to
S., 800, while Minneapolis memberships
have advanced from $4,625 to $4,000.
This is the greatest defeat Chicago
has ever met, not in itself, or in losses
sustained by the operation Of the rule,
but in the fact therein demonstrated
that Chicago can no longer swing the
grain trade as in years past. Chicago
is a big market and much business will
be done there for many years
to come, but her predominance is gone
forever. Minneapolis is on the climb.
She has much trade with Chicago, but
is not dependent upon her as formerly,
and if ever Chicago gets ready to close
up shop, Minneapolis will keep right on
doing business at the old stand. g