have been that there were many conflicting interests in-
volved, and that the business was carried on without
any controlling supervision of law. A conflict was in-
evitable, however, before the trouble could be adjusted,
and it culminated in the appointment of a committee
by the Board of Trade, to consider the alleged irregu-
larity in the issuance of warehouse receipts, and other
evils in the warehouse system, and to report thereon.
The committee, on Friday, January 21, 1870, presented
a report containing recommendations intended to form
a basis for compromising the differences. The report
was adopted on the following Monday. On February
1, a plan, in accordance with the resolutions, for the
registration of receipts and the prevention of over-
issues, was presented to the warehousemen for approval.
On February 7, the proprietors of the principal ele-
vators replied, and declined the proposition ; when the
Board again submitted a basis of compromise, which
was again rejected, and the year closed with the Board
of Trade and the elevators in distinct variance, and with
little chance for any satisfactory settlement of their dif-
ferences. The time had arrived, however, when the
immense and constantly-increasing interests of general
trade could no longer be left unprotected by positive
law. The quarrels between the conflicting interests,
which were found to be incapable of settlement, proved
to the great commercial public that the time had come
to put under the paternal care of the State these great
interests which had outgrown the control of all private
integrity, and were fast consolidating into a monopoly
which would only be measured in its degree of extor-
tion, honesty or beneficence to trade, by the honesty
or cupidity of the men who held control of the vast
interests involved in the handling of all the surplus
grain of the great Northwest.
THE YEAR 1870-71.
The twenty-second annual meeting was held Tues-
day April 5, 1870. The membership reported was one
thousand, three hundred and forty-two â€” an increase of
fifty-five during the year. The election resulted in the
choice of the following officers : S. H. McCrea, presi-
dent : B. F. Murphey and P. W. Dater, vice-presidents.
A summary of the fiscal report gives the follow-
Total receipts $93,434 55
Total expenditures 94,635 72
Excess of expenditures .- - $ 1,201 17
Assets in bonds and cash $13,945 43
During the year, the receipts from inspection were
$40,267.20, and the expenses, $46,036 50 â€” a deficit in
that item of $5,769.30 ; $3,500 was also paid on the
soldiers' monument ; repairs made in the hall, and legal
expenses in defending suits against the Board, amounted
to $3,688.43 ; and the assessments of the National
Board of Trade, with expenses of delegates attending
its annual session, were $1,092. Considering these
extraordinary items of expense, the fiscal report was
The initiation fees were raised to $50, by vote of the
Board. The breach between the warehousemen and
the Board of Trade had been made the issue at the
election, in so far as to have resulted in a warehouse
and anti-warehouse ticket. The candidate put forward
by the elevator interest was Julian S. Rumsey, who,
from his personal popularity, his acknowledged business
ability and fitness for the position, was, perhaps, the
strongest opposition candidate that could have been
selected. He received three hundred and eighty-one
votes against four hundred and eighty-nine for the suc-
cessful candidate. A resolution was adopted to enforce
the Warehouse law for the delivery of grain, as the
owner or consignee may elect. Another resolution was
also passed, providing for a thorough revision of the
existing rules regulating the packing and inspection of
provisions, and all matters relating to their sale or pur-
chase, through a joint committee, consisting of three
members each of the Board of Trade and the Pork
Packers' Association, and three buyers of provisions â€”
THE BOARD OF TRADE.
the committee to submit the new rules to the full Board
The business of the Board for the year was chiefly
confined to buying and selling â€” little of historic interest
occurring, beyond what appeared in the statistics show-
ing the enormous volume of business done under the
control and supervision of the Board. A revision of the
by-laws was effected, and the inspection of provisions,
under well defined rules, inaugurated. The difficulties
between the warehousemen and the owners of property
consigned to their charge continued a source of trouble
and discussion during the year; and when the Legisla-
ture convened in January, 1871, one of the first subjects
which engaged its attention, was a bill regulating public
warehouses and the inspection of grain; which, after
amendments, was passed. The fiscal year closed while
the bill was still pending.
THE YEAR 1S71-72.
The twenty-third annual meeting was held Monday,
April 3, 1871. The membership reported was one
thousand two hundred and seventy-two â€” a decrease of
seventy during the year. The falling off was attributed
to the large accessions just prior to the close of the
previous year, and in anticipation of the increase in the
â€¢admission fee; which gave an unusually large member-
ship at the close of the year, leaving the accessions this
year not sufficient to offset the losses. The officers
chosen for the ensuing year were: J. W. Preston, presi-
dent; C. E. Culver and W. N. Brainard, vice-presidents.
The fiscal report of the Board of Directors showed
the following :
Total receipts from all sources $106,804 00
Total disbursements - 104,347 00
Balance of assets on hand $ 16,402 00
The receipts for inspection for the year were $49,668,
the expenses, $39,369 â€” net income from this source
$9,299. The expenses of the National Board of Trade
were $736. The last item of war expenses appeared in
this report, it being the payment of the balance due on
the soldiers' monument, amounting to $1,931. The
annual assessment was fixed at $30. The directors re-
ported a revenue of $3,000 from visitors' tickets, the
issuance of which had been first authorized in July,
From the directors' report the following extracts are
given, as of historic value :
"The subject of the transportation and handling of grain, which
has more or less been a subject of discussion for several years past,
has engaged the attention of your directors ; and, as the newly-
adopted Constitution of the State seemed to call for some legisla-
tion on those subjects, they, in conjunction with the commission
appointed to revise the statutes, had prepared two bills for submis-
sion to the Legislature, the one having reference to the duties of
railroads as carriers of grain, and the other with reference to thn
duties of those engaged in storing the same. The former is pend-
ing in the Legislature, with the approval of the Committee on Rail-
roads, without essential modification, and it is believed, will become
a law, before the adjournment of that body; the latter, amended by
the committee to whom it was referred, and with some alterations,
concurred in by the directors of this Board, has passed the House,
and will no doubt meet the approval of the Senate at an early day.
The modifications in the original draft of the bill, are not, in the
judgment of your directors, improvements, but it is hoped that they
may not seriously injure or inconvenience the trade of this city.
By the provisions of the bill, as amended, the inspection of grain
is to be controlled by the State, and this Board, will, if the bill be-
comes a law before the vacation of the Legislature, be relieved of this
care and responsibility on the 1st of July, next.* If this branch of
business be as well done as heretofore, we shall be well satisfied.
* The bill passed March 15, and was approved April 25.
The responsibility in this regard has been very great, and no sub-
ject has engaged the attention of the officers of the Board more
carefully and vigilantly than this. That entire satisfaction could
be given was not to be expected; that the best efforts of the Board
have been given to perfect the system, none will deny."
The delegates to the National Board of Trade sub-
mitted their report of the proceedings of the annual
session, held in Buffalo, from December 7 to 12, 1870.
The delegates were : P. W. Dater, V. A. Turpin, J. G.
Guthrie, R. Prindiville and Charles Randolph. The
subjects discussed and approved were :
1. Giving of " clean" bills of lading for grain in bulk- by rail-
2. Approving and recommending the cental system of weights
3. The selling of cotton in bale by actual tare.
4. The abolition of all laws, State and Municipal, that restrict
5. The establishment of a Department of Commerce by the
6. The immediate and unconditional repeal of the franking
7. A revision of the tariff, and a reduction of the duties to a
8. Civil service reform.
9. Direct importation to inland cities of the country.
10. Postal steam service.
11. Early return to specie payments.
12. Abolition of all usury laws.
13. Improvement of river navigation by General Government.
The Warehouse law, as enacted, provided for the ap-
pointment of a registrar, having powers that made him
something of an autocrat in the eyes of the warehouse-
men ; who, although working under corporate author-
ity conferred by the laws of the State, could not ignore
their individual rights to control their own business.
They, therefore, chose to rebel against the law, to the
extent of applying to the courts for relief. The Board
of Trade also determined, before taking measures to
enforce the law, to have legal advice. The whole law
was submitted to Messrs. Hitchcock, Dupee & Evarts,
counselors-at-la\v, for their opinion as to its constitu-
tionality Their opinion, given June 21, substantially sus-
tained the legal validity of the entire railroad and ware-
house legislation. The warehousemen having been led to
believe, by their legal advisers, that the fixing of the rates
of storage, and other points in the law, affecting their
business, were arbitrary and unconstitutional, refused to
receive grain except by request or consent of the owner
until the question should be settled in the courts. Con-
siderable confusion ensued, but nothing to seriously ob-
struct the course of trade. The registrar's authority
was not fully acknowledged for the time being, and it
was not until the court decided as to the validity of the
law, and disclosures were made of gross attempts at
fraud on the part of individuals identified with the
elevator business, that the law was put into full and
On September 20, resolutions were passed favoring
the construction of an international ship canal at Niag-
ara, and the directors were authorized to appoint dele-
gates to a canal convention, to be held at an early day
at Detroit. During the same month, the by-laws were
amended and the rules revised, particularly as to op-
tion sales for future delivery, margins, and the inspec-
tion of provisions before delivery on sales.
The Munn & Scott Difficulties. â€” The first
warehouse commissioners appointed under the Ware-
house law were, David Hammond, of Chicago, and
Colonel Morgan, of Bloomington. The inspection and
registration offices were opened August 1, 1871; but as
the warehousemen almost entirely ignored the law, but
little effort was made prior to October, 187 1, to get an
HISTORY OF CHICAGO.
account of the grain on hand in the elevators. The
registrar kept an account of all receipts issued, as they
could with difficulty be negotiated without this certifi-
cate. During 1872. it was regarded as important and
necessary that the quantity of grain in store
should be ascertained, in order that an amount
of receipts and shipments might be accurately
kept by the registrar, as contemplated by the
law. Members of the Board of Trade who had
interests at stake were anxious to "weigh up,"
and while some of the warehousemen were will-
ing, others declined, among the latter being
Munn & Scott. Later in the season, however,
when all the others had weighed and given the
registrar an account of all grain in store, Munn
..Y Scott announced that their report would be
forthcoming as soon as they could get it ready.
When the inspector examined the Munn & Scott
elevator, the Northwestern, he carefully calcu-
lated the capacity of the bins when full, the
same as in the case of other elevators, and he
thus knew the actual capacity by measurement.
The report of the inspector was copied on the
registrars books, and the general impression
prevailed that from this beginning, the public,
in future, would know something of the opera-
tions of the warehousemen. Suspicions were
rife on the Board, however, that there was not
so much wheat in store as was claimed. The
registrar was finally directed to investigate the
Northwestern elevator, and he directed assistant
inspector Kennedy to carefully examine into the
matter. His efforts were speedily rewarded by
the discovery, through an employe of Munn &
Scott, that several of their bins had been floored
over near the top, and a covering of wheat placed upon
the boards to give the bins the appearance of being
full. There was great excitement and indignation on
the Board at this disclosure, and it led to a more
complete and satisfactory observance of the law, the
better class of warehousemen having become satisfied
it was the only way to protect themselves.
Grain Received on October 9, 1871. â€” The
receipts of grain in Chicago, on Monday, October 9,
187 1, were the largest in a single day in the history of
the city, comprising 11,863,937 bushels of the crop of
187 1 ; 6,818,314 of 1870, and 6,246,042 of 1869. The
fire did not stop the receipts and shipments of grain, a
great deal of which had already been consigned and
was on the way. During the week succeeding the fire,
the receipts aggregated 1,635 cars > a "d the shipments
Burning of the Chamber of Commerce. â€” The
Chamber of Commerce was destroyed between one and
lock a. m., the morning of October 9. At about
1:20 a. m., a great billow of flames rolled over LaSalle
Street, and broke in the windows of the Chamber of
Commerce on the west side, near the south end of the
building, and at the same time seized upon the roof and
1 into the overhanging cornices. So swift was
the lir>: in its progress, that the building was gutted and
apart of the walls melted away in a few minutes. The
ted Press operator, in the Meichant's Building,
diagonally opposite on Washington Street, who was
sending out an account of the fate of the Chamber of
Commerce, was compelled to break off in the middle of
a word and flee for safety. The Court House, a fitting
companion to this magnificent building, caught fire in
the cupola, and at 2:05 o'clock a. m., the great Court-
house bell pitched from its fastenings down through the
crumbling ruins, clanging out a close to operations on
the old Board and a knell for the perished greatness of
the queenly city. The loss on the Chamber of Com-
merce was estimated at $284,000.
CHAMBER OF COMMERCE.
LARMON BLOCK IN DISTANCE ON
The day after the fire the Journal extra contained
an announcement that the Board of Trade would meet
at Nos. 51-53 Canal Street, and that there would be an
immediate meeting of the Board of Directors. Messrs.
B. P. Hutchinson, N. K. Fairbank, John L. Hancock
and others, representing more especially the provision
trade, leased Standard Hall, and invited the South Side
members to meet there as a matter of convenience. On
Wednesday, the directors of the Chamber of Commerce
decided to re-build at once. It was announced that
about $100,000 of the insurance of $225,000 on the
building destroyed would probably be recovered. On
Friday, the following resolution was unanimously
adopted at a meeting of the Board on Canal Street:
"Resolved, That the Board of Trade notify the directors of the
Chamber of Commerce that it holds lo and will comply with Ihe
provisions of its lease, and requires said Corporation to re-build
at once, as we wish to re-occupy the building at the earliest possible
The following committee was appointed to remove
damaged grain, and dispose of the same "for account
of whom it may concern ": North Side Elevator, J. B.
Lyon, S. H. McCrea, C. W. Wheeler ; Central Elevator
" A," E. Buckingham, M. S. Bacon, Josiah Stiles ;
National Elevator, C. J. Gilbert, E. B. Stevens, D. W.
The inconveniences of having two places of meet-
THE BOARD OF TRADE.
ing soon became evident, and efforts were made to com-
promise on the erection of a temporary structure, near
the entrance of Washington-street tunnel. The pro-
vision brokers and packers resolved to meet at Stand-
ard Hall from 7:30 to 9:30 o'clock in the evening.
They organized by electing B. P. Hutchinson, presi-
dent; Colonel Richardson and C. M. Culbertson, vice-
presidents ; J. P. Marot, secretary; and A. S. Burt,
An agreement was finally reached as to a temporary
location, until the Chamber of Commerce should be re-
built; and on Monday, two weeks after the fire, the
Board moved into a hall at the southwest corner of
Washington and Franklin streets, and business was
formally resumed. The main entrance was a stairway
on Washington Street, and, although the rooms were
small, they were well lighted, and if the rough pine
benches and tables were not rich enough to invite in-
dolence, they were at least serviceable. Aside from
being compelled, during the thaws of the succeeding
winter months, to wade across a miniature river in
Market Street, the members got along very comfortably,
and fully appreciated the kindness of Judge Farwell,
who had given them the use of the rooms rent free, for
so long a time as they might desire to occupy them.
CHAMBER OF COMMERCE, FROM CORNER WASHI
AND I.A SALLE STREETS.
LIST OF OFFICERS FROM 1858-72.
Julian S. Rumsey.
Julian S. Rumsey,
I. Y. Munn,
C. T. Wheeler,
John L. Hancock,
John L. Hancock,
John C. Dore,
Wiley M. Egan,
E. V. Robbins,
J. M. Richards,
S. H. McCrea,
J. W. Preston,
Thomas H. Beebe,
Thos. H. Beebe (1st),
Stephen Clary (2d),
Eli Bates (1st),
John V. Farwell (2d),
Clinton Briggs (ist),
E. G. Wolcott (2d),
W. H. Low (1st),
John L. Hancock (2d).
N. K. Fairbank (ist),
Chas. Randolph (2d),
Thomas Parker (1st),
C. J. Gilbert (2d),
T. Maple (1st).
John C. Dore (2d),
P. L. Underwood (1st),
E. W. Densmore (2d),
Lyman Blair (1st),
C. B. Goodyear (2d),
E. K. Bruce (ist),
J. D. Cole, Jr. (2d),
S. H. McCrea (ist),
H. A. Towner (2d),
B. F. Murphey (ist),
P W. Dater (2d),
Chas. E. Culver (ist),
Wm. N. Brainard (2d),
W. W. Mitchell,
Seth Catlin, *
Seth Catlin, J
John F. Beaty,
John F. Beaty,
John F. Beaty,
John F. Beaty,
John F. Beaty,
John F. Beaty,
W. W. Mitchell.
George F. Rumsey.
George F. Rumsey.
George F. Rumsey.
George F. Rumsey.
George F. Rumsey.
George F. Rumsey.
L. V. Parsons.
* The duties of the office of superintendent were merged with
latter office. The duties of treasurer were at the same time detached fn
t Seth Catlin died January 19, 1864. Colonel John F. Beaty w;
59, and Seth Catlin, the former super
about the 26th of January.
ndent, was elected to the
DIRECTORS AND COMMITTEES, 1858-72.
1858-39-â€” Directors : R. M. Mitchell, H. K. Elkins, I. Y.
Munn, George Armour, N. Ludington, J. Magill, B. F. Culver,
C. T. Wheeler, D. Kreigh and M. C. Stearns. First Committee
of Reference : W. T. Mather, J. V. Farwell, S. B. Pomeroy.
B. S. Shepard and T. M. Avery. Second Committee of Refer-
ence : E. W. Densmore, S. H. Fish, R. Robinson, Samuel Howe
and Nathan Mears. Standing Committee : George M. How,
Eli Bates, J. J. Richards, W. S. Stewart, B. W. Thomas, Clinton
Briggs and G. Wentworth Scott.
1859-60. â€” Directors: E. W. Densmore, George Steel, A.
Dow, W. Munger, J. H. Tucker, E. B. Stevens, George M.
How, L. P. Hilliard, A. S. Burt and Hiram Wheeler. Commit-
tee of Arbitration (for first six months) : J. J. Richards, C. H.
Curtis, N. Ludington, R. Robinson and Thomas Parker ; (for
second six months) : D. L. Quirk, H. McLennan, J. H. Tiffany,
B. F. Culver and J. B. Waller. Committee of Appeals : M. C.
Stearns, C. T. Wheeler, B. Adams, H. K. Elkins, C. H. Walker,
D. C. Scranton, E. Rawson, J. V. Farwell and George Watson.
Sub-Committees of the Board of Directors : On Finance,
Stephen Clary, W. Munger, L. P. Hilliard. On Grain Inspection,
Hiram Wheeler, E. B. Stevens, A Dow. On Inspection other than
Grain, Thomas A. P.eebe, George Steel, E. W. Densmore. On
Admission of Members, J. H. Tucker, George M. How, A. S. Burt.
1860-61. â€” Directors : J. W. Finlev, George Webster, E.
G. Wolcott, Clinton Briggs,' A. E. Kent, C. H. Curtis, B. P.
Hutchinson, Charles S. Dole. D. L. Quirk. Julian Magill.
COMMITTEE OF ARBl i k.\ i [ON (for first six months) : John Brodie,
Windsor Leland, S. T. Atwater, Howard Priestly, C. A. Rogers ;
(for second six months) : Tracy J. Bronson, Samuel M. Johnson,
John Maitland, William H. Low, C. J. Davis. Committee of
HISTORY OF CHICAGO.
Appeals: P. Anderson, M. C. Stearns, Hiram Wheeler, Gurdon
S. Hubbard, Charles H. Walker, Hugh .McLennan, Thomas
Harless, L. P. Hilliard, Joel C Walter. Sub-Committees OF THE
Boarp OF Directors : On Finance, John V. Farwell, Clinton
Briggs, D. L. Quirk. On Grain Inspection, A. E. Kent, E. G.
Wolcott. I. W. Finley. On Inspection other than Grain, Julian
Magill, C. S. Dole. B. P. Hutchinson. On Admission of Members,
George Webster, Eli Bates, C. H. Curtis.
1861-62. â€” Directors: J. V. Clark, Charles E. Culver, V. A.
Turpin (*) .Charles Hinckley, T L. Hancock (*), Samuel Shackford
(*). C. J. Davis, Charles H.' Walker (*), Hugh Adams, C H.Cur-
tis (*). Committee of Arbitration (for first six months) : Silas
Pratt. J. D. Bailie. Thomas Parker, William D. Houghteling, C.
V. Richmond; (for second six months): L. D. Norton, W. N.
Brainard. S. A. Kent. T. T. Gurney, J. K. Fisher. Committee
of Appeals : S. T. Atwater, E. Rawson, George Steel, Samuel
Howe, F. D. Gray, William H. Low, Asa Dow, George Armour,
Hugh .McLennan. Sub-Committees of the Board of Direc-
tors : On Finance, Clinton Briggs, J. V. Clark, V. A. Turpin.
Oa Grain Inspection ,S. Shackford, Charles Hinckley, C. T- Davis.
On Flour Inspection, Y. A. Turpin, E. G. Wolcott, W. H. Low.
On Inspection other than Grain and Flour, Charles H. Walker, J.E.
Hancock, Hugh Adams. On Admission of Members, E. G. Wol-
cott, Charles E. Culver, C. H. Curtis. On Telegraph Messages, V.
A. Turpin, E. G. Wolcott, J. L. Hancock.
1862-63.â€” Directors : T. Maple (*), Charles E. Culver (*),
Charles Hinckley (*), Charles J. Davis (*), Hugh Adams(*), Lem-
uel D. Norton. B. P. Hutchinson, E. W. Densmore, N. K. Whit-
ney, Thomas Parker. Committee of Arbitration (for first six
months): R. McChesney, D. C. Scranton, H. C. Ranney, S. P.
Carter, S. M. Johnson ; (for second six months) : Albert Morse,
Henry Milward, Wiley M. Egan, N. K. Fairbank, E. W. Densmore.
Committee of Appeals : B. Adams, George Armour, C. R. P.
Wentworth, W. D. Houghteling, C. J. Magill, H. H. Ross, Clin-
ton Briggs, Samuel Howe, V. A. Turpin.
1863-64. â€” Directors: Lemuel D. Norton (*), B. P. Hutch-
inson)*), E. W. Densmore (*), N. K. Whitney (*), Thomas Parker
(*), Samuel Howe, J. C. Dore, E. G. Wolcott, Murry Nelson, S.
P. Carter. Committee of Arbitration (for first six months): S.
T. Atwater, A. Handy, W. N. Brainard, S. Pratt, George D. Rus-
sell; (for second six months): S. Shackford, M. S Nichols, P. L.
Underwood, J. D. Cole, Jr., A. J. Dennison. Committee of
Appeals: Ira V. Munn. C T. Wheeler, George Steel, William H.
Low, Julian S. Rumsey, George A. Gibbs, Stephen Clary, Thomas
Richmond, E Rawson. Committee on Finance : N. K. Fair-
bank, Samuel Howe, J. C. Dore. Committee on Grain Inspec-
tion: E. G. Wolcott, Charles Randolph, Murry Nelson. Com-