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Weight of Machine, 3.500 Pounds. Price, $1,200. 



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As can be seen by the cut. we run the saw close up between the rolls. We hold the lumber BO 
firm and rigid that we are able to make six pieces from an inch Doard. The whole feed-works are 
moved across the machine by the hand -wheel on the side, if desired to slab from the side of stuff 
and use the self-centering arrangement. The manner in which we connect our roll-stands to the 
sides, allows them to work perfectly free at all times, and with all our improvements combined, we 
claim to be able to do a larger variety of work with our Re-Sawing Machine than can be done w'th 
any other, and one-third more in the same time. Another yery important point we claim for our 
machine, is that any man can run It who can file and keep a saw in good order. We have several 
of these machines in operation, which give the very best satisfaction, and we are prepared to put 
them in on trial. Parties ordering machines will please state what kind of work they are requi.ed 
to do; if picture-back work altogether, sawed from thick lumber, we can give a saw with the ma- 
chine adapted to that class of work lighter guage. Our regular guage will take less than % inch 
kerf. 

Driving pulley on saw 18 in. diameter. 9 in. face, and should run 650 revolutions per minute. We 
can furnish counter-shaft -when desired with these machines. 




CHARLES E. CULVER. 



GEORGE N. CULVER. 




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Nos. 1 

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Have un 
er conduct 

In solicit 
and best en 



L I E> 

OF THE 
UN1VLRSITY 
OF ILLINOIS 

PRLSENTLD BY 

tiewton M. Harris 
1941 

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S, &c. 

;, Chicago. 

raukee. 



;rs and the prop- 



rsonal attention 
nts. 



Chicago, Milwaukee or the Eastern Markets. 

Correspondence should be Addressed to Chicago* 



The person charging this material is re- 
sponsible for its return on or before the 
Latest Date stamped below. 

Theft, mutilation, and underlining of books 
are reasons for disciplinary action and may 
result in dismissal from the University. 

University of Illinois Library 



E. H. CHANDLER. 



MAR 2 19GS 



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Provisions for Future Delivery Bought and O 
n Margins. 



A. C. Brackebush & Go, 

MINERS & SHIPPERS, 




al and G 





We RECEIVE DAILY, DIRECT FROM MINES, via ALL RAIL, the 
following WELL KNOWN COALS ; on which we are prepared to 
furnish SPECIAL FIGURE? to MANUFACTURERS AND DEALERS. 

Anthracite Coals, 

A. PARDEE & GO'S., LEHIGH LUMP. 

The Susquehanna Coal Go's 

W1LKESBARRE and PITTSTON COAL. 

9IZESS a LARGE EGG-SMALL, EGG-RANGE NO.4-CHESTNUT.. 

Bituminous Coals, 

YOUGHIOGHENY GAS COAL, INDIANA BLOCK COAL. 

BUCKEYE CANNEL, ' INIIANA IA>T " 

PITTSBURGH, " BRIAR HILL, STRAITSVILLE '< 

Connellsville and Pittsburgh Coke, 

Cumberland lj Morris Run, Blossburgh, Smithing 
^^^ Coals 



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(DANVILLE ROUTE.) 
By Joint arrangements of 
CHICAGO & EASTERN ILLINOIS R. R. CO. 

ROBT. Foils VTH. Oeneral Freight Agent, Chicago. 
i:V \\S\ IM.K, -| ICKI1K HAUTE & CHICAGO R.R. CO. 

J. R. KENDALL, General Freight Agent, Terre Haute. 
EVANSVILLE A TI.KKi: HAITI: R.R. CO. 

I-:. S. BABCOCK, .Ir. General Freight Agent, Evansville. 
ST. LOUIS A: SOUTH-EASTERN RR. CO. 

C. H. CROSBY, General Freight Agent, St. Louis 
f 

S HOW TEST A LI, KAIL 



FAST 

Through. "Without Transhipment 

On Express r JTiirie. 



) T O ( 

Terre Haute, Ind. 
Nashville, Tenn. 



Indianapolis, Ind. 

Chattanooga, Tenn. 

Jacksonville, Fla. 



St. Louis, Mo. 
Evansville, Ind. 
Atlanta, Georgia. 

And all points SOUTH. SOUTH-EAST, and SOUTH-WEST. 

Mark and Consign Goods Via 
SOTJTJHEIRIV r>ESJPATCH, 

AND FOR 

BILLS LADING AND FURTHER INFORMATION APPLY TO 

W. H. KNIGHT, Agent. 

66 LA SALL'B ST., CHICAGO- 
ROBT. FORSYTH. 

General Freight Agent, 123 Dearborn St., Chicago. 

Passengers should remember that this ia the Shortest and Best Line between 

CHICAGO, and all Points South and Southeast. 

That it is the Popular and Reliable Line to MONTGOMERY, MOBILE, 1NEW 

ORLEANS, and all parts ot MlSSISSIPPf, LOUISIANA, 

ARKANSAS and TEXAS. 

0. 8. LYVORD, Geril Superintendent. A. 8.DUNHW, Gen'l Ticket Agent 

WoodrntF Parlor and Rotunda Sleeping Cart on all .v/'i-/// Traint. 



ESTABLISHED 1855. 



George M. How & Co. 

COMMISSION MERCHANTS, 

FOR THE PURCHASE AND SALE OF 

Grain, Provisions, Seeds, &c 

153 Monroe Street, 



Prompt Personal attention given to all business entrusted to our 
care. 

CORRESPONDENCE SOLICITED. 



Albert Morse. j as . L. Ward. 

y 

Morse, Ward & Co. 

> 

Commission Merchants, 

151 MONROE STREET, 



Advances made on Consignments of 
Grrain, Provisional & Seeds, 



FOR SALE IN THIS MARKET. 



References : 

First National Bank, Chicago, Messrs. Flint, Thompson & Co., Chicago. 



SHIPPERS OF LIVE STOCK 

( FROM ) 

MISSOURI, IOWA, DAKOTA, INDIAN TERRITORY, TEXAS, 
NEW MEXICO, ILLINOIS AND INDIANA, 

Will find that the Route, via, 

ILLINOIS CENTRAL R. R. 

Offers the fullest facilities for the Safe and Rapid 

Transportation of Live Stock. 



Commodious Feeding Yards at Cairo and East St. Louis, 

Have been fitted up, which will enable Drovers 

TO FEED, WATER AND REST THEIR STOCK, 

AT REASONABLE RATES, 
And after a short run unload it at the 

UNION STOCK YARDS, CHICAGO. 

In as good condition as when loaded at the point of Shipment. 

Joseph F. Tucker, Horace Tucker, 

1 raffle Manager, Chicago. General Freight Agent, Chicago. 

James Ramsey, Thomas Tustin, 

Union Stock Yards, Chicago. Agent, Chicago. 



CHARLES J. GILBERT. 



CHARLES W. BREGA 




& 





, Provisions & Seeds, 



166 



CORRESPONDENCE SOLICITED. 



CHICAGO 

BURLINGTON & QUINCY 

RAILROAD. 



SHIPPERS OF LIVE STOCK, 

FROM 

MISSOURI, KANSAS, INDIAN TERRITORY, NEW MEXICO, 
TEXAS, IOWA AND NEBRASKA. 

Should bear in mind that the Route, via. 



Afforls Greater Facilities for the Safe and Qnick Transportation of Live Stock, 

Than are offered by any other line. 



At Quincy and Galesburg, Illinois, 
And at Creston and Burlington, Iowa, 

Enable Drovers to feed, water and rest their Stock, then, after a SHORT RUN, to 
unload their Cattle or Hogs at the 

UNION STOCK YARDS IN CHICAGO. 

In good condition for Market. 



Drovers' Cars fitted with Sleeping Berths for the comfort and convenience of men 
in charge of block, are attached to all Stock Trains. 



C . If*. Smith, Traffic Manager, Chicago. G. t>. Carman, Div. Fr't Ag't, Eock Island, LI. 
*.'. S*. Riplcy, Gen. Fr't Ag't, Chicago. Tito*. .Jfi Her, " Burlington, Ilj . 

Paul .Jlortou, Afs't G. F. \. " Jt. Jfg. .Jli let, Quincy, 1:1. 

Fred. IMareey, Gen'l Western *Vt Ag'i, Leavonworth, Kansas. 



LIGHT EXPENSES MAKE Low 

PRICES, 






MANUFACTURERS & IMPORTERS, 

Offer Diamonds, Pearls, Cameos, Fine Watch- 

es, Guard Chains, Vest Chains, Neck 

Chains, Lockets, Pendants, Charms, 

Bracelets, Pins, Ear Rings, 

Sleeve Buttons, Seal 

Rings, Engagement 

and Wedding 

Rings, 

Wedding & Family Silver, 

TEA SETS, WATER SETS, WAITERS, CAKE BASKETS, 
BUTTER. DISHES, BERRY DISHES, EPERGNES, 
TURREENS, ORNAMENTAL VASES, FINE 
TABLE CUTLERY, OPERA 

GLASSES, SPECTACLES, 

-- ) & c . (__ 

At Lower Prices than any House in the trade, because their expen- 
ses are much lighter and their stock is all new and. bought for 
cash. Every article guaranteed exactly as represented. 

66 STATE STREET, Cor. Randolph. 



W.W. KIMBALL, 



WHOLESALE DEALER IN 



PIANOS ORGANS, 

Cor. State and Adams Streets, 
CHICAGO. 




SMITH'S 

AMERICAN 

ORGANS, 

New Styles! 
New Catalogue! 
New Prices! 

300 Organs now in store. All 
orders from dealers filled with 
dispatch' Also 

GRAND, SQUARE AND 

Upright Pianos. 

W. W. KIMBALL 

State and Adams Sts, 
CHICAGO, 

.V. B. .If flits IIV/ii/r./. 



J-OCKLAND MILLS, TllALTO /VllLLS. 






Co. 



c\w<\ lie/cxVets 














-) AND DEALERS IN (- 

Oysters and Fish, 

O BALTIMORE, M3D. O 

OFFICE, No. 40 STATE STREET, CHICAGO. 




We have always on hand in season, the celebrated brand of 

BOSS OYSTERS. 

Our prices are always as low as any other responsible house in 
the trade special attention given to the Fresh Fish trade. 
<Z^ OFtDEFtS S 01*1 CI TED. ^^ 




Louisiana Route. 

kqd 




City 



SHORT LINE, 

- VIA - 

CHICAGO & ALTON R. R. 



AND 



ST. LOUIS, KANSAS CITY AND NORTHERN R. R. 



AND 

Passing through MEXICO, Mo., LOUISIANA, Mo . JACKSONVILLE. BLOOM- 
INGTON and NORMAL. At th latter n^int, 124 miles from CHICAGO, 
are new nn d extensive STOCK YARDS, COVERING TWENTY 
ACRES, thoroughly drained, and with clear spring water car- 
ried in pipes to every pen. Yards of ecjual extent have 

also been built at Louisiana, 273 miles from Chi- 
cago, and 217 miles from Kansas City, making easy runs 
for Stock, bringing it to market in as good condition as when 
loaded at point of shipment. 

LUXURIOUS DROVERS' SLEEPING- CARS, 

Fitted up with the comforts and conveniences of a Pullmnn Palace Car, attached 

to Stock Trains on this favorite route. SLEEPING BERTHS FREE 

to Drovers in Charge of Stock. 



4(1 11 H I 'I. HI.. 

Rates of Freight ahcays as Low as by any other Route. 

THE GREAT IRON BRIDGE AT LOUISIANA IS COMPLETED. 

NO DRIVING OB FERRIES BY THIS L.INE. 

CHEAP FEED AID ABUNDANCE OF CLEAR WATER. 



By this route, shippers from MISSOURI, TEXAS, KANSAS, the SOUTH-WEST, 
St. Louis, Springfield, Jacksonville nnd other point?, are enabled to avail them- 
selves of the CHICAGO MARKET, in transit to the East without addi- 
tional cost. 
J. c. JtrcJirwTi,i,Ejr, JAMES SMITH, 

General Manager, Chicago. Gen. Freight Agent, Chicago. 

w. or. isi.i.it. s.i.jn i i. sjfffva, 

Gen. Western Agent, Kansas City. General Agent, Ft. Louis. 

R. P. TAWJSER, Jr., J>. JI*OWK, 

Agent Kansas City. Stock Agent, St. Louis, 



UNION HORSE NAIL CO. 



MANUFACTURERS OF THE 



STAR HORSE MILS, 

OFFICE AND FACTORY, 



ASHLAND AVE., NEAR 22 ST. 
CHICAGO. 



Our Nails are made with 
LARGE and SMALL HEAD S 

FROM THE BEST NORWAY IRON, AND ARE POINTED 
FINISHED AND BLUED, READY FOR USE. 



SEND FOR SAMPLE CARD. 



SILVER MEDAL AWARDED AT ST. LOUIS FAIR, 18'5 




THE OLD CHAJIBEK OF COMMERCE. 
DESTROYED BY FIRE OCTOBER 9TH, 1871. 




THE NEW CHAMBER OF COMMERCE. 
ERECTED 1872. 



1O9 



oo 



OO 



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00 



00 



TO THE PUBLIC. 

Heads of Families, Housekeepers, Hotels, Restaurants, and 
all who are interested in finding out where they can get the bes 
value for their money, both in quality and quantity, are invited to 
call and see my immense stocks of Foreign and Domestic Ca-ro- 
ceries, Wines, Liquors and Cigars. 

Respectfully, 
C. H. SLACK, Wholesale & Ketail Grocer & Wine Merchant. 

1O9 East Madison Street, Chicago. 
Branch 21O & 212 North Clark Street, (Cor. Superior.) 



LARGEST SURGICAL INSTRUMENT HOUSE IN THE WEST. 

SHARP & SMITH, 

SURGEONS' INSTRUMENTS and PHYSICIAN'S GOODS, 




Manufacturers and Importers of all kinds of Sur- 
geon's Instruments and Appliances for the 
Mechanical Treatment of all Deformities, 
Debilities and Deficiencies of the 
Human Frame. 

Artificial Arms and Legs, 

Galvanic Batteries, Faradic Batteries, 
Electrodes, Bow Leg Braces, 

Spine Braces, Club Foot Shoes, 

Saddle Bags, Medicine Chests, 

Steam and Hand Atomizers, Trusses, Crutches, 
Elastic Bandages, Anatomical Models, 

Shoulder Braces, Rubber Pillows, 

Fever Thermometers. Rubber Urinals, 

Rubber Hot Water Bottles, 
Rubber Chair Cushions, 

Rubber Bed Sore Cushions, 
Skeletons, Splints, 

Skulls, Hypodermic Syringes. 

Invalid Wheel Chairs, 

Surgeons Operating Chairs. 

Abdominal Supporters- 



ELASTIC STOCKINGS 

for Enlarged Veins, 
Swelled Limbs and weak 

Joints 
a specialty. 



Instruments and Batteries Repaired, 

100 Randolph Street, 

CHICAGO. 
Between Clark and Dearborn. 



S, D. KIMBARK, 

Iron, Steel, Nails, 

CA.RRIA.OE 



AND 




HEAVY HARDWARE, 

Carriage Trimmings & Wood Material, 

80, 82 & 84 MICHIGAN AVE, 

(^CHICAGO. 



THE 



LAWS OF TRADE, 



AS ADOPTED BY THE BOARD OP TRADE, THE UNION STOCK YARDS AND 
TRANSIT COMPANY, THE LUMBERMAN'S EXCHANGE AND THE 
PRODUCE EXCHANGE OF THE CITY OF CHICAGO TO- 
GETHER WITH SOME PRACTICAL HINTS IN 
SHIPPING &C-, &C. 



BY 



CHICAGO : 

PITKIN & CRUVEK, PRINTERS, 
REAR 119 CLARK STREET. 

1878. 



Hoisting Machinery HORIZONTAL AND UPRIGHT WATER ENGINES. 

Exclusively. 




^Proprietor & Jlfanvjacturer of 




atent 




(Steam, Hydraulic and Hand Power,) 

Passenger and Freight Elevators, and 

of Lifting Machines Built and Repaired, 

Reedy's Latest 

Improvements attached 83, 85 87 and 91 ILLINuIS ST., 
to old Machines. 



M. C. BULLOCK, 

*~r* Manufacturer of ^^-> 

DIAMOND-POINTED ROCK DRILLS. 




For Prospecting, Mining, Tunneling, Quarry- 
Ing, etc., giving a Core tlic Entire 
Length of Bore. 



SOLE AGKNT FOR 

HARRIS' DOUBLE-ACTING PLUNGER 



Anti-friction Metal for Journal Bearings, 

The only genuine PJumbaso in the market. Send for price 
and test Metal or Bearings. 

"Waters' Perfect" Engine Governor. 

Most durable and ecomical Governor ever invented, and has 

never failed to control any engine, even 

after all others had failed, 



DEALER IN ALL KINU8 OP 

WOOD AND IRON WORKING MACHINERY. 

Write for what you want. All inquiries cheerlully answered. 

Warerooms: 31 & 33 S. Canal St., Chicago. 



PREFACE, 



The Compiler and Publisher of this work has been led so to do from 
the apprehension of the need of such a hand-book by the special branches 
of trade to which its pages are devoted, and the commercial community 
generally. He has been induced to undertake the task of its preparation 
at the suggestion and solicitation of prominent gentlemen connected with 
the several interests herein set forth, and has spared no pains to render 
the volume accurate in every particular, as well as of appreciable value 
as a convenient work of reference. 

The title chosen for the compilation seems to the author to be both 
appropriate and comprehensive " The Laws of Trade, as adopted by the 
Board of Trade, the Union Stock Yards and Transit Company, the Lum- 
berman's Exchange, and the Produce Exchange." It has been the com- 
piler's aim to collate every important fact and statistic, with reminiscences 
of early days, which should not be permitted to slumber in forgetfulness, 
relating to these very prominent business interests of Chicago and the 
Northwest; and in his labors to this end he has been ably and cheerfully 
aided by leading merchants in all the lines indicated, who have commu- 
nicated much interesting and useful information on the subjects treated 
upon, for which favors he feels duly grateful. 

The advantages of such a work as this are so apparent as to render 
quite unnecessary any extended elucidation thereof. While it cannot but 
prove in many ways of positive value to the local trade, it is likewise cal- 
culated to benefit producers and dealers throughout the West and North- 
west, who will find in its pages such reliable information as will show 
them the best market for their products and the most favorable point at 
which to make their purchases. Some advertisements of first-class repre- 
sentative business houses appear herewith, to which the attention of the 
public is invited. They offer the best of inducements to the trade at 
large, and all having dealings with them have the assurance of the most 
satisfactory results accruing therefrom. With these brief introductory 
remarks, this volume is respectfully submitted to the mercantile and agri- 
cultural community, in the confident hope that it may meet the views 
and answer the requirements of all whom it may concern. 



George Bohner & Company, 



JOBBERS OF 



BOHNER'S 
Double Extens'n Library Lamp GLASSWARE, &C ., 

MANUFACTURERS OP 

Boliner's Double Extension Library 

Lamp & Referable Brackets, 

and other desirable new goods. The 
Library Lamp and Reversible Brack- 
ets are far superior to any other in the 
market, and 1511 a long, felt want. Our 
goods are of the best quality, assort- 
ment the largest, and prices lower than 
any other house in the West. 

GEORGE BOHNER & CO., 

33 & 35 WABASH AVENUE, 

CHICAGO, ILL. 

BOHNER'S Improved Double Ex- 
tension Library Lamps for Parlor, Din- 
.ing or Sitting Room, Offices, etc. The 
best One Light Pendant in the country. 
Length Three Feet, EXTENDS TO 
SEVEN. 

The only Lamp that has this Exten- 
sion and Solid Cup to prevent Dripping. 

Extended for use over table or desk. 
Length, three feet. Lamp can be lowered 
from the shade for lighting, filling, &c. 




CONTENTS. 



Page 

Chamber of Commerce, ..... 1 

Board of Trade, 1 

Board of Trade future deliveries, - -24 

Puts and calls, - 29 
Option trading, - .......32 

Margins on time contracts, 36 

Remarks concerning option trading, - - 37 

Expenses buying and shipping, - - 40 

Legal opinion on option contracts, - 41 

The anti-corner rule, ... 55 

Caution to short sellers, - 59 

Deals of the curbstone brokers, - 64 

Rules governing inspection of grain, - - 64 

Weights, - 69 

Rates of inspection, - 70 

Weighmaster's tariff of prices, 70 

Regulations governing the inspection of flour, - 71 

Regulations for the inspection of hay, - 75 

Regulations for the inspection of provisions, 76 

Requirements as to cut and packing hog products, - 78 

Union Stock Yards and Transit Co., - - 85 

Union Stock Yard How business is done there, 90 

Receipts and sales of live stock, - - t'6 

Live stock commission merchants, - 97 

Packing houses, - 100 

Transit House, - - 103 

* Union Stock Yards National Bank, - - 105 

* Officers of the Lumberman's Exchange, 106 
Receipts and shipment of lumber from 1847 to 1877, inclusive, - 108 
The Lumberman's Exchange and Lumber trade, 110 
Lumber inspection, - 113 



CONTENTS 

Go s & Phillips' Manufacturing Co., - 118 

The officers of the Produce Exchange, - 110 

The Produce Exchange, 120 

The Fruit and Berry Ordinance, - 123 

Game Laws of Illinois. * - - 126 

Instructions for packing butter, - - 127 

Advice to shippers of butter, 128 

Roll butter, 129* 

Tare on butter packages, - 130 

Instructions to shippers, - 130 

Game for shipment, 131 

How to kill and ship poultry, - - 131 

To shippers of cheese, - 133 

To shippers of vegetables, - - 133 

Instructions for preserving eggs, - 133 

Instructions for packing eggs, - 135 

What constitutes a car load, T 137 

Commission charges for selling, - - - 138 

Shipping perishable merchandise, - - 140 

Decisions in admiralty, - - - 143 




STANDARD SCALES 



Design, 



SUPERIOR TO ALL OTHERS IN 

Construction, 

Quality of 'Workmanship, 

and Materials. 

ACCURACY 




Awarded the Highest Prizes at all Worlds' Fairs. Every Scale, 
Warranted STRONG, DURABLE and ACCURATE. 



FAIRBANKS 



' 



FAIRBANKS & CO., St. Louis & Indianapolis, 



CHAMBER OF COMMERCE. 



The stately, massive and beautiful Chamber of Commerce building, 
standing on the corner of Washington and La Salle streets, occupies the 
same site upon which was erected the structure that was dedicated to 
business purposes, with imposing and memorable ceremonies, on the 30th 
and 31st of August, 1865, and which was destroyed by fire in the great 
conflagration that raged with irresistible fury in the business center of 
Chicago in October, 1871; and with the energy and go-a-headitiveness, 
which are the characteristics of this people, the present magnificent 
building was completed and dedicated with appropriate and impressive 
ceremonies on the 9th day of October, 1872, just one year from the date 
of the destruction of the edifice formerly occupied by them and formally 
taken possession of by the commercial. organization for whose use it was 
erected. The building is three stories in height, constructed in the most 
substantial manner of Ohio sand stone. In architectural style, it may be 
called the Composite, uniting the massive with the ornate. It has a 
frontage on Washington street of 93 feet by 181 feet on La Salle street. 
The basement story is occupied by banking, insurance and commission 
houses and for other business purposes; the same may be said of the 
second story. On the third story, which is made accessible by broad iron 
stairways and a powerful elevator, are the exclusive apartments of the 

BOARD OF TRADE. 

The main room, or Exchange Hall, is 142 feet in length by 87 feet in 
width, with a ceiling 45 feet in height. The President's rostrum is situ- 
ated at the north end, and at the south end, over the door of entrance, is 
the visitors' balcony. The ceiling and the walls are beautifully and 



2 LAWS OF TRADE. 

appropriately frescoed, making it the most imposing and elegant hall in 
the country for the purposes for \vhioh it, is designed. At the south end 
of the floor, separate from the Exchange Hall, are situated the offices of 
the Secretary and the rooms for committee purposes. The building is a 
conspicuous ornament to the city, comparing favorably in its architectural 
beauty and grandeur with the innumerable business palaces and other 
magnificent structures for which Chicago is famous, while it reflects the 
highest credit upon the organization to which it belongs. Within the 
walls of this elegant structure the members of the Board of Trade 
assemble in grand array for business purposes, "and to them as a body 
of representative merchants, who have contributed in a greater measure 
than any other, belongs the credit of giving to Chicago her world re- 
nowned prestige for business sagacity, and of her being a driving, won- 
derfully enterprising and energetic community;" and from the very in- 
significant inception of this association in 1848, to which we refer else- 
where, it has become formidable in numbers and wields an influence sec- 
ond to no other organization in the country. Its membership has reach- 
ed the large number of eighteen hundred and thirty-one names, 
which is twelve less than there were one year ago. The cost of a mem- 
bership is one thousand dollars and the dues throughout a year are about 
twenty dollars though the membership is transferable and is. often 
transferred when a member retires from the Board, or for other causes is 
sold for a less amount. The amount of business transacted by 
these merchants and speculators, is, as we might say, almost fabulous. 

Charles Randolph", Esq., the able and esteemed Secretary of the 
Board, informs us that the actual receipts and shipments of merchandise 
which passed through the Board, the past year, reached the vast amount 
of two hundred and eighteen million dollars; but it should be remember- 
ed that to meet the demands of speculation, which is always rife during 
'Change hours, that this same merchandise changes hands, how often it 
would be difficult to determine. Here, in this vast assemblage, meeting 
from day to day, are gathered, men of experience, ripe with intelligence, 
keen-witted, well posted on all public affairs, constantly scanning the 
political horizon of this country and Europe quick to observe the small- 
est incident happening that may have the slightest influence upon the 
market one way or the other, prepared at once to operate, and when the 
opportune moment arrives to meet the views of one side and also the 
other the bulls and bears array themselves in factions, the one to sus- 
tain and the other to depress the market; contending with relentless 



BOARD OF TRADE. 3 

pertinacity, the one side holding the vantage ground for a time and then 
the other and thus purchases are made enormous in amount and almost 
countless in numbers. Therefore, it ca.n be readily observed how diffi- 
cult it would be to reach any approximate idea of the amount of busi- 
ness transacted annually on the Board. But if it could be ascertained 
no doubt the figures would be so colossal as to excite our special won- 
der. As evidence of its importance and the great influence the Chicago 
Board of Trade has upon all the markets of the world, we quote an able 
writer, who says: "The movements of this Board have always been 
watched with interest throughout this country and Europe; its dicta, 
concerning markets, have swayed the commercial centers of the world. 
Depressions of its business, or occasional reverses met with in the vicis- 
situdes of its transactions, have been felt at every mart of importance in 
existence. 1 " Such is a brief outline of this powerful organization, and 
well does it merit all that may be written in its behalf, for an abler body 
of merchants never assembled, and amid all the excitement incident to 
the large and numerous operations in which they engage during 'Change 
hours, their equanimity is never disturbed. Their good humor is pro- 
verbial. Even the oldest and most austere and dignified among them 
are unable to withstand the amusement afforded by the jokes and sports 
of which the younger members are always brimful and running over. 
And gathered here, there are many, very many noble and generous men 
who, burdened with the cares attendant upon constant strife with the 
business world, nevertheless are never so deeply oppressed that their 
manly and generous natures are not always alive for charitable deeds or 
any good work or philanthropic enterprise that may be presented. Let 
the appeal come from the North, the South, the East or the West, they 
willingly come forward and respond with a lordly and an unsparing hand, 
as if in emulation of the world's benevolence to Chicago when she laid 
prostrate from the visitation of the great conflagration of October, 1871. 
But as it is our purpose in this work to show the steady increase and 
marvelous growth of the commercial interests herein represented, by sta- 
tistics and other facts; and as we have, in introducing our subject, brief- 
ly written of the Board of Trade of to-day, let us here retrace our steps 
and go back to the day when the sagacious merchants of that period fore- 
seeing the future greatness of Chicago as a metropolitan commercial 
center, first laid the foundation of this potent regulator of the world's 
business pulse in breadstuffs and provisions. 

In seeking, as we have, with earnest efforts to reach all or a great 



4 LAWS OF TRADE. 

part of the facts which make the history of the early days of the Board 
of Trade, we have found it a difficult task, and there does not appear to 
be anything extant, better and fuller regarding those interesting events 
without it may be the record of the Board now in the possession of 
Mr. Secretary Randolph than the subjoined historical information 
which we extract from a speech delivered by the late Hon. W. F. Cool- 
baugh, on the occasion of the inauguration of the Chamber of Commerce 
building, October 9th, 1872. He said: "It appears that the first organiza- 
tion of the Board of Trade took place in 1848. On the 13th of March 
of that year a call was issued for a meeting of the business men of the 
city for the formation of a board. The call was signed by the follow- 
ing well known firms to- wit: 

"Wadsworth, Dyer & Chapin; George Steele; I. Burch & Co.; Gur- 
nee, Hayden & Co.; H. H Mazie & Co.; Neff & Church; John H. Kin- 
zie; Norton, Walker & Co.; DeWolff &Co.; Charles Walker; Thomas 
Hale; Thomas Richmond, and Raymond, GIbbs & Co. 

"At that meeting the proper initiatory steps were taken by the adop- 
tion of resolutions recognizing the necessity for a Board of Trade, adopt- 
ing a constitution, and appointing a committee to prepare by-laws. At- a 
second meeting, on the first Monday in April, the report of this commit- 
tee was adopted, and a general invitation extended to the merchants and 
business men to meet with the Board, daily, at their rooms, over George 
J. Harris' flour store, on South Water street, which they had rented for 
$110 per annum. George Smith, the great Scotch banker, was elected 
their Firsc President, but declining to serve, Thomas Dyer was chosen in 
his stead, and Charles Walker (a name always mentioned with respect), 
and John P. Chaplin were elected First and Second Vice-Presidents. The 
directors chosen were G. S. Hubbard, E. S Wadsworth, George Steele, 
Thomas Richmond, H. G. Loomis, John Rogers, George F. Foster, R. C. 
Bristol, J. H. Dunham, G. A. Gibbs, John H. Kinzie, C. Beers, W. S. 
Gurnee, J. H. Reed, E. K. Rogers, J. H. Burch, A. H. Burley, W. B. 
Ogden, O. Lunt, E. H. Hadduck and L. P. Hilliard. In the list of mem- 
bers we find the additional names of Matthew Laflin, Joseph T. Ryerson, 
M. C. Stearns, J. C. Walter, 9. A. Smith, Julian S. Rumsey, John C. 
Haines, George M. Higginson and others then, as now, recognized among 
the most honored, respected citizens of Chicago. In April, 1849, Ihe 
first annual meeting was held, and the officers re-elected, with John C. 
Dodge as Secretary. A committee was appointed to procure daily tele- 
\ iphic reports of the Eastern markets for the use of the members. The 



BOARD OF TRADE. 




6 LAWS OF TRADE. 

hour for daily meeting on 'Change was fixed at 9 A. M. The legislature 
having passed an act of incorporation the winter previous, in April, 1850, 
the old board went out of existence and a new one was organized under the 
law, with the following provisions: 'This organization shall be called 
the Board of Trade of Chicago. Annual and semi-annual meetings shall 
be held and special meetings shall be called at any time at the written 
request of any five members. Each member joining the association shall 
sign the constitution, and, with the exception of the old members, pay 
five dollars, and, in addition, pay such sums semi-annually as may be 
voted by the board.' The annual dues in addition to the fee for admis- 
sion were, I believe, two dollars for each member. Shortly after this 
time the startling fact that there was a deficit of $146. 20 in the treasury 
of the old Board was discovered. The annual dues were immediately 
raised from two to three dollars, and the old members joining the new 
Board were required to pay three dollars and thus this enormous debt 
which had created such consternation was honorably extinguished. In 
1850 the principal proceedings of the board were the adoption of resolu- 
tions complimentary to Stephen A. Douglass and Gen. James Shields for 
their services in obtaining from Congress a grant of land to aid in the 
construction of the Illinois Central railroad. The daily meetings of the 
board were so thinly attended that it was hoped a different time of meet- 
ing would prove more acceptable, and the 'Change hour was fixed be- 
tween 12 M. and 1 p. M. By the time of the annual meeting in 1851, the 
affairs of the Board had become decidedly blue. The treasurer's book 
showed a balance, on the wrong side, of 8165.96 and no assets. Another 
assessment of $4 on the members was made, and the institution went on. 
Frequently during that year only one of the members would put in an ap- 
pearance at the hour of meeting, and it is fair to suppose that the tran- 
sactions of the Board were rather limited. There were probably no 'cor- 
ners' then. Sometimes not even one member appeared. In 1852 the 
Board changed its location to the corner of South Water and Clark 
streets, where the fourth annual meeting was held. There were now 
fifty-three names on the roll of members. Another removal was made in 
that year to No. 8 Dearborn street, where the fifth annual meeting was 
held in 1853. The most important proceedings this year were the equali- 
zation of rates for the handling of goods, and the adoption of a resolution 
to found a bank with a capital of 85,000,000 for the convenience, of the 
commerce of Chicago. It was also resolved to appoint a committee to 
take soundings of the Chicago- harbor, and petition the Common Council 



BOARD OF TRADE. 7 

for an appropriation to defray the expenses of the same. It was still a 
matter of great difficulty to get members to attend, and at this time a 
happy thought struck one of the members. He proposed, and the pro- 
position was instantly and unanimously adopted, that the Secretary be 
directed to furnish a free lunch consisting of crackers and cheese with a 
glass of ale for the members. From this time the attendance on the 
Board began to increase, and its fortunes to improve. It is a common 
saying, that the way to men's hearts lies through their pockets, but the 
Board of Trade, in 1853, improved on this adage by the discovery that the 
way to their brains and enterprise lies through their stomachs. In 
April, 1854, the sixth annual meeting was held; Georgai/. Gibb?, Presi- 
dent; W. D. Houghtelling, Vice-President; and James Q. Dalliba, Sec- 
retary and Treasurer. The location of the Board was again changed, 
this time to the corner of Wells and South Water street (over Purinton 
and Scranton's store), where they paid $250 per year rent, and allowed 
W. D. Wilson the use of the rooms for taking care of them. The tran- 
sactions of the board during this year began to increase in magnitude. 
In April, 1855, at the seventh annual meeting, Hiram Wheeler was 
elected President; S. B. Pomeroy, Vice-President; and W. W. Mitchell, 
Secretary. A reading room was this year established. The board now 
warmly interested itself in the Georgian Bay canal, and sent William 
Bross and George Steele to Canada to advocate it before the Canadian 
Government. It may be remarked in this connection that they were 
successful in getting a charter, and ground was afterward broken for the 
work, but beyond this nothing was done, and the thing was passed over 
and apparently forgotten. It appears that about this time the daily sup- 
ply of crackers and ale was in some way neglected, and the attendance 
of members soon began to fall off and became 'small by degrees and 
beautifully less.' Then the supply was resumed, and then came a crowd 
of 'dead beats,' to keep out whom a door-keeper was appointed, and 
the Board again went on flourishingly. At the eighth annual meeting in 
April, 1856, forty-five new members were added, and now the Board was 
in a more flourishing condition than ever. Charles H. Walker was 
elected President, cards of admission were issued, a permanent door- 
keeper was appointed, and the daily attendance of members was so good 
that the refreshments were ordered discontinued. From this time on- 
ward, the prosperity of the Board was uninterrupted. The lower floor of 
Walter's building was rented for $1200 per annum, and the hour of 
dailv meeting changed back to 9 A. M. As evidence of its prosperity, at 



8 LAWS OF TRADE. 

one time, on the 6th of October of this year, 122 new members were ad- 
mitted. At the ninth annual meeting in 1857, seventy- three new mem- 
bers were received. The Board was now exceedingly prosperous. Mr. 
P. L. Wells, formerly connected with 'The Press,' was appointed Super- 
intendent, to look after its interests, with a salary of $1500 a year. At 
the tenth annual meeting in 1858, twenty-nine new members were ad- 
mitted. Julian S. Rumsey was elected President; F. H. Barber, Vice- 
President, and W. W. Mitchell, Secretary. The admission of members 
was now confine?! to actual residents. The offices of Secretary and Su- 
perintendent were consolidated. The Grain Inspector's duties were de- 
fined, and in October, Lee and Armstrong were given permission to dis- 
pose of stocks wice a week at auction in the rooms of the company. A 
new charter was obtained, conferring privileges commensurate with the 
expanding growth of the commerce of the city, and this charter was, 
with a |new set of rules and regulations, presented to the Board and ap- 
proved. At the time of the eleventh annual meeting in 1859, there were 
520 members on the Secretary's list; and on the proposition of John S. 
Newhouse, the Board resolved to lease for the year the second story of 
a new building he was then erecting on South Water street, at $1,250 
per annum. These rooms they took possession of in February, I860, 
and occupied until their removal, in 1865, into the magnificent hall 
which stood where we now are until its destruction in the terrible con- 
flagration of the 9th of October, 1871. In April, 1860, the 12th annual 
meeting was held. There were now 625 members. Warehousemen 
were now required to make weekly statements of grain in store, and 
daily reports of shipments. In April, 1861, the thirteenth annual meet- 
ing was held. The roll now contained 725 members, and the treasurer 
held in his hands a surplus of over $4,000. In this month the rebellion 
broke out, and when the rebel flag was hoisted over Sumpter, the stars 
and stripes were unfurled over the Board of Trade of Chicago. 

"It would give me unspeakable pleasure to speak of the noble and pat- 
riotic support which through the whole four years of civil war, distin- 
guished your body in its devotion to the Union, but the history of the 
part it bore in the bloody conflict needs no recital here. The records of 
its deeds are known to the country, and are imperishable. From this 
point in its progress the board rapidly grew in importance and influence, 
and the magnitude of its transactions began to attract the attention of 
the great commercial centers of the country. Its subsequent history is 
so familiar to us all that I will not occupy your time with any detailed 



BOARD OF TRADE. 9 

account of its official acts. From the smallest beginnings it has become 
one of great numerical strength, numbering now, I believe, over 1200 
members, and recognized as one of the most powerful and influential 
commercial organizations in the world. When the few public spirited 
merchants whose names I have mentioned first assembled in that little 
room on South Water street, twenty-four years ago, Chicago contained a 
population of only 20,000. For years the annual transactions of the 
Board amounted to a sum so paltry that it would hardly be sufficient to 
run a modern 'corner' in anything for a week. The voluminous statis- 
tics prepared by your able and accomplished Secretary, and laid on your 
tables each year, furnish an interesting study for the merchant and busi- 
ness man. In 1850, only twenty-two years ago, the entire shipments of 
grain of all kinds from Chicago, amounted to just 1,276,593 bu&hels. For 
the year 1872, they will exceed 80,000,000 bushels. In 1859, the ship- 
ments of corn were 262,013 bushels. In 1872, it is estimated they will 
exceed 40,000,000 bushels. In the winter of 1851 and 1852 the number 
of hogs packed was 22,036. During the last winter, immediately suc- 
ceeding the great fire, which some of our neighboring cities supposed 
had destroyed our commerce, the number had exceeded 1,200,000. In 
1865, the total receipts of live hogs for the whole year were 757,072. 
From the first of January to the first of October, 1872, the enormous 
number of 2,136,244 hogs have been received in Chicago, an excess of 
742,970 over the same period of 1871, and the sry is sti 1 they come. 
During the same time, being the first nine months of this year, the num- 
ber of cattle received was 522,435, an excess of 90,000 over the same 
time in 1871. I have no official statistics of the receipts of the present 
year of many other products of the country which seek a market here, 
but I have no doubt they will show, in most cases, a corresponding in- 
crease. In 1860, the number of pounds of wool received here was 859,- 
248. In 1871, there were received 27,026,621 pounds. In i860, we re- 
ceived 262,000,000 feet of lumber. In 1871, over 1,000,000,000 feet. 
But I will not weary you with these dry details. Familiar as they may 
sound to you, these enormous figures amaze and excite the world. When 
we bear in mind that the transactions of your Board are confined to the 
staple products mainly of the West, and do not include any portion of 
the general merchandize, foreign and domestic, soM in Chicago, the mag- 
nitude of the business done on the Board of Trade seems incredible. It 
has been estimated that the trading done on 'Change the present year 
(1872) amounts to at least $300,000,000." 



10 THE LAWS OF TRADE. 

These were the utterances of the late Mr. Coolbaugh on the auspic- 
ious occasion of the interesting ceremonies attendant upon the dedication 
of the new Chamber of Commerce building in 1872. And as he pro- 
ceeds in his review of the many years that had intervened up to the time 
from the date in 1848 of the small gathering of merchants that met to 
take the initiatory steps, and records the many difficulties they encount- 
ered from year to year before the Board of Trade of Chicago could be 
regarded as being permanently established, his statements are full of in- 
terest and embody the early history of one of the most important and in- 
fluential institutions of the Western Commercial Emporium. That it is 
destined to "grow with the erowth and strengthen with the strength" of 
the great city of which it is the just pride, is beyond question. 

At the annual meeting held in 1859, Julian S. Rumsey was re-elected 
President, and Thomas H. Beebee was elected first Vice-President, and 
Stephen Clary, Second Vice-President; Seth Catlin was elected Secre- 
tary and George Watson, Treasurer, which offices they held until 1862. 

It was during Mr. Rumsey's administration that he urged upon the 
Board certain reforms, and in these matters was ably assisted by George 
M. How, Esq., and Charles E. Culver, Esq. And resulting from such 
action statistical reports were first established as well as inspection on 
grain, and the Board were now beginning to get into good shape and 
transactions were being placed upon a more equitable basis. Mr. Rum- 
sey was one of the early actors in the work to establish the Board, and 
through a long and highly creditable business career, he has been active, 
and no other member of the Board has done more to promote its well 
doing. 

In 1860, Ira Y. Munn was elected President; Eli Bates and John V. 
Farwell, respectively, first and second Vice-Presidents. Some idea of 
the growth of the Board up to this time, may be gained from the fact 
that the storage capacity of the elevators of the city was 6,815,000 bush- 
els of grain. 

In 1861, the officers elected were Stephen Clary, President; Clinton 
Briggs and E. G. Wolcott, First and Second Vice-Presidents. The re- 
bellion had now broken out in this year, and as soon as it was known that 
Fort Sumpter had been fired upon by the Confederates, the Board com- 
menced its work of equipping and fitting out regiments for the field to 
sustain the old flag and hold together the Union of the States, firm and 
imperishable. Nobly did the gallant regiments perform their work, and 
when their decimated ranks returned home, they brought with them the 



BOARD OF TRADE. 11 

prestige of having crowned the institution as well as themselves with a 
halo of glory. 

At the election in 1862, C T. Wheeler was elected President; and 
W. H. Low and John L. Hancock respectively, First and Second Vice- 
Presidents. The growth of the institution was almost marvelous, both 
in membership and the value of its transactions. The Board con- 
tinued to equip and fit out regiments for the field of warfare. It 
was in this year that General Frank Sherman started for the seat of war, 
and in doing so passed in review before the members of the Board and 
was addressed by Ira Y. Munn, Esq. During the summer months, Seth 
Catlin, Secretary of the Board, died, and John M. Beaty, succeeded to 
the office. 

In 1863, John L. Hancock was elected President, N. K. Fairbank 
and Charles Randolph, First and Second Vice-Presidents; John M. Beaty 
and George F. Rumsey, were elected, respectively, Secretary and Treas- 
urer. Mr. Be%ty continued in office until 1869 and Mr. Rumsey until 
1870. At this time the capacity of the elevators had increased to 8,615,- 
000 bushels, or an increase of nearly two million bushels in three years. 

At the annual election in 1864, Mr. Hancock was re-elected Presi- 
dent, and Charles Parker and C. J. Gilbert, Vice-Presidents. This was 
quite a notable year in the history of the Board; the number of members 
had reached 1,462, and arrangements were made with the Chamber of 
Commerce to erect a building on the corner of La Salle and Washing- 
ton streets, which the Board undertook to occupy for ninety-nine years. 
The charter of the Board of Trade would only admit of a builiing and 
real estate of the value of $200,000, a sum that was thought inadequate 
to the cost of a lot and a suitable building to meet the demands of its 
expanded and constantly growing condition. The charter of the Cham- 
ber of Commerce did not restrict its power to hold property to any speci- 
fied amount. Another event of this year was the acceptance of an in- 
vitation from the Board of Trade of Boston to visit that city as its guests, 
with the principal Boards of the country. The high estimation in which 
the Board of Trade of Chicago was held by the business men of the coun- 
try at large, was fully demonstrated on this occasion, its entire journey 
to Boston and return through Canada being a perfect ovation. 

At the annual election of April, 1865, Charles Randolph, the present 
able and popular Secretary of the Board, was elected President, and T. 
Maple and John C. Dore, First and Second Vice-Presidents. This was a 
most eventful year. The officials of the Board had but scarcely taken 



12 LAWS OF TRADE. 

their seats, when the wires spread over the land the sad tidings that 
Abraham Lincoln, President of the United States, had been assasinated 
at Washington City. The Board of Trade rooms immediately became the 
centre of expression of sorrow on that sad event, and the succeeding day 
after the arrival of the news, a public meeting was held in the Exchange 
Hall, filling it to repletion. The greatest solemnity and a feeling of .deep 
sadness prevailed among those present. Suitable resolutions were 
adopted expressive of the public sympathy and sorrow for the great cal- 
amity that had fallen upon the country. On the arrival of the remains 
of the martyred President in this cily on May first, the members of the 
Board turned out en masse and took part in the solemn proceedings in 
conveying to their last resting place the remains of the honored depart- 
ed, and a large delegation who met the remains on their way hither at 
Michigan City continued the journey to Springfield. 

In May, 1865,- the first arrangements were made for the deposit of 
margins by members ot the Board on time contracts. The Confederate 
armies had now been beaten at all points. General Lee had made his 
famous surrender at Appomattox Court House to General Grant, and the 
war had ceased. Then came the disbanding of the volunteer armies of 
the United States in the field, and on their return home public recep- 
tions were given on 'Change to tho:e who had been distinguished as de- 
fenders of the Nation, including Ger-erals Grant, Sherman, Webster, 
Howard and others, and the regiments and battery which had served un- 
der the name of the Board of Trade, were given grand receptions, and in 
each case a splendid banquet by the Board. In June a delega- 
tion from the Board, in company with delegations from Mil- 
waukee, St. Louis, and Detroit, visited Boston by invitation of 
the Boston Board of Trade, which visit accomplished its intention of 
greatly promoting the business relations between Chicago and Boston. 
In July the great international convention was held at Detroit, and 
the Board was largely represented. Its delegates, included such names 
as the late W. F. Coolbaugh, J. Young Scammon, McChesney, and others 
equally as prominent, most of whom were conspicuous in the de- 
bates and the various discussions that took place in that body. 
In August, the new Exchange Hall was occupied, and at its opening, 
the occasion was honored by distinguished visitors from all parts of the 
country and Canada, and the event was signalized by the most marked, 
and magnificent series of festivities ever observed in commercial circles in 
this city. In November, owing to the damp condition of grain then in store 



BOARD OF TRADE. 13 

and the continued unfavorable state ot the weather, the elevator proprie- 
tors advanced the rate of storage to about double the amount charged 
previously, in order, as they claimed, to force the grain forward, and in- 
to consumption before the close of navigation. This produced great dis- 
satisfaction, and resulted in one of thy most exciting and angry meetings 
ever held. But the outcome of these proceedings was, that inspectors 
appointed by the Board were placed in each of the elevators, whose busi- 
ness it was to keep a knowledge of the receipt and delivery of all grain, 
and to report upon its condition when necessary. To the action of the 
elevator proprietors on that occasion may be traced all the subsequent 
legislative enactments by the State on the subject of grain storage and 
inspection. In March, 1866, the Board, with great unanimity, adopted a 
memorial to Congress in favor of the passage of a National Bankrupt Law. 
In 1866 Hon. John C. Dore was elected President, and P. L. Underwood 
and E. W. Densmore, Vice-Presidents. No special incidents of note are 
chronicled, but the continued growth and expansive business of the 
Board, and its transactions still attracted the attention of the world. 

In 1867, Wiley M. Egan was elected President, and Lyman Blair 
and C. B. Goodyear, were elected Vice-Presidents. When Mr. Egan 
assumed the presidency, the Board was in debt, but when he retired 
from the office the indebtedness had been liquidated, and there was 
money in the hands of the treasurer. 

In 1868, E. V. Robbins was elected President, and E. K. Bruce and 
J. D. Cole, Jr., were elected Vice-Presidents. The principal event of 
this year was the sending of delegates to Philadelphia for the formation 
of a National Board of Trade. The delegates were Wiley M. Egan, 
Charles Randolph, Ira Y. Munn and V. A. Turpin. 

At the annual meeting in 1 869, J. M. Richards was elected Presi- 
dent, and Samuel H. McCrea and H. A. Towner, respectively, First and 
Second Vice-Presidents. L. V. Parsons was elected Treasurer. To 
show the extent to which the business of the Board had reached at this 
time, we may mention that thft receipts of grain for the year were about 
fifty- two and one- half million bushels^ to which may be added over two 
million barrels of flour. In the Spring of this year, John M. Beaty, who 
had served most acceptably as Secretary of the Board from the time of 
his first election in 1863, tendered his resignation, which was accepted, 
and Charles Randolph was elected as his successor, and has, since that 
period, filled the official position with marked ability. It is not inappro- 
priate at this point to say that Mr. Randolph is now quite a prominent 



14 LAWS OF TRADE. 

figure of the Board of Trade. He is a gentleman of large business ex- 
perience, most decided in the opinions he may entertain, and maintains 
them with manly vigor. This characteristic peculiar to him, has, with 
some people, created a prejudice; but that he is conscientious in his con- 
victions and seeks with an honest purpose to promote the general wel- 
fare of the Board, there cannot be a question. 

At the annual election in 1870, Samuel H. McCrea was elested 
President, and B. F. Murphy and W. Dater, respectively, Vice-Presi- 
dents, and Charles Randolph, re-elected Secretary. There is nothing of 
any importance to chronicle during this year. 

In 1871, Joseph W. Preston was elected President, and Charles E. 
Culver and W. N. Brain ard, Vice-Presidents, and Orson Smith, Treas- 
urer. During this year there was an extraordinary increase in the re- 
ceipt of hogs, wool and lumber. The year was made memorable by the 
occurrence of the great conflagration of the 9th and 10th of October, by 
which over $150,000,000 worth of property was destroyed, and 120,000 
persons rendered homeless. The Board of Trade witnessed the complete 
destruction of all its records, archives and valuables, as well as of the 
noble building in which they had been domiciled for over six years, and 
which had become endeared to them as the scene of many a brilliant 
triumph in trade. The Chamber of Commerce in addition to a similar 
experience, lost their building. We need not dwell upon this dark chap- 
ter in the history of the Board of Trade. The story of the great conflag- 
ration with all of its harrowing details is as familaf to our readers as 
household words. 

The Board secured temporary quarters on Canal street immediately 
after the fire, but the accommodations were meagre and the refuge com- 
fortless. There was a temporary check to the tide of produce that had 
been setting Chicagoward from all parts of the Northwest. The busi- 
ness prosperity of Chicago for a brief period hung on the balance. The 
season of navigation would be closed in a few days, and the question 
was, Can Chicago recover from the terrible shock in time for the transac- 
tion of any further business before that event takes place? During that 
day or two of darkness and doubt, when men wondered whether the city 
could be or would be rebuilt and rehabilitated, The Board of Trade com- 
prising so much of the wealth, enterprise, energy and courage of the city, 
had already decided the question. From the cheerless quarters on Canal 
street, the fiat went forth, "CHICAGO STILL LIVES! " As soon as the vaults 
of the Board, amid the smouldering debris could be opened and the lease 



BOARD OF TRADE. 15 

and agreement from the Chamber of Commerce procured therefrom, the 
following resolution was unanimously adopted: 

Resolved^ That this Board of Directors hereby notify the Chamber 
of Commerce corporation, that this Board will comply with the provis- 
ions of the lease held from them; and in conformity with that lease, the 
Board of Trade hereby require that the Chamber of Commerce re-con- 
struct at once their building in as good shape as it was originally, and it 
is the wish of the Board to occupy the ^building at the earliest possible 
day. 

In response to that resolution, the Chamber of Commerce at once 
began the work of rebuilding. Two days after the fire, while the ruins 
were still smoking, men were at work removing the debris. This prompt 
action of the Board of Trade and Chamber of Commerce had the effect to 
revive the sinking courage of hundreds of others, and as the determina- 
tion of those bodies went abroad, by wire and mail, the grand produce 
wave that had been so lately arrested in its course, flowed on again. A 
thousand temporary makeshifts were devised, and the wealth of the West 
commenced again to flow through Chicago. The grain was received and 
shipped, and the cattle and hogs continued to arrive in greater numbers 
than before. This crisis was passed, and Chicago, though physically 
lying in ruins, in spirit was unconquered and unconquerable. 

As illustrative of the effect of this action of the Board of Trade, we 
may mention that in the months of November and December immedi- 
ately succeeding the fire, the aggregate receipts of grain amounted to 
11,863,937 bushels, against 6,818,314 bushels for the corresponding period 
in 1870, and 6,246,043 bushels in 1869. 

The Board, finding their quarters on Canal street entirely too con- 
tracted for their purposes, made arrangements for the preparation of a 
room in the Central Block, on Market street, near Washington, where 
they continued until the completion of the new Chamber of Commerce 
building. 

In the spring of 1872 J. W. Preston, Esq., was re-elected President, 
Chas. E. Culver and W. N. Brainard, Vice; Presidents, and Orson Smith, 
Treasurer. The business of the year showecrto extraordinary advantage 
in comparison with that of previous years. The total shipments for the 
year were 80,000,000 bushels of grain, against 1,276,593 in 1850. The 
shipments of corn amounted to over 40,000,000 bushels, against 262,013 
bushels in 1859. From the 1st of January, 1872, to October of the same 
year, the total number of hogs received was 2,136,244, against 757.072 



16 LAWS OF TRADE. 

for the whole of the year 1865. During the first nine months of 1872 
the number of cattle received was 522,435, an increase of over 90,000 
over the number in 1871. 

The principal event of the year was the occupation by the Board of 
the new Chamber of Commerce building on the old site, corner of Wash- 
ington and La Salle streets, which occurred on the 9th of October, the 
first anniversary of its destruction. The best skill was employed in its 
erection, and every detail was watched with the jealous care of archi- 
tects anxious to make the edifice a monument worthy to secure for them 
the approbation of all who look upon it. The building was dedicated 
with appropriate ceremonies on the occasion of its occupation by the 
Board of Trade to which allusion has been previously made. 

During this year there were periods when general disaster prevailed, 
arising from the operations of two different firms in their frantic efforts 
to "corner" the markets, which they succeeded in doing, but each party 
brought upon themselves the well- merited obloquy of being obliged to 
"bite the dust." The firm of Chandler, Pomeroy & Co. started in to 
"corner" the market on oats, and in a short period after a vain attempt to 
reap a "golden harvest" therefrom, in their visionary idea of an endeavor 
to buy up all the oats there was in the world (as a witness stated on the 
stand in open court, such was his belief), they went down with a crash, 
and for a time their ignoble transactions had clogged the wheels of com- 
merce, and the best and soundest men in the commercial world of 
Chicago stood para'yzed at the audacious matter that confronted them, 
and this bankrupt firm finally disappeared from sight. At about this 
time John B. Lyon buckled on his armor and strode forth the champion 
of the wheat maiiet, but unfortunately the sheaves that spring from the 
earth, that glisten and wave in their beauty and play with the sunlight 
with their treasure, and sleep listlessly in the shadows of night with 
other collateral matter, were too much for even the over confident and 
too zealous Mr. Lyon to handle. His ambitious desires were defeated; 
his armor became tarnished, and he was laid out a sprawling cham- 
pion, which sad disaster cairied with it a suspension from business of 
some thirty or forty firms. Here was general consternation, and after 
Mr. Lvon had gathered himself together he offered 25 per cent, upon his 
obligations, which was accepted by all his creditors with the exception 
of two firms T. H. 'Seymour & Co. and Dugan, Case & Spear who, 
after much litigation in the courts, were paid in full, and Mr. Lyon in 



BOARD OF TRADE. 17 

1874 was restored to the privileges of the Board, from which he had been 
suspended. 

The time for holding the annual meeting in the year 1873 had been 
changed from April to the month of January. At this meeting Charles 
E. Culver was chosen President. His popularity with the members of the 
Board was evidenced by the fact that in the balloting there were only 
two votes cast against him. W. N. Brainard and Howard Priestly were 
respectively elected First and Second Vice-Presidents. Mr. Randolph 
and Mr. Smith were re-elected Secretary and Treasurer. At the expira- 
tion of Mr. Culver's term in office he was solicited to become a candi- 
date for re-election, but he declined to do so. He was then nominated 
for a membership on the Committee of Appeals, to which position he 
was elected by a most decided majority. Without making invidious 
comparisons it may be truly affirmed that the Board never had a more 
active, capable and efficient Chief Executive officer than in the person of 
Mr. Culver. He is a gentleman of slight build, has the unmistakable 
aspect and air of a man of carefully cultivated mind, refined by the life- 
long habit of entire conscientiousness, and familiarity with the best 
society, together with those subtle influences which come of travel, both 
at home and abroad he is self poised, rather reticent, wholly modest, 
entirely self-respecting. No member of the Board has labored with more 
effectiveness than he, in seeking to purify the commercial character of 
the Board, and free it from the scandal of corrupt practices. Mr. Culver 
may be set down as a successful man, thus far in life, and is a living 
proof of the fact that the completest integrity of Christian principles is 
no detriment to distinguished success in business. During his incum- 
bency of the office of President of the Board, the financial panic oc- 
curred, which proved so disastrous to all our industries; but the Board of 
Trade proved herself a stanch craft, and weathered the gale without 
damage. Referring to this most creditable and gratifying fact, President 
Culver, in his annual report, says: " While many associations similar in 
character to our own were forced to succumb to the pressure of the panic, 
and were obliged temporarily to suspend business, this Board of Trade 
suffered no adjournment of its regular business sessions; and not one of 
its members was reported to have failed by reason of the panic." In the 
years 1871, 1872 and 1873 Mr. Culver was the representative of the 
Board as a delegate to the meetings of the National Board of Trade, 
which were held in those respective years in the cities of St. Louis, Chi- 
cago and Baltimore, and he was honored by that distinguished body by 



18 LAWS OF TRADE. 



being made one of its Vice-Presidents. Mr. Culver also presided on the 
memorable occasion of the large and enthusiastic meeting of the mem- 
bers of the Board of Trade, held in the main hall in the year 1872, for 
the purpose of dedicating the new Chamber of Commerce building to the 
purposes for which its founders designed it, and which had then been 
erected and completed on the anniversary day of the great conflagration 
of the 9th of October 1871. 

On the arrival of the delegates in this city in 1873 to attend the 
meeting of the National Board of Trade, Mr. Culver received the gen- 
tlemen representing the various Boards of Trade, and delivered the ad- 
dress of welcome. He also presided on the occasion of the grand ban- 
quet at the Grand Pacific Hotel, given in honor of the delegates to the 
meeting of the National Board of Trade by the members of the Board of 
Trade of our city, at which were present many prominent and distin- 
guished guests from all parts of the country. 

At the annual election held in January, 1874, George M. How was 
chosen President; Howard Priestly and John R. Bensley, respectively, 
Vice-Presidents. 

Mr. How has been a member of the Board since March, 1855. He 
was chairman of the Standing Committee in the years 1857 and 1858, 
under the old organization, and assisted the late Seth Catlin, then Secre- 
tary, in compiling the first annual report of the Board of Trade. During 
the official existence of Julian S. Rumsey, as President, he was earnest 
and active in assisting that gentleman in instituting reforms, then deemed 
necessary by the intelligent and active members to keep pace with the 
growth and increasing business of the Board. At this time the system 
was inaugurated for grain inspection, which has since been adopted by 
all the commercial organizations of the country. 

In 1868 Mr. How first represented the Board as a delegate to the 
meetings of the National Board of Trade, and he was subsequently 
honored in a similar manner by the Board during the years 1869, '72, '73, 
'75, and 1876. At the meetings of each of the last two years named he 
was selected by that distinguished body as one of the Vice-Presidents. 
It was during President How's official term that the "Sturges Corner" 
came to the surface, and which has since become a matter of public 
notoriety. Mr. Starges in his vain desire "to corner" the market came to 
grief, and involved himself in serious trouble^ which has been his com- 
panion ever since, on account of irregularities existing, as it was charged, 
in his business transactions. On October 5th, 1874, complaint was made 



BOARD OF TRADE. 19 

to the Board of Directors, signed with the names of twenty-four promi- 
nent members, setting forth that, "We believe W. N. Sturges is guilty of 
conduct calculated to degrade our commercial reputation and bring our 
Association into geneial disrepute," etc., etc. This complaint was ac- 
companied with specifications, and respectfully and earnestly requested 
the Board of Directors to investigate the charges, and "in case the 
charges named, or any of them, are sustained by the evidence that may 
be submitted that the same may be reported to the Association that it 
may act upon Mr. Sturges expulsion." The hearing of the pomplaint 
was begun before the Board of Directors on the 12th of October, 1874, 
and was continued until the Gth of November following, which resulted 
in the following report from the Board of Directors to the Association, 
to wit: "We have, after mature deliberation, decided that the prosecu- 
tion have established that Mr. Sturges has been guilty of certain acts 
which this Board deem and charge to be uncommercial transactions." In 
the meantime, Sturges served upon the Board of Directors a lengthy 
document, wherein he refused "to be governed by the rules of the Asso- 
ciation, and denied its jurisdiction over him as a member." This docu- 
ment was disregarded by the Board of Directors, for on the 24th of 
November the balloting for Sturges' expulsion commenced at 10 o'clock 
A. M., and was continued until 3:35 P. M. An interruption then took 
place by the service of an injunction procured by Mr. Sturges on an 
ex parte application. At the time of the interruption 937 members had 
cast their ballots, and 657 of theso were for expulsion, while only 279 
were against his expulsion. And on the 29th of December, 1874, after 
the injunction had been dissolved, an opportunity was given to those 
members of the Board of Trade who had not voted on the previous occa- 
sion to cast their ballots, and 39 votes were polled, of which 24 were 
for expulsion and 15 against expulsion. 

On the 27th day of November, 1874, the President and Directors of 
the Board of Trade filed. an answer to the bill which Mr. Sturges had 
procured upon ex parte application. And on the 3d of December a 
motion to dissolve the injunction was argued before Judge Williams, 
but the complainant procured a continuance of the same. On the 21st 
of December the court dissolved the injunction, and on the 28th of De- 
cember, 1874, the complainant took an appeal to the Supreme Court, and 
soon after the appeal an order was made by Hon. W. K. McAllister, 
then one of the justices of the Supreme Court, that the injunction should 
be continued pending the appeal, and under said injunction the relator 



20 LAWS OF TRADE. 

continued to exercise the privileges of membership until the 23d of 
January, 1878, the judgment of affirmance by the Supreme Court of 
the decree of the Circuit Court dismissing the case not having been 
entered until January 21, 1878. Mr. Sturges then on the 16th of April 
made application to the President and the Board of Directors for relief 
from expulsion, which they declined by a vote of 16 to 1. He then ap- 
plied for a writ of mandamus before Judge McAllister to compel the 
Board of Directors to grant him the privileges of a member. This suit 
was not heard by Judge McAllister, but was removed and heard before 
Judge Rogers, who tried the case with a jury. Judge Rogers in trying 
the case gave the jury special instructions that in their conclusion they 
would simply find for either one of the two parties. The verdict of this 
jury was favorable to Mr. Sturges, .and then the President and Board of 
Directors appealed this case to the Supreme Court. Mr. Sturges then 
made an ex parte application before Judge McAllister for an injunction 
to prevent the President and Board of Directors from interfering with 
his privileges as a member of the Board of Trade pending the appeal. 
A temporary injunction was granted and the case was then afterwards 
heard and urged before Judge Farwell, who dissolved the injunction, and 
Sturges then appealed this case to the Supreme Court and made applica- 
tion before Judge Dickey, of the Supreme Court, to revive the injunc- 
tion, pending the appeal, which was granted. So that there are now two 
cases pending in the Supreme Court between W. N. Sturges and the 
President and the Board of Directors of the Board of Trade. 

The foregoing are the principal points in a condensed form 
of the efforts and the many expedients resorted to by Mr. Sturges 
to -obtain his re-instatement, with full privileges as a member 
of the Board of Trade. That he holds the position in high 
estimation, or that such would greatly accrue to his personal ben- 
efit, is evident from the persistent and very determined fight he has made 
to accomplish his wishes. And it is as equally true of the President and 
the Directors of the Board of Trade, that they believe Mr. Sturges has 
in his business transactions trampled upon the dignity and injured the 
good name of the Board of Trade, from the determined spirit they 
have manifested in defending their actions in this vexatious matter. In 
October of this year Alexander Geddes, a member of the Board, who 
had hitherto been regarded as a gentleman of decided conservative ten- 
dencies in his mole of transacting business, ran a successful "corner" in 
barley. It is seldom that such a result can be recorded, for as a general 
thing "corners" result in disaster. 



BOARD OF TRADE. 21 

At the annual election held in January, 1875, George Armour was 
elected President; John R. Bensley and D. H. Lincoln, respectively, 
First and Second Vice-Presidents. The events and experiences of the 
previous year suggested to the Board of Directors that important modi- 
fications should be made in the general rules, and the subject of a revi- 
sion had been delegated to a committee previous to the date of the last 
annual meeting, and the result of their labors was duly submitted to the 
Association and adopted on the 18th of March. This revision did not 
entirely prove satisfactory and the rules were therefore further revised, and 
with some important modifications, the revision was re-adopted on the 25th 
of September, and no further changes took place during this year. Though 
the code then existing was not considered perfect it was accepted as a com- 
promise. Mr. Armour warmly advocated the maintaining of the lake 
marine, as the railroads in their management were discriminating in the 
carrying of freight against the interests of Chicago. And even though 
the railroads were most of them bankrupt, or fast becoming so, they were 
formidable competitors against the great free water communication with 
the East which nature has provided, arid says in his annual report: "To 
our lake marine we must mainly look. The various interests centering 
in Chicago and other lake cities could better afford to subsidize it than 
to see it languish and die." 

At the annual meeting held in January, 1876, John R. Bensley was 
elected President; D. H. Lincoln tnd Josiali Stiles, respectively, First 
and Second Vice-Presidents. Mr. Randolph and Mr. Smith were re- 
elected Secretary and Treasurer. During this year there were two deci- 
sions rendered by the Supreme Court where four suits against the Board 
by members who had been subjected to its discipline, were pending, on 
the appeal of the parties against whom action had been taken. These 
decisions were in favor of the Board, fully confirming its power to dis- 
cipline its members under its own rules. The Circuit Court also adju- 
dicated an important question touching the right to demand relief from 
suspension by a member of the Board, who had been suspended for 
failure to fulfill commercial contracts, but who had subsequently applied 
for and obtained a discharge in bankruptcy. The court held that such 
discharge was not such a satisfactory adjustment and settlement of the 
obligations of the bankrupt as is contemplated by the rules of the Board. 
The Board had been much annoyed at former periods bv petty suits 
against members, wherein it was sought to make the Board a party by 
garnishment of the membership of the member. The Circuit Court 



22 LAWS OF TRADE. 

held that such membership was not subject to garnishment. The matter 
of the necessity for some change in the inspection of grain was being 
pressed upon the attention of the Board, which was placed in the hands 
of a committee to examine into and report thereon. 

At the annual election held in January, 1877, David H. Lincoln was 
chosen President; Josiah Stiles and William Dickinson First and Second 
^ r ice-Presidents. Mr. Lincoln has been a member of the Board for 
more than 20 years, and during all that period has been an active parti- 
cipant in all matters that tended to perfect or benefit the Association, and at 
all times commanded the respect and esteem of his business associates. At 
this time there appears to have been a growing feeling of dissatisfaction 
among the " members of the Board that the cost of admission to the 
privileges of membership in the Association, which is deemed desirable 
to all persons engaged in such branches of business as are usually con- 
ducted on 'Change is quite inadequate to the benefits derived by parties 
who desire to become connected by membership in the Board." This 
feeling was prompted from the fact that "the organization had grown up 
from small beginnings to a commanding position in its influenoe as a 
commercial body, and a large number of those who by many years' devo- 
tion to its advancement may be said to have borne the burden and heat 
of the day in its early life and maturity. Consequently the old members 
felt that new-comers should be required to contribute somewhat more 
adequately for the benefits resulting from a perfected organization, in- 
dispensable in the prosecution of the business in which most of the 
members are engaged." However deeply this feeling may have ^im- 
pressed the membership of the Board, there does not appear in the 
records that any action had been taken on the matter by the Board of 
Directors. It seems that there had not been for a year or two any appli- 
cations for membership on the Board by parties who would make the 
payment of the regular initiation fee. But those parties who did make 
application for membership did so with transfers, which had been ob- 
tained through the decease of members or from members retiring from 
the Board, at a much less price than the regular initiating fee, which the 
rules of the Board permitted. But, however regular this may have been 
on the part of applicants for membership, the "old-timers" did not take 
to it kindly. 

At the annual meeting held in January, 1878, N. K. Fairbank was 
chosen President; William Dickinson and John H. D wight, respectively, 
First and Second Vice-Presidents. Mr. Randolph and Mr. Smith were 



BOARD OF TRADE. 23 



respectively elected Secretary and Treasurer. This was a very 
quiet year, nothing of importance having transpired to which we have not 
already referred. The President of the United States, Rutherford B. 
Hayes, honored the Board with his presence during the month of Sep- 
tember and was received by President Fairbank, with an address of 
welcome and presented to the members, when he addressed them 
with an agreeable speech of a few minutes in recognition ot the manner 
in which he was received. President Fairbank is a gentleman of splen- 
did physique. Tn this respect, as in all others, he admirably fills the po- 
sition he holds. He may be numbered among our successful merchants, 
and worthily wears the respect and esteem that is justly due him. 

In completing the mention, as we have now done, of the different 
administrations of the Board, we deem it proper to remark that it was 
our intention at the outset to give a sketch of the important occurrences 
or happenings in each of the successive years intervening from the incep- 
tion of this great commercial body in the year 1848, to the present time. 
Some few of these years, as they are herein sketched, are meagre and 
barren, in so far as the relation of events that possibly may have occurred 
incident to the history of the Board of Trade. If such a deficiency 
does exist to any material extent, it should be charged to the indifference 
manifested by those who we thought were the proper parties to obtain 
such information from, and to whom we made courteous application. 



Chicago Board of Trade Transactions. 

A FULL EXPLANATION CONCEBNING TRADING IN 

"FUTURES," 

(COMMONLY CALLED "OPTIONS") AND 

SHOWING- HOW SETTLEMENTS ABE MADE. 

ALSO, AN IMPORTANT U. S. COURT DECISION. 



"PUTS AND CALLS." 



"FUTURE DELIVERIES." 

Among- the many matters of importance in which members of the 
board engage and where the transactions invol veil are of tremendous mag- 
nitude none command more attention particularly in seasons of largely 
fluctuating values than the "trading in contracts for the future delivery" 
of grain and provisions, more commonly but very improperly called 
"options." We say improperly, because the contract for the property is 
fixed and definite, and the only feature in which the trade is at all op- 
tional is the privilege of delivery between specified dates, accorded to the 
seller or buyer as the trade may be made "seller the month," or "buyer 
the month." Almost the entirety of trading in "futures," however, is in 
contracts for "seller the month; the particular month being always speci- 
fied. Thus, when a dealer "on 'Change" asks of another member the 
price of "May wheat," each understands the question to apply to the 
price of contracts for No. 2 Spring wheat, deliverable during the month 
of May, at the option of the seller as to what day in May he will deliver 
the property. Trades in "buyer the month" are very seldom made and 
are almost obsolete. The meaning of the phrase "buyer the month" is, 
however, that the buyer can call for the delivery of the property on any 
day during May, or any month for which the contract may be made, and 
the seller is bound to deliver before 2:30 P. M., on the day the demand 



BOARD OF TRADE. 25 

may be made. On contracts for "seller the month," the contract once 
made, the seller must deliver the property, and the buyer must receive 
and pay for it within the time named in the contract, unless the contract 
shall have been canceled by another offsetting trade, or by "settlement." 
To illustrate the detail of a trade in "May wheat," we will suppose 
that A buys from B 5,000 bushels of wheat, seller May, on 'Change at 
$1.10 per bushel. In the afternoon A's clerk will present to B a contract, 
of which the following is the custom accepted and Board of Trade form, 
which B signs and the contract is complete: 

FORM OF CONTRACT. 



5,000 Bushels @ $1.10. 

GRAIN CONTRACT. Chicago, 187 

I have this day BOUGHT of -B 

five thousand bushels of No. 2 .... Spring Wheat 

at one dollar and ten cents per bushel, to be delivered in store, at sel- 
ler's option during .... the month of May, 1878, 

To BE DELIVEKSD IN LOTS OF 5,000 BUSHELS EACH. 

This Contract is subject, in all respect", to the Rules and Regulations 
of the Board of Trade of the City of Chicago. 



(Signed) 

T 



B signs a similar contract using the word "sold" instead of the word 
"bought." The above contract calls for No. 2 Spring Wheat. A pro- 
vision contract is similarly worded, only the kind of property contracted 
for is named. 

By the above contract it will be observed that the seller contracts 
positively to deliver a specified amount of particularized property. The 
seller reserving the option as to time of delivery, on any day he may 
elect between the hour of 10 A. M., on May first, until 2:30 P. M., on May 
31st, and is the only part of the contract to which the word "option" or 
its effect in any manner pertains. The property must be absolutely de- 
livered before the expiration of the life of the contract, unless otherwise 
settled; and in the event of non-delivery after making a demand upon B 
for its delivery, and B's non-compliance, A can buy the cash property 



26 LAWS OF TRADE. 

from any one having it to sell, and compel B to pay any difference in 
amount between such purchase price and the price named in the con- 
tract. There is no evading or getting around it on the plea of its being 
a gambling transaction as is too commonly supposed. The contract is just as 
vali-1 in justice, equity and law, and as fair as if B had given his contract 
to A to deliver 100 cords of stone or 100,000 bricks to be delivered with- 
in the time specified on the wheat contract, and B is just as absolutely 
liable to A for damages resulting from the non-fulfilment of his grain or 
provision contract as he would be if he failed to deliver the stone or the 
brick. In a failure on B's part to deliver the stone or brick, in accor- 
dance with his contract, both common custom and law would justify A 
in buying either of these articles at che market price as soon as said con- 
tract had expired unfulfilled, and A could by law collect from B any dif- 
ference in the price he may have to pay, beyond the named price in the 
contract; and the courts have of late established by several decisions the 
absolute legality of time contracts for the future 'delivery of grain and 
provisions made under Chicago "Board of Trade" rules, as evidenced by 
the following decision by the Supreme Court of Illinois at the September 
term of 1875 in the case of Woolcott et al. vs. Heath (111. Reports, vol. 
78, page 437). The Court's decision was as follows: 

* * "Time contracts, made in good faith, for the future delivery 
of grain or any other commodity, are not prohibited by the common law, 
nor any statute of this State, nor by any policy beneficial to the public 
welfare. Such a restraint would limit commercial transactions to such a 
degree as could not but be prejudicial to the best interests of trade. 
Our present statute was not in force when these dealings were had; con- 
sequently the rights of the parties are not affected by it. What the law, 
prohibits, and what is deemed detrimental to the public interests, is 
speculation in differences in market values, called, perhaps, in the pecul- 
iar language of the dealers 'puts' and 'calls,' which simply means a privi- 
lege to deliver or receive the grain, or not, at the seller's or buyer's option. 
It is against such ficticious, gambling transactions, we apprehend, the 
penalties of the law are leveled." 

Again, in the case of Pixley et al. vs. Boynton et al., (79th 111. Re- 
ports, page 353) the Court rendered this opinion (September term, 1875): 

* * "Seller the month, as that term is understood and used on 
the Board cf Trade, is explained to mean the seller has until the last day 
of the month in which to make a delivery of any grain contracted to be 
sold. Under such a contract, as we understand the evidence, all the op- 



BOARD OF TRADE. 27 

tion the seller has is the privilege to deliver the grain at any time before 
the maturity of the contract. This is nothing more than a time contract, 
which is regarded on the Board of Trade and elsewhere as a legitimate 
and regular contract. Time contracts in relation to grain as well as 
other commodities, are of daily occurence, and must necessarily be in 
commercial transactions. * * * The Intention of the parties (page 
354) gives character to the transaction; and if either party contracted in 
good faith he is entitled to the benefit of his contract, no matter what 
may have been the secret purpose or intentions of the other party." 

The Supreme Court has never yet decided against the validity or legality 
of time contracts, and it will be seen by the following ruling that the idea 
apparently so long prevalent among home as well as outside dealers that 
contracts for the purchase and sale for future delivery were held illegal 
by the Supreme Court of Illinois, was erroneous. The summary of the 
decision of the Supreme Court, recently rendered, in the case of Musics 
& Brown vs. B. F. Logan was as follows: 

* * "It is clear that the parties were not dealing in options, but 
that the plaintiffs were instructed to buy for the defendant a certain 
amount of grain for future delivery, and actually bought it. Under the 
contract made Logan did not have the option to buy, but he actually pur- 
chased, and if he failed to take the grain at the time he was to receive it 
he would be bound to respond in damages. So with the parties of whom 
the grain was bought. They did not have an option to sell, but actually 
sold the grain, and were bound to deliver it at the time specified, or, on 
failure, would be liable to damages. The statute does not prohibit a 
party from selling or buying grain for future delivery; such was not the 
purpose of the statutes; nor can it make any difference as to the legality 
of the contract whether the party who sells for future delivery, at the 
time the sale was made, has on hand the grain; a party may sell to-day a 
certain quantity of grain for delivery in a week or a month hence, and 
then go upon the market and buy the grain to fill the contract. It is 
true the defendant had the option to select a day within a limited time 
on which he would receive the grain, but such an option does not fall 
within the statutes, for the reason that it does not render the sale 
optional. We are, therefore satisfied that the contracts did not fall 
within the statute, and we perceive no reason why they should not be en- 
forced. The judgment of Circuit Court will be affirmed." 

The italics are our own. 

These decisions render collectable by law any indebtedness arising 



28 LAWS OF TRADE. 

from dealing -in contracts for the future delivery of grain or provisions, 
other opinions to the contrary, notwithstanding. Dealing in fu- 
tures is, on the part of commission merchants, a business of unusual risk, 
unless said commission houses adhere strictly and inexorably to the idea 
of "full cash margins absolutely in hand" bjefore trades are begun. Many 
well meaning and honorably disposed commission men have been utterly 
ruined by accepting and executing orders and drawing time bills upon 
their customers for the required margins, and, in many instances, sight 
drafts have been returned dishonored, where the violent fluctuations of 
the market have gone largely against the party ordering, even before a 
sight draft could reach the party ordering the deal made, and to whom it 
would be plain that whatever he might pay would be dead loss. In 
times of large fluctuations the market value of grain may vary 6c, 8c, 
lOc, 12c, loc, and even 20c in a single day. We will illustrate a case in 
point. Mr. Smith, of Charleston, S. C., may order M & W to buy for 
him 20,000 bushels wheat seller May, and authorize M & W to draw on 
him for the customarv lOc a bushel, or $2,000 margin. M & W may ex- 
ecute the order, say at $1.20, and make sight draft for the amount of the 
margin, say $2,000. Foreign or other news may come next day and very 
unfavorably affect the market as regards Mr. Smith's interests, and a de- 
cline of 4c or 5c be established on the succeeding day, the markets may 
still be more unfavorably affected, and prices again decline 3c, 4c, or 5c, 
making, say a total decline of Sc to lOo on the third day. M & Ws 
dratts would reach Charleston and be presented to Mr. Smith, who could 
ill afford to lose the $2,000, and he being advised of the decline by the 
daily papers or dispatches from M & W would say to himself, "If I pay 
the drafts I pay out all the ready money I have, artd will, of course, 
know that the amount f might pay would be all exhausted by the decline 
of the last two days, and besides, if I do pay, M & W will at once 
want $2,000 additional margin, which it is quite impossible for me to 
put up. I guess I won't pay, and maybe by the time the draft gets back 
the market may rally, in which event I can order them to redraw," but 
the market don't rally. M & Ws banker advise them that Mr. Smith 
don't pay his draft, and that they must pay $2,000 to the bank at once 
to make the amount credited to them for the draft good. M & W will 
then be either compelled to sell the wheat out at a loss and take their 
chances of collecting the balance from Mr. Smith (which chance would, 
of course, be very remote), and not being disposed to put up $2,000 more 
margin on a deal which they have made for Mr. Smith, they reluctantly 



BOARD OF TRADE 29 

close the trade by sale, pocket a $2,000 loss, make up Mr. Smith's ac- 
count, send it to him, request immediate remittance, etc. Mr. Smith 
replies: "Sorry, but couldn't help it; ordered the wheat for a friend who 
positively promised to have the money ready when the draft for margins 
should be presented; the friend had cruelly disappointed him; would do 
what he could to collect; hoped that he might soon have a little money 
he could send them on a trade as margin in which he could make back 
the loss for them, and would see th-it they never lost a cent," etc., etc. 
Weeks, and perhaps months, would roll round. M & W would notify 
Mr. S. that he must settle or they would collect by suit. Mr. Smith 
would answer this time (not so sorry), and would say "sue and be d d; 
it's a gambling debt, and you can't collect a cent." Not very honorable in 
Mr. Smith, of course, but that is Mr. Smith's way, and so the matter 
would rest. During the year M & W might make a dozen such losses, 
and wind up at the end of the year with the $20,000 capital originally in- 
vested in their business, exhausted in paying margins for other people, 
and finally be forced to stop business because there means were exhausted 
This is simply the history of hundreds of houses who have started and 
failed in the option trade in Chicago. 



"PUTS AND CALLS." 

What are commonly known as "Puts" and "Calls" on the Board of 
Trade are the pet antipathy of the legitimate dealer, and are regarded 
with chronic aversion by all conservative traders. They are not recog- 
nized as legal by the Statutes of the State, and "differences" resulting 
from trades based thereon are not collectable under Board of Trade 
rules. Within the past year they have been exorcised from the "Rooms" 
of the "Board" and trading in them by members, in the "Main Hall" or 
during regular 'Change hours is forbidden under penalty of fine or ex- 
pulsion; and yet, however illegal or irregular they may be, the volume of 
trading done in them after the regular session of the Board, amounts 
to hundreds of thousands of bushels daily, and compassing as many hun- 



30 LAWS OF TRADE. 

dreds of thousands of dollars in value. There being no legal responsi- 
bility, they are made entirely "on honor," as no member of the Board 
can enter complaint against another member to the directory for default- 
ing upon a "privilege," I. e. a "put" or "call," nor upon any deal based 
upon a "privilege." To many of our readers these terms are mean- 
ingless without further explanation, and it will now be our province to 
attempt, at least, to make clear the detail incident to privilege trading. 
A "put" means that the seller thereof sells to the buyer thereof the 
privilege of having delivered to himself (the seller) by the buyer 5,000 
bushels of any named grain, at any stated price, and for any stated time 
of delivery. To make this more clear we will illustrate by supposing 
that A sells to B a "put," that is, A sells to B the privilege of putting or 
delivering to him (A) 5,000 bushels of May wheat on the succeeding day 
for $10, at $1.09 per bushel. If the price did not go below $1.09 the 
next day, B would not "put" the wheat as there would be no profit in so 
doing, but he (B) would lose the $10 he paid A for the "put." If, how- 
ever, the market should decline to $1.07 the next day, B could then buy 
5,000 bushels May wheat of C or any other party at $1.07 and deliver it 
to A on his "put" at $1.09 and would therefore secure a profit of 2c. per 
bushel or $100, making a clear gain of $90, $10 having been paid for the 
"put." The life of a "put" extends only until the close of 'Change hours 
on the day succeeding the one on which the purchase of the privilege or 
"put" is made, unless a more extended time is agreed upon between the 
contracting parties. A "call" is quite similar in results. We will sup- 
pose that to-day A sells to B a "call" on May wheat for to-morrow for 
the usual $10 at say $1.10. The morrow comes and wheat advances to 
$1.12. At any time during the day B can sell 5,000 bushels of wheat at 
$1.12 and '-call" A to deliver at the $1.10^- the agreed "call" price. The 
moment B "calls" the wheat he becomes the buyer of it at the "call" 
price, and if he can sell it at $1.12 he can secure a -profit of Ifc. per 
bushel or $75 less the $10 he has paid for the "call." The "put" or "call' 
is secured simply by the buyer notifying the seller verbally or by proxy 
any time before the bell strikes the 3:30 P. M. hour. 

The difference between a "put" or a "call" and a regular trade in 
"futures"' is simply this: In buying for "future delivery" an absolute con- 
tract is made to deliver or secure a certain amount of specified property 
at a stipulated price. If, however, you buy a "put" or "call" you simply 
buy the privilege of delivering or receiving the property. It being en- 
tirely optional with the purchaser of the "privilege" whether he makes a 



BOARD OF TRADE. 31 

positive trade or not, and while it is clearly a misnomer to apply the 
word "option" to a contract for future delivery, it is quite as clearly the 
proper title to apply to a trade in a "privilege," i. e. a "put" or a "call." 
.These privileges are largely dealt in by operators in "futures," who use 
them as "insurance" on their legitimate trades, i. e. protection against 
loss beyond the figure named on the "put" or "call" trade. This we will 
illustrate by supposing that A having bought 50,000 bushels of wheat 
during the day at say $1.10 for "May," and being a little nervous about 
his margin drafts not being paid, or, if on his own account, desires to 
lose not over Ic. per bushel in the event of the decline, he would insure 
himself against more than the Ic. per bushel loss by buying after regular 
'Change hours a "put" on 50,000 bushels May wheat from B, C and D, at 
$1.09; he could then, in tha-event of a decline below $1.09, deliver the 
wheat on the "puts" he has on B, C and D, and thus prevent loss beyond 
that amount plus the amount he may have paid for the "puts;" and on 
the other hand, if A should be short 50,000 bushels of' wheat at $1.10, he 
could protect himself from a loss of more than Ic. a bushel by purchasing 
from B, C and D 50,000 bushels of "calls" on May wheat at say $1.11 for 
next day, and in the event of the market advancing to $1.12, or over, he 
would be "insured" against more than Ic. per bushel loss by "calling" 
on B, C and D to deliver to him the 50,000 bushels on the "calls" bought 
of them, which he could in turn deliver to the parties he might sell to at 
$1.12 or over. The following ruling indicates the position of our courts 
in regard to the legality of "puts" and "calls," or "privileges:" 

In the case of Pickering et. al. vs. Chase (79th 111. Reports, page 328) 
the Court decided: "A contract for the sale and future delivery of grain, 
by which the seller has the privilege of delivering or not delivering, and 
the buyer the privilege of calling or not calling for the grain, just as they 
choose, and which on its maturity is to be filled by adjusting of differ- 
ences in market value, is but an optional contract in the most objection- 
able sense, and, being in the nature of a gambling transaction, the law 
will not tolerate it." 

From the above it will be seen that the Supreme Court has never 
decided against the validity of option contracts. The decisions (as per 
last quoted) have been against "puts" and "calls," and the Chicago Board 
cf Trade, like the Supreme Court, disclaims these latter as' illegitimate 
transactions. Thus it will be seen that the idea, apparently so long pre- 
valent among home as well as outside dealers, that all contracts for the 
purchase and sale for future delivery were held illegal by the Supreme 



LAWS OF TRADE. 

Court of Illinois, was erroneous the Court merely said that "puts" and 
"calls" are gambling operations. 

The usual difference in price on "puts" and "calls," on what on a 
steady market is usually from $ to Ic. per bushel from the closing price 
on the Board. Thus if "May wheat" closes at $1.10, the price of "calls" 
on an ordinary quiet market would be from $1.10 to $1.11, and the 
price of "puts" from $1.09 to $1.09. In seasons of violent fluctuations, 
however, a wider range of prices obtains, and the "put" or "call" value 
will be 1, 2, 3 or even 5c. per bushel above or below the closing prices 
on 'Change. Our illustrations are based upon the average ruling differ- 
ences on a steady market. 

These privileges are often bought and sold for much longer terms 
than the succeeding day, and occasionally extend fifteen, thirty and even 
sixty days. The prices at which these extended privileges are made, 
vary largely, and in proportion to the time compassed, a "call" for buyer 
"the month" usually commands a premium of 5 to lOc. per bushel from 
the ruling value on the day the "call" is sold, and about the same differ- 
ence on a "put" for the same period. 



"OPTION TRADING." 

SETTLEMENTS AND MARGINS. 

To parties who are not familiar with the "deal," one of the most 
puzzling features incident to trading in options (i e. contracts for future 
delivery) is the modus operandi of making settlements or "ringing the 
deals" as it is more commonly designated. Strangers visiting the Board 
of Trade will notice around and near a long upright desk, at the north- 
east end and side of the room, around and near which during 'Change 
hours, quite a crowd of lads and some aHuIts congregate, and who are 
constantly calling out the names of the different firms who trade in 
"options," and who are constantly comparing entries in small memoran- 
dum books which they carry, with each other, and who will be heard 
remarking as they conclude their calculations: "You pay A $175 and 



BOARD OF TRADE. 33 

collect $37.50 from C," or "All right, we pay $62.50," etc. etc., which is 
all Greek to the looker on and understandable only by those who are 
engaged in the option trade. We will endeavor to make plain, as briefly 
as possible, how settlements are made: First of all it must be undertsood 
that the trading in option deals in grains and provisions is always for lots 
of 5,000 bushels each, and in pork and lard for 250 packages of either; 
any amount other than these are irregular trades and seldom made, and 
when made can never be settled unless settled direct. 

It is easy enough to understand that if A buys 5,000 bushels of May 
wheat from B to-day at $1.06 and sells it to B to-morrow or next week at 
$1.07 that B will owe A 1 cent a bushel or $50, and that the two trans- 
actions settle each other's books, so far as this trade is concerned. But 
suppose A buys 5,000 bushels of May wheat (i. e., wheat deliverable at 
seller's option any time during May) from B to-day at $1.06; then let it be 
supposed that A wishes to close his trade to-morrow, but that B wishes 
to let his deal stand don't want to sell. Then A must sell to some other 
party, which he does, and sells 5,000 May wheat to C at $1.08. This sale 
made, A's books will be even, so far as the amount of wheat is concerned^ 
that is, he will have 5,000 bought and 5,000 bushels sold, but he will have 
two deals open, 5,000 bought of B and 5,000 sold to C. The next move 
to be made is to "settle" or "ring" the deals, and clear them from the 
books. This may be done when B buys 5,000 bushels wheat from C, or from 
any party who may have sold it to A. Let us suppose that a few days 
thereafter B does buy from C 5,000 bushels of May wheat at $1.08|-; as 
soon as these trades are made they are reported to the settling clerks, 
who are continually comparing purchases and sales, and it is found that 
B has bought the 5,000 bushels from C; a ring is at once made, and it 
will stand as follows on the settlement books of each, viz: 

A bought of B 5,000 bu. May wheat at $1.06. B bought of C 5,000 
bu. May wheat at $1.08. C bought of A 5,000 bu. May wheat at $1.08. 
A collected $100 from B and $25 from C. B collects $25 from C. By 
the above it will be seen that A has made $125 profit, and that C loses 
$25 and B loses $100, and the trades are entirely cleared from the books 
of each party, whereas each party had 5,000 bu. bought and 5,000 bu. 
sold on their respective books until the "ring" or settlement was made. 
These settlements often compass five, seven, ten, and sometimes, though 
seldom, twelve or fifteen different firms before the ring is complete. We 
will give one more illustration of a larger "ring," comprising say seven 
different parties, and which we will suppose to be in corn, viz: A buys 



34 LAWS OF TRADE. 

5,000 bu. April corn at 42c. of B. B buys 5,000 bu. of C at 41^0. C 
buys 5,000 bu. of same option of D at 43c. D buys same amount of E 
at 44c. E buys 5,000 of F at 44c, and F may in a da 7 or two buy 5,000 
of A at 44c. The settlement clerks in the half- hourly comparisons wou'd 
readily discover the ring and proceed to close "he 'rades up. The mem- 
orandum on the settlement books would show as follows: 
A bought of B 5,000 bu. April corn at 42c. 
B bought of C 5,000 bu. April corn at 41c; B's gain, $25. 
C bought of D 5,000 bu. April corn at 43c; C's loss, $75. 
D bought of E 5,000 bu. April corn at 44c; D's loss, $50. 
E bought of F 5,000 bu. April corn at 44c; E's loss, $25. 
F bought of A 5,000 bu. April corn at 44c; F's gain, $25. 
A having bought at 42c and sold at 44c, gains $100. 
In the above transactions the party making: the largest profit would, 
as a rule, collect from all loosers in the "ring" and pay those who have a 
profit besides themselves. In the above A would collect $75 from C,$50 
from D, and $25 from E, making a total of $150, and would pay B $25 
and F $25, leaving the $100 gained in hand, and the books of all the 
parties interested would be cleared of the trades named. 

All members of the board are expected to pay the balances they 
may owe the day the settlement is made, or at farthest on the next day 
The failure on the part of any member of the Board to pay balances 
due on settlements on demand renders such member liable to suspension 
from the privileges of the Board immediately upon the complaint of the 
party unpaid. 

One of the most unpleasant positions that option traders find them- 
selves in occasionally, is to have large deals out with "one-sided" opera- 
tors those whose trades may be entirely on either the bull or the bear 
side. To show how awkwardly unpleasant such a situation may be made 
to a trader in options who happens to get long to a one-sided "short" 
and short to a one-sided "long," operator, we will suppose that A, a 
commission merchant, one who does a strictly commission business in 
"futures," receives to-day an order from John Jones, of Jonesville, to 
buy for his account 100,000 bu..of May' wheat at the market value, and 
remits to A $10,000 margin. A at once goes into the market and may buy 
to the extent of 40,000 bu. of May wheat of Y, a strong believer in 
lower prices, at $1.06, and 60,000 bu. ot same option of H, another large 
dealer and prominent operator, also on the bear side, at $1.06^. In the 
course of a day or two Mr. Jones, of Jonesville, by an advance in prices, 



BOARD OF TRADE. 35 

being abls to realize a profit of 2c per bu. orders A to "sell his 
wheat." Upon receipt of Mr. J's order A at once offers and sells at say 
II 08 50,000 bu. to Mr. A heavy dealer on the bull side, and 50,000 bu. 
to F, another heavy bull operator, at $1.08^. This being done, A makes 
up Mr. Jones' account, remits him his $10,000 margin, and the $2,000 
profit, less his (A's) commission of $250. This lets Mr. Jones out of the 
deal, but A has 200,000 bu. of unsettled wheat deals on his books. The 
bears, Y and H, of whom he bought the wheat, still believing that lower 
prices must prevail, decl'ne to buy any wheat, and M and F continuing 
firm in their convictions, refuse to sell a bushel. A, therefore, is unable 
to settle a bushel of either his "bought" or his "sold" wheat. A decline 
of 4c or 5c may now occur, and Y and H finding the deal going in their 
favor, and against A, call on him to deposit lOc a bu. margin, or $10,000. 
This $10,000 must be put up within one hour after the call is made, ac- 
cording to the established rules of the Board, and is promptly deposited 
by A, who can in turn call Y and H and force them to deposit a similar 
amount. The decline, however, makes A's sale to M and Y against them 
and in his favor, and he accordingly, as a prudent man, calls on them to 
deposit lOc a bu. margin, or $10,000, which they do, and as is their right, 
call back upon A to put up a like amount, which he is necessitated to do 
within the specified hour. This makes a total of $20,000 margin A has 
been forced to deposit on the trades he has made for Mr. Jones, of Jones- 
ville, and Mr. Jones' margins and profits have b^en paid him, and so far 
as Mr. Jones is concerned the trade closed, while A has some 200,000 
bushels of wheat on his books that can't be settled, and his $20,000 
margin must remain up, until it can be settled by Y and H buying May 
wheat or M and F selling. In the event, of neither of these parties 
changing their opinions, and continuing to stand on their trades, A will 
have to wait until the maturity of the May option contract comes round, 
when Y and H will be compelled to deliver him the cash wheat he has 
bought from them, "seller May," and which he can in turn deliver to M 
and F, and thus close the deal with both parties by the delivery of the 
cash wheat. Margins mu*t be put up within one hour after being called, if 
the call is made before 2 o'clock P. M.; if made after 2 P. M., it must be 
up by 11 A. M. next day. The failure to respond to a call for margin is 
generally considered a failure in fact, and so acted upon by the parties 
interested. The rule relating to margins we here annex. It reads as 
follows: 



36 LAWS OF TRADE. 

RULE XXIII. 

MARGINS ON TIME CONTRACTS. 

SECTION 1. On time contracts purchasers shall ha^e the right to 
require of sellers, as security, ten (10) per cent, margins based upon 
the contract price of the property bought, and further security, from 
time to time, to the extent of any advance in the market value above 
said prices. Sellers shall have the right to require as security from 
buyers ten (10) per cent, margins on the contract price of the property 
sold, and in addition any differences that may exist or occur between the 
estimated legitimate value of any such property and the price of sale. 
All securities or margins shall be deposited either with the Treasurer of 
' the Association or with some bank duly authorized by the Board of 
Directors to receive such deposits; provided, s"uch deposit shall not be 
made with any bank or banks to which the party calling for the said 
security or margir shall expressly object at the time of making such 
a call. 

The first of the month (Sundays excepted) is usually quite an exciting 
day in the vicinity of the Board of Trade building, in consequence of 
the large deliveries of grain and provisions that are generally made on 
that day. To illustrate: A having sold B 5,000 bushels March wheat, he 
(B) can, on the first of March, or any day during the month, deliver it, 
and those dealers who have received cash property during February gen- 
erally deliver on March 1 on such "sold" contracts as they may have out 
"seller March," unless they are on the bull sHe at the time, in which 
event they would prefer to carry it, so as not to affect the market unfa- 
vorably, by letting the property out. One 5,000 bushel lot of wheat may 
be made to fill a dozen sales within an hour after it is put out. The de- 
liveries must be made by or before 2:30 P. M.; if such delivery is not 
made before 2:30 P. M. the purchaser can refuse to receive the grain, 
pork, or lard, as the case may be, until next day. As a consequence, on 
the first of the month, between 2 P. M. and 2:30 P. M. there is unusual 
excitement in the vicinity named, caused by the delivery clerks flying 
along the streets with the bills and warehouse receipts to complete these 
deliveries before the 2:30 P. M. bell may strike. Their progress is often 
much impeded by the crowd standing on the sidewalks to see the fun, 
and personal collisions are not infrequent, and when they occur are gen- 
erally severe and occasionally serious. The moment the bell strikes the 



BOARD OF TRADE. 37 

2:30 hour no more tenders can be made, and the delivery clerks are often 
"stuck," much to their chagrin, by being but one-quarter of a minute too 
late, and the discomfited youth retires somewhat chop-fallen amid the 
jeers of the crowd, which heartily applauds those who are just in time to 
be successful in completing the delivery, and who quite as heartily "cod" 
with groans and hand-clapping the unfortunate wight who is just in time 
to be "out of time." 

The following is the form of certificate issued by the banks receiving 
margin deposits: 

CHICAGO, 18 . 

-. has deposited with this Bank 

Dollars, as margin or security on a 

contract or contracts between the depositor and 

which amount is payable on the return of this certificate or its duplicate 
duly endorsed by both of the above-named parties, or on the order of the 
President of the Board of Trade of the city of Chicago, indorsed on 
either the original or duplicate hereof, as provided by the rules of said 
Board of Trade, under which the above-named deposit has been made. 

, Cashier. 



A FEW REMARKS CONCERNING OPTION TRADING. 

Trading in "options" or contracts for the delivery of grain or pro- 
visions at periods subsequent to the date of the contract, at the option 
of the seller or buyer, is a business to which a considerable number of 
the heaviest and most responsible firms on the Board of Trade devote 
almost their entire attention. The word "option" is, strictly speaking, 
a misnomer. However, as the word (incorrect as it may be) is most com- 
monly used among dealers in "futures," we will accept the custom and 
use the word "option" in our explanations which we herein propose 
to give. The value of business transacted in active seasons, in this line, 
is simply enormous, the dealings of single firms amounting to a million 
or more dollars in value in a single day. 



38 LAWS OF TRADE. 

Of the nineteen hundred members of the Chicago Board of Trade 
it is safe to assert that at least three-fourths of the entire membership 
operate either for themselves or on commission for others. Owing to 
the violent fluctuations of the market at times, the business is attended 
with more than the usual amount of the risk, and the greatest amount 
of care is essential on the part of commission merchants trading for 
country parties, in the closing of deals before the expiration of the cus- 
tomary margins consequent upon the fluctuations of the market, which 
rarely remains at the same figure a - quarter of an hour at a time for" a 
whole week, and during the week often fluctuates several cents per 
bushel on grain, and fifty cents to one dollar a barrel on mess pork. 

In moments of these violent changes in values, the excitement is 
almost indescribable, and the frantic buyers and sellers, to an outsider at 
such times, have mere the appearance of so many hundred lunatics, 
rather than the quickest thinking business men of' the country. 

A very large amount of business is done in this market in "option 
trading." we herewith give an explanation of such business transactions: 

''Option Deals" are the result of a desire on the part of operators 
and dealers to buy grain or provisions for a rise, or sell for a decline, in 
the future, and the regular rule is to bay or sell, "seller the month," or 
any future month. 

The following are the terms used and an explanation of their mean- 
ing as generally unders'ood by the trade 

A "Buyar's Option" gives the buyer the right to demand from the 
seller the delivery of the property bought, any day during the time 
specified in the .contract, and when not demanded the seller can and 
must deliver before 2:30 o'clock of the last day of the life of the 
option, 

A "Seller's Option" gives the seller the right to deliver the property 
sold, any day during the time specified in the contract, and he must 
deMver it before 2:30 o'clock P. M. of the last day of the life of the. 
option. 

To secure the faithful carrying out of these contracts, margins not 
exceeding 10 per cent, upon the value of the property specified in the 
contract, may be demanded by both buyer and seller at the time the 
trade is made, or subsequently; and thereafter during the continuance 
of the contract the seller may require the buyer to keep good 10 per 
cent, margin below the shipping value of the property, and the buyer 



BOARD OF TRADE. 39 

may require the seller to keep good 10 per cent, margin above the cur- 
rent value in this market. 

Margins must be deposited in a bank which has filed sufficient bonds 
with the Board of Trade, within one banking hour after they are called, 
(provided the call is made before 11 A. M., and if made at or after 11 
A. M. the party called upon has until 2 P. M., the time between 11 A. 
M. and 1 o'clock P. M., being the regular change hours, is exempted 
from the rule of one hour as above) the bank giving its receipt for the 
amount so deposited, payable to the order of the buyer and seller jointly, 
which receipt requires the indorsement of both parties to the contract 
upon being surrendered. 

Contracts are made to cover any length of time ahead; but, without 
waiting the maturity of a contract, it can be closed by the commission 
merchant making a purchase if "short," or a sale if "long," and thus a 
trade can be closed, at the dealer's option, any time between the date 
and maturity of the contract. But little capital (margins only) is re- 
quired, and no expense, save commissions, attach to option trades. The 
requisite margin generally required by the commission merchant, and ex- 
pected by him to be kept good in case of adverse change in the market, 
is 10 per cent, of the market valuation, or such an amount as may be 
agreed upon between the commission merchant and his customer. The 
commission merchant, however, is at all times liable to be galled the full 
10 per cent, of the face value of the contract, and can be compelled to 
put up that amount on one hour's notice, and also such further amount 
as the fluctuations of the market may increase that liability. 

All grain is sold during summer storage (from April 15 to November 
15) subject to 1^ cents, and during winter storage subject to 4 cents per 
bushel storage, and the receipts on delivery must have five days to run. 

Winter storage commences November 15 and ends April 15. All 
grain except "Rejected" and "No Grade," in store or received between 
these dates, after 4 cents storage has accrued on it will be subject to no 
further charges until after April 15. 

As the parties who finally take the grain out of store, pay the full 
storage to the elevators, dealers can, therefore, hold grain here all through 
winter storage, or any length of time between November 15 and April 
15, free of storage, if they sell in this market. 

The commissions on option deals, which include both buying and 
selling, are one-quarter cent, per bushel on grain in 5,000 bushel lots; and 
one-half per cent, on provisions in lots of not less than $2,000 in value. 



40 LAWS OF TRADE. 

No further expense is incurred, unless the commission merchant is re- 
quired to pay for and carry the property, in which case it turns into a 
cash deal, in which event an extra commission is usually charged. 

To commission men we would remark right here, by way of warn- 
ing, a suggestion or two, which, if carefully regarded, will prevent 
trouble. 

The risks attending this line of business are much greater than in 
handling cash property, and it behooves all careful, prudent men that 
they look to it closely, that all option trading be initiated and closed upon 
the safest conservative business basis. 

In all cases, without exception, require your margins absolutely in 
hand before opening a trade. In filling orders for parties residing out 
of the city, require of them at the time when they forward an order to 
buy or se'l, to deposit, with a responsible bank, the required margin sub- 
ject to your order; and instruct the cashier thereof to notify you of the 
receipt of such deposit by telegraph, and in no case open a trade until 
such notification be received. If parties order a trade made and say 
they will remit by mail, be sure that the parties are men of their word 
and will do as they agree. Do not be so anxious to do business as to 
accept margins that are too small. The folly of attempting to operate 
on attenuated or too meagre margins is too obvious to be discussed. The 
majority of the failures that occur on the Board of Trade can be mainly 
traced to the fact that too much trading has been done on too small 
margins. Make it your duty for your own protection, as well as for the 
protection of your reliable customers, to discourage "over-trading" by 
always requiring full and ample margins from all, 

EXPENSES. 

Expenses attending the buying and shipping of grain. Storage, 
which must be paid by the shipper upon all kinds of grain, when drawn 
from store between the 15th of April and 15th of November is l^c per 
bushel, and during the balance of the year say from the 15th of Novem- 
ber to the 15th of April 4c per bushel. Upon all grain shipped by 
lake, the charges, other than for storage as above, are fire insurance 
(during the time of loading), say 2 days at lOc per $100; marine insu- 
rance varying according to time of year, from per cent, to 3 per cent. 
Inspection aboard say 25c per 1,000 bushels, and commissions and upon 
all grain shipped by railroad from store, the charges, other than for 



BOARD OF TRADE. 41 

storage, are, for fire insurance same as upon lake shipments; for switch- 
ing cars to elevator $2 per car; for trimming cars $1 per car; for inspec- 
tion aboard 25c per car, and for commissions. On all grain brought "by 
sample" "free on board" there are ordinarily no charges save com- 
missions. 

Cost of buying and cariying grain in store. Charges accruing upon 
grain in store are: For storage ^ cent per. bushel for each 10 days or part 
thereof; fire insurance at an average for the different elevators, say 2 
to 3 per cent, per annum, interest at 10 per annum, and commissions- 
This during the term of summer storage, say from the 15th April to the 
I5th November; and from the last named date, storage accumulates as 
above stated, up to 4c per bushel, when no more accrues until the 15th 
of April, when summer storage again obtains. Other charges for carry- 
ing are the same at all times during the year. 



U. S. DISTRICT COURT, W. D. WISCONSIN. 

CHARLES EDWARD CLARK Assignee of C. B. STEVENS et al. v. SYLVESTER D. 

Foss et al. 

BOARD or TRADE CONTRACTS CONTRACT TO DELIVER AT A FUTURE 
DAY OPTION CONTRACTS. 

BUNN, J. This is a suit in equity begun by the assignee of C. B. 
Stevens & Sons, bankrupts, to set aside and cancel six certain promissory 
notes for the sum of $1,231. 10 each, aggregating $7,386. 60, and a mortgage 
upon real estate at De Soto, in Vernon county, Wis., to secure the same, 
executed by C. B. Stevens & Sons, to the defendants, Dec. 1, 1874, on the 
ground that the same are void as being given to secure a consideration 
arising out of certain option contracts for the sale and delivery of grain, 
which it is claimed were wagering contracts, under the laws of Illinois in 
force at that time. 

The bankrupts were, and for many years prior to the fall of 1874, 
when these transactions occurred, had been merchants and dealers in 
grain and produce upon the Mississippi river at DeSoto, Wis., and as such 



42 LAWS OF TRADE. 

had for several years purchased and shipped wheat and other grain to the 
defendants, who were commission merchants at Chicago, and members of 
the Board of Trade, for twenty years or more, doing business under the 
firm name of S. D. Foss & Co., and had, also, from time to time, specu- 
, lated in grain in the Milwaukee market, and also in the Chicago market, 
through the defendants, acting as their factors and commission merchants 
at that place. They were then in good financial circumstances, though with 
small capital; had a running account, and were in good credit and stand- 
ing with S. D. Foss & Co. In October, 1874, the bankrupts ordered de- 
fendants at different times, by telegraph, to make sales of grain for them 
upon the Chicago market for November delivery, amounting in the ag- 
gregate to 70,000 bushels of corn, and 5,000 or 10,000 bushels of wheat. 
The defendants, upon receiving these orders, went upon the market in 
Chicago and executed them by making, as was the custom, contracts gen- 
erally in writing, and in their own name, with different parties for the 
sale of the grain for November delivery, in lots of 0,000, or multiples of 
5,000 bushels; and immediately and fronl time to time notified bankrupts 
by telegram and by letter of what they had done, and their acts were 
fully ratified and approved by the bankrupts. No ;t margins 1 ' were re- 
quired to be put up by C. B. Stevens & Co., as they had an account with 
defendants, and were accounted by them responsible. 

At about the time or a little before these contracts matured, as they 
did on the last day of November, the defendants performed a part of them 
on the behalf of C. B. Stevens & Sons, by a purchase arid actual de- 
livery of the grain to the parties to whom the sales were made. The 
evidence shows that as to 20,000 bushels of ccrn theie was an actual de- 
livery of the grain, and as to 10,000 more a delivery of warehouse re- 
ceipts for that amount. As to the balance of the grain contracted to be 
sold, the defendants went upon the market and purchased it of different 
parties and had it ready for delivery; and then finding other parties who 
had similar deals for November purchases and sales, formed rings or tern- 
porary clearing houses through which by means of a system of mutual offsets 
and cancellations that had grown upon the board, the contracts were settled 
by an adjustment of differences, saving an actual delivery and change of 
possession. It so happened that there was a considerable rise in the 
market price of corn during the month of November; and it was found 
that after these transactions were closed out there had been a loss to C. B. 
Stevens & Sons, of something over $ 10,000, and which the defendants 
having paid in cash for them on the purchase of the grain debited to 



BOARD OF TRADE. 43 

their account according to the previous course of dealing between the 
parties. 

The notes and mortgage in suit were soon afterward given by the 
bankrupts to secure a portion of these sums so advanced by the defend- 
ants for them, including also about $375 charged by S. D. Foss & Co. as 
their commissions. Unsecured notes were also given for $3,000 balance 
of the $10,386.60 indebtedness, which were afterwards paid by C. B. 
Stevens & Sons. 

Two years afterwards, on Nov. 19, 1876, C. B. Stevens & Sons, filed 
their petition in bankruptcy in this court, and were on the same day ad- 
judged bankrupts. The assignee in bankruptcy brings this suit to set 
aside the notes and mortgage, and in substance claims that C. B. Stevens 
& Sons at the time the orders for the sale of grain were made and execu- 
ted in October, 1874, had no corn to sell and no expectation of having 
any with which to fill these contracts. That these facts were known to 
both parties that is, to the bankrupts, and to the defendants S. D. Foss 
& Co., and that it was understood by and between them at the time that 
no grain was in fact to be delivered by C. B. Stevens & Sons, but that the 
contracts were to be settled by the payment or receipts of differences, 
according as the market should rise or fall in the month of November, and 
that they were thus mere wagers upon the November market, and as 
such, contrary to law and void, and that the notes and mortgage con- 
fessedly given to secure cash advances made by defendants as the factors 
of the bankrupts, and with their approval, to pay the losses sustained 
upon these sales should be canceled and delivered up. 

The question is whether this should be done. 

This question is, of course, a mixed question of fact and law. But 
I regard it as more a question of fact than of law; and I cannot help 
thinking, in looking through the cases on the subject that more confusion 
and discrepancy have crept into them from a failure to determine pre- 
cisely the facts than frcm any essential difference of opinion upon the 
abstract propositions of law, applicable to them. This seems to me no- 
tably, the case in Rumsey vs. Berry, 65 Maine, 570, where in the trial 
court, instead of submitting the question of fact as to what the contract 
really was, it not being in writing, to the jury, instructions were asked 
that as a matter of law the contract was a wagering contract. This in- 
struction was properly refused, but there was a total failure to fairly sub- 
mit the question of fact to the jury. It is not to be wondered at that on 
an appeal to the Supreme Court, the facts not being fairly determined, the 



44 LAWS OF TRADE. 

opinion sustaining the transactions as legal, should have been given by 
a divided court, four judges concurring in the decision of the court, one 
judge delivering a dissenting opinion, one judge concurring in a dissent- 
senting opinion, and still another judge ''inclined to concur" in it. If 
there had been an eighth judge it might not be improbable that he would 
have been "inclined to concur" in both opinions. And all this simply 
because the facts themselves not having been determined, there was no 
tangible, well denned question of law before the court. 

The testimony in the case at bar is quite exhaustive and voluminous. 
It is confined, however, to a few points, and though somewhat conflicting, 
I have had no great difficulty in determining the facts to my satisfaction. 
It is proven that at the time these contracts were made, C. B. Stevens & 
Sons had not the grain on hand at DeSoto where they purchased grain, or 
elsewhere, nor any expectation of having it, with which to fill the con- 
tracts. 

Chas. B. Stevens, the active member of the bankrupt firm, testifies 
that at the time he telegraphed to defendants to purchase the corn, they 
had not a bushel on hand, and did not expect to have any to deliver on 
the orders; that they were not dealing in corn at DeSoto or anywhere 
else, and never did, except " scalping" in it at Chicago; that they had no 
agreement with defendants to ship corn to fill the orders, and that the 
understanding was that they were merely " scalping" or option deals, and 
were to be settled by paying or receiving the difference at the maturity 
of the contract or before; that they never did deliver any corn on these 
sales; that defendants claimed that they bought in the options at differ- 
ent times and charged the difference to C. B. Stevens & Sons. 

He says also, that he had no conversation with defendants until after 
the transactions were closed up; that he then had a talk with both of them 
in relation to these deals; that it was on the Board of Trade at Chicago 
that he asked M. H. Foss how they settled these options or " scalps," and 
if there was any wheat or corn delivered, and he said no; that it was 
done generally by forming rings among members of the Board by clerks 
that they employed; that these clerks settled the deals between parties 
in the ring whom they may have sold to or bought of, and by paying or 
receiving differences as the case might be; that he thinks he asked him 
about the delivery of grain, and he said no grain ever passed. Witness 
says this was the kind of transaction he was operating in, as he under-, 
stood it, and that no grain was to be delivered or received on these con- 
tracts, and that he understood them to be mere wagers on the future 



BOARD OF TRADE. 45 

price of grain, and that defendants regarded them in the same light. 
That they continued this kind of deal with defendants until the fall of 
1876. 

On cross examination he says he commenced sending orders to de- 
fendants before he had any conversation with them; that it was a month 
after these transactions that he had the talk with them in Chicago; that 
defendants were their agents and commission merchants in Chicago; that he 
understood that Foss & Co. were liable for the damages for the non-ful- 
fillment of the contracts they made for C. B. Stevens & Sons, and that 
they expected to make good to them the losses which they might incur in 
their behalf; and that if defendants failed to comply with the contracts 
they made for the bankrupts they would be deprived of their privileges 
on the Board of Trade; that Foss and he never talked about their agree- 
ment with one another in respect to these transactions, and that this con- 
versation only related to the general course of business on the Board of 
Trade; that he (witness) understands that all contracts, where wheat is 
sold and not actually delivered, are wagering or betting contracts; and 
that all option contracts are betting contracts. The other Stevenses 
testify substantially in the same way as to their understanding of the 
transaction, but not as to the conversation with defendants in Chicago. 
And this is the substance of the testimony for the complainant. The de- 
fendants positively deny the conversation testified to by C. B. Stevens. 
They swear, in substance, that they had no understanding about these 
contracts different from what might be inferred from what appears on the 
face of the transaction itself; that they were executed in their usual 
course of business in the same manner that all the business on the Board 
of Trade relating to option contracts for future delivery of grain is tran- 
sacted; that instead of understanding that no wheat or corn was to be de- 
livered, their understanding was just the contrary; that the grain must be 
delivered according to the terms of the contract in all cases; that there 
was no option in the matter except as to the day in November on which 
the delivery was to be made; that if not delivered before, it must at all 
events be delivered on the last day of the month; they did not know 
whether Stevens & Sons had the grain to ship from DeSoto, and did not 
stop to inquire, but supposed they might have it ; that if they did not 
ship it, they (Fosss & Co.) were bound to deliver the grain for them; that 
the contracts, according to universal custom on the Board of Trade, were 
made in the name of S. D. Foss & Co.; the name of their customer not 
being disclosed to the other party or ever inquired after. They testify 



46 LAWS OF TRADE. 

that they have never dealt in what are called " puts" and " calls," such 
as are described in re Chandler, 9 N. B. R., 514, and that such contracts, 
which give the opinion to deliver or receive; Oi not, are prohibited by 
the rules of the Board of Trade as well as by the laws of Illinois; that 
they made these contracts with various members of the Board of Trade, 
for and on behalf of the bankrupts at their request, and on their behalf, 
and for their benefit, in entire good faith, without any understanding 
that they were not to be performed, and that Stevens & Sons not ship- 
ping the grain they performed their contracts by going upon the market 
and purchasing the wheat and corn ; that as to 30,000 bushels of corn 
they made a delivery, and as to the balance they closed out the deal in 
the manner before indicated by mutual offset and adjustment 
of differences; that this adjustment of differences is a mere 
matter of convenience to the members of the Board, and to their 
customers; that no person is under the least obligation to settle 
in that way, and that dealers may and often do insist upon an actual de- 
livery of the grain, and that settlement frequently saves to their custo- 
mers the cost of insurance and storage. That the object of forming these 
rings or clearing houses is to close out the transactions and get them off 
their books; and this is what they call "ringing it out." But that it fre- 
quently cannot be done in that way; as if, for any reason, one whose as- 
sistance is essential to complete the circle prefers an actual delivery in 
which case the ring is " burst;" and then each must perform his contract 
by actual delivery of the grain. Their testimony is full and fair and in- 
telligent, upon the questions at issue, and they are corroborated by sev- 
eral other witnesses, ex-presidents, ex-directors, ex-commissioners of ap- 
peals, and present members of the Board of Trade and some of the per- 
sons with whom these contracts were made. The testimony is conclusive 
that this business was done much in the same manner that all the other 
business on the Board of Trade is done respecting contracts for the fu- 
ture delivery of grain. They all agree that there is no option except the 
option to deliver on any day of the month; and that the seller is bound, 
not only by the contract but by the rules of the board, to which it is made 
subject, to perform his contract by an actual delivery, unless excused from 
the performance by the act of the other party; and for a violation of this 
rule he is subject to the discipline of the board, and to be dismissed 
therefrom if he insists upon the violation of his contract. 

Now, which party is best corroborated in their misunderstanding of 
the contract by the admitted facts of the case? 



BOARD OF TRADE. 47 

It is clear to me by all odds that the defendants are best corrobo- 
rated. 

It is very easy for either party to swear to what his own understand- 
ing of the contract was, but that standing alone is manifestly immaterial. 
The secret intentions of one party contrary to what appears on the face 
of the contract, and not communicated to the other party, cannot prevail 
to make a contract illegal which is otherwise valid. The real question is, 
what was the contract? and that implies an inquiry as to the mutual under- 
standing and meeting of the minds of the parties. What was that? It 
is easy for a party to swear what his own understanding and intentions 
were, but when he comes to swear to the intentions and understanding of 
the other party, the consideration due to his testimony stands on an en- 
tirely different footing. He may be presumed to know his own inten- 
tions, but the evidence of the intentions of the other party should not 
be of a merely subjective character, but should consist of tangible facts 
and circumstances outside of his own consciousness, and a knowledge of 
which would be capable of satisfying other minds. 

The conversation with the defendants testified to by Stevens, besides 
being denied by them, if proven, is not very strong evidence, for Stevens 
admits that this was a month after these transactions occurred, and was a 
general conversation relating to the general manner of doing business 
upon the board, and not to the transactions in question. But aside from 
the testimony as to this conversation what is there in the case to show 
that S. D. Foss & Co. had any intention in regard to these contracts dif- 
ferent from what is fairly evidenced by the contracts and transactions 
themselves as they appear upon their face? The telegrams were orders 
in writing, and gave positive directions to sell grain; not to sell a priv- 
ilege to deliver or not. The evidence shows at the time they were made 
there had been no previous communications or understandings in regard 
to these purchases. When received Foss & Co. went upon the market 
and executed the orders by making written contracts of which the follow- 
ing is a blank copy, or verbal contracts to the same effect: 

" GRAIX CONTRACT. CHICAGO, , 1874. 

i 

u We have this day sold A. B. & Co. ten thousand bushels of No. 2 
corn, in store at cents per bushel, to be delivered at sellers' op- 
tion, during the month of November, 1874, in lots of 5,000 



48 LAWS OF TRADE. 

bushels each. This contract is subject in all respects to the rules and 
regulations of the Board of Trade of the city of Chicago. 
" M at cts. 

" S. D. Foss & Co. 
"Per- 

When these contracts matured the defendants performed them by a 
delivery of the grain, except when by the mutual arrangement of the 
parties concerned the contracts were taken up and canceled, and then 
they invariably paid in cash the damages which the law would have 
obliged them to pay upon a failure to perform their agreement; that is to 
say, the difference between the contract price and the market price on 
the day when delivery should have been made. 

Now, in the absence of more convincing testimony, what the parties 
actually did is pretty good evidence of what they intended to do; and 1 
must conclude that upon the face of the transaction as shown by the acts 
and conduct of the parties, the evidence is very strong that these sales 
were bonajide sales, and not made with any intent, mutual between the 
parties, to violate the law. 

The notes and mortgage sought to be set aside (as well as the 
original contracts for the sale of the grain, both as between the bankrupts 
and S. D. FOSS& Co., and between S. D. Foss & Co. and the parties with 
whom they contracted), being in writing and perfectly fair on their face, 
and given for a full money consideration without any preiense of fraud or 
unfair dealing, the burden of making a clear case for setting them aside 
for illegality lies with the complainant. There should be in his favor a 
clear preponderance in the weight of the evidence: Pixley vs. Boynton, 
79 111., 351. Contracts made and so deliberately entered into upon ade- 
quate consideration, without fraud, should not be set aside for light or 
transient reasons, or mere suspicion of being contrary to law. But in- 
stead of there being a preponderance of proofs in favor of the com- 
plainant, I am obliged to believe that the weight of evidence is the other 
way, and I must find as facts: 

J. That C. B. Stevens & Sons, when they gave the orders for the 
sale of the grain, had no grain to deliver, no contracts made by which 
they expected to obtain it, and no expectation of ever having it delivered 
by shipping to the defendants. 

They did expect and intend, however, that S. D. Foss & Co. 
would make these contracts much as they did, in fact, make them, and 
that they would, at their maturity, take care of them for C. B. Stevens 



BOARD OF TRADE. 49 

& Sons in about the same manner they did take care of them, by a de- 
livery of the grain or by a settlement and adjustment of the differences 
according to circumstances; and that whatever the profits were, they 
were to be credited with them, and if there were losses, such losses were 
to be borne by them. 

2. That the defendants did not know that C. B. Stevens & Sons had 
not the grain, but had no reason to expect that they had or would obtain 
it to ship to Chicago in sufficient amounts to fill the orders, but intended 
that if C. B. S. & Sons did not ship the grain, they (defendants) would 
perform their contracts with the parties with whom they were severally 
made in C. B. Stevens & Sons behalf, in good faith, by a delivery of the 
grain, unless delivery was dispensed with by the parties who had a right 
to insist upon a fulfillment of the contract, and that there was no mutual 
understanding that the contracts were mere wagers on the price of grain 
for the November market, or that there was to be, in fact, no delivery, 
but only an adjustment of differences. 

3. The understanding of the other parties to these contracts, to 
whom sales were made, as to their being performed, was the same as that 
of the defendants. 

Having determined the facts, the law applicable to the case is not 
difficult. 

1. The contracts sought to be set aside are written contracts, and the 
mortgage is under seal. Nevertheless, the weight of authority, and I 
think that of doctrine, is, that you shall go behind the writing and show 
what the real intent and meaning of the parties were; and if it appears 
that the writing does not express the real intent of the parties, but is 
merely colorable, and used as a cloak to cover a gambling transaction, 
the court will not lend its aid to enforce the contract, however fair on its 
face; or if securities are given, as in this case, will interfere on grounds 
of public policy and for the public good rather than for the purpose of 
relieving a party who is himself particeps criminis in an inhibited trans- 
action, to set aside such securities In re John Green, 65 U. B. R., 198, 
and the cases there cited. 

2. A contract for the future delivery of personal property, which the 
seller has not got when the contract is made, nor amr means of getting 
it, is not void for illegality. 

That was held in Porter vs. Viets, 1 Bissell, 177, and is the settled 
law. See Logan us. Musick and Brown, 81 111., 415; Hibblewhite vs. 
McMorine, 5 Meeson and Welsby, 462. 



50 LAWS OF TRADE. 

The seller is bound by the contract to deliver the goods, and if he 
fails must pay damages. 

Such contracts, though entered into for pure purposes o f speculation, 
however censurable when made by those engaged in ordinary mercantile 
pursuits, and who have creditors dependent for the pay of their just 
claims upon their prudent management in business, are nevertheless not 
prohibited by law. 

As said in Porter vs. Viets, supra, " People might differ about the 
propriety of making such a contract by one" who did not know certainly 
where he was to acquire the property, but having made it, the courts will 
compel him to abide by it." That case was on demurrer, and was in 
many essential respects similar to the one at' bar. 

The substance of the contract itself is what must control. The 
secret intention of one of the parties uncommunicated to the other party, 
not to fulfill his contract, is not enough to make the transaction illegal. 
The intent that it should be a mere betting upon the market, without any 
expectation of actual performance, must be mutual and constitute an in- 
tegral part of the real contract, in order to vitiate it. 

Furthermore, supposing it had been the mutual intention of S. D. 
Foss & Co. and the bankrupts that these contracts were not to be per- 
formed, I do not see that that would make them illegal, so long as the 
other parties to the contract did not participate in that illegal intention. 
S. D. Foss & Co. and C. B. Stevens & Sons did not constitute the parties 
to the contract. There was no contract for the sale and delivery of grain 
made between them. As between them the relation existed of principal 
and agent. S. D. Foss & Co. made the contract in their own name, but 
for and in behalf of C. B. Stevens & Sons, and S. D. Foss & Co. and 
and C. B. Stevens & Sons constitute but one party to the contract, 
whether it be considered as a contract between S. D. Foss & Co. and the 
parties in Chicago with whom they dealt, or as a contract between C. B. 
Stevens & Sons and those same parties; and there is no evidence what- 
ever to show that those other parties iiad any notice or knowledge of this 
gambling intent. On the contrary, they knew that Foss & Co., as the 
evidence shows, and some of these same parties testify, were men cf high 
standing and responsibility on the Board of Trade, and would perform 
their agreements; Leehman Bros. vs. Strassberger, 2 Woods C. C. R., 5e54, 
and Wolcott vs. Heath, 78 111., 433, are directly in point. 

4. If the original contracts for the sale of grain were liable to the 
taint of illegality, as charged, it does not necessarily follow that the notes 



BOARD OF TRADE. 51 

and mortgage executed by one of the principals in the transaction to se- 
cure the payment of moneys previously advanced by their agent to pay 
losses springing out of, and resulting from, those original transactions, 
are contaminated with the same vice. 

This question is fairly presented by this record, though the decision 
of the point is not necessary to the case, and I do not care to decide it. 
I shall, therefore, content myself with referring to some few high author- 
ties, which hold such a contract valid. The leading English case, de- 
cided by Lord Mansfield, is Falkney vs. Renous, 4 Burr, 2,069. Follow- 
ing this are Petrie vs. Han way, 3 Term. R a p,, 418; Farmer vs. Russell, 1 
Bos. & Pull., 296. 

The first case cited is a strong case, and though seemingly question- 
ed by Lord Kenyon in Petrie vs. Hanway, supra, has never been over- 
ruled, I believe, in England. Marshall, C. J., cites it approvingly in 
Armstrong vs. Toler, 11 Wheat, 258. See, also, Owen vs. Davis, 1 Baily, 
s. c., 315, and the recent case before cited of Lehman vs. Strassberger, 2 
Woods, C. C. R., 554, which is very much in point, I think. This, I be- 
lieve, is undoubtedly the result of the English cases. How far the rule 
has been changed by statute, or by decisions in the several states, I do 
not care to inquire. 

5. Whatever might be the judgment of discreet men as to the pro- 
priety of such purely speculative transactions as are disclosed by this re- 
cord, undertaken by men in mercantile pursuits, I am unable to see, on 
general principles, any objection to them in point of law. The law does 
not undertake to prevent speculation. It does not undertake the Quix- 
otic task of nicely governing men in all the relations of life, and compell- 
ing them to do, under all circumstances, what is prudent and reasonable. 
The truth is, men are speculating creatures as certainly as they are eat- 
ing and sleeping ones. And, although it is undoubtedly true that much 
harm comes to the community from over speculation, it is more than 
doubtful if the world would be better off without speculators; or, if it 
would be, that the law can do much in the way of abolishing them. 

As a common thing, business men are prone to regard their own 
judgment of the market as a part of their capital, and to a certain extent 
they have a right so to do. 

It is only with the more manifest abuses of the privileges of citizens 
in their dealings with one another, and when the evil touches and infects 
the public welfare, that the law assumes to interfere. In the main, com- 
mercial transactions must be left to be regulated by the higher and more 



U. OF iU- Lift 



52 LAWS OF TRADE. 

inexorable laws which govern the trading world. , If the transactions dis- 
closed by this case are illegal, then undoubtedly a great part of the 
banking and clearing house transactions in our great commercial centers 
- are illegal also. 

I am persuaded that to hold them so would be trenching too severe- 
ly upon the business of the commercial world, without any correspond- 
ing benefit to be expected from it. 

It might be a difficult task to lay down any single rule or draw a 
straight line which should define or divide all merely speculative from 
all pure gambling transactions, for it must be admitted that the same 
prime element of risk is common to both. But it has seemed to me that 
according to any reasonable rule which it would be practicable to en- 
force, these transactions must fall in the side of legal speculations. They 
were carried on in good faith, and in the usual and ordinary course of 
business upon the Board of Trade, which it seems undertakes to exercise 
a salutary control over its members, it appearing in evidence that if any 
member fails or refuses to perform his contract by delivery or receiving 
grain which he has agreed to deliver or receive, he is subject to the dis- 
cipline of that body; and if the offending member is still refractory or 
contumacious, he is suspended or finally dismissed from the Board, thus 
adding to the penalties which the law attaches to a violation of contracts, 
the sanction of a wholesome family discipline. The witnesses agree that 
what are called "puts" and "calls" are not allowed to members of the 
Board, and that "scalpers" cannot live in that atmosphere, they bearing 
the same relation to that fraternity of commercial gentlemen that shys- 
ters do to full-bred lawyers. If that be so, certainly they are far enough 
Asunder. 

Then again, if we look at the equities of this case, aside from the 
-special head of equity, under which the court, in the interest of the pub- 
lic good, will interfere to set aside and cancel securities given upon a 
gaming consideration, the general equities and intrinsic justice of the 
case are largely with the defendants. The whole business was originat- 
ed and carried on at the instance and tor the benefit of the bankrupts. 
Whatever of legal turptitude attaches to these transactions, it is evident 
-that C. B. Stevens & Sons were not merely particeps criminis, but the 
principal offenders. When profits ensued, as they frequently did, they 
put them down in their own pockets. On one occasion it is in evidence 
that they represented to defendants that they had made quite large 
-amounts, something like $10,000 out of these deals. Why, then, if it 



BOARD OF TRADE. 53- 

was their deal, and they enjoyed the profits when there were profits r 
should they not bear the loses when the market turned against them, and 
these fell to their lot, and not shuffle them off upon their agents who, it 
is not denied, had acted fairly and honorably with them? 

Foss & Co. had no interest in these transactions, except their com- 
missions, and instead of leading the bankrupts on in this business, the- 
evidence of the bankrupts is that they discouraged them on every oc- 
casion, Their letters, introduced in evidence by the complainant, show 
that S. D. Foss & Co., from time to time, dissuaded the bankrupts from, 
these speculating deals told them they were taking too much risk, both 
in respect to wheat and corn ; that there was a small stock of old corn in 
the market, that the new crop had not yet been moved, that there was- 
danger of a "corner" being run, and sending prices up, and on one oc- 
casion protested that if they insisted upon taking such risks they must 
employ other commission men. These letters were relied upon to show 
that these defendants understood these deals to be gambling transac- 
tions; but to my mind they simply show a proper appreciation, on the 
part of the defendants, of the risks which men, in the circumstances and. 
business of the bankrupts, were taking on themselves, and a due consid- 
eration for the interests of their principals in that behalf. But C. B- 
Stevens & Sons, relying confidently on their own judgment and sources- 
of knowledge, as men are inclined to do, continued the business until 
the tide turned against them. Under these circumstances, one would 
say that the commonest kind of honesty that passes current among men- 
should require C. B. Stevens & Sons to pay these losses, and not shift 
them off upon their factors. Of course the assignee stands, as far aa 
legal right goes, in no better case than the bankrupts; and it is due to- 
the bankrupts to say that, as far as they are personally concerned, they 
have never objected to the payment of these claims, though they are 
now the main witnesses for the claimant, and in their testimony say thejr 
want him to succeed. The assignee, of course, in the interest of the 
creditors, has only done his duty in bringing these matters before the- 
court for adjudication. 

I have not undertaken to review the decisions upon this subject. I 
have not thought it essential. Those of the highest tribunal in Illinois,, 
though not perhaps entirely reconcilable, I think are so in the main, andi 
go to support the transaction disclosed by the case at bar. Whatever 
the discrepancy there is, as I have before remarked, arises more from th<v 
facts than from the law. The most that can be said is, that differi'nt 



54 LAWS OF TRADE. 

courts have come to different conclusions upon different state of facts. 
This cannot be wondered at, and is unavoidable. How far thd judg- 
ment of the court, in a given case upon the facts, may be influenced by 
its opinion of the law and the essential justice of the case, cannot al- 
ways be known. I confess I have a strong predilection in favor of hold- 
ing men of full age and right mind to their contracts deliberately enter- 
ed into upon full and adequate money considerations, without deceit or 
imposition, and when the consequences of their contracts, however ill- 
advised, are mainly personal to themselves. 

I think the case cited of Wolcott vs. Heath, 78 111., 433, Pixley vs. 
Boynton, 79 111., 351, and Logan vs. Musick, 81 111., 426, express the law 
of that state on the subject, and are authorities in the case at bar. 

The case of Lyon vs. Culbertson, reported in 9 Chicago Legal News 
185, Feb. 24, 1874, and Vol. 5, No. 19, p. 401 of the Central Law Jour- 
nal, in which Justice Dickey delivers a vigorous dissenting opinion, I am 
told, was decided before the cases in the 79th and 81st 111. Reports. 
However that may be, and whether fhe decision be good law or not, I do 
not see that it is necessarily at variance with the other cases, nor that it 
attempts to overrule or qualify them in the least. 

That seemed to turn on a question that is not presented in this case. 

There is no failure to perform, or offer to perform, on the part of S. 
I). Foss & Co. on any of the contracts which they made; nor anything in 
the contracts dispensing with an offer to perform. 

Again, it must be incontestible, that if the contracts were valid in 
their inception, and not tainted with any gambling intent or device, a 
subsequent mutual settlement by the parties, which took the place of 
actual performance, cannot have the retroactive effect of making them 
void for illegality. If the contracts were void at all, they must have 
been void when made. The subsequent conduct of the part'es may, and 
should, be considered as evidence tending to show what the real con- 
tracts were when entered into; but if they were originally valid, no sub- 
sequent act of the parties can have the effect to render them obnoxious 
to the taint of illegality as being gambling contracts. 

I have not overlooked the case of In re Green, supra, decided by 
my learned and lamented predecessor; 15 B. R., 198. 

I have not had occasion to review the evidence from which the con- 
clusions of fact in that case were drawn, and it is enough to say that 
upon the findings of the fact made, the law is undoubtedly correctly 
stated. Bill dismissed. 



BOARD OF TRADE. 55 



THE "ANTI-CORNER RULE." 

The attempt to repeal the so-called "Anti-Corner" rule of the Chica- 
go Board of Trade has elicited diverse opinions from interested parties 
as to the merits or demerits of said rule, demonstrating the truth of the 
aphorism, "many men of many minds." Still, despite conflicting opin- 
ions and arguments upon the subject, it must be conceded that the 
weight of argument is most decidedly in favor of some rule that -will ef- 
fectually prevent corners as they frequently occurred in former years, 
and as they are certain to occur under a system which allows the pur- 
chaser of property to fix his own measure of damages in case of default. 

The object and intent of the rule in question was to discountenance 
the formation of "Corners" on unwarrantably manipulated and fictitious 
markets, by protecting as far as might be, those who were caught short or 
who for any reason were unable to specifically fulfill their contracts. 

This rule has worked satisfactorily in the main for some three years; 
it gives every operator a fair show in the field, and insures to all, a realiza- 
tion of all legitimate profits in their deals. There is some limit to exac- 
tions and the extortionate crowd are kept within reasonable bounds. As 
a matter of course, it is impracticable to frame rules requiring infinitely 
varied application which will not occasionally work hardship; but it is 
probable if the rule under consideration were abolished, there would be 
twenty sufferers where there is now one. 

The principal objection to the rule as it stands is not in any hard- 
ship that has ever occurred by its application, but in the persistent mis- 
interpretation of its provisions. In many instances outside parties have 
been induced to sell short, on the assurance from their commission mer- 
chants that under this rule they could default on their contracts with im- 
punity, and that the measure of damages, if any, would be determined 
on the basis of the value of the property for shipment to Eastern mar- 
kets; whereas the rule provides that as only one of the elements in de- 
termining its value, and no such simple question in arithmetic has ever 
been applied as a finality in the decision of any case under the rule. 
The local demand occasioned by rules made in excess of the supply at 
the maturity of contracts will probably be always more or less considered 
in determining the real current value of property. Such prices may be 
entirely legitimate, and not in any sense the result of combination or 



56 LAWS OF TRADE. 

partaking in any degree of extortionthey are not fictitious in any 
sense and are not under the provisions of the rule to be disregarded. 
Purely fictitious prices are and ought to be repudiated, and such un- 
doubtedly are those paid for or bid by a party or combination merely for 
the purpose of establishing values on a basis that will enable them to ex- 
tort money damages from those unable to specifically fulfill their en- 
gagements. 

That a great majority of the legitimate receivers and dealers are op- 
posed to a return to the former rule in this respect is unquestionable, 
and actually believe it would encourage dishonesty and give rise to un- 
certainty; that there would be no stability in prices, and all concerned, 
whether merchants, producers or shippers, would be at the mercy of un- 
principled and irresponsible sharpers, who would bring the Board of 
Trade and the city into disrepute and disgrace. Honor would be at a 
ruinous discount, and integrity would be as a foot-ball kicked hither and 
yon by every shyster. 

The inevitable effect of corners is demoralizing to individuals and 
damaging to the interests of legitimate trade, and is forbidden by the 
laws of England so far back that the memory of man runneth not to the 
contrary. The July corner, as statistics plainly show, caused an im- 
mense falling off. of both domestic and foreign shipments of grain, and 
the practical embargo was seriou&ly felt by a score of interests. More- 
over, such a condition of things has a decided tendency to permanently 
injure our foreign grain trade by turning orders into other channels. 

Some parties argue that the Anti-Corner rule serves to depress the 
market and give the advantage to other points, but this will always work 
in consonance with the law of average, and what is apparently lost at 
one time will be gained at another. It is still further contended that in 
selling short on futures the "scalpers" should suffer. So they surely will 
in the long run. Did not the shorts get squeezed sufficiently in July of 
the present year in Chicago? We should say that ten to fifteen cents 
per bushel premium was ample penalty for the "crime." 

Look at Milwaukee without a corner rule, where wheat was run up, say 
about twenty-five cents above value for Eastern shipment at the close of 
the month in question. Such would have been impossible had a similar 
rule been in operation at that point; and that the market was forced up 
to a fictitious figure is manifest from the tremendous tumble that ensued 
when the July deal had closed. And was Milwaukee benefited in the 
least by the disreputable business? It must have been superb fun for the 



BOARD OF TRADE. 57 

mourners to see one lucky fellow take the whole pot and then hear the 
shout like "a rebel brigade or a million Sioux," as the report puts it, 
"McGeogh has won! McGeogh has won!" "Hurrah for Mac!" "Milwau- 
kee's credit is sustained!" 

Elegant past-time, this, for the victims of the Milwaukee July deal! 
The hero of the hour had "strictly complied with the rules of the Cham- 
ber," and the shorts must toe the mark, even if it took the bread from 
their children's mouths, and then have tha glorious satisfaction and con- 
eolation of knowing that "Milwaukee's credit is sustained!" 

The credit of Milwaukee, forsoothi Her credit and that of the 
Chamber of Commerce in this regard is the credit which professional 
gamblers may justly claim, for there is a dubious sort of "honor among 
thieves." 

Their appears to be ecery good reason why the Anti-Corner rule 
should be sustained and abided by. The interests of the legitimate trade 
and fair dealing demand it, while, on the contrary, ' as experience has 
conclusively demonstrated, all corner transactions are incalculably detri- 
mental to the moral and commercial welfare of the community. 

In substantiation of the foregoing arguments against corners there 
is voluminous testimony. A few significent illustrations may be aptly 
cited herewith. 

There was the memorable corner in oats of June, 1872, which prov- 
ed most disastrous in every way, to every public interest. For some 
time it laid an embargo upon trade, and so clogged the wheels of busi- 
ness and choked the avenues and arteries of commerce, that the move- 
ment of all kinds of produce, of property transported by rail or water, 
was checked and at last, for a time, actually stepped. 

On this point there is overwhelming proof, and we make a few brief 
extracts from the depositions of members of the Board of Trade, in the 
matter of Chandler, Pomeroy & Co., bankrupts, heard before Judge 
Blodgett in the U. S. District Court for the Northern District of Illinois, 
setting forth the "ways that are dark" in such transactions. 

Charles Randolph, Secretary of the Board of Trade, testified that 
"the idea of a corner is to buy more property and contract for more pro- 
perty than there is available for delivery. The party must have con- 
tracts for more than there is here or can be here during the life of the 
contract. Corners disorganize trade, and are very apt to disorganize the 
party who is running them." 

Quite as emphatic is the testimony of Murraj Nelson, who said: "1 



58 LAWS OF TRADE. 

should say corners were injurious, inasmuch as they derange trade and 
commerce, force it out of its natural course, and tend to create a, ficti- 
tious state of things. An undue and unusual supply is forced upon the 
market without a corresponding demand within a limited space of time, 
which clogs and interferes with trade in a natural way for a considerable 
time afterward. Then they are very likely almost sure to result in 
disaster, to one side inevitably, and very likely to both, as it is decidedly 
and entirely a gambling operation." 

H. C. Ranney testified: "The effect of a corner in grain is disas- 
trous. It unsettles prices, and destroys confidence in general trading in 
grain in Chicago. The effect is disastrous on general legitimate traders 
always is, and always must be. The corner crippled great masses oj 
our commission merchants very badly" 

The late Wtn. F. Coolbaugh testified: "My observation and exper- 
ience of the effects of all the combinations that have been made since I 
have been in business, as a banker, to corner any description of grain, 
has satisfied me that they are very injurious to trade, and in all respects 
demoralizing to the commercial public." He further said: "I have seen 
the effect of such operations illustrated by a decline of forty cents a 
bushel in wheat in twenty-four hours; ten or fifteen on oats. That illus- 
trates it better than anything else." 

Charles E. Culver, then President of the Board, testified: "The re- 
sult of grain corners is usually disastrous to the parties interested those 
directly interested, either as buyers or sellers." 

Robert Harris, Superintendent of the C. B. & Q. R. R., testified: 
"The idea in a corner seems to be that there is no exchange of commodi- 
ties; in other words, it is a modern species of gambling. The great ob- 
jection to it is in that part of it which is essentially gambling, by which 
an individual gets an advantage without having rendered an equivalent." 

Much other evidence of a similar tenor was submitted in connection 
with that "celebrated case," but enough has been given to fully corro- 
borate our position. 

As another forcible illustration of the pernicious effects of corners, 
our attention has been called to the tact that in the spring of 187G, a cor- 
ner (or at least an attempt to control the market) was run in No. 2 spring 
wheat in this market. The parties manipulating the market were said to 
have made much money, notwithstanding the fact that upon the culmin- 
ation of the corner, they had on hand a large quantity of wheat. Rather 
than ship this wheat, say 300,000 bushels, or sell it at value for shipment, 



BOARD OF TRADE. 59 

the parties held it until those in the trade doubted its sound condition, 
when it became almost unsalable. The entire wheat trade of Chicago 
was prostrated the price of No. 2 spring declining to 85 cents per 
bushel. Trade was diverted from this city. Exporters and Eastern 
buyers were warned as to the quality of our wheat, and Western ship- 
pers would not ship here, for the reason that the poor wheat here drag- 
ged down to its own level the price of the good. 

It was not until after such wheat was declared to be hot and out of 
condition, and non-deliverable on contracts for No. 2 spring wheat, that 
consumers and exporters dare send orders here, and country t-hippers felt 
safe to make consignments of good wheat to this market. The direct 
and indirect injury to the commercial interests of this city growing out 
of this single corner transaction is beyond computation. 

Evidence of a similar character, going to illustrate the evils and dis- 
astrous results of corners, could be multiplied indefinitely, but sufficient 
has already been presented to convince every one that it is a practice 
which should be universally discountenanced and condemned, as being 
inimical to the interests of the business community. 



A WORD OF CAUTION TO "SHORT SELLERS." 

It is an error to suppose that under the rules of the Board of Trade, 
sellers can with impunity default in delivering property which they have 
sold, or have contracted to deliver. The tenor and spirit of the rules are 
that contracts must be fulfilled by actual delivery of property, unless pre- 
vious to their maturity, they have been closed or settled. If margins are 
deposited as required a contract cannot be settled or closed before ma- 
turity, without consent of both parties to it, except by actual delivery of 
property, made in accordance with the rules. Rule xxvi, provides "in 
case any property for future delivery is not delivered at maturity of con- 
tract, the purchaser may at his option declare the contract forfeited; or 
he may purchase the property on the market for account of the seller by 
one o^clock of the next business day, notifying him at once of such pur- 



60 LAWS OF TRADE. 

chase; or he may require a settlement with the seller at the average 
market price on the day of the maturity of the contract." 

A subsequent section provides that the forgoing "shall not be con- 
strued as authorizing unjust or unreasonable claims based upon manipu- 
lated or fictitious markets. The rules further provide that in case of dis- 
putes the committee of arbitration in determining the legitimate value of 
pruperty shall consider its value in other markets, or for manufacturing 
purposes in this market, together with such other facts as, may justly en- 
ter into ths determination of its true value, irrespective of any fictitious 
price it may at the titre be selling for in this market. Provided, that in 
case of default on contracts for future delivery, if it shall not be shown 
that the seller had provided by previous purchase of the property for de- 
livery on his contract, he shall, in the judgment of the committee, be lia- 
ble to pay as penalty for such default, damage, not exceeding five (5) per 
cent, of the value of the property sold. From the rules quoted it will be 
noticed that they are designed not only to prevent "corners," but are as 
well calculated to prevent selling the market down on the last day of the 
month for the purpose of establishing a low average market as a basis for 
the settlement of contracts. Corners are not only to be avoided, but 
their converse is to be prevented as well. The plain object of the rules 
is to insure to buyers the delivery of property purchased for shipment, 
for consumption, or for other legitimate purposes, and to force the seller 
to provide for the specific fulfillment of his contract. We should men- 
tion, that since in force, said rules have been construed by the Commit- 
tee of Arbitration as much as possible in favor of the buyer and parties 
who have defaulted in their deliveries, have been made to pay damages 
to the full extent permitted by the rule. 




BOARD OF TRADE. 61 

DEALS OF THE CURBSTONE BROKERS. 

COMMONLY CALLED 

"PUTS AND CALLS." 

We have on preceding pages given a detailed explanation of the 
reprehensible business of operating by means cf "Puts and Calls." But 
as there is a crowd of outsiders whose only occupation it would appear, 
is to engage in this disreputable vocation, we desire to make further re- 
marks thereupon. Honorable, conscientious, reliable dealers and opera- 
tors are averse to this illegitimate mode of doing business. It is the 
touch of pitch that defileth. This business is managed and manipulated 
chiefly by those who have lost their moral courage and have sought refuge 
l n this demoralizing and nefarious business, where there is but a gleam of 
a chance, or a delusive hope of making a hit. Together with shysters, 
green-cloth gentry and fleecers generally. The occupation is so thoroughly 
that of a gamester that anybody possessing a "five spot" from a pimp to 
a professor may try his luck at the game. On the court adjoining, and 
under the shadow of the stately Chamber of Commerce building these 
"operators" "run the mill" a motley assemblage of broken-down mer- 
chants, sleek "fellers" of the town, collapsed clerks, desperate "borrow- 
ers," who are striving to "make it good" by a lucky deal, callow youths 
with their week's wages, anxious to invest in a "put," and a very small 
sprinkling of respectable men who look ashamed of the company they 
are in. 'Tis, indeed, not a scene for a painter, but for a whitewasher or 
a calciminer. 

There from morning till night they shout and shuffle, figure and fulmi- 
nate, wager and wriggle, do they deal in grain or produce? Not a bit 
of it. These "puts" are simply the private agreements by men of small 
means; of those who wish to speculate but are really unable to either 
buy or sell, and so use these engagements as a wagering insurance policy 
to cover what they call their "deals " The price at which the party 
issuing such tickets is either above the true price or supposed value of 
the grain, in case the privilege is to buy of him, or below that value as 
he estimates it, in case it is a privilege to sell to him, the price being de- 
pendent upon the length of the period for which it is given, or the time 



62 LAWS OF TKADE. 

\ 

of year, and, of course, upon the opinions of the party as to that value, 
and as to the chances of the rise or fall of the price of the commodity. 

The "put" will be converted into a contract ; in other words, the 
"privilege" to take or to deliver will be claimed, only in the contingency 
that the seller of the "put" is mistaken about the future price of the 
grain about which he has made this wager, and then the successful games- 
ter may assert bis "privilege;" then the contract is born, and may be ad- 
justed by the payment of differences, and this is the usual way; or, it 
may be broken, and then the differences are ascertained by a resale, and 
thus adjusted. This modus operandi was formerly in vogue on the regu- 
lar Board, but it is not now recognized or permitted, nor any transactions 
resulting from "Puts and Calls," in fact such operations are in direct vio- 
lation of the statutes of the State. To such an extent, does this custom 
go that, notwithstanding the business of the greatest of grain markets is 
conducted upon the Board, and immense quantities of the actual grain 
are there bought and sold, for consumption, for shipment, for legitimate 
speculation, by legitimate contracts, yet it is a fact that not exceeding one 
in ten, and probably not one in a hundred of the contracts there made is 
wound up by the delivery of the grain ; but so great is this speculative 
movement, that sometimes the amount of a given grain is bought and 
sold during a day, that it actually encroaches upon the amount which 
comes to the market during the season, and the actual business of a Board 
professing to deal in grain is well represented as resembling a bank 
"clearing house," in which the differences are ascertained, adjusted, and 
divided in money; in which the contracts are consumated not by the de- 
livery of the grain, but by the payment of the money, found to be the 
differences upon the wagering contracts touching grain between the sev- 
eral gamesters. 

To the credit of the Board, be it said, there are but very few mem- 
bers who deal in these "puts," which have been the means of bringing 
moral and financial ruin upon so many men who once stood high in the 
confidence and esteem of the community, but these few are by that num- 
ber too many, and they ought to be "sat down on" by the Board. . Let it 
entirely clear its skirts of the abomination, and relegate to the outside 
all such infamous business transactions. Such matters would not only 
trample upon the dignity, but sully the good name of the Board. The 
Board should therefore jealously and zealously guard its reputation. The 
whole thing is disgraceful and demoralizing. How many a poor, soul- 
racked, conscience-smitten fugitive from justice can trace the beginning 



BOARD OF TRADE. 63 

of his downfall to speculations of this character. At first they hazard 
but small amounts, and cautiously. But they soon launch out more boldly 
and become servile to the infatuation. More money must be had, and in 
an evil moment the funds of the institution or business house with which 
the doomed speculator is connected are "borrowed," but never returned. 
The inevitable denouement is, discovery, flight, disgrace and irretrievable 
ruin. One of the worst features of this disreputable business is, that 
many honest men are insidiously demoralized by it. The disposition of 
men who have been unfortunate and unsuccessful in their legitimate 
transactions, or who have met with financial reverses^ is to go into some 
speculative scheme with the object in view to retrieve their shattered 
fortunes. They have chararacteristic compunctions against "bucking the 
tiger" outright, in fact, they have no knowledge of such "tricks that are 
vain." But they have heard of fabulous wealth acquired by speculating 
in grain, and are tempted to try their luck just once in this direction. It 
may be, they think, that the fickle gcddess will favor them and give them 
a lift that will bring them right out of their embarrasment. Cajoling 
themselves with the idea that it is not downright gambling, but only a 
little harmless speculation, requiring no great judgment or experience, 
they scrape together all the money they can raise and "spank it up" for 
a "privilege." They are disappointed in the result; it doesn't "pan out" 
as they hoped. But they are in a desperate strait and are determined to 
hazard the throw just once more. Perhaps in so doing they get some- 
thing back, and now flatter themselves that their luck has turned .So 
they go on slep by step, getting in deeper and deeper, and in their reck- 
less desperation sacrificing everything they can lay their hands on, finding 
in the end that they have nothing but dead-sea fruit, which turns to ashes 
in the grasp! 

Now, if these same men had stuck to their legitimate business and 
shown true moral courage in buffeting the waves of adversity, instead of 
rushing into this ruinous speculation, they would have been far more 
likely to get a firm financial footing again than by taking their chances 
in the arena of the gamesters. This speculative mania seems to have 
seized upon thousands of people. Honorable, legitimate trading becomes 
distasteful to them. The slow and sure "old-fashioned" methods of doing 
business are too tedious and irksome. They are crazy to get rich speedily. 
They expect something for nothing, but find, alas! that they get nothing 
for something. When will men learn that, whatever their pecuniary cir- 
cumstances may be, the "good old way of accumulating means by honest, 
straightforward, persistent effort and labor is the right and only sure road 
to competence? 



RULES GOVERNING THE INSPECTION W GRAIN 

IN THE CITY OP CHICAGO. 
In force from and after August 10, 1877. 



The following are the rules adopted by the Board of Railroad and 
Warehouse Commissioners, establishing a standard of grades for the in- 
spection of grain, under the authority of the State of Illinois: 

WINTER WHEAT. 

No. 1 White Winter Wheat stall be pure White Winter Wheat, 
sound, plump, ahd well cleaned. 

No. 2 White Winter Wheat shall be pure White Winter Wheat, 
sound and reasonably clean. 

No. 1 Red Winter Wheat shall be pure Winter Wheat, red, or red 
and white mixed, sound, plump, and well cleaned. 

No. 2 Red Winter Wheat shall be pure Winter Wheat, red, or red 
and white mixed, sound, and reasonably clean. 

Amber Wheat, Nos. 1 and 2, shall include the lighter colored varie- 
ties of Red Wheat; quality and condition to be equal to the present 
standard of Nos. 1 and 2 Red Winter Wheat. 

No. 3 Winter Wheat shall include Winter Wheat not clean and plump 
enough for No. 2, and weighing not less than 54 pounds to the measured 
bushel. 

Rejected Winter Wheat shall include Winter Wheat damp, musty, 
or from any cause so badly damaged as to render it unfit for No. 3. 



BOARD OF TRADE. 65 

SPRING WHEAT. 

No. 1 Hard Spring Wheat shall be sound, plump, and well cleaned. 

No. 2 Hard Spring Wheat shall be sound, reasonably clean and of 
good milling 1 quality. 

No. 1 Spring Wheat shall be sound, plump and well cleaned. 

No. 2 Spring Wheat shall be sound, reasonably clean, and of good 
milling quality. 

No. 3 Spring Wheat shall include all inferior, shrunken or dirty 
Spring Wheat, weighing not less than 53 pounds to the measured bushel. 

Rejected Spring Wheat shall include Spring Wheat damp, musty, 
grown, badly bleached, or for any other cause which renders it unfit for 
No. 3.' 

In case of mixture of Spring and Winter Wheat, it will be called 
Spring Wheat, and graded according to the quality thereof. 

Black Sea and Flinty Pffe Wheat shall in no case be inspected 
higher than No. 2, and Rice Wheat no higher than Rejected. 

CORN. 

No. 1 Yellow Corn shall be yellow, sound, dry, plump and well 
cleaned. 

No. 1 White Corn shall be white, sound, dry, plump and well 
cleaned. 

High Mixed Corn shall be three-quarters yellow and equal to No. 2 
in condition and quality. 

No. 2 Corn shall be dry, reasonably clean, but not plump enough 
for No. 1. 

No. 2 Kiln Dried Corn shall be sound, plump and well cleaned. 
White or Yellow. All kiln dried corn not good enough for No. 2 kiln- 
dried shall be graded as Rejected kiln-dried Corn. 

New High Mixed Corn shall be three-fourths yellow, of any age, 
and shall be reasonably clean, but not sufficiently dry for "High Mixed or 
No. 2." 

New Mixed Corn may be less than three-fourths yellow, of any age, 
and shall be reasonably dry and reasonably clean, but not sufficiently dry 
for No. 2. 

Rejected All damp, dirty or otherwise badly damaged Corn shall be 
graded as Rejected. 



66 LAWS OF TRADE. 

OATS. 

No. 1 Oats shall be white, sound, clean, and reasonably free from 
other grain. 

No. 2 White Oats shall be three-quarters white and equal to No. 1 
in all other respects. 

No. 2 Oats shall be sound, reasonably clean, and reasonably free 
from other grain. 

Rejected All Oats, damp, unsound, dirty or for any other cause un- 
fit for No. 2, shall be graded as Rejected. 

RYE. 

No. I Rye shall be sound, plump and well cleaned. 

No. 2 Rye shall be sound, reasonably clean, and reasonably free from- 
other grain. 

Rejected All Rye, damp, musty, dirty, or from any cause unfit for 
No. 2, shall be graded as Rejected. 

BARLEY. 

No. 1 Barley shall be plump, bright, sound, clean, and free from 
other grain. 

No. 2 Barley shall be sound, bright, not plump enough for No. 1 T 
reasonably clean and reasonably free from other grain. 

Extra No. 3 Barley shall include slightly shrunken and otherwise 
slightly damaged Barley not good enough for No. 2. 

No. 3 Barley shall include shrunken, or otherwise damaged Barley, 
weighing not less than 41 pounds to the measured bushel. 

Feed Barley shall include all Barley which is damp or from any 
cause badly damaged or unfit for malting purposes, or which is largely 
mixed with other grain. 



The word " new" shall be inserted in each certificate of inspection of 
a newly harvested crop of Oats until the 15th day of August; of Rye, 
until the 1st day of September; of Wheat until the 1st day of November; 
and of Barley until the 1st day of May of each year. This change shall 
be construed as establishing a new grade for the time specified, to conform 



BOARD OF TRADE. 67 

in every particular to the existing grades of grain, excepting the distinc- 
tions of "new" and "old." 

All grain that is warm or that is in a heating condition, or is other- 
wise unfit for warehousing, shall not be graded. 

All Inspectors shall make their reasons for grading grain, when 
necessary, fully known by notations on their books. The weight alone 
shall not determine the grade. 

Each Inspector is required to ascertain the weight per measured 
bushel of each lot of wheat inspected by him, and note the same in his 
book. 

Any person who shall assume to act as an Inspector of Grain, who 
has not first been so appointed and sworn, shall be held to be an impostor, 
and shall be punished by a fine of not less than $50 nor more than $100 
for each and every attempt to so inspect grain, to be recovered before a 
justice of the peace. 

Any duly authorized Inspector of Grain, who shall bo guilty of ne- 
glect of duty, or who shall knowingly or carelessly inspect or grade any 
grain improperly, or who shall accept any money or other consideration, 
directly or indirectly, for any neglect of duty or for the improper perform- 
ance of any duty as Inspector of Grain, and any person who shall improp- 
erly influence any Inspector of Grain in the performance of his duties as 
such Inspector, shall be deemed guilty of a misdemeanor, and, on convic- 
tion, shall be fined in a sum of not less than $100 nor more than $1,000, 
in the discretion of the court, or shall be imprisoned in the ccunty jail not 
less than three nor more than twelve m. nths, or -both, in the discretion of 
the court. 

All Assistant Inspectors, when upon duty, shall wear a badge fur- 
nished by the Chief Inspector, plainly designating the position of each in 
the department. 

The said Chief Inspector, and all persons inspecting grain under bin 
direction, shall in no case make the grade of grain above that of the poor- 
est quality found in any lot of grain when it has evidently been mixed or 
doctored for the purpose of deception. 

All persons employed in the inspection of grain shall report all at- 
tempts to defraud the system of grain inspection as established by law. 
They shall also report to the said Chief Inspector, in writing, all instances 
where warehousemen deliver or attempt to deliver, grain of a lower grade 
than that called for by the warehouse receipt. They shall also report all 
attempts of receivers or shippers of grain to instruct or in any way infln- 



68 LAWS OF TRADE. 

ence the action or opinion of the Inspector, and the Chief Inspector shall 
report all such cases to the Commissioners. 

RAILROAD AND WAREHOUSE COMMISSIONERS OP ILLINOIS. Wm. M. 
Smith, J. H. Obeily, George M. Bogue. 

CHIEF INSPECTOR OF GRAIN. John P. Reynolds. 

COMMITTEE OF APPEALS ON GRAIN INSPECTIONS. P. W. Dater, 
S. D. Foss, T. H. Seymour. 



AMENDMENT 

To Rule Two (2) of the Rules Governing the Inspection of Grain in the City of Chicago, 
to tak* effect October 1, 1878. 

RULE II. SPRING WHEAT. 

No. 1 Hard Spring Wheat shall be sound, plump and well cleaned. 

No. 2 Hard Spring Wheat shall be sound, reasonably clean, and of 
good milling quality. 

No. 1 Spring Wheat shall be sound, plump and well cleaned. 

No. 2 Spring Wheat shall be sound, reasonably clean, and of good 
milling quality. 

No. 3 Spring Wheat shall include all inferior, shrunken, or dirty 
Spring Wheat weighing not less than 53 pounds to the measured bushel. 

Rejected Spring Wheat shall include Spring Wheat da'mp, musty, 
grown, badly bleached, or for any other cause which renders it unfit for 
No. 3. 

In case of mixture of Spring and Winter Wheat it shall be called 
mixed Wheat, and graded according to the quality thereof. This rule 
shall be in force on and after Oct. 1, 1878; but it is provided that all 
Wheat in store on said date, inspected in as Spring Wheat under the rule 
hereby amended, shall be inspected out in accordance with the provisions 
of said rule as Spring Wheat. 

Black Sea and Flinty Pjlfe Wheat shall in no case be inspected 
higher than No. 2, and Rice Wheat no higher than rejected. 

W. M. SMITH, 
GEORGE M. BOGUE, 
JOHN H. OBERLY, 
Railroad and Warehouse Commissioners. 

Chicago, 111., Sept. 6, 1878. 



BOARD OF TRADE. 



69 



WEIGHTS. 

Established by Law in the State of Illinois for the bushel of the follow- 
ing Articles. 



ARTICLES. 
Wheat 


Lbs. 

60 


ABTICLES. 


LbB. 
60 


Shelled Corn 


56 


Timothy Seed 


45 


Ear Corn 


70 


Flax Seed 


56 


Oats 


32 


Hump Seed , 


44 


Rye 


56 




14 


Barley 


48 


White Beans 


60 


Buckwheat 


52 


Castor Beans 


46 


Malt 


38 


Irish Potatoes 


60 


Corn Meal 


48 


Sweet Potatoes 


55 


Bran 


20 


Turnips 


55 


Dried Apples 


24 


Onions 


57 


Dried Peach es 


33 




50 


Lime (nnslacked) 


80 


Fine Salt.... 


55 



LAWS OF TRADE. 
KATES OF INSPECTION. 

GRAIN. 

For inspecting grain from cars, per car. ... $025 

For inspecting grain from wagons, per load 10 

For inspecting grain aboard of vessels, per M bushels * 40 

For inspecting grain from c nal boat* 40 

For inspecting grain in sacks, per bushel M 

For inspecting grain to cars, in bulk, per car 30 

For inspecting gr-ain to ttams, per car 30 

For inspecting grain to teams, per load 10 

FLOUR. 

For inspecting flour, per barrel $0 02 

For inspecting flour, per sack 01 

PROVISIONS. 

For inspecting beef and pork for the first five barrels, per barrel 1 00 

For insp cting beef and pork for each additional barrel 50 

For inspecting bulk or boxed meals, per M pounds . . 25 

For inspecting lard, tallow and grease, per package 05 

For stripping lard, tallow and grease, per package 1 00 

HIGHWINES. 
For inspecting iiighwines, per barrel : 10 



WEIGHMASTER'S TARIFF OF PRICES. 



Sundries, weighed on platform and beam scales, and handled at the ex- 
pense of the Weighmaster, will be charged as follows: 

Grain, seed, beans, potatoes, and similar articles, in bags, per bag $0 02 

Sugar, in hogsheads and boxes, per 100 pounds 02 

Salt, in sacks, per 100 pounds 02 

Pig iron and lead, per 100 pounds 02 

Bulk or boxed meats, per 100 pounds 02 

Broom corn, in lots of 50 bales or more, per bale 06 

Broom corn, in lots of less than 50 bales, per bale 07 

Wool, per sack, in lots of 50 or more 07 

Wool, per sack, in lots of less than 50 08 

Coal and salt, per ton 05 

Lard, tallow, grease and stearine, per package. . . 05 

Butter and lard, in ktgs, each 04 

Dressed hogs, each 02 

Salt, sugar, dried fruit, and similar artic es, per barrel 04 

For weighing grain to vessels, by cargo, from elevators, per M bushels 25 

For weighing grain from canal boats, per boat 1 00 




INSPECTION OF FLOUR IN CHICAGO, 

Adopted by the Board of Trade, May 21, 1878. 



TO TAKE EFFECT JUNE 1, 1878. 



REGULATION I. 

GRADES. The Board of Directors shall establish and fix the standards 
for two grades of " Super" Flour and two grades of " Extra" Flour, to be 
designated respectively " Fine," " Superfine," " Extra," and " Double 
Extra." Samples of these standards shall be furnished to the Flour In- 
spectors for their government in inspecting, and also to the Secretary of 
the Association, to be kept by him for comparison. 

REGULATION II. 

INSPECTION COMMITTEE. The Board of Directors shall appoint a 
standing committee on Flour Inspection, to consist of five members, at 
least three of whom shall be dealers in Flour. Said committee shall have 
and exercise a general control of the Inspection of Flour. 

REGULATION III. 
FLOUR TO INSPECT AS SOUND Flour classed as sound shall be strictly 



72 LAWS OF TRADE. 

sound, free from any and every defect or fault, causing either smell or 
taste. 

REGULATION IV. 

FLOUR TO INSPECT AS UNSOUND. All Flour not sound, whether the 
unsoundness be derived from the condition of the grain from which it 
was manufactured, or has originated in the Flour, shalbbe classed as un- 
sound. 

REGULATION V. 

INSPECTION. The Inspectors of Flour shall inspect " Superfine" and 
" Extra" by grade only. "Fine" or " Double Extra" may be inspected 
by grade or by sample, as requested by the party ordering the inspection. 
Samples of all Flour inspected shall be furnished by the Inspectors to 
the party ordering the inspection. 

REGULATION VI. 

BRANDING. The Inspectors shall brand all Flour, except that below 
the standard of "Fine" that has been inspected as "sound" and "full 
weight," and none other. For branding, stencils shall be used which 
shall state the month in which the Fiour was inspected, and on " Super- 
fine" and " Extra" shall also state the grade of the Flour. 

REGULATION VII. 

CERTIFICATES OF INSPECTION. Certificates of Inspection shall be 
issued only as " Superfine" or " Extra" on all Flour so graded. Certificates 
may be issued by grade or by sample, as desired by the party ordering 
the inspection, on any Flour inspecting " Double Extra" " Fine" or below 
" Fine;" but when issued by grade the Flour shall be branded as of the 
grade. No certificate shall be issued for part of any lot of Flour in- 
spected, without the consent ol both the buyer and seller. When Flour is 
unsound, the Inspectors shall state in their certificates the character of 
the unsoundness, as musty, hard sour, soft sour, or slightly unsound, (the 
latter qualification of the unsoundness being intended to indicate that the 
Flour will probably work sound for immediate use, ard is but slightly de- 
preciated in value,) the number of packages of each description, and also, 
when practicable^ the number of packages that may be so stained or out 



BOARD OF TRADE. 7$ 

of condition as to depreciate the market value of the Flour. In case the 
Flour has been overhauled and cleaned on account of having been wet, 
and the Inspectors shall deem such overhauling in any way damaging to 
the market value of the Flour, they shall note on their certificates " wet 
and cleaned." If Flour is in flat-hooped barrels the Inspectors shall so 
note in their certificates. 

REGULATION VIII. 

RE-INSPECTION. When on re-inspection Flour is found to be sour r 
it shall be re-weighed, but no charge shall be made by the Inspectors for 
weighing, if it proves to be short in weight. 

REGULATION IX. 

WEIGHTS. A barrel of Flour shall be deemed to weigh one hun- 
dred and ninety-six (196) pounds net, and no allowance shall be made for 
any overweight. In case of short weights, the buyer shall be allowed for 
the shortage at the rate he pays and one-half a cent per pound on the 
same for freight, and in addition five (5) cents per barrel for the expense 
of refilling. Buyers of sacked Flour shall be allowed reclamacion for 
short weights only. The Inspectors shall satisfy themselves in regard to 
weights, and in case they deem it necessary to strip some of the Flour,, 
they shall strip (5) barrels from each lot, and shall be entitled to fifteen 
(15) cents for each barrel so stripped ; if it proves to be short in weight^ 
the charge for stripping to be paid by the seller. 

REGULATION X. 

INSPECTOR'S FEES. The fee for inspecting and branding Flour shall 
be two (2) cents per barrel, and for Flour in sacks one (1) cent per sack. 

REGULATION XI. 

IRREGULAR FLOUR. When Flour inspects " Double Extra," " Fine" 
or below " Fine," or when the Inspectors are working to a sample, in case 
the Flour does not run uniform, the Inspectors shall note that fact on 
their certificates, together with the number of packages of each quality, 
samples of which shall be submitted to the party ordering the inspection, 
for examination. 



74 LAWS OF TRADE. 

REGULATION XII. 

FURTHER DUTIES OP INSPECTORS. It shall be the duty of In- 
spectors to furnish the standard samples of Flour to which they are work- 
ing to the Committee on Flour Inspection, for the use of the Secretary of 
the Association, monthly or oftener if directed, and also to keep in their 
office, for the accommodation of the trade, the official standard samples of 
"Double Extra," "Extra," "Superfine," and "Fine" Flour in current 
use in New York, Boston, Philadelphia, Baltimore, St. Louis and Mon- 
treal; said samples to be furnished by the Secretary of the Association. 
It shall be the further duty of the Inspectors to ascertain the stock of 
Flour in Chicago on the first day of each month, and to report the same 
to the Secretary of the Association, to be by him posted upon the bulle- 
tin of the Exchange room. In taking the account of stock there shall be 
included only the amount in the several freight depots, the public ware- 
houses and the places of storage by receivers, and in the city mills. The 
Inspectors shall also furnish to the Secretary of the Association, monthly, 
a statement of the number of barrels and the number of sacks of Flour 
inspected by them during the preceding month, designating the amount 
inspected of each grade, and the amount inspected by sample. 

REGULATION XIII. 

LIABILITIES OF INSPECTORS. The Inspectors shall only be liable for 
damages for any discrepancy between the Flour for which a certificate is is- 
sued and the sample they retain of the Flour so inspected, unless the buyer 
furnishes them a sample to inspect by, or the standard sample is used. In 
.all claims for errors of inspection by grade, the final test shall be by the 
standard samples in the care of the Secretary of the Association. 

REGULATION XIV. 

All former regulations governing the inspection of Flour are hereby 
.annulled to take effect June 1, 1878. 



COMMITTEE ON FLOUR INSPECTION FOR 1878. 



N. E. PLATT, Chairman. 

THOMAS HEERMANS, I. N. ASH, GILBERT MONTAGUE, 

EDMUND NORTON. 



REGULATIONS FOR THE INSPECTION OF HAY. 



No. 1 Timothy Shall be Timothy, and not more than one-fifth of 
-other tame grasses mixed ; good color, well cured, and free from must. 

No. 2 Timothy Shall be Timothy, and not more than one-third of 
other tame grasses mixed ; good color, well cured, and free from must. 

Mixed Hay Shall consist of tame grasses, mixed; good color, well 
43ured, and free from must. 

Prime Prairie Shall be purely upland Hay, free from swail grasses; 
good color, well cured, and free from must. 

No. 1 Prairie Shall be upland and midland Prairie Hay; good 
color, well cured, and free from must. 

No. 2 Prairie Shall be swail or slough Hay, either wholly or mixed 
with upland; good color, well cured, and free from must. 

No Grade Say All kinds of Hay, badly cured, stained, or in any 
way out of condition ; the certificate of inspection stating whether it is 
Tame or Prairie Hay. 

All Hay that is sent for inspection under the Rules of the Board 
shall be graded, and each separate bale marked with its respective grade 
immediately when taken from the car in which it is sent to this city. The 
final inspection and plugging, in order to ascertain the sound condition 
of each bale, can take place at any time subsequent, or at the time of 
shipment. 

All certificates of inspection shall give the weight of each bale of 
Hay weighed and inspected. The expenses for inspection shall not ex- 
ceed thirty (30) cents per ton of two thousand (2,000) pounds, and shall 
be divided equally between buyer and seller. 



REGULATIONS FOR THE INSPECTION OF PROVISIONS. 



REGULATION 1. For the examination of provisions sold as Standard, 
it shall be the duty of any Inspector properly appointed by the Associa- 
tion, on receiving notice, to go to any packing house or warehouse in the 
city, to examine provisions, in such quantities as may be required, select- 
ing the same in such a manner, from the lots specified, as, in his judg- 
ment, will give a fair sample of the whole. 

REG. 2. If, upon examination, the property is found, in all respects,. 
up to the requirements of the classification of the grades adopted by the 
Association, he shall issue a certificate to that effect, which certificate 
shall state the number of packages, pieces or pounds examined, and also- 
the number of packages, pieces or pounds in the lot to which the exami- 
nation is intended to apply, and that the packages (if any) are in good 
merchantable order and condition. In the case of Lard, no certificate for 
inspection shall be issued unless every package is examined; but, on re- 
quest of the owner or person ordering the inspection, the Inspector may 
examine a part of a lot, and issue a certificate of such examination, stat- 
ing the number of packages examined, and also the whole number of 
packages in the lot. 

REG. 3. When necessary to remove property for the convenience of 
examination, it shall be the duty of the Inspector to send for the same, 
that a fair sample may be obtained. In no case should a certificate be 
granted on samples delivered by the seller. 

REG. 4. The fees for inspection shall be : For all Pickled Meats (in- 
cluding repacking and coopering), one dollar per package for first five 
packages. For Bulk or Boxed Meats, twenty-five cents per one thous- 
and pounds. For Lard, five cents per package. For stripping Lard, one 
dollar per package. All inspection fees to be paid by the buyer unless 
the property is rejected; then to be paid by the seller. 

REG. 5. It shall be the duty of the Inspector, when requested by 



77 BOARD OF TRADE. 

the owner, either at any packing house, warehouse, or in yards provided 
by the Inspector, to overhaul and inspect provisions, according to the 
qualifications and classifications authorized; two hundred pounds of 
meat, with abundance of good salt, to be repacked into each barrel, and 
cooperage to be put in good order ; each barrel of Provisions that is 
sound, sweet and free from any and every defect, to have grade and date 
of inspection branded thereon, and the word "Repacked," as hereinafter 
specified; and any portion that is defective to be branded, in like man- 
ner, Rusty, Sour, or Tainted, as the case may be; the said brand to be 
placed with the Inspector's brand across the regular packer's brand ; 
such provisions, according to the grade or quality, to be classed as "Re- 
packed 200 Ibs." 

REG. 6. The Inspectors shall use metallic letters and figures, mark- 
ing iron or stencil for their dates and class of inspection. 

REG. 7. It shall also be the duty of the Inspector to put his metallic 
brand, marking iron, or stencil on all samples cf Provisions in tierces or 
barrels that he inspects; and he shall pass no Hog products in tierces or 
barrels as Standard, unless the real packer's name, location, number of 
pieces, date and weight of the products contained therein are branded 
according to these rules, on the head of every package. 

REG. 8. Should the Inspector be called upon to inspect Pickled 
meats, and upon examination, he should be of the opinion that the num- 
ber of pounds required by these rules had not been originally packed, he 
ha!l not pass them as Standard, but shall refer the matter at once to the 
Committee on Provision Inspection, who shall investigate, and if .a satis- 
factory explanation can be given or arrived at, they shall instruct the In- 
spector to proceed and inspect and pass them; but if not satisfactory to 
the Committee, they shall, in their judgment, make the fact known to the 
Association in any way they may think most proper. 

REG. 9. Contents of each package of Pickled Meats must show a 
reasonable uniformity in weight, according to its class. 

REG. 10. It shall be the further duty of the Inspectors, during the 
packing season, to visit frequently the different packing hovises to see 
that Provisions are properly dated and branded at time of being packed. 
REG. 11. Dry Salted Rough Sides may be made into Short Rib or 
Short Clear Sides, and Dry Salted Short Rib Sides may be made into 
Short Clear Sides, if, in all other respects, they are up to the require- 
ments, and shall be classed as Standard. 

REG. 12. All the foregoing Regulations must be justly and liberally 
construed, and no property shall be rejected or condemned on mere 
technicalities. 



REQUIREMENTS AS TO CUT AND PACKING OF HOG PRODUCTS. 



BARRELED PORK. 

MESS PORK. 

Standard Mess Pork should be made from sides of well-fatted Hogs, 
split through or on one side of the backbone, and equal proportions on 
both sides, cut into strips of reasonably uniform width, properly flanked 
and not backstrapped. 

One hundred and ninety (190) pounds of Green Meat, and between 
March 1 and November 1 two hundred (200) pounds, numbering not over 
sixteen (16) pieces, including the regular proportion of flank and shoul- 
der cuts, placed four layers on edge, without excessive crowding or 
bruising, shall be packed in each barrel, with not less than thirty (30) 
pounds of coarse salt, and barrel filled with brine of full strength, or 
thirty (30) pounds of coarse salt, and in addition thereto, fifteen (15) 
pounds of salt, and barrel filled with cold water. 

PRIME MESS PORK. 

Prime Mess Pork should be made from the Shoulders and Sides of 
Hogs weighing from one hundred (100) to one hundred. and seventy-five 
(175) pounds, net, to be cut as near as practicable into square pieces of 
four (4) pounds each; the shank of the Shoulder to be cut off close to 
the breast. 

One hundred and ninety (190) pounds of Green Meat in the propor- 
tion of twenty (20) pieces of Shoulder cuts to thirty (30) pieces of Side 
cuts, shall be properly packed in each barrel, with not less than twenty 
(20) pounds of coarse salt, and barrel filled with brine of full strength; 
or, twenty (20) pounds of coarse salt, and in addition thereto, fifteen (15) 
pounds of salt, and barrel filled with water. There shall also be put into 
each barrel twelve (12) ounces of saltpetre. 



BOARD OF TRADE. 



EXTRA PKIME PORK. 



Extra Prime Pork should be made from heavy untrimmed Shoulders* 
cut into three (3) pieces; the leg to be cut off close to the breast, and in 
all other respects to be cut, selected and packed as Mess Pork. 



LIGHT MESS PORK. 



Light Mess Pork should be made from Sides of reasonably well- 
fatted Hogs; and in all other respects to be cut, selected and packed 
same as Mess Pork, except that as many as twenty-two (22) pieces may 
be put into each barrel. 



BACK PORK. 



Back Pork should be made from backs of Hogs after bellies have 
been taken off, cut into pieces of about six (6) pounds each, and in all 
other respects to be cut, selected and packed in the same manner as Mess- 
Pork. 



EXTRA SHOULDER PORK. 



Extra Shoulder Pork should be made from heavy trimmed Shoulders, 
cut into three (3) pieces; the leg to be cut off close to the breast, and in 
all other respects to be cut, selected and packed in the same manner as 
Mess Pork. 



EXTRA CLEAR PORK. 

Extra Clear Pork should be made from the Sides of extra heavy, 
well-fatted Hogs, the backbone and ribs to be taken out, the number of 
pieces in each barrel not to exceed fourteen (14), and in all other respects 
to be cut, selected and packed in the samer manner as Mess Pork. 

CLEAR PORK. 

Clear Pork should be made from the Sides of extra heavy, well- 
fatted Hogs, the backbone and half the rib next the backbone to be taken 
out, the number of pieces in each barrel not to exceed fourteen (14), and 
in all other respects to be cut, selected and packed in the same manner as 
Mess Pork. 

CLEAR BACK PORK. 

Clear Back Pork should be made from the backs of heavy, well- fatted 



:80 LAWS OF TRADE. 

Hogs, after bellies have been taken off and backbone and ribs taken out, 
cut into pieces of about six (6) pounds each, and in all other respects to 
be packed in the same manner as Mess Pork. 

RUMPS. 

Rumps should be trimmed with only enough taken off to make them 
neat and smooth; the tails to be cut off close, and in all other respects 
to be cut, selected and packed in the same manner as Mess Pork. 

PICKLED MEATS. 

STANDARD SWEET PICKLED HAMS. 

Standard Sweet Pickled Hams should be cut short and well rounded 
at the butt, properly faced, shank cut in or above the hock joint; to be rea- 
sonably uniform in size, and average, in lots, not to exceed sixteen (16) 
pounds. Three hundred (300) pounds, block weight, shall be packed in 
each tierce, with either twenty-four (24) pounds of salt, three (3) quarts 
of good syrup, twelve (12) ounces of saltpetre, and tierces filled with 
water; or tierce filled with sweet pickle, made according to above 
standard 

STANDARD SWEET PICKLED SHOULDERS. 

Standard Sweet Pickled Shoulders should be well cut and trimmed, 
reasonably uniform in size, and average, in lots, not to exceed sixteen 
(16) pounds. Three hundred (300) pounds, block weight, shall be packed 
in each tierce. Pickle the same as used for Hams. 

NEW YORK SHOULDERS. 

New York Shoulders should be made from small, smooth Hogs, 
shank cut off one inch above knee joint, trimmed close and smooth, reas- 
onably uniform in size, and to average, in lots, not to exceed fourteen (14) 
pounds.. Three hundred (300) pounds, block weight, shall be packed in 
each tierce. Pickle the same as used for Hams. 

SWEET PICKLED BELLIES. 

Sweet Pickled Bellies should be made from nice smooth Hogs, well 

5 



BOARD OF TRADE. 81" 

cut and trimmed, to average, in lots, not to exceed fourteen (14) pounds 
Three hundred (300) pounds, block weight, shall be packed in each 
tierce. Pickle the same as used for Hams. 

BRANDING. 

The packers' name, location, number of pieces, and date of packing, 
shall be branded on the head of each package of Pickled Meats at the 
time of packing. 

UNIFORMITY OF TICKLED MEATS. 

All Pickled Meats should be sized when packed the light, medium 
and heavy separately, as nearly as practicable. 

CUT MEATS. 

HAMS. 

Hams should be cut short, well rounded at the butt, properly faced> 
cut in or above the hock joint. 

SHOULDERS. 

Shoulders should be cut as close as possible to the back part of the 
forearm joint, butted off square on top; neckbone and short ribs taken 
out, blood vein lifted and cut out, breast flap to be trimmed off, and foot 
to be cut off in or above the knee joint. 

BLADED SHOULDERS. 

Bladed Shoulders should be cut the same as Standard Shoulders, ex- 
cepting the shoulder-blade to be taken out and the corners rounded. 

ROUGH SIDES. 

Rough Sides should be made by splitting the Hog through or on OD& 
side of the backbone, and an equal proportion of both Sides must be de- 
livered on sales to make them Standard. 

SHORT CLEAR SIDES. 

To make Short Clear Sides, the backbone and ribs should be taken, 
out, henchbone and breastbone sawed or cut down smooth, and even with 
the face of the Side; feather of bladebone not to be taken out, and Sides, 
not to be backstrapped or flanked. 

SHORT RIB SIDES. 

To make Short Rib Sides, the backbone should be taken out, h<>nch- 



82 LAWS OF TRADE. 

bone and breastbone sawed or cut down smooth, and even with the face 
of the Side; feather of bladebone not to be taken out, and Sides not to 
be backstrapped or flanked. 

LONG CLEAR SIDES. 



To make Long Clear Sides, the backbone, shoulder bones and ribs 
must be taken out, leg cut off close to the brisket, hejichbone and breast- 
bone sawed or cut down smooth and even with the face of the Side, and 
Sides not to be backstrapped or flanked. 

CUMBERLAND SIDES. 

To make Cumberland Sides, the Side and Shoulder should be left 
together in one piece, leg cut off below the knee joint; shoulder ribs, 
neckbone and backbone taken out; blood vein lifted and cut out; hench- 
bone and breastbone sawed or cut down smooth and even with the face 
of the Side, and Sides not to be backstrapped or flanked. 

LONG RIB SIDES. 

Long Rib Sides should be made same as Cumberlands, except that 
the shoulder bones must be taken out, and leg cut off close to the brisket. 

STRBTFORD SIDES. 

Stretford Sides should be made from Hogs weighing about 140 to 
160 pounds net; backbone and half of the ribs taken out, bladebone 
taken out, knuckle left in, and foot cut off close to the breast. 

BIRMINGHAM SIDES. 

Birmingham Sides should be made from Hogs weighing about 170 
pounds net; backbone, ribs and bladebone taken out, pocket piece cut 
out and pocket nicely rounded, knucklebone left in, and leg cut off close 
to the breast. 

SOUTH STAFFORDSHIRE SIDES. 

South Staffordshire Sides should be made the same as Birmingham, 
except loin taken out full to top of shoulder blade, leaving only a thin 
strip of le<xii along the back; knuckle left in, and leg cut off close to the 
breast. 

YORKSHIRE SIDES. 

Yorkshire Sides should be made the same as Cumberlands, with ribs 
ont and leg cut off about two inches above the knee. 



BOARD OF TRADE. 83 



IRISH CUT SIDES. 

Irish Cut Sides should be made the same as Long Clear, except top 
of the pocket cut off, knuckle-bone left in. 

LONG HAMS. 

Long Hams should be cut from the Side by separating with a knife 
the hipbone from the rump, properly rounded out, foot unjointed at first 
joint below the hock joint. 

SOUTH STAFFORDSHIRE HAMS. 

South Staffordshire Hams should be cut short, hipbone taken out at 
socket joint, hock unjointed at first joint below the hock joint. 

UNIFORMITY OF BOXED MEATS. 

In packing Meats in boxes, the pieces should be classified the light, 
medium and heavy separately, as nearly as practicable, in packages made 
to suit the different sizes. 

LARD. 

CHOICE LARD. 

Choice Lard to be made from leaf and trimmings only, either steam 
or kettle rendered, the manner of rendering to be branded on each tierce. 

PRIME STEAM LARD. 

Prime Steam Lard shall be Standard made from the head, gut, leaf 
and trimmings, in the proportion in which the same came from the hog. 

PACKAGES, 

COOPERAGE. 

Cooperage shall be made of well-seasoned White or Burr Oak, free 
from objectionable sap. 

BARRELS. 

For barrels, staves should be five eights (f) of an inch thick, twenty- 
nine (29) or thirty (30) inches long; heads eighteen (18) inches, one (1) 



84 LAWS OF TRADE. 

inch thick in center, and three-eighths (f) at bevel; hoops hickory, or white 
oak, to be hooped not less that eleven-sixteenths (11-16). 



TIERCES. 



Tierces for Hams, Shoulders, Beef or Lard, should be thirty-two 
(32) inches long with a twenty-one (21) inch head, or thirty-three (33) 
inches long with a twenty and one-half (20^) inch head ; staves to be 
chamfered at the head. Quality of staves and hoops to be the same as 
for barrels; staves (f) of an inch thick; heads same thickness as for bar- 
rels; hooped eleven-sixteenth (11-16). Iron-bound tierces for Lard, 
Hams or Shoulders, shall be classed as Standard if made in compliance 
with the requirements of this rule, as to heading and staves, and hooped 
with not less than four good hoops on each end. 



BOXES. 



Boxes should be made of sound common boards, reasonably dry, one 
inch thick, dressed on one side, not over three strips to each end, side 
bottom or top; to have good, strong, hardwood, white wood or sap pine 
stays inside each corner; should be well nailed and strapped with birch, 
oak or hickory straps around each end, to lap three inches on the cover. 
Boxes should be nailed together with tenpenny nails, and the stays nailed 
in with eightpenny nails. 




THE UNION STOCK YARDS AND TRANSIT COMPANY 



The supremacy that Chicago has attained as a business mart cannot 
be better illustrated than by a brief descriptive review of the Union 
Stock Yards and Transit Company. The advantages offered by this 
mammoth enterprise to Western dealers and feeders of live stock are un- 
equaled in any market, either in the old or new world. The enterprise 
is owned by a chartered company with a paid-up capital. The amount 
of which we were unable to ascertain as the officers of the company de- 
clined to make it public, but there is no doubt that it runs into the mil- 
lions. 

This great bovine and porcine city consists of 345 acres extending 
from Halsted street on the East to the Packing Houses on the West, 
running North to 47th street, thpnce South to the open prairies and in 
its enterprising march, will have before a very long time hence, within 
its boundaries, all there ever was of the famous horsemen's sporting 
grounds, known as "Dexter Park." The yards are now said to be one 
mile in length by one-half mile in width, but are being extended in the 
direction mentioned. 

They were opened for the reception of live stock on December 25th, 
1865. As you enter from Halsted street, immediateljr on your left is the 
"Transit House," built at an expense of $250,000, which is furnished with 
exceeding neatness, and an air of comfort seems to pervade the entire 
premises. As you proceed along a wide avenue on a raised sidewalk 
until you have reached very nearly the center of the grounds, you come 
directly upon an unpretending looking one story brick building which is 
known as the Union Stock Yards National Bank, financially a formidable 
institution, and admirably managed by those having its interests in 
charge. When you have passed it, a plain looking two and one-half 
story brick building 60x380 feet is before you, this is called the "Ex- 



86 LAWS OF TRADE. 

change," and as you enter this building you are introduced to a very 
large Exchange Hall on one side of which are located the Superinten- 
dent's, Secretary and Treasurer's offices with the telegraph office. On 
the other side there is quite a stretch of an avenue, on either side of 
which are located, both on this and the second floor, about 80 offices 
which are occupied by the live stock commission merchants. These are 
all surrounded with a saloon, restaurant, packers offices, offices for East- 
ern shippers, barber shop and fruit stand Upon ascending to the second 
floor of this building, standing at almost any point there is presented to 
the eye an animated scene with countless herds of cattle and swine and 
sheep enclosed in the pens the whole grounds teeming with the bustle 
and activity incident to buying, selling and transporting of stock. With 
men hurrying hither and thither on horseback in the dispatch of varied 
business matters and crowds of pedestrians apparently brimful of the 
same purposes; then looking off to the West the city of packing houses, 
some thirty in number, tower up in the distance and are easily discern- 
ible; these together with the shrill whistle of the various incoming and 
outgoing trains of cars loaded with live stock, make a grand and rare 
sight indeed. There are some 40 miles of tracks connecting the yards 
with all the railroads centering in Chicago. The arrangement for either 
loading and unloading are as nearly perfect as is possible to conceive. 
As is also the arrangement for the transfer of any -number ot cattle from 
the cars of one railway to another. The pens for live stock vary in size 
but are nearly all laid off square in shape, and are so constructed that 
several can be thrown into one by merely opening gates, very similar to 
the opening of doorways to the rooms of a house. Gates are also so ar- 
ranged as to open across the roadway, enabling the turning of a drove 
directly into a pen, and then closing after them. The cattle pens are 
open, but those designed for hogs and sheep are covered. They are all 
well fitted with troughs and hydrants, the latter connecting with the 
water tanks which are kept supplied with pure water received from the 
artesian wells that have been bored on the grounds. There are three 
artesian wells situated in about the centre of the enclosure, one of which 
is eleven hundred feet, and the other two, each twelve hundred feet 
deep. There are over fifteen miles of macadamized streets tunning 
through, and intersecting with each other in different parts of the Yards. 
And forty miles of water and drainage pipes, forming a perfect net- work 
running underneath, thoroughly accomplishing the desired result aimed 
at 



UNION STOCK YARDS. 8 r / 

The matter of weighing droves of cattle, sheep and hogs is an im- 
portant one. The scales that are used throughout the Yards are the 
celebrated "Fairbanks." There are thirteen fifty-ton stock scales in con- 
stant use, besides numerous smaller ones needed for weighing hay, corn, 
etc. The company have been wise in making so judicious a selection in 
a matter so important to both the buyer and seller. The Fairbank's 
scales have been used from one end of the country to the other, and they 
have always at all places maintained their high character for perfect ac- 
curacy, and we believe are entitled to the supremacy they have attained 
as being superior to all others manufactured. They are regularly ad- 
justed and every care is taken to provide for their perfect equilibrium. 
The weigh-masters are appointed by the officials of the Yards, and are 
not permitted to receive any fee or reward in any wise. The rules with 
which they must act in accordance, are rigid and exacting, to enforce a 
just performance of duty, and any well grounded complaint for non-per- 
formance of duty, as strictly laid down by the rules is an equiva- 
lent to a dismissal from further service. In. convenient parts of the 
Yards are located a printing office from which is issued the "Drover's 
Journal" an ably conducted quarto newspaper, devoted exclusively to 
the interests of the live stock dealer and said to be the only newspaper 
of the kind published in the world; machine shops, the postoffice, depot, 
buildings, and many other buildings used in the transaction of business 
pertaining to the receiving and shipping of live stock. From a critical 
examination it can be truthfully said, that on every hand, go whither you 
may over these vast grounds, there are evidences confronting you of 
great ability and wise forethought pervading the entire inclosure. It is 
apparent that the great enterprise is in the hands of men. of master 
minds. Everything that is necessary which ingenious thought could 
suggest is provided; nothing seems to be forgotten, and from the im- 
provements, that are being constantly made, any and every emergency 
that could possibly occur are being guarded against. This vast business 
enterprise has kept pace with the wonderful growth, arising from the 
constant settlements, occurring from year to year on the rich and bounte- 
ous lands of the Northwestern States by emigrants and others seeking 
permanent homes through tilling the soil and in raising of live stock. 
But it matters not where the locality may be, live stock is shipped from 
all points to these Yards, even as far distant as the feeding lands of 
Texas are, the shipments from thence are very large. Through its man- 
agement, since its inception in the year 1865, to this date, the enterprise 



'88 LAWS OF TRADE. 

has proven a success. The business has been large and remunerative, but 
that the expenses which must necessarily accrue from the constant wear and 
tear of the yards, together with the general management of an organiza- 
tion of such immense magnitude cannot be otherwise than enormous in 
amount. To give some evidence of the outlay of money that is neces- 
sary from time to time to keep the grounds in good condition, we have 
^only to refer to the proceedings which took place at the annual meeting 
of the Directors and Stockholders in the year 1875, when an appropria- 
tion was made for repairs and improvements, and the enlargement of the 
Yards, so as to meet the requirements of the constantly increasing live 
stock trade, for the large amount of about $300,000. 

These improvements, necessary for the reconstruction and the re- 
pairing of the Yards were begun and completed under the supervision of 
John B. Sherman, E,sq., the able and indefatigable Superintendent, as- 
sisted by George T. Williams, Esq., the courteous and efficient Secretary 
of the company. Both of these gentlemen have been connected with this 
grand enterprise for many years past, and during all these years, the active 
agents ; and in a great measure, it is through their instrumentality, the 
Yards have been brought to their present prosperous condition. There 
are now one hundred and seventy-five acres of land under plank, and 
constructed as follows: One hundred acres of cattle yards, seventy-five 
acres of covered hog and sheejl^pens. 

Twelve hundred cattle pens, sufficient to yard twenty thousand head 
-of cattle, thirteen hundred hog pens, which provide for one hundred and 
fifty thousand hogs; three hundred sheep pens that will accommodate 
fifteen thousand sheep, and also stabling for fifteen hundred horses. 

To gifte some conception of the magnitude of this business enter- 
terprise, we are enabled to state that the business transactions for the year 
ending December 31st, 1877, amounted to ninety-nine million, twenty four 
thousand one hundred dollars, and from the year 1872, to 1877, inclusive, 
six hundred and twenty-one million, six hundred and fourteen thousand 
-and three dollars. These figures are colossal in amount, but they are 
nevertheless correct, and are living evidences of wonderful enterprise 
coupled with business sagacity. 

In closing our remarks upon this vast business interest of our city, 
we extract the following from Griffith's Live Stock Annual," for the year 
ending 1877: "The past year has done much to strengthen the convic- 
tions which have existed in the minds of all practical men as to the suit- 
ableness of the situation which was chosen for the Great Central Live 



UNION STOCK YARDS. 89 

Stock Market of the West, in its present stage of development. What 
the future may discover we are quite willing to leave to that future to 
determine. It may be that some few decades hence, stock yards as capa- 
cious as our own may be needed in that great growing territory of 
Wyoming, or in Nebraska, or Colorado, or Kansas; in either, or indeed 
in all, of these erreat growing centres of the live stock trade of the West, 
thriving, organized and capacious system of yards may be needed and 
built but for the present, we are in the best position conceivable to take 
charge of their stocks; and furnish them with prompt cash buyers for 
the same. We are sufficiently near to enable all those centres to transfer 
their herds to this market in a comparatively few hours, and in very 
nearly as good condition as when they leave their home pastures. 

The entire Railroad interests of the East and West have made Chi- 
cago their objective point, where all the lines meet as in a focus, and 
from which they radiate to all the pasture lands of the West, and all the 
seaports, cities, towns, and villages of the East. May we not, therefor, 
without venturing within the line of the prophetic fairly state that such 
a center must, in the very nature of things continue for a lengthened 
period to occupy the high position we already have gained as the great 
and important live stock market of America." 

The writer whom we have just quoted is quite warm in his expres- 
sions, but his enthusiasm has not betrayed him into making assertions 
that are other than really the facts. Here is located without any ques- 
tion of doubt the greatest live stock market in the world, and with the 
abundant facilities for reaching it, the unexampled inducements offered, 
must make the Union Stock Yard and Transit Company the objective 
point for a long time hence to the dealer and raiser of live stock of the 
West. The great and growing young States of Wyoming, Colorado, 
Kansas, and Nebraska must abide their time; it will come, but it is in 
the distant future yet. To be sure, each of these young States is being 
rapidly peopled with an abundance of brain and muscle that will eventu- 
ally carry them to the front, and each will be a bright star in the con- 
stellation that form our proud union of States. But in their youth and 
as they are becoming stalwart and robust they must look to Chicago for 
assistance and support. And it is an agreeable reflection to the people 
of Chicago and those of the Northwest "to know that so vast an interest, 
a trust so important, is in the hands of a management of such acknowl- 
edged ability and trustworthiness." 



UNION STOCK YARDS. 



HOW BUSINESS IS DONE THERE. 

The money value of the live stock trade exceeds that of any other one 
product of America, but of the customs and laws peculiar to the business 
but little is known to those not directly connected therewith, we there- 
fore give a somewhat detailed account of the mode of doing the work 
connected with the movement of stock to and in this city. 

At the beginning of all live stock trade stands the farmer, who is 
sometimes the shipper of his own and his neighbor's beeves or hogs, but 
as a general rule this work is done by a class of men who were once 
called drovers but who are now shippers in name as in fact, since driving 
forms an important part of their duties. Some of these shippers have 
offices established in towns on the line of some railroad and there spend 
much of their time, buying the stock brought in by farmers, and making 
arrangements for the purchase and delivery of that which is perhaps 
not quite ready for sale. Others have no fixed office, but go about the dis- 
trict selecting and buying the animals on the farms, and agreeing upon the 
time and place of delivery. Arrived at the shipping point, the shipper, 
who has experience, assorts his stock, so far as may be convenient, ship- 
ping the best together, and the poorer by themselves. As a rule, regular 
shippers consign their stock to some house known to them, and go about 
getting together another consignment. Some send no one with their 
hogs to care for them, and where the distance to be traveled is not great, 
some send their cattle without any one to see that they go through in 
good condition. As a, rule, however, the owner of the cattle or some one 
in his employ accompanies the consignment, to keep the cattle from lying 
down on the way. This is necessary, as in loading, the car is filled to its 
utmost capacity, that the animals may support each other and so ride 
more easily, and be less bruised by the motion of the train than th<>y 
would be were there room for them to sway about. But some of the 
means taken to rouse to their feet such of the poor brutes as sink from 



UNION STOCK YARDS. 



91 



exhaustion are scarcely so necessary, and are altogether barbarous, sharp 
spikes set in poles, savage hooks and other instruments of torture having 
been freely used until the efforts of the Humane Society put an end to 
the practice, or at- least to the bringing of these instruments to the Stock 
Yards. 

Arrived at the Yards, the stock is driven out upon a platform, which 
is even in height with the floors of the cars, and which extends with but 
few breaks around three sides of the Yards. From this platform an in- 
clined plane leads to the paved ground. Down this the stock is driven, 
and from this moment the responsibility of the railroad company ends, 
and that of the Stock Yards company begins. At this " shute" the em- 
ployes of the Union Stock Yards and Transit Company count, with the 
utmost care, the animals received from each car, noting the numbers of 
the car, the shute and the animals. Any shortage is at once noted in 
their numerous memorandum books, as is also the condition of the stock. 
The first count is considered as final in tracing losses. Beyond that one 
must goto the railroad company. The name of the consignor and that of 
the consignee, taken from the way-bills brought by the conductor of the 
train, are also entered in this one of the most important as it is the 
first entry made by the Stock Yards Company. The record appears thus 

5 ST. Louis, Oct. 30. 



CONSIGNOR. 


CONSIGNEE. 


B. 


P. 


C. 


H. 


S. 


Remarks. 


John Brown. 

3131 
22 


Gregory, Cooley 
&Co. 
3109 2559 
23 21 


10 


13 




175 




4 Cripp. 
7 Dead. 



To the initiated this reads: "Cars numbered 3131, 3109 and 2559 of 
the fifth train received in the St. Louis division on the thirtieth day of 
October, brought 175 hogs consigned by John Brown to Gregory, 
Cooley & Co. There were four crippled and seven dead hogs in these cars. 
The hogs from car number 3131 were unloaded into shute number 22, 
those from car 3109 into shute 23, and those in car 2559 into shute 21, 
and all were afterward put into pen number 13, in block 10. For any 
other kind of stock the entries would be essentially the same in form. 

For greater convenience the yards are laid out into divisions popu- 
larly known as the Rock Island, the Burlington, the St. Louis, the North- 
western and the St. Paul, but officially they are described by the first 



LAWS OF TRADE. 




UNION STOCK YARDS NATIONAL BANK. (SEE PAGE 106.) 




TEXAS CATTLE. 



UNION STOCK YARDS. 93 

five letters of the alphabet. Above the corners of each block are signs 
upon which are plainly painted the letter of the division and the number 
of the block, while each pen has its number upon its gate. The pens for 
sheep and for hogs are roofed, and the whole yards are divided by streets 
and alleys, some of them paved and many of them planked, as are also 
most of the pens. 

After the stock is driven to a pen and there locked in, the consignee 
gives on a printed card, furnished by the company, an order for the 
quantity of hay or of com wanted for the stock, and it is allowed time to 
" get a good fill on." For the corn, one dollar per bushel is charged ; for the 
hay, thirty dollars per ton, and for an abundant supply of pure water from 
the artesian wells, brought by pipes to troughs in each pen, nothing is 
charged. The custom is to give the stock time to eat all it will of the 
dry food, and then allow the water to flow into the troughs. As the 
stock has, as a usual thing, been for a long time deprived of food and 
water, it is not difficult to believe that the animals will fill themselves to 
the utmost. By this means a number of pounds of corn, costing the 
owner of the stock something less than two cents per pound, and water 
costing nothing, is sold for the current price for hogs, and hay costing a 
cent, and a half per pound is sold for, it maj be, the price of the best 
beeves. It is by considering this fact the stock owner is able to reconcile 
himself to the payment of prices which have led to much angry discus- 
sion, and to various legislative investigations, with, thus tar, no change 
for the relief o f the oppressed. It has been repeatedly shown that in 
the principal Western stock yards the charge made for the use of the 
many conveniences furnished are uniform. In the Kansas City, the St. 
Louis and Chicago Stock Yards, twenty-five cents each pays for yarding 
cattle, and eight cents each pays all yard charges on sheep and hogs. 
There is for feeding and watering no charge other than that included in 
the price for the corn or the hay. In some of the Eastern markets fifty 
cents per head is charged for yardage on cattle, and fifty dollars per ton 
for hay. 

After the arrivals have filled themselves to the utmost they are ready 
for sale, unless the salesman decides to sort them before offering them to 
the buyers, many of whom purchase for some particular market or 
especial purpose, for which a certain description only of stock is suitable. 
The necessity for assorting is growing, especially in Chicago, where the 
greater part of the stook received is thus 'sorted. This assorting is an 
important matter in the hog trade, as through it a skillful sorter can make 



94 LAWS OF TRADE. 

a great difference in favor of the buyer if the salesman can be made to 
consent. Soon after the sale is made the stock is weighed, the date of 
the transaction, the number of the division and of the scale, the name cf 
the buyer, the seller and the weighmaster, together with the number and 
weight of the animals being given upon a card furnished for the purpose 
by the company. After the price at which the stock^was sold has been 
marked upon the back of the ticket it goes to the clerks in the office of 
the salesman, and by them is taken to the office of the Stock Yards Com- 
pany, and when the buyer is financially responsible and has made suitable 
arrangements there, and a duplicate showing, substantially the same 
things, as appear upon the ticket, is given under the signature of the Sec- 
retary and the official stamp of the company. This duplicate is then 
taken by the clerk of the salesman to the office of the buyer to obtain his 
signature, after which it is deposited, like any check or draft, to the ac- 
count of the party making the sale. If the buyer has not made an ar- 
rangement at the bank here for the payment of his duplicate, he pays in 
the office of the seller for the stock, and receives an order for its' delivery 
to him. To buyers of known responsibility what is known as an " open 
order" is given by the commission man or broker, and upon the strength 
of this open order, stock consigned to the firm giving it can be taken 
without a written order from the yards, thus saving a vast amount of 
bother. 

As soon as the duplicate is received, or the order given for the de- 
livery of the stock, an account is rendered and the net proceeds start on 
the way to the consignor, except when directions from him have changed 
the usual course. Often the money for a consignment is in the hands of 
the owner before the commission man receives pay for the stock. Many 
shippers to this market use all their available means in buying a lot of 
stock, and to them the prompt remittance of the proceeds of a sale is 
most important. This the sharp competition between the commission 
houses here insures. 

There are attending each consignment of stock back charges, pay- 
ment of which is assumed by the Stock Yards Company. To these are 
added the bills for yardage, for hay or for corn. For these the stock is 
held, and will not be released until the account is paid, except when the 
house selling the stock has given bonds to the amount of ten thousand 
dollars to secure the company against losses. In each case the charges 
are allowed to accummulate until the end of the week, and the total is 
collected, usually on Monday. 



UNION STOCK iARDS. 95 

Such is, briefly and very plainly stated, the usual courso cf business 
at the greatest live stock mart the world has ever known, but behind this 
are many peculiarities which would no doubt be interesting to the busi- 
ness public. Like other lines of trade this has its disagreeable features 
Losses are by no means infrequent, although in theory the commission 
business should be safe. Some shippers make an arrangement when they 
draw upon correspondents here, for what is supposed to be something 
less than the stock will sell for on this market. If the stock " pays out " 
the balance, if any, is sent to the shipper. If it does not " pay out" the 
balance is often left standing on the books of the salesman here until 
another consignment is lucky enough to cancel the account. Practically, 
the commission man who honors a draft buys stock he has not seen, upon 
the judgment of others, of whose ability and integrity he may or may 
not be sure. The Texas cattle trade has been especially burdened with 
this evil, for evil it is unmistakably. One cause of loss arises from the 
custom of receiving from buyers checks upon the city banks, although 
the purpose is to sell stock only for cash. In many instances these checks 
have come back endorsed "no funds," and sometimes under circum- 
stances which left no room to doubt that the intention of the buyer was 
to defraud. Much has been said about refusing to accept any but certi- 
fied checks or the currency for stock, but it is not likely that this will be 
done until live stock brokers shall ha\ r e united for self-defence. 

In view of the fact that the live stock trade is greater than any other 
single interest in America, it seems singular that those who do the busi- 
ness of selling for others have not organized for the purpose of remedy- 
ing the evils attending the present method of doing the business. That 
such an organization could be made to overcome the evil no one seems to 
doubt, and why the matter does not command the attention of the com- 
mission merchants is a marvel. 



96 LAWS OF TRADE. 



To show the amount of business transacted at the yards, we take the 
following from the report for the year ending December 31, 1877, of 
George T. Williams, Esq., Secretary. The figures are large but less 
than those of each of the three years preceding. This deficiency in the 
receipts was mainly to be attributed to the inclement weather which 
prevailed during the closing months of the year, and which caused the 
roadways to be almost impassable: 

Cattle received during the year '. $ 1.033.151 

Hogs received during the year 4.025.970' 

Sheep received during the year , 310.240 

Horses received during the year 7.874 

Value of Cattle 44.4-25.500 

Value of Hogs 54. 337.600 

Value of Sheep 1.473.bOO 

Value of Horses . 787.400 

Total Valuation $99.024.100- 

STOCK CAPACITY. The yards will conveniently contain at one and 
the same time the following number of stock: 

Cattle 20.000 Head 

Hogs 150.000 Head 

Sheep 15.000 Head 

Horses 1.500 Head 

Total Capacity 16C.OOO Head 



The Live Stock Commission Merchants, Union 



Among the most notable features in the business machinery of the 
Union Stock Yards are the Live Stock Commission Merchants. There 
are about 70 different parties and firms at this time engaged in this line 
of business enterprise. That they are an absolute and indispensable 
necessity for the protection of the shipper of live stock there cannot be 
a doubt. Some of these firms have had a long and highly reputable ex- 
perience in the business, having started with the opening of the Yards 
for the reception of live stock in the year 1865; and are now conse- 
quently familiar with all the Various matters pertaining to this important 
business interest. Having an acquaintance with the numerous large 
purchasers for the Eastern markets, as well as those purchasing for ex- 
port as also the buyers for home consumption. It needs business firms 
of this stamp to do justice to the shipper; and the shipper of live stock 
should not entrust his business in the hands of others than this class. 
Some of these merchants did a most creditable thing years ago, when 
they were not as well posted in the business of the yards as they are 
now. Sales were then made frequently to irresponsible parties for con- 
siderable amounts. But let it be noted here to the credit of these mer- 
chants that they promptly rendered their accounts of sales accompanied 
with a check for each of the several amounts, thereby protecting the 
shipper and sustaining the losses themselves. This manly and honorable 
conduct on the part of these firms, who have in the past proven their 
trustworthiness we are pleased to learn has been appreciated by the 
dealers and shippers. As the business of the Yards is being concen- 
trated and fast passing into the hands of those firms who have been most 
throroughly tried in years past and who have on all occasions promptly 
responded to all just demands made upon them. 

Though every reliance can be placed on the correctness of the weigh- 



98 LAWS OF TRADE. 

ing to which we more particularly refer elsewhere, it should be remem- 
bered that this and all matters come under the vigilant eye of the com- 
mission merchants or their representatives from the moment the live 
stock is received in the Yards until it is sold. And everything is so 
minutely and systematically arranged that the shipper has no further 
trouble after he has arrived at the Yards and has passed his stock over 
to the hands of the merchant. The charges for the sale of live stock as 
a rule, are fifty cents per head for cattle, and six dollars a car load for 
hogs and sheep. The returns for the sale of stock are either handed 
over, or forwarded to the shippers the same day the stock is sold. 




UNION STOCK YARDS. 99 

A. GREGORY. H. H. COOLEY. L. R. HASTING. E. D. DOTY. 




-) COMMISSION DEALERS IN ( 



Ijl 












Room 58 Exchange Building, 

UNION STOCK YARDS, 

CHICAGO, ILL. 



Having been engaged in the Live Stock Commission business for 
the past twenty five years, we have grown up and been identified uith 
the trade from its infancy, and haviny ample means, are enabled to 
make liberal advances on consignments, and make prompt payment 
forall sales made. 

We also, have a branch office, at Denison, Texas, for the handling 
of Texas Cattle. 



REFERENCES: 

Union Stock Yards National Bank, .... U. S. Yards, CHICAGO 

Corn Exchange National Bank, - " 

First National Bank, " 



THE PACKING HOUSES. 



On the Western limits of the Union Stock Yards are located the 
Packing Houses, about thirty in number. They are huge in their dimen- 
sions, some of them measuring 400 by 400 feet, and spread over a vast 
area of ground, in fact the territory they occupy is sufficiently extensive 
to make a fair-sized city. 

While it is generally known that Chicago is the principal meat pack- 
ing point in the world, the idea exists in a vague form, and there are but 
comparatively few people who have a knowledge of the immensity of 
this branch of business enterprise. Hence the importance of presenting 
to our readers, facts and figures thereupon. 

With this object in view we have taken the pains to obtain reliable 
information concerning this great industry, one of the chief elements of 
Chicago's remarkable growth and prosperity. To show the yearly pro- 
gress of the packing business in Chicago we append a table of statistics 
giving the aggregate number of cattle and hogs packed in each year 
since 1853: 

SEASON. CATTLE. HOGS. 

1853 24,663 44,156 

1854 25,431 52,849 

1855 23 691 73,694 

1850 28,972 80,380 

1857 14,971 74,000 

1858 34,675 99,263 

1859 45,503 179,685 

1830 51.606 151.339 

1861 34,624 271,805 

1862 53,703 505,691 

1863 59,687 970.264 

1864 70,08<> 904,659 

4865 92,459 760,514 

1866 27.172 507.355 

1867 25.995 639,332 

1868 35.348 796,226 

1869 . 26,950 f>!7.!i.>t 

1870 11,9615 6S8.140 

1871 21.254 919.197 

1872 1H,080 1.825,236 

1873 15,755 1,-J5K,650 

1874 21,712 1,8*6.560 

1875 41,192 ->. 136.710 

1876 63,7*3 -'.320,846 

1877 5)2,574 3.079,749 



UNION STOCK YARDS. 101 

The provision trade of this city has grown more rapidly within the 
past ten or twelve years than any other, and Chicago is now conceded by 
all to be the centre, and to a large extent the regulator of this vast busi- 
ness interest. The area of territory from which live stock is drawn to 
this market is constantly extending, the newly-settled States and terri- 
tories contributing largely to swell the volume of our receipts. 

The packing of hogs has quadrupled within the time specified, as 
has also the quantity of meats sent to this market for sale. The business 
gives employment to immense lines of capital and to thousands of per- 
sons, from the highest order of commercial talent to the lowest class of 
laborers, and from present indications promises to be one of constant 
growth; in the near future far surpassing its present grand proportions. 
The trade in provisions, besides being largely for consumptive demand, 
has also become one of a speculative character, the latter class of opera- 
tions being largely confined to mess pork and lard. The magnitude of 
transactions in these articles, is to conservative merchants of the old 
style decidedly startling, but these are conducted with less of friction, 
and probably with more generally satisfactory results, than similar opera- 
tions in grain. The business of some of these packing and provision 
companies is so stupendous as to be almost incredible. And yet we 
are only stating facts. In the busy season, their daily payments for hogs 
and cattle amount to from $50,000 to $150,000. And during four or five 
consecutive months they will have slaughtered on an average 7,500 to 
8,000 hogs a day. The wonder is where they all find a market for con- 
sumption, but it should be remembered, their field is the world. Besides 
a heavy and increasing export trade to all the markets of Europe, the 
shipments to the South, "West to California, and East to New York and 
New England are constant and very large. 

The business of packing is now carried on both during the summer 
and winter. The summer packing is comparatively a new feature of the 
trade, but it is now pursued with entire success. Experience having 
satisfied packers that pork put down in summer is quite as good and pos- 
sesses equal keeping properties to that packed in winter, and that there 
is no more danger, if proper care be exercised of the product souring or 
deteriorating in quality in summer than in winter. Hence the business 
of summer packing is now regarded as a fixture, as the summer packed 
meats have grown in favor, both in this country and Europe. So that 
there is not now, as heretofore, a long vacation observed, lasting from 
March to October. 



102 LAWS OF TRADE. 

The progress that Chicago is making in this branch of industry and 
trade, is unprecedented. For twenty-five years, with slight variations, 
there has been a steady and increasing growth. It is well known at this 
time, that for the season, as it is termed, for 1878, the packing of hogs 
will approximate about four million five hundred thousand. This is a 
large increase over the preceding season for 1877. It is however confi- 
dently predicted by those engaged in the business, that the time is not 
far distant in the future, when the packing of hogs in this city will have 
reached the extraordinary figure of ten million, during what is regarded 
as the packing season or seasons for the year. But as regard the volume 
of business in this particular business enterprise, Chicago stands to-day 
without a rival. She has so completely overshadowed all other points, 
that they can not be mentioned as competitors. 






UNION STOCK YARDS. 103 



TRANSIT HOUSE 



UNION STOCK YARDS. 



The " Transit House " located at the Union Stock Yards, built ex- 
pressly for the accommodation of Stock dealers. Is a massive, and quite 
pretentious fivestory and attic brick structure with cupola, which is sur- 
rounded by a veranda, from which the guests of the House can have a 
magnificent view of the yards, together with a panoramic sight of the city 
of Chicago, and the Lake. It is furnished neatly and comfortably through- 
out, and some of the rooms have the convenience of hot and cold baths. 
The table at all times is excellent, and the meats are of that superior 
order, that the most critical epicure can have his sensitive taste satisfied 
here. 

The charges for the accommodation afforded are very moderate, 
ranging from $1.50 to $2.00 per day, and from $6 to $14 per week. 
Meals 50 cents each. There are both steam and horse car conveniences 
running to and from the city, giving to the guests every opportunity to 
visit places of amusement during the evening. Telegraphic reports of 
stock to arrive, are received daily. 



104 LAWS OF TRADE. 



THE UNION STOCK YARDS NATIONAL BANK. 



The Union Stock Yard's National Bank is an unpretending one- 
story building, which adjoins the " Exchange." It is, however, an 
important and effective auxilliary in facilitating the general business 
of the Yards; and the amount of business transacted here is simply 
enormous, reaching as high as one hundred, and twenty million dollars an- 
nually. Such an institution was an absolute necessity and had therefore 
to be provided. Since its establishment, the enterprise has proven a 
grand success, and is receiving the support of all the prominent live 
stock dealers in the West. The institution has been admirably managed 
by its former cashier, E. S. Stickney, Esq., but who has since the decease 
of the former President, Mancell Talcott, Esq., succeeded to the Presi- 
dency, Mr. Stickney has proven himself to be an able financier, and it 
may be said that it has been mostly through his instrumentality that the 
Bank has secured the favor and confidence of the Banking interests of 
the entire country. Whilst Mr. Stickney has with marked ability man- 
aged the executive duties pertaining to his official position, it is but 
proper to say, he has behind him a board of directors, who are as able 
and discriminating in judgment on financial affairs as any other set of 
men in the country. And it is through such management of its affairs 
that the Bank has so justly earned its high character for being one of the 
soundest and best managed financial institutions in the country. 




TRANSIT HOUSE. 



Lumberman's Exchange of Chicago. 

(Chartered by the State of Illinois, April 2d, 1869.) 



Officers and Committees for the year ending the first Monday in 

March, 1879- 



OFFICERS. 

THADDEUS DEAN, President. 

JOHN MCLAREN, - Vice President. 

GEO. E. STOCKB RIDGE, - Secretary. 

A. G. VAN SCHAICK, - - Treasurer. 



DIRECTORS. 

THADDEUS DEAN. HORACE W. CHASE. ROBERT L. HENRY. 

MALCOLM MCDONALD. A. P. KELLEY. S. K. MARTIN. 

A. G. VAN SCHAICK. ALEXANDER OFFICER. S. A. IRISH. 

B. F. FERGUSON. I. K. HAMILTON. C. C. THOMPSON. 

JOHN MCLAREN. 

COMMITTEE OF ARBITRATION. 

J. B. Thompson. J. H. Skeele. Jas. H. Swan. 

Jas. McMullen. M. B. Hull. 

COMMITTEE OF APPEALS. 

Jas. C. Brooks. T. W. Harvey. Geo. E. Wood. 

E. K. Hubbard. Wayne B. Chatfield. 

EXECUTIVE AND AUDIT COMMITTEE. 

Jno. McLaren. S. A. Irish. I. K. Hamilton. 

COMMITTEE OF INSPECTION. 

Malcolm McDonald. S. A. Irish. Alex. Officer. 

B. F. Ferguson. S. K. Martin. 

COMMITTEE ON DOCKS. 
Jno. McLaren. S. A. Irish. A. G. Van Schaick- 



LUMBERMAN'S EXCHANGE. 107 



The Past and Present Executive Officers of the 
Lumberman's Exchange. 



T. M. Avery, the first president of the Lumberman's Exchange* 
was elected to the chair in 1869 for the year ending the first Monday in 
March, 1870, and has been succeeded in each of the subsequent years 
since that date by 

Artemas Carter during 1870 and 1871, 

W. D. Houghtaling 1871 " 1873, 

A. G. Van Schaick " 1873 " 1874, 

William Blanchard " 1874 1875, 

A. C. Calkins 1875 " 1876, 

Thaddeus Dean " 1876 1877, 

Malcolm McDonald " 1877 1878, 

Thaddeus Dean 1878 1879. 

W. L. Southworth was the first Secretary, and continued to occupy 
that position from 18G9 to 1874, at which date he was succeeded by George 
E. Stockbridge, who still performs its official duties. 

All of the gentlemen who have occupied the Chair are still living, 
and largely engaged in the lumber trade, with the exception of Artemas 
Carter, who died honored and respected by all who knew him on May 
10th, 1877. 



108 



LAWS OF TRADE. 



RECEIPTS AND SHIPMENTS OF LUMBER, 

From 1847 to 1877, inclusive. 



YEAB. 


RECEIPTS. 


SHIPMENTS. 


Lumber, feet|8hlngles,No. 


Lumber, feet|Shingles,No 


1847 


32,118,225 
60,009.250 
73,259,553 
100,364,779 
125.056,437 
147,816,232 
202,101,078 
228,336,783 
306,547,401 
456,673,169 
459,639,198 
278,943,000 
302,845,207 
262,494,626 
249,308,705 
305,674,045 
413,301,818 
501,592,406 
647,145,734 
730,057,168 
882,661,770 
1,028,494,789 
997,736,942 
1,018,998,685 
1,039,328,375 
1,183,659,280 
1,123368,671 
1,053,952,155 
1,157,194,432 
1,039,785,266 
1,066,462.361 


12,148,500 
20,050,000 
39,057,750 
55,423,750 
60,338,250 
77,080,500 
93,483,784 
82,061,250 
108,647,250 
135,876,000 
131,830,250 
127,565,000 
165,927,000 
127,894,000 
79,356,000 
131,255,000 
172,364.875 
190,169,750 
310,897,350 
400,125,250 
447,039,275 
514,434,100 
673166,000 
652,091,000 
647,595,000 
610,824,420 
517,923,000 
605,338,000 
635,708,000 
566,978,000 
546,442,000 






1848 






1849 






18iO 






1851 . 






1852 


70,740,271 
88,909,348 
133,131,872 
215,585,254 
243,387,732 
311,608,793 
242,793.268 
226,120,389 
225,372,340 
189.379,445 
189,277,079 
221,709,330 
269,496,579 
385,353,678 
422 313,266 
518,973,354 
551,989,806 
581,533 480 
583,490,634 
541.222,543 
417,827,375 
561,544,379 


55,851,038 
71,442,550 
92,506,301 
134,793,250 
115,563,2)0 
154,827,750 
150,129,250 
195,117,700 
168,302,525 
94,421,186 
55,761,630 
102,634,447 
138,497,256 
258,351,450 
422,339,715 
480,930,500 
537,497,074 
638,317,840 
666,247,775 
558,385,350 
436,827,375 
407,505,650 


1853 


1854 


1855 


1856 


1857 


1858 


1859 


1860 


1861 , ... 


1862 


1863 


1864 .- ... 


1865 


1866 


1867 : 


1868 


1869 


1870 


1871 


1872 


1873 


1874 


1875 






1876 






1877. . 


586,722 821 


170,410,785 



LUMBERMAN'S EXCHANGE. 



109 



LUMBER STATISTICS. 

The receipts of Lumber in 1877 have been 1,066,452,361 feet, and the shipments 586.722,821 feet 
The receipts of Shingles for the year have been 546,409,000, and the shipments 170,410,785. 



lows: 



The stocks on hand in the city at the begining of each of the last four years were as fol- 



ARTICLES. 




Jan. 1, 1878. 


Jan. 1,1877. 


Jan. 1, 1876. 


Jan. 1, 1875. 


Sawed Pine Lumber and Timber 


Feet. 


385 560 024 


369 380 182 


352 578 336 


344 109 373 


Hewn Pine Timber 


Feet. 




825 


' 9' 391 


'l 42 '902 


Shingles 




125 640 000 


97 467 000 


83 230 750 


81 019' ('X) 


Lath 




43'694'800 


36 823 400 


47 058*150 


39 551 850 


Pickets 




2 1 206'0" > 


3'386'617 


2's6o'98 


2 499 881 


Cedar Posts 


Number 


'380'341 


'442 '319 


4161680 


*29o' 533 















Average Weekly Prices of Lumber, Shingles and Lath, Vessel Cargo, 
during the Season of Navigation for the year 1877. 

COMPILED BY GEO. E. STOCKBRIDGB, ESQ., SECRETARY OP THE LUMBERMAN'S EXCHANGE. 



WEEK ENDING 




Choice 
Mill Run 
Lumber, 
per M feet. 


Medium 
Mill Run 
Lumber, 
per M feet. 


Coarse 
Common 
Lumber, 
per M feet. 


Ordinary 
Joists and 
Scantling, 
per M feet. 


A 

Sawed 
Shingles, 
per M. 


Lath 
per M 


April 


14 


$12 00 




ft'i >"; 










21 


1200 






557 50 








28 


12 00 












May 


, 5 


1200 






7 00 








12 


12 25 






7 00 








1!) 


12 25 






7 nn 








90 


12 25 






7 9=5 






June 


2 


12 50 






7 50 




1 on 




9 


12 00 




9 nn 


8 00 








Hi 


12 00 














913 


12 50 






7 25 




t OS 




30 


12 50 




9 9*> 


7 00 






July 


7 


12 00 






7 o 








U 


12 00 




9 nn 


7 17 1/ 








M 


12 00 




9 25 










38 


12 00 




8 50 


7 25 


1 SS 


1 n 


August , 


4 


11 75 


10 25 


8 50 


7 50 


1 85 






11 


11 75 




8 50 


7 50 








18 


12 25 






7 50 










12 50 


11 00 


8 50 


7 50 


1 85 




September 


1 


1309 


10 7> 


850 


7 50 


1 90 






8 


13 01 




9 no 


7 00 








15 


13 00 


11 50 


9 50 


7 ' 


1 95 


1 ->K 






13 50 


11 50 


9 50 


7 "50 


2 00 


1 9^ 




"( 


14 10 




9 00 


7 50 




1 


October 


6 


14 00 


11 50 


9 oo 


8 00 


2 00 


1 Of; 




13 


14 00 


12 00 


9 50 


8 25 


2 1-21/ 


1 25 






1400 


12 00 


9 KQ 


8 75 


2 5 


1 25 




7 


14 12 


12 00 


9 50 


8 75 


> 25 




November 


8 


14 0054 


12 50 


9 50 


8 00 


2 25 


1 25 




10 


14 50 


12 25 


9 50 


7 50 


2 25 


1 25 




17 


15 50 


I 9 00 


9 50 


7 75 


2 25 






"I 


15 50 


12 00 


9 50 


7 75 


225 


1 50 


December 


1 


15 00 


11 50 


950 


7 75 


2 25 


1 60 




8 




11 00 


950 


7 50 


225 


1 fin 



















Lumberman's Exchange, 

And the Lumber Trade of Chicago. 



Keeping pace with all other commercial interests of the city until 
the business attained prodigious proportions, the lumbermen of Chicago 
found it a necessity to. organize, in the year 1869, "The Lumberman's 
Exchange," and gave the reasons therefor in the preamble to the rules 
and by-laws governing the association, which are herewith given. " Chi- 
cago having become the great lumber market of the Northwest, situated 
midway between the pineries ot the lakes and the sections that are desti- 
tute of lumber, enjoying unsurpassed facilities of transportation, both by 
lake and railway; with this vast business employing an amount of capital 
second to no other branch of trade we deem it important that an organiza- 
tion should be effected which should embrace this entire lumber interest, 
and further believing that this organization is demanded, to regulate 
transactions, adjust differences, promote fair dealing, and furnish all pos- 
sible information that can benefit its members, we hereby organize an 
association." 

The necessities for such an association were abundant, and the suc- 
cess that has attended it since its organization have proven the wisdom 
of its formation. The city of Chicago is most admirably situated for a 
lumber market. The lumber regions of Michigan and Wisconsin, inex- 
haustible as it would almost seem, are all accessible to the lakes, and 
lumber can be transported hither at a trifling expense, so that in pur- 
chasing here, dealers in remote places can do almost as well as if they 
were to transact their business in the very heart of the lumber region, 
which is many miles distant. This very fact coupled with another, that 
her merchants having an almost new and extensive part of our country 
(the Northwestern States), and which is in a very great measure barren 
of timber to supply with lumber, have made her what she is to-day, the 



LUMBERMAN'S EXCHANGE. Ill 

ONE OF THE OLDEST ESTABLISHED HUMS IN THE TRADE- 



II . H. GARDNER. JOHN SPRY. 

Gardner & Spry, 
Lumber Merchants, 

OFFICE &; YARD 

162 BEACH STREET, near 12th. 

Have constantly on hand, full and complete stocks of all grades 
of dry 



MILL RUN LUMBER from Dock, in large or small Quantities. 

&mwm 9 M%&. 

Sash, Doors, Blinds, Mouldings, Etc. 

AT LOWEST FACTORY PRICES. 

Our location enables us to obtain Cars without delay, and we 
guarantee prompt shipments. 

Customers can rely upon having their orders by mail promptly 
and carefully filled at the lowest market prices. 

Correspondence promptly attended to. Price lists upon ap- 
plication. 



11?. LAWS OF TRADE. 

greatest lumber market of the world. For many years Albany, N. Y M 
enjoyed this distinction, and is quite an important market yet, but sinks 
into insignificance when compared with the metropolis of the West. 

There are in the confines of Chicago at this time over two hundred 
establishments engaged in the business as dealers, manufacturers, com- 
mission men, and planing mill operators, and the subordinates connected 
therewith if collected together in a body, would form a fair sized army for 
invasion, and in the prosecution of this vast business there is employed 
an estimated capital of eighty million dollars both in Chicago and at the 
mills in the lumber country. 

The growth of the business from its comparative insignificance in 
the year 1847, which is shown by a tabulated statement further on, to its 
present extraordinary dimensions seem marvelous. But we might ask, 
what is either wonderful or marvelous in a city that has made such 
gigantic and unparalleled strides in commerce in so short a period of 
time as Chicago has done? Her statistics in each department of trade 
are before the world, and we leave it to such evidence, to bear testimony 
to the position she is entitled to. 

The membership of the " Lumberman's Exchange " is composed of 
nearly all of the leading lumber firms of the city, who contribute liberally 
to its support. It furnishes to the trade figures of the stock on hand on 
the first of each month, and keeps it informed of the stock of lumber and 
logs at competing points. Its management throughout the administra- 
tions of its different executive officers since its organization has been of 
so high an order that it is regarded by the trade as the model Lumber 
Exchange of the country, and its statistics are considered valuable infor- 
mation to form the basis of individual opinion at all times. 

The lumbermen of Chicago are a wide-awake, active and intelligent 
body of men, and some of them rank among the foremost business men 
of the Northwest. And it is such men that have materially contributed 
to give to Chicago her wide-spread fame for peerless enterprise, indom- 
itable perseverance and energy, business sagacity and commercial in- 
tegrity. 



LUMBERMAN'S EXCHANGE. 113 



Lumber Inspection. 



NOTE. We are indebted to Geo. E. Stockbridge, Esq., the efficient 
and esteemed secretary of the Lumberman's Exchange for the following 
information, and we herewith avail ourselves of the occasion to make our 
acknowledgments for this and other courtesies. 

There are in practice in the Chicago lumber market, three inspections, 
viz: Yard inspection, or when the seller of a cargo of lumber agrees to 
sell by the sorting of the yard to whom the lumber is sold, and the old 
Chicago Lumberman's Board of Trade of inspection, which is however 
very rarely used, and the following inspection: When a cargo is sold by 
inspection, and no inspection stated, is the legal inspection of the Lum- 
berman's Exchange and the trade generally, but ninety-five per cent, of 
all the lumber sold by cargo is sold straight measure, or as the cargo runs 
without inspection. 

On March 15th, 1875, the following resolutions were adopted unani- 
mously at a meeting of the members of the Lumberman's Exchange, 
and still continue to have legal force under this date: 

Resolved, That the rules governing the grades and qualities of 
lumber as inspected from cargoes in the city of Chicago at present in 
force, be and the same are hereby repealed. 

Resolved, That we, the Directors of the Lumberman's Exchange of 
Chicago do-hereby adopt the following as the standard for the inspection 
of lumber in this market, viz: 

All the merchantable white pine lumber shall be classified as fol- 
lows for the purpose of inspection . first clear, second clear, third clear, 
common, and culls, and boards six inches wide, shall be known as strips; 
Norway pine shall be classified as common and culls, except as herein- 
after provided. 

First clear lumber shall not be less than eight inches wide, twelve 
feet long and one inch thick, and at such width and up to ten inches wide, 
shall be free from all imperfections. If the width is twelve inches, defects 
shall be allowed that will be equal in injury to the knot of one inch in 
diameter, or sap that vill be equal to one and one-half inches on one 
surface. If the width is sixteen, defects shall be allowed that will be 
equal in injury to a knot of two inches in diameter, or sap that will h^ 
equal to two inches en one surface. If the width is twenty inches. 



114 LAWS OF TRADE. 

in diameter, or sap that will be equal to four inches in width on the 
edges. If the width is twenty inches, defects shall be allowed that shall 
be equal in injury to a knot of three inches in diameter,,or sap thit will 
be equal to five inches in width on the edges. A straight split shall be 
allowed in this quality as before, provided in boards of the width of 
twelve inches and over, and counted as one defect. % 

Third clear lumber shall not be less than seven inches wide, 
twelve feet long and one inch thick, and at such width and up to ten 
inches, defects shall be allowed that will be equal in injury to a knot one 
and a half inches in diameter, or sap that will be equal to One and a half 
inches in width on the best side. If the width is twelve inches, defects 
shall be allowed that will be equal in injury to a knot of two and a half 
inches in diameter, or sap that will be equal to two inches wide on the 
best side. If the width is sixteen inches, defects shall be allowed that 
will be equal in injury to a knot of four inches in diameter, or sap that 
will be equal to four inches wide on the best side. If the width is 
twenty inches, defects shall be allowed that will be equal to injury to a 
knot of five inches in diameter, or sap that will be equal to six inches on 
the best side. But sap in no case to exceed one-half the surface on the 
poorest side. In this quality shall be included pieces ten feet long, and 
not to have more than a due proportion of defects. Also, all pieces 
six inches wide and more than one inch thick, with not more than two 
small sound knots, or sap more than one inch in width on one side. 

First clear strips shall be six inches wide, one inch thick, and not 
less than twelve feet in length and free from all inspections. 

Second clear strips shall be the length, width and thickness of first 
clear, and may have two small sound knots, or if no knots, sap equal to 
one inch in width on one edge of one side. 

Third clear strips shall be of the width and thickness of first clear 
strips, and may have three small sound knots with sap one inch on one 
side, but if no knots, then sap equal to two inches on one side may be 
allowed to be free from rot, split and shake. First and second clear 
Norway strips of full width arid thickness, and first and second clear 
white pine strips, ten feet in length, also first and second clear strips 
rejected on account of thickness and not less than five inches in width 
shall be classed in this quality. 

Common lumber shall include all boards, planks, scantlings, strips, 
joist, timber and lumber not otherwise defined, which is not as good as 
i'iird clear, but is generally of a sound character, well manufactured, of 



LUMBERMAN'S EXCHANGE. 115 

defects shall be allowed that will be equal in injury to a knot two and 
one-half inches in diameter, or sap that will be equal to three inches in 
width on one surface. 

The Inspector shall take particular notice, and shall allow a due 
proportion of defects, for all pieces of widths between, or above the given 
standard ; also shall allow additional defects as the lengths inarease 
above twelve feet long in proportion to such increased dimensions. He 
shall also allow as follows, in each of the three grades of clear lumber, 
viz: For each additional half inch in thickness, additional defects in 
proportion, that shall be equal in injury to a knot of one quarter of an 
inch more in diameter, or sap that will be equal to one-quarter of an 
inch more in width. All the pieces shall be well manufactured and of 
full thickness, and all sap to be free from black stain, that is of such 
character that cannot be removed by dressing, and no piece shall be 
allowed with more than one straight split, and that not to be over one- 
fifth the length of the piece, which shall be counted as one defect. 

Second clear lumber shall not be less than eight inches wide, twelve 
feet long and one inch thick, and at such width and up to ten inches 
wide, defects shall be allowed that will be equal in injury to a knot of 
three quarters of an inch in diameter, or sap that will be equal to three- 
quarters of an inch in width on one surface. If the width is twelve 
inches, defects shall be allowed that will equal in. injury to a knot one 
and one half inches in diameter, or sap that will be equal to three inches 
in width on the edges. If the width is sixteen inches, defects shall be 
full thickness, and free from large loose knots, and bad shakes that show 
on both sides of the pieces. Scantlings, joists and .timber must be free 
from imperfections which so weaken the piece that it cannot be used for 
substantial building purposes. Scantling, joist and timber made from 
worm-eaten logs, and pieces with a small streak -of rot, when not so badly 
damaged as to render the same unfit for ordinary uses of common lumber, 
shall belong to this quality. One straight split shall be allowed, provided 
that it does not exceed one quarter the length of the piece. Pieces that 
have not more than two auger holes which are placed near shall be 
allowed in this quality, provided they are measured in length of even 
numbers between said augur holes, and conform in all other respects to 
the requirements of this quality. No lumber under ten feet in length 
shall be considered as merchantable. 

Culls shall constitute the lowest grade of merchantable lumber, and 
shall include all lumber not as good as common, which can be used for 
ordinary purposes without a waste of more than one-half. 

The meeting then adjourned, to meet afc the rooms of the Lumber- 
man's Board of Trade on Tuesday, March 16, 1879. 



116 LAWS OF TRADE. 

GOSS & PHILLIPS MANUFACTURING COMPANY. 

LUMBER, SASH, DOORS, BLINDS, ETC. 

The chronicler of Chicago's progress meets with illustrations num- 
erous and vivid as he visits the almost innumerable prominent houses to 
be found in the city. Some of these establishments have a history of 
their own, running back many years. Others are just making a history, 
and as we first visit one and then another we find ample food for reflec- 
tion in the form of memoranda relative to the proportions and progress 
of our vast manufacturing industries. In the changes that have accom- 
panied the flight of time, many of the old lirms of to-day have been co- 
laborers in the laudable work of building up and extending the commer 
cial interests of our city, and by their enterprising efforts the numer- 
ous productive industries that have made the " Garden City" famous 
throughout this country and Europe have flourished to a degree surpris- 
ing to the manufacturers of other and less fortunate cities. 

It is well known, as we have stated, that Chicago is the leading lum- 
ber market of the world, and by reason of her unequaled geographical 
position as a distributing point, and the superior class of products turned 
out by her manufacturers, she has gained a prestige second to that of no 
other commercial centre in either hemisphere. 

Among all the establishments engaged in the lumber business and 
manufacture in Chicago, there is none more widely known or in higher 
repute than the 

GOSS & PHILLIPS MANUFACTURING COMPANY. 

This is the oldest concern in this business in the city, having been 
started in 1848 by Mr. Daniel Goss, the present Vice President of the 
Company. The trade assumed extensive proportions within a few years 
thereafter, and in 1871 a stock company was organized, since which time 
the business has attained a magnitude excelled by no similar establish- 
ment in the country. The present officers of the company are: William 
B. Phillips, President; Daniel Goss, Vice President; Cornelius Curtis, 
Secretary and Treasurer. 

In the production of sash, doors, blinds, moldings, balusters, newels, 
stair rails, etc., they transact an immense and constantly increasing busi- 
ness, having unsurpassed facilities therfor. In the department of balus- 



GOSS & PHILLIPS, Manufacturing Co. 

MANUFACTURERS OF 



SASH, 

BLINDS, 

MOULDINGS, 

STAIR 
RAILING, 
ASH, WALNUT, 

MAPLE and 
SOUTHERN 

PINE 

FLOORING, 
SIDING, 

CEILING, 




DOORS, 
STAIRS, 
BALUSTERS, 
IsEWEL POSTS, 
DIMENSION 
SHINGLES, 
PICKETS, Etc. 
DEALERS 

IN 
LUMBER, 

LATH, 
AND 
SHINGLES. 



C3 
-=3 
ZLJ3 



02 

OC2 



118 LAWS OF TRADE. 

ters, newels and stair rails they do the handsomest and most elaborate 
work of any concern in the Union. Some elegant and notable speci- 
mens of their taste and skill in this line may be seen in the Palmer 
House and the Grand Pacific Hotel, Chicago, the Fisk University, Nash- 
ville, Tenn., the residence of the British Minister at Washington, D. C., 
and the Peoria Court House as well as in many other of the finest public 
and private buildings throughout the country. 

An important auxiliary of their business is the manufacture of all 
kinds of materials for dwellings, etc., which can be transported to any 
part of the world and erecced without any difficulty, every piece being 
accurately fitted, marked and numbered. Their trade in all lines ex- 
tends not only to all sections of the United States, but to South Amei-ica r 
Australia, Southern Africa and other foreign countries. 

A new feature cf their business is the manufacture of the Behel 
patent blind, which is generally conceded to be the best and most desir- 
able blind extant. It is adapted for both outside and inside use, and 
effectually excludes rain, dust and sunlight. Its cost is but slightly in 
excess of the ordinary blinds, and it is being very extensively adopted by 
builders here and elsewhere, giving entire satisfaction in every case. 
They will furnish to applicants an illustrated circular containing full in- 
formation. They also issue descriptive catalogues of all their manu- 
factures. 

Some idea of the magnitude of their business may be formed from 
the fact that they consume in their productions the enormous amount of 
13,000,000 feet of lumber annually. Their works, located on West 
Twenty-second and Fisk streets, are the most extensive of the kind in 
the country, are substantially constructed of brick, and contain the latest 
improved machinery and appliances for the prosecution of their varied in- 
dustries. From 300 to 350 experienced workmen are now employed, 
and every department is operated *to its full capacity in order to promptly 
meet the requirements of their trade. Their docks, buildings and yards 
coVer a large area, affording conveniences and facilities for all operations. 
In addition to their manufacturing, they assort, dock, dress and ship 
largely of lumber of every grade and kind. All regular sizes and styles 
of their products are kept constantly in stock, so that orders for either 
the home or export trade can be promptly supplied. 



PRODUCE EXCHANGE. 



PRESIDENT D. RICHARDS. 

FIRST VICE-PRESIDENT .W. W. DEXTER. 

SECOND VICE-PRESIDENT CHAS. BALTZ. 

SECRETARY AND TREASURER ... JOHN E. CO WLES. 



COMMITTEE OF ARBITRATION. 

C. H. WEAVER, F. NICKERSON, 

J. M. CYRUS, NATHAN SMITH, 



A. BUTTS, A. L. TUCKER, 

J. N. ADAMS, C. C. RICE. 



DIRECTORS. 

GEORGE P. BRAUN, A. L. TUCKER. 

B. F. BAKER. C. F. DEXTER. 

A. ALBRO. 



COMMITTEE OF APPEALS. 

A. L. BARBER, N. W. HEWES, 

P. B. WEARE, HENRY HEMMELGABN, 

L. S. CHASE, L. E. FITTS, 

E. S. WATTS, JOHN P. BARRON. 



The Produce Exchange and the Produce Commission Business 



OF CHICAGO. 



The Produce Commission Merchants of Chicago, believing that, as 
an independent body of the Board of Trade, it would be mutually ad- 
vantageous to the producer and the buyer to establish a Produce Ex- 
change " to foster and protect the interests which are not represented by 
the Board of Trade, as well as to gain the advantages resulting from the 
centralization of interests by bringing the buyer and seller at once to- 
gether; thus giving to the buyer a place where he can at all times find 
property for &ale, and the seller a mart for his merchandise," perman- 
ently organized on May 9, 1874, by the adoption of a Constitution and 
By-Laws and the election of officers, the " Produce Exchange of 
Chicago." 

The advantages and objects in view to be gained in the formation of 
such an association, having under its control the equitable interests of 
both buyer and seller, and the providing to each party a suitable business 
resort, were, in every manner commendable, and imparted to the enter- 
prise an impress of stability and dignity that properly belong to a body 
of high-minded, honorable business men. And when we consider the 
steady and rapid growth of the West its marvelous progress in com- 
merce, the immensity of its productions, its ability, when commensurately 
peopled with producers, as it most assuredly will be to supply the wants 
and feed the hungry millions of the world the vast amount of business 
controlled at this time by the commission merchants, it was imperative to 
meet the demands arising therefrom that such an association should be 
organized, and we are pleased to state that since its formation it has 
fully responded to all the purposes for which it was established. 

The Chicago market offers great and unsurpassed inducements to the 
shippers'of produce of the West, possessing a net-work of railway lines 
radiating to and intersecting at all points in every direction, together with 



PRODUCE COMMISSION BUSINESS. 121 

a water route of limitless capacity which she derives froir Lake Michigan 
and the canal system to receive merchandise. She has likewise equal 
facilities for its shipment to each and all of the Eastern and Southern 
markets, and her merchants, with keen foresight and full appreciation of 
the situation to protect the interest of the shippers have made abundant 
provisions of improved facilities in the storing of all articles of produce. 
Cool and dry storage has been provided to an extent which can not be 
found in any other city of the country. And acting in concert with the 
prevailing spirit of enterprise, everything has been done that will make 
this market acceptable and advantageous both to the producer and the 
buyer. And we think it is not arrogant or undemonstrable for Chicago 
to claim that she is the Metropolis of the West. For the statistics 
of the amount of business transacted annually in all departments of 
commercial pursuits, when compared with those of other cities, estab- 
lish the fact that she is pre-eminently the center of trade of the West. 
And with the knowledge that the great and rapidly growing States of the 
North West are emptying their varied productions into her lap, induces 
the buyers from all parts of the country to make this market their ob- 
jective point for their operations. In the very nature of things Chicago 
is destined ever to be the great depot and distributing point for the agri- 
cultural products of the West and her hundreds of enterprising and 
reliable commission merchants are determined to keep abreast of the re- 
quirements of this constantly expanding traffic. 

The "Produce Exchange" is in its infancy, but for the same period 
of time since its organization, the association has shown more vitality 
than did the Board of Trade in its early years. Its government and its 
future permanency, is in the hands of men of large experience in this 
line of industry, who we doubt not will prove themselves tobe as wise and 
sagacious as were those who thirty years ago first laid the foundation of 
the Board of Trade. And that Chicago will regard the association with 
equal pride Mr. D. Richards who was chosen President, at the annual 
meeting held in the month of May, 1878, is a gentleman most favorably 
known, having been engaged for the past twenty years in this city as deal- 
er in Butter and Cheese, and so extensive has his business been, that he 
is not only known throughout our own country, but is equally as well 
known in Europe. Many years ago, when western butter was far infer- 
ior to the quality that comes from our creameries to-day, Mr. Richards 
was engaged in shipping to Europe grease butter, which was .used for 
greasing sheep in the highlands of Scotland. This grade of butter was 



122 LAWS OF TRADE. 

the only one that was permitted to land free of duty on the shores of the 
"tight little island j" better qualities of butter was charged 20 per cent, 
duty. And the inspectors in those days, so as to avoid, imposition being 
practiced upon the revenue laws, when butter was received at the Cus- 
tom House, resorted to the practice of steeping. a rod or stick into hot 
tar, and then run it through the packages so as to make it grease butter 
whether it was or not. In subsequent years Mr. Richards has been one 
of the principal packers and shippers of fine grades, and of second qual- 
ity of butter suitable for the table, as also for bakers use, for which there 
was always a large demand. But the West, always progressive, takes 
precedence in the quality of her Butter over all other sections, the yield of 
her creameries ar^ now regarded in New York as in all other markets as 
superior to any butter no matter from whence it comes Mr. Richards 
with his long experience still continues to make a specialty of butter and 
cheese is engaged in shipping to all points, mostly in car lots. He 
is regarded as one of the very best judges of butter in the country. He 
was selected by the butter dealers as one of the judges, in connection 
with Captain Hunter, of the firm ^of Hunter, Walton & Co. of New York 
city, a well known expert, at the "Fair" held at Uhlich's Hall, in the win- 
ter of 1877. At which place he demonstrated the superiority of his judg- 
ment by marking on the same line of butters which had been selected by 
Eastern experts. 




We copy the following from the minutes of a meeting of the mem- 
bers of the Produce Exchange: 

The vexed question as to the size and style of the fruit package to 
be hereafter used in this market seems to have been practically settled 
at last by the joint action of the Produce Exchange and the city authori- 
ties. The former organization recently passed the following preambles 
and resolutions by an almost unanimous vote: 

"WHEREAS, The question of packages of fruit has been for the past 
two years thoroughly agitated in both city and country, to such an extent 
in the city that the City Government felt compelled to pass ordinances 
last season in relation thereto, and in many country places dealers in 
small fruits are compelled to empty out of boxes and measure up by the 
' quart to satisfy their customers, and, 

WHEREAS, Although the city authorities have been defeated before 
the courts on the ordinances passed last season, they still propose to pass 
such ordinances as will stand the test of the law; and, 

WHEREAS, If such ordinances should be of a condemnatory nature 
by inspectors appointed by the city authorities, which is not improbable, 
it would lead to great annoyance and loss to the shippers; and, 

WHEREAS, Manufacturers have not yet made the packages for the 
coming season's fruit, nor have the growers yet bought them; and, 

WHEREAS, We fully believe it is for the Interest of the fruit trade 
generally, and each individual shipper as well, to have all fruits put up in 
full-sized packages, and to be of good uniform quality, be it 

Resolved, That we, the fruit commission men of Chicago, assem- 
bled, do strongly and unqualifiedly recommend to all our shippers that 
they use for all small fruits the full quart-box of sixty-seven cubic inches, 
we fully believing that it can be used for transportation as well as any- 
thing smaller, except for red raspberries, and for them we as strongly 



124 LAWS OF TRADE. 

urge full pint. We most heartily condemn the " so-called " one-third 
quart box, or the use of pint boxes for anything except red raspberries. 
For all Southern fruits, such as peaches, pears, etc., we recommend the 
continuance in use of the third-bushel box as being the best. For Mich- 
igan fruits of similar kinds we cannot too strongly urge the use of the 
full-peck basket only. It is sma 1 ! enough for any trade, and if the fruit 
is of uniform quality through the basket no one can complain. Whortle 
or blueberries come to our market in all sizes of boxes and drawers- 
The least we can recommend our shippers is to measure the packages 
fairly and mark the number of quarts contained in such package plainly- 
It causes you but little trouble, and saves us a great deal of guessing, 
and our customers from a great deal of fault-finding. 

Resolved, That in the shipment of fresh vegetables, that which 
purports to be a bushel-box shall hold a bushel ; much fault has been 
found with these packages the past season. 

Resolved, That a barrel of apples shall be three bushels. The bar- 
rel certainly should not be less than a full-sized flour barrel. 

Resolved, That in the future in making and quoting the market, the 
price shall be given on full measure packages. Short measure wil be 
sold in proportion. In other words we do not expect to get any more 
than its proportionate value for any fruit packed in less than the full-sized 
package . 

Resolved, That we have no doubt but that the Common Counsel of 
Chicago will pass further ordinances on this question ; and if they should 
be of a condemnatory nature, the only thing we could do would be to 
send you the inspector's certificate in place of an account of sales. 

Resolved, That we do not countenance any deception in quantity or 
quality of fruit, either in original packages or re-packed here. 

Resolved, That we extend the hand of cordial fellow-ship to all of the 
shippers that in the past have used the full-sized package arid taken pains 
to properly pack their fruit. We know it has paid you better to do it, 
it pays us better to handle it, and pays the consumer that uses it, and we 
hope the coming season, will see it the rule, and not the exception. 

The following resolution was also adopted and a committee ap- 
pointed : 

Resolved, That the Chair be authorized to appoint a committee of 
five, to confer with the City Law Department and the Judiciary Com- 
mittee of the Council in regard to the differences that do fexist, and that 
may arise between the wholesale fruit dealers, and the city authorities. 



PRODUCE COMMISSION BUSINESS. 125 

.The City Counsel on Monday evening, February 18th, 1878, adopted 
the following Ordinance on the same subject, which has received the 
Mayor's signature and thus become a law : 

Be it ordained, etc. : SECTION 1. All fruits and berries sold or offered for sale 
within the City of Chicago to consumers or to retail dealers within the said city 
shall be sold and offered for sale only by barrel, bushel, or some aliquot pait <>f a 
bushe), according to the table of dry measure, or in packages which contain in full 
measure a barre', a bushel, or some aliquot part of a bushel, according to the table 
of drv measure.", or by the pound: Provided, that for fru'ts the package known to 
the Chicago msrket as a third of a bushel box may also b used ; and provided fur- 
ther, that this >ec:tion shall rot apply to dry, preserved, or pickled fruits or berries, 
or to the sale of fruits retailed at a fixed price per piece or number. 

SEC. 2. All fruits and berries, fresh or dried, sold or offered for sale in the city 
of Chicago in packages shall be substantially of equal goodness in every part of the 
package; any package of fruit packed so as to be in violation of this section shall be 
subject to seizure and condemnation by the health officers of the city as deleterious 
to public health. 

SEC. 3. Any person who shall sell or offer for sale by the package within the 
city of Chicago any fruit or berries in packages not of the size and description re- 
quired by the first section of this ordinance, or who shall sell or offer tor sale any 
fruit or berries in packages the contents of which are not substantially of equal goodness 
throughouc the package, contrary to the second section of this ordinance, shall, upon 
conviction, be fined not Ies3 than $5 nor more than $25 for every such violation. 

SEC. 4. The ordinance fntitled "An ordinance to regulate the selling of fruit?, 
berries, etc.," passed May 21, 1877, approved May 24, 1877, is hereby repealed. 

SEC. 5. This ordinance shall be in force from and after its passage. 

It is earnestly hoped that country growers and shippers will cheerfully 
accept the situation, and in buying their berry baskets will take care that 
they are of full quart capacity, and their peach baskets full pecks. Any 
other course must result in great annoyance to the trade, and loss to the 
shipper as well. The state of public feeling, and the attitude of the city 
authorities, is such that the quart box and peck basket will be the meas- 
ure of value, and boxes and baskets not up to this* standard will be dis- 
criminated against, and will only be salable at much lower prices than 
the full measure. Hence it is for the interest of every grower to take 
immediate steps to fully comply with the law. There is no doubt that 
every shipper will receive as much for his crop under the new system as 
he did under the old." 

By order of the Directors. 

JOHN E. COWLES, Secretary. 



126 LAWS OF TRADE. 

Game Law of Illinois. 



SECTION 1. Be it enacted by the people of the State of Illinois, repre- 
sented in the General Assembly: That it shall be unlawful for any per- 
son or persons to hunt or pursue, kill or trap, net or snare, or attempt to 
kill, trap, net or snare or otherwise destroy any wild buck, doe or fawn, 
wild turkey, prairie hen or chicken, ruffed grouse (commonly called par- 
tridge or pheasant), between the first day of January and the fifteenth day 
of August in each and every year; or any quail between the first day of Jan- 
uary and the first day of October in each and every year; or any woodcock 
between the first day of January and the first day of July of each and every 
year; or any wild goose, duck, Wilson snipe, brant, or other water-fowl be- 
tween the fifteenth day of April and the fifteenth day of August in each ?nd 
every year; and every p.erson so offending shall, for each and every of- 
fense, be deemed guilty of a misdemeanor, and on conviction shall be 
fined in any sum not less than ten dollars, nor more than twenty-five dol- 
lars and costs of suit, and shall stand committed to the county jail until 
said fine is paid; provided that such imprisonment shall not exceed ten 
days. 

Sections 2, 3, 4 and 5 not of special interest to merchants. 

SEC. 6. No person or persons shall sell or expose for sale, or have 
in his or their possession for the purpose of selling or exposing for sale, 
any of the animals, wild fowl or birds meutioned in Section 1 of this act, 
after the expiration of thirty days next succeeding the first day of the 
period in which it shall be unlawful to kill, trap, or ensnare such animals, 
wild fowl or birds, and any person so offending shall, on conviction, be 
fined and dealt with as specified in Section 1 of this act. 

SEC. 7. The provisions of this act shall not be construed as appli- 
cable to any Express Company or common carrier into whose possession 
any of the animals, wild fowl or birds herein mentioned shall come in the 
regular course of their business, for transportation, whilst they are in 
transit through this State from any place without this State where the 
killing of such animals, wild fowl or birds shall be lawful. But, notwith- 
standing, the having or being in possession of any such animals, wild 
fowl or birds as are mentioned in Section 1, upon any of the days upon 
which the killing, entrapping, ensnaring, netting, buying, selling 1 , or 
having in possession any such animals, wild fowl or birds, shall be un- 
lawful by the provisions of this act, shall be deemed and taken as " prima 
facie " evidence that the same was ensnared, trapped, netted or killed in 
violation of this act. 



PRODUCE COMMISSION BUSINESS. 127 



Instructions for Packing Butter. 



We -wish to impress upon the minds of Western dairy-men and 
makers of butter the necessity of paying strict attention to this great in- 
terest, which |is yearly growing in magnitude, if they wish to compete 
with other sections. The packing and package used are almost as essen- 
tial points as making, and this fact should be remembered. Of course, 
all packages of butter are not alike, and cannot all be sold at the same 
price, but a little more care and attention paid in this respect packing 
would do considerable towards bringing about more uniformity in 
prices. Very often commission merchants receive complaints from coun- 
try shippers, stating that their butter was as good as their neighbors', 
which was sold as choice, and probably 2@5c. higher than theirs. This 
may be so in their estimation, but other parties may differ; their neigh- 
bors' butter may have been put up in more desirable packages probably 
new tubs while theirs was packed in jars or old tubs. Then, again, 
their butter may have been streaked probably only the least trifle, while 
their friends' may have been straight and uniform in color all which 
would naturally tend at times tc make a wide difference in price and 
create dissatisfaction. Parties should be careful and pack butter uniform 
in color, and should particularly remember the fact that streaked lots 
no matter how sweet and choice cannot be brought in competition with 
lots running uniform in color; the latter always commanding a much 
quicker sale at a fair premium, and in every way compensating dealers 
for their extra labor and care. Another fault is that a large portion of 
the butter during hot weather turns sour and rancid very suddenly some- 
times before being received, although it may have left in good and sweet 
condition from whence it was sent. This fault lies in the power of 
makers to remedy to some extent. For instance, the cream may have 
stood too long, or not worked sufficiently to take out all the buttermilk, 
while another fault would be in not salting properly. These minor 
points, although but trifling at first, are more noticeable after they have 
gone through first hands and finally reach other markets. The packing 
and packages used are, however, of no secondary account in the matter 
of realizing the best market prices, and during hot weather particularly 
should shippers be especially careful in regard to packages. Jars and 
pails should be avoided as much as possible, the former costing more 



128 LAWS OF TRADE. 

freight, besides being a package not easily handled. In handling at the 
stations and express offices, and even in forwarding, jars and pails are 
often placed on top of each other, and as there are no covers for protec- 
tion, the quality is materially damaged by defacement, and the price is 
considerably lessened. Tubs and firkins should be used exclusively, but 
in tubs some discrimination is made. The New York ash tub is taken in 
preference to others on account of its neater appearance, though some 
parties use home-made tubs, which they claim answers their purpose. 
Another reason why these tubs are becoming more in favor on the part 
of dealers is the fact that they sell more readily to shippers, and parties 
can also more readily agree on tare if a certain make and tub is used to 
which they are accustomed. Therefore tubs and firkins are recommended 
10 be the most desirable, and in the end the most economical packages 
used. In packing parties should be careful to soak their packages well 
before using. In making always use the best salt Higgins' Factory- 
filled Dairy is most generally used. Parties should be careful to pack 
their butter solid, completely filling the packages, and spread a piece of 
clean, new bleached cotton cioth over it, dipped in brine, neatly tucked 
in at the edges, so when removed it will not damage appearance. An- 
other fact which we wish to call the attention of farmers and makers of 
butter to is that they should buy their own packages and pack their own 
butter in original packages, so as to do away with this country second - 
handed repacking business, which causes so much streaked butter. 



Advice to Shippers of Butter. 



Commission merchants complain that considerable " made-over " 
butter is being consigned to this market, the bulk of which they find 
very difficult to sell, and in most cases can only be disposed of at a loss 
to the shipper. This is not, of course, applicable to all " made-over " 
butter that is received from the country, but more particularly that from 
country store-keepers, who think that by a certain patent process, and 
the use of patent machinery and by coloring, they can turn common and 
fair grades of butter into A No. 1 quality. To those who are not versed 
in the business and do not give it their sole attention, let this bit of ad- 
vice suffice " let well enough alone " for by endeavoring to re-work a 



PRODUCE COMMISSION BUSINESS. 129 

fair lot of solid butter for the purpose of improving the qxiality by the 
aid of machinery and coloring, they generally make a failure of it, and 
when it is sold here will only command low-grade prices. A good qual- 
ity of solid butter, no matter if not particularly straight and uniform in. 
color, can, if sweet, be sold to the local retail trade; but after going 
through this patent process and coloring up, it is generally refused by 
this class of buyers, while shippers and re-packers refuse to buy. except- 
ing at low-grade prices, as it is not worked to their satisfaction, and they 
prefer to do their own re-packing. A practice prevails in the country of 
re-packing common and good qualities; country dealers thinking that by 
working the two grades into one they can sell the entire lot for a good 
price. In this they are mistaken, as dealers here know the difference 
between a good and a poor quality. Hence the best policy is to ship 
butter to this market just as it is received at country points, and in most 
cases the result will bo more satisfactory to both the shipper and the 
commission merchant. It is not the fault of the merchant here if he 
cannot sell this re-worked stock at prices to let out the country shipper, 
although countrymen generally lay the blame to them, and considerable 
dissatisfaction naturally results from this source. 



Roll Butter. 



Care should be taken in packing and shipping; country shippers 
and dealers are in the practice of sending roll butter to this market in 
every conceivable package, including barrels, pine boxes, etc. The 
above-named packages should be entirely avoided, as pine will have a 
tendency to affect and flavor the butter, while barrels are too large, and 
not easily handled, besides the weight crushes the rolls. New tubs or 
hardwood boxes are the most desirable, while half barrels or kegs will 
do equally as well, and these only should be used. Care should also be 
taken before putting the butter in packages, that all the sides and ends 
of the package be lined with new, white muslin, thus keeping the butter 
from defacement by touching the wood. Another bad practice is in put- 
ting the butter up in paper; this should not be done, as the paper sticks 
to the butter and damages the appearance. Each roll should be separ- 
ately placed in a piece of new muslin cloth, washed in warm water to 



130 LAWS OF TRADE. 

take out the starch, and thoroughly wet in good brine. The rolls should 
also be of uniform color, not packing the light and fresh made with other 
that has been colored. 



Tare on Butter Packages. 



Some dissatisfaction is expressed by parties in the country in regard 
to the tare allowed by commission merchants on butter packages. This 
fault of improper tare, if there is any, is not the fault of the merchant 
here, but that of the country dealers in not allowing for sufficient soak- 
age. The tub most in use at present is the ash tub, which parties allow 
to soak, say from four to five days in brine, but after the butter has been 
packed these packages absorb sufficient to make the packages weigh 
fully one-half to one pound more. The lightest ash tubs, containing 60 
to 65 pounds ol butter, weigh, when dry, about 7 pounds, and when 
thoroughly soaked from 9 to 10 pounds, while the heavy ash tubs, which 
contain 60 to 65 pounds of butter when dry, weigh about 9 to 10 
pounds, and when soaked 12 pounds. 

Country dealers also complain that their gross weight does not hold 
out full, but that there is more or less shrinkage. This the country deal- 
ers can remedy by not putting so large a quantity of salt and brine on 
their butter. It is impossible for commission merchants to sell salt or 
brine for butter, and in nine cases out ot ten the salt has to be taken off 
and the biine let out before a sale can be made. A little caution in this 
respect will bring about a better understanding between country shippers 
and commission merchants. 



Instructions to Shippers. 



Shippers of produce would do well to carefully observe the follow- 



PRODUCE COMMISSION BUSINESS. 131 

ing instructions, which will be advantageous to both the shipper and 
commission merchant. 

All articles should be packed in clean packages, and care should be 
taken to pack articles as neatly as possible. 

Articles which are sold by weight should have the gross and tare 
marked plainly on each package, and those sold by count should have 
the number. 

In shipping dressed poultry and game, mark each package with the 
various kinds and amount contained in each package. 

The address of the commission merchant should be marked plainly 
with marking-ink on each package, also from whom consigned; nail or 
tack an invoice on each package, and also send an invoice by mail. 

Country shippers should also make it their aim to send none but 
choice articles to this market, if they wish to obtain ready sales. Poor 
lots, not fit for use, and such which country shippers would not use them- 
selves they being good judges should not be sent here to trouble and 
pester our merchants. 



Game for Shipment. 



Pack solid without gutting in layers, in boxes or barrels, smoothing 
each bird down nicely; use neat packages; put your count on each bar- 
rel or box. 

Woodcock and snipe should never be gutted, and woodcock need 
heavy icing. 

Bear should be shipped whole carcass, and gutted. 

Deer in carcass, always gutted, and leave horns on; but when 
skinned, hind quarters or saddle, wrap up in clean white cloth, or skin 
out the fore quarters and fold back the skin over the hind quarters and 
tie up. 

Antelope only pays to ship hind quarters, wrappi-d up in whole hide. 

Elk and buffalo, only ship hams cut from the calf; the but and heavy 
cow are not worth shipping; wrap up in clean white cloth. Rabbits, 
never gut or skin. 



132 LAWS OF TRADE. 

Mountain sheep, ship whole carcass gutted, not skinned, leaving 
horns on. 

Wild pigeons, dressed should not be gutted, but if crop is full 
should be pulled off with the head and neck, and the wings chopped off 
close, or leave one joint. Feathered wild pigeons, pull the tail feathers 
and chop off the wings; in warm or doubtful weather both must be well 
iced between each or alternate layer of birds; use tight packages. 

Live pigeons should have a supply of corn, well soaked, placed in 
their coops, if coming any distance, and coops should have two bars on 
top of each coop lengthwise, to keep them, when piled on top of one an- 
other, at least three inches apart, to prevent suffocation; not over fifty 
or sixty birds in a coop. 



How to Kill and Ship Poultry. 



Poultry should never be killed by the wringing of the neck, but 
should be killed by bleeding, by means of opening of the veins, or by 
cutting off the head, so as to let them bleed freely. If the latter be 
done, care should taken and draw the skin over the neck and tie secure 
before shipping. Deface the neck as little as possible, as the looks will 
materially aid in bringing outside prices. Poultry should be picked dry, 
which can easily be done by plucking before the bodies are cold, which 
always give poultry a nice appearance. However, when scalded, the 
water should be as near boiling as possible, and yet not really boil. The 
poultry should be dipped, so that the water will have proper effect on the 
skin, and penetrate the feathers. The feathers should be picked imme- 
diately, but care should be taken and not break the skin. Do not re- 
move the entrails. Poultry, before being killed, should be kept twenty- 
four hours without food; full crops injure the appearance, and are liable 
to sour, by which the sale would be greatly injured. Before packing it 
should get thoroughly dry and cold, but not frozen. Moderate-sized 
boxes should be used, but avoid very large packages as much as possible, 
as there is considerable trouble in handling, besides being more difficult 
to sell. In packing use clean boxes, and line the ends and sides with 



PRODUCE COMMISSION BUSINESS. 133 

paper. Always pack as closely as possible, and fill the boxes well, SP 
there will be no chance for the poultry to move about. 



To Shippers of Cheese. 



Factorymen and shippers of cheese should be more particular in re- 
gard to the size of the boxes in which they ship cheese. The boxes 
should not be higher than the actual height of the cheese, as the heat 
during warm weather causes them to puff and swell in the vacant space, 
which naturally damages the sale. 



To Shippers of Vegetables. 



Country shippers have found fault with the returns commission mer- 
chants make of green peas and other green vegetables sold by the meas- 
ure, they claiming that sales for full amounts are not returned. Country 
shippers should bear in mind that in transportation vegetables become 
more or less heated and packed, and'lots invariably run short when sold. 



Instructions for Preserving Eggs. 



To make pickle, use stone lime, fine salt, and water in the following 
proportions : 1 bushel of lime, 8 quarts of salt, 25 tin-quart pails of 
water. 



134 LAWS OF TRADE!. 

The lime must be of the finest quality, free from sand and dirt 
lime that will slack white, fine an,d clean. Have the salt clean and the 
water pure and sweet, free from all vegetable or decomposed matter. 

Slack the lime with a portion of the water, then add the balance of 
the water and the salt. Stir well, three or four times, at intervals, and 
then let it stand until well settled and cold. Either dip or draw off the 
clear pickle into the cask or vat, in which it is intended to preserve the 
eggs. When the cask or vat is filled to a depth of fifteen or eigthteen 
inches, begin to put in the eggs, and when they lay, say about one foot 
deep, spread around over them some pickle that is a little milky in ap- 
pearance, made so by stirring up some of the very light lime, particles that 
settle last, and continue doing this, as each foot of eggs is added. The 
object of this, is to have the fine lime particles drawn into the pores of the 
shells, as they will be by a kind of inductive process and thereby com- 
pletely seal the eggs. Care should be taken not to get too much of the 
lime in, that is, not enough to settle and stick to the shell of the eggs and 
render them difficult to clean, when taken out. I believe that the chief 
cause of thin, watery whites in limed eggs; is that they are not properly 
sealed, in the manner described ; of course another cause is, the putting 
into the pickle, old stale eggs, that have thin, weak whites. When the 
eggs are within about four inches of the top of the cask or vat, cover 
them with factory cloth and spread on two or three inches of the lime 
that settles in making the pickle, and it is of the greatest importance 
that the pickle is kept continually up over this lime. A tin basin, hold- 
ing about six to eight dozen eggs, punched quite full of inch holes, edge 
muffled with leather and a suitable handle, about three feet long, attached, 
will be found convenient for putting the eggs into the pickle. Fill the 
basin with eggs, put both under the pickle and turn the eggs out ; they 
will go to the bottom without breaking. 

When the time comes to market the eggs, they must be taken out 
of the pickle, cleaned, dried and packed. To clean them, secure half of 
a molasses hogshead, or something like it, filling the same about half full 
of water. Have a sufficient number of crates of the right size, to hold 
20 or 25 dozen eggs, made of laths or other slats placed about three quar- 
ters of an inch apart. Sink one of these crates in the half hogshead, 
take the basin used to put the eggs into the pickle, dip ihe eggs out and 
turn them into this crate. When full, rinse the eggs by raising it up and 
down in the water, and if necessary to properly clean them, set the crate 
up and douse water over the eggs, then if any eggs are found when 



PRODUCE COMMISSION BUSINESS. 135 

packing that the lime has not been fully removed from, they should be 
laid out and all the lime cleaned off before packing. When the eggs are 
carefully washed, as before described, they can be set up or out in a suit- 
able place to dry in the crates. They should dry quickly and be packed 
as soon as dry. In packing, the same rules should be observed as in 
packing fresh eggs. Vats built in a cellar, around the walls with about 
half their depth below the cellar surface, about four or five feet deep six 
feet long and four feet wide, are usually considered best for preserving 
eggs in, although many use and prefer large tubs made of wood. 

The place in which the vats are built or the tubs kept should be clean 
and sweet, free from all bad odors, and where a steady low temperature 
can be maintained ; the lower the better, that is down to any point above 
freezing. Besides the foregoing, other methods for preserving eggs have 
' been devised, such as varnishing, greasing, oiling and rolling in flour, but 
these methods will only answer in a small way, for an individual's private 
use, it being nearly or quite as much as the eggs are worth to put them 
in merchantable shape ; in fact, it is nearly impossible to do so, as the 
shells will never look uniformly clean. Several processes have been pat- 
ented and sold to a considorable extent, but the old liming process un- 
doubtedly stands ahead up to the present time. 



Instructions for Packing Eggs. 



Use none but new packages, and these of uniform size and appear- 
ance, containing the same number of dozen, the same number of layers^ 
and the same number of eggs in each corresponding layer ; to secure 
bright, dry, clean straw, free from must, a season in advance ; to have it 
cut with a first-class cutting machine that is kept perfectly sharp, so that 
the packing will be crisp and elastic, made so by cutting the straw clean 
off without mashing, as is the case when cut in a poor machine with dull 
knives. The importance of good packing would be better appreciated 
by shippers, if they could see their consignees selling the eggs. When 
the head is taken out of a barrel, properly packed with crisp elastic straw 
the head springs up, and the eggs show up in good condition. But the 



136 LAWS OF TRADE. 

removal of the head from a barrel packed with musty, mashed straw, 
scares the customers; then if the packing has sagged down, having 
room for the eggs to shift, and the top layer from careless heading has a 
number of broken eggs that have matted the straw, the customer thinks 
the whole barrel is in the same condition, and not only refuses to buy 
that barrel, but Jooks with suspicion on that brand. 

The eggs in each barrel should be of uniform quality as far as fresh- 
ness and cleanliness are concerned. If a shipper has stale or dirty eggs 
and wants to ship them he should put them np in separate packages with 
a distinct mark. The regular brand should be uniform in every respect 
in order to secure and maintain a reputation ; r.ll doubtful eggs should 
be sorted out and marked with the outside brand. 

Dealers should dnploy none but good, careful packers, those who 
take a pride in doing their wcik well. The one who does the heading, 
should be a man with good judgment, a careful painstaking ma/j, who 
will do his work without breaking the eggs on the top layer, and at the 
same time secure them against shifting. Too much care cannot be taken 
in. this part of the work, because nothing injures a brand more than 
broken eggs on the top layer. 




i\r^ 



PRODUCE COMMISSION BUSINESS. 137 



What Constitutes a Car-Load, 



Salt, brls ....... 70 

Lime, brls 70 

Flour, brls 90 

" Sacks 200 

Whisky, brls 60 

Softwood, cords 6 

Cattle, head 20 

Hogs, head - x 60 

Sheep 100 

Apples, bu 360 

Sweet Potatoes, bu 360 

Split boards, ft 9,000 

Flooring, ft 13,000 

Siding 17,000 

Shingles 40,000 

Wheat, bu 340 

Corn, " 300 

Oats, " 680 

Barley, " 400 

Flax seed, bu 360 

Irish Potatoes, bu 430 

Bran, bu ------- 1,000 



138 LAWS OF TRADE. 



Option Com. 

Car Lots. Car Lots. From Store. 

Wheat ct. per bu. 1 ot. per bu. 

Corn " " " " 

Oats " " " " 

Rye " " " " 

Barley " u " " 

Hops 2 per ct. 5 per ct. 

Seeds " " " " 

Broom Corn " " " " 

Cured Meats 1 per ct. 1 per ct. " " 

Beef " " 

Pork 1 per ct. 1 per ct. " " 

Dressed Hogs " 1| " " 3 per ct. 

Live Hogs $6 per car 

Cattle 50c. per head 

Sheep $6 per car 

Dressed Sheep, 5 per ot. 

Butter 2 per ct. " " 

Lard .2^ per ct. 1 per ct. " " 

Tallow 2| per ct. " " 

Hides " " " 

Wool " " " " 

Lumber " " 

Shingles " " 

Lath " " 

Beeswax 5 per ct. 

Beans 2 per ct. " " 

Green Fruits 5 " 10 per ct- 

Dried Fruits 2 5 " 

Foreign Fruits 5 " 10 " 

Cheese 2^ " 5 " ' 

Eggs " " 5 " 



PRODUCE COMMISSION BUSINESS. 



139 



Game , 

Hay ati d Straw . . 

Potatoes 

Potatoes, Sweet. 
Poultry, Live 
Poultry, Dressed . 

Vegetables 

Veal 

Furs 

Feathers 

Cider 

Dried Peas 

Honey 

Nuts, Domestic.. 
Nuts, Foreign 
Fish . 



$5 per car 
5 per ct. 



5 per ct. 



5 to 10 " 

10 per ct. 

10 " 

5 

5 " 

10 " 

5 " 

5 " 

5 " 

10 " 

5 " 

5 " 

5 " 

5 " 

5 " 




140 LAWS OF TRADE. 



SHIPPING PERISHABLE MERCHANDISE, 



BY THE 

Tiffany Summer and Winter Cars. 



In this era of wonderful and eminently practical inventions and dis- 
coveries in the domain of science, there is nothing in which more marked 
advancement has been made than in the direction of providing means for 
the transportation in a fresh, sound condition of the perishable products 
of the sea, the soil, the dairy, and the packing house. By the invention 
and perfection of refrigerator cars, refrigerator storehouses, and refriger- 
ator steamers, the commerce of the world has been facilitated and pro- 
moted beyond anything like approximate computation, and what a few 
years ago was an absolute impossibility has thereby been rendered easy 
of accomplishment. 

We can to-day receive luscious fruits, berries, and vegetables of 
California, Florida, Texas and other remote sections in as fresh condition 
as when they were gathered. During the hottest weather of summer 
Wisconsin creamery butter is laid down in the New York market in bet- 
ter condition than that of the Westchester dairyman living ten miles 
from the city. In the shops of England, France, and Germany, Amer- 
ican dressed beef is sold as fresh and sweet as where it was slaughtered 
yes, in even improved condition, on account of the age it has gained 
in transit. By reason of these modern transportation and preserving 
facilities, tropical and semi-tropical fruits, which would otherwise not 
pay for the labor employed in gathering them, are freighted thousands of 
miles to a ready and remunerative market. By the same means dairy 
products are carried to points where they command double or treble the 
price which could be realized where they were produced. The same 
with reference to fresh meat, poultry, eggs, fish, and other perishable 
property. Thus the surplus products of one section are made to supply 
the wants of another and distant region, to the encouragement and pro- 
motion of local industries and the enrichment of the people. That these 
commercial conveniences for the exchange and marketing of the respect- 



WINTER AND SUMMER CARS. 141 

ive products of different countries and climes are the means of saving 
millions of dollars annually is unquestionable. 

Desiring to give information with regard to this important and inter- 
esting matter to the producer and shipper of such commodities, we have 
obtained the following information from Mr. Charles F. Pierce, Manager 
of the Tiffany Refrigerator Car Company, at his office, 74 Washington 
street, to wit : That the Tiffiny Summer and Winter Cars and Chill 
Rooms had proved a perfect success, and the numerous testimonials in 
his possession from railroad corporations, commission firms, shippers and 
receivers fully corroborate his statements. These cars and storehouses 
are constructed on strictly scientific principles, and the results of their 
thorough test and use during the two years in which they have been 
operated are of the most satisfactory character. The outside jacket se- 
cures perfect insulation, protecting the contents from all atmospheric 
conditions and changes, whether of heat or cold, thus insuring the great 
desideratum an equable temperature in all latitudes. This important 
advantage has been demonstrated in a multitude of cases, as, for instance, 
in the transportation, in summer, of dressed beef from Denver to Phila- 
delphia, 2,400 miles, through four extreme climatic changes, the trip oc- 
cupying 14 days, and the beef reaching its destination in perfect order. 
A Philadelphia commission firm report receipts of California fruits 
shipped in Tiffany cars as opening up "in splendid order," and express 
the hope that all fruit shipped to them will come in these cars, " as it has 
always been a great difficulty to have the fruit arrive in good order." 

A prominent fruit firm in this city say, the Tiffany car " has proved 
itself a success for the transportation of California fruit to Chicago and 
the Eastern cities. With outside temperature of 110 degrees in the 
shade, the car maintained an even temperature, wich small consumption 
of ice." 

This Company now have 95 cars running in all parts of the country, 
and 7 in Europe, and will add to the number as rapidly as possible. They 
are employed on many of the principal railway lines, and bid fair to 
supersede all other cars for the carriage of perishable merchandise. 

The Atlantic Coast Line has adopted the Tiffany transfer car for the 
transportation of strawberries and early vegetables from Charleston to 
New York, having met with signal success therewith last season. These 
small cars measure 8 feet in length by 7 feet in height, and four of them 
can be carried on an ordinary platform car, allowing of their being trans- 
ferred to boats or vessels with the utmost facility. The Company will 



142 LAWS OF TRADE. 

build this winter for the same Line 50 more of their small and 12 of their 
large cars. On the opening of the projected steamship line between 
Galveston and Vera Cruz, it is proposed to employ these transfer cars for 
the transportation of the delicious fruits of Mexico to Chicago, which can 
be done in a week's time, and the fruits laid down here without the 
slightest deterioration in freshness or flavor. Our people can then in- 
dulge in tropical luxuries in midwinter, at prices which will bring them 
within the reach of all. 

The Tiffany cold storage rooms have been erected at several shipping 
points in Texas, Florida, and other parts of the South, wherein are placed 
fruits, etc., intended for Northern markets and allowed to remain until 
their temperature is reduced to the proper degree for safe shipment in 
the refrigerator cars. In testimony to the efficacy of this system, the 
officers of the Pomological Association of Texas say : " We take great 
pleasure in certifying that wd have carefully examined the system of Cold 
Storage and Refrigeration adopted and practiced by the Tiffany Refriger- 
ator Car Company, and which is now in operation at their Houston Chill 
Rooms, and have also eaten of the fruit kept in said house for a week and 
over, and are fully satisfied that all perishable fruits and vegetables can 
be preserved and marketed in good condition to Northern cities when- 
ever the system ib properly applied." By this means the mammoth and 
luscious strawberries grown in that State can be placed on the Chicago 
market early in March and profitably sold at 25 cents per quart. 

Foreign communities having become fully convinced of the feasibil- 
ity of importing American fresh meats a trade, by the way, which is 
assuming gigantic proportions these refrigerator warehouses have been 
built at Paris and Vienna, and are to be erected in Russia and other 
European countries. Thus are the advantages and economies of refrig- 
eration, as perfected and utilized under the universally approved Tiffany 
system, benefiting incalculably the nations of the world. 



DECISIONS IN ADMIRALTY. 



BY ROBERT RAY, CHICAGO BAR. 
COLLISION. 

Even flagrant fault committed by one of two vessels approaching each 
other from opposite directions, does not excuse the other from adopting 
every proper precaution required by the special circumstances of the case 
to prevent a collision. Damages equally divided in a case of collision 
on an application of this rule. The Maria Martin, 12 Wai. 31. 

A vessel racing in order to enter a harbor before another, and pre- 
occupy a loading place, condemned for a collision resulting. The Spray, 
12 Wai. 366. 

When a vessel is sailing in close proximity to other vessels, the fact 
that her hands are engaged in reefing her main sail, is no sufficient ex- 
cuse for failure to keep a lookout, or to take such precautions as are 
needful to avoid collisions. Thorp v. Hammond, 12 Wai. 408. 

If a vessel at anchor in a gale could avoid a collision threatened by 
another vessel, and does not adopt the means for doing so, she is a 
participant in the wrong, and must divide the loss with the other vessel. 
The Sapphire, 11 Wai. 164. 

A schooner meeting a steamer, approaching her on a parallel line, 
with the difference of half a point in the courses of the two, held a col- 
lision case upon evidence to have kept on her course, and therein to have 
done what she ought to have done. The Fannie, 11 Wai. 238. 

A steamer approaching a sailing vessel, is bound to keep out of her 
way, and to allow her a free and unobstructed passage. Whatever is 
necessary for this, it is her duty to do and to avoid whatever obstructs or en- 
dangers the sailing vessel in her course. The obligation resting on the 
sailing vessel is passive rather than active, the duty to keep on her 
course. If, therefore, the sailing vessel does not change her course so as 
to embarrass a steamer, and render it impossible or at least difficult for 



144 LAWS OF TRADE. 

her to avoid a collision, the steamer alone is answerable for the damages 
of a collision if there is one. The Fannie, 11 Wai. 238. 

On crowded waters and powerful vessels, lookouts are bound to 
sleepless vigilance and indefatigable care. The Adriratic, 13 Wai. 475. 

The absence of a proper lookout unimportant, when the absence of 
one has nothing to do with causing the disaster. The Fannie, J 1 Wai. 238. 

A steamer crossing another so as to involve risk of collision con- 
demned; 1st, for not keeping clear, having the other on her starboard; 
2d, being the following vessel. The Columbia, 10 Wai. 246. 

The rule of navigation which requires a special lookout, does not 
apply to a case where the absence of a lookout had nothing to do in 
causing the collision or loss. The Farragut. 10 Wai. 334. 

One vessel meeting another of a foreign nation on the high seas, is 
btfund to observe towards her the rules of navigation prescribed by the 
municipal laws of the country of the former. The Scotia, 3 Chicago 
Learal News, 10. 

O * 

Where two sailing vessels are beating in the same direction, the 
hindmost vessel is bound to know that the leading vessel must come 
about on running out of her course, and the time and place when and 
where such manceuver must take place, and she must take proper 
measures to permit the movement without coming into dangerous prox- 
imity. The Nellie D., 5 Bl. C. C. 245. 

Sailing ships are " meeting end on," within the meaning of the llth 
article of the Act 29th April, 1864 (2 Bright Dig, 428), when they are 
approaching each other from opposite directions, or on such parallel lines 
as involve risk of collision on account of their proximity, and when they 
have advanced so near to each other that the necessity for precaution to 
prevent such a disaster begins. The Nichols, 7. Wai. 656; The Dexter, 
23 Wai. 70. 

The expression "meeting nearly end on," in the same. act, includes 
cases where two sailing ships are approaching from nearly opposite 
directions, or on lines of approach substantially parallel, and so near to 
each other as to involve risk of collision. The Nichols, 7 Wai. 656. 

A sailing vessel discovering the lights of a steamer nearly ahead on 
a dark and cloudy night, has no right afterwards to change her course, 
on the idea that she has not been seen by the steamer. The Scotia, 5 
Bl. C. C. 227; The Alhamlra, 2 Ben. 158. 

Under the Act of 29th April, 1864, it is the duty of a steamer, which, 
when crossing so as to involve the risk of collision, has the approaching 



DECISIONS IN ADMIRALTY. 145 

vessel on her own starboard side, to keep out of the way of such ap- 
proaching vessel, and the duty of the steamer so approaching to keep her 
course. The Chesapeake, 1 Ben. 23. 

A steam vessel in a fog must reduce her rate of speed to a moderate 
one or abide the consequences, unless some special reason be shown for 
maintaining the rate adopted. The D. S. Gregory, 2 Ben. 166. 

When a steamer proceeding in the dark, hears a hail before her 
from some source which she cannot or does not see, it is her duty instantly 
to reverse her engine, not merely to "slow." The Hypodame, 6 Wai. 216. 

Although it may be true, as a general rule, that a free steamer 
meeting a tug incumbered by tows must keep out of the way, it does 
not follow that the tug can monopolize the channel, or disregard the rules 
of navigation. Hern v.The Anthracite, 2 Leg. & Ind. Rep. 58. 

A ship navigated in a peculiar manner, which has the effect of 
incapacitating her for the time from moving out of the way so as to avoid 
collision, does so at her own risk, and will be held answerable for the 
damage done by a collision resulting from such incapacity. The Hope, 
2 W. Rob. 8. 

The rule that all steamers bound up or down the river with vessels 
in tow, should keep as near the right hand shore as their respective drafts 
of water will permit, is a just and proper one. Hern v. Anthracite, 2 Leg. 
& Ind. Rep. 58. 

Though a tug may be unable to stop the tow attached to her, and 
that duty be cast on the incumbered boat, yet this inability will not 
justify the tug in disregarding the rule of porting her helm and keeping 
to the starboard side of the river. Hern v. Anthracite, 2 Leg. & Ind. 
Rep. 58. 

A vessel meeting a tug and tow in a narrow passage, having been 
previously signalled to keep to the right, is not excused from the conse- 
quences of a collision, by the fact that she could not take the right of the 
channel without grounding. 9. Wai. 522. 

A vessel in tow is not, therefore, excused from keeping close watch 
and observing and obeying all signals. Northern Transportation Co. v. 
The Maria Martin, 1 Chic. Leg. News, 57. 

Inevitable accident, as respects a colliding vessel, means that such 
vessel has endeavored by every means in her power, with due care and 
caution, and a proper display of nautical skill, to prevent the collision. 
The Baltic, 2 Ben. 452. 

Mistakes committed in moments of impending peril by a vessel, in 



146 LAWS OF TRADE. 

order to avoid a collision, made imminent by the mismanagement of those 
in charge of another vessel, do not give the latter, if sunk and lost, a 
claim on the former for any damages. The Nichols, 7 Wai. 651. 

The mere fact that a vessel is sunk by a collision, is not of itself suf- 
ficient to show that the loss was total, nor to justify an abandonment. 
The Baltimore, 8 Wai. 377. 

Where a vessel at anchor is struck by one in motion, the presumption 
of law is that the collision is caused by the negligence of the latter, un- 
less the former were anchored in an improper place. The Beaver, 2 Ben. 
118. 

If a vessel be anchored at a place forbidden by the regulations of 
the port, she will be held to have contributed to a collision, and liable to 
a proportion of the damages. The JBultic, 2 Ben. 396. 

When a tugboat is injured by a collision, the proper inqiury is as to 
what she could have been chartered for per day in the business of towing 
(during the time she was laid up for repairs), regard being had to the 
market price. The Maybey, 4 Bl. C. C. 439. 

The fact that the claimant, by putting repairs on the libellant's- 
vessel, suit brought, made her worth more than before the collision, is no 
bar to a recovery for demurrage for the time occupied in making such 
repairs. The Santee, 6 Bl. C. C. 1. 

A steam tugboat is not responsible for an accident to her tow by 
running upon a rock not generally known. The Angelina Corning, 1 
Ben. 109. 

COMMON CARRIER. 

The term " dangers of lake navigation," include the peril which 
arises from shallowness of the waters at the entrance of the lake harbors. 
Transportation Co. v. Donner, 11 Wai. 129. 

MASTER. 

As between the owners and the master, nothing more is required of 
the latter than the exercise of such care, diligence and skill, as the duties 
of his position demand. 9 Wai. 370. 

The master can be superseded in his command whilst at sea only as 
a last resort in a case of the utmost emergency. The Anastasia, I Ben. 
166. 

The master cannot bind the cargo for extraordinary expenses in 
towing bis vessel into port, without resorting to every ordinary means of 



DECISIONS IN ADMIRALTY. 147 

repairing the damage sustained in a gale, so as to enable her to reach 
port under sail. Ltjon v. 928 JBbls. Salt, 2 Chic. Leg. News, 317. 

If the situation of the master be such that he cannot communicate 
with the owners, he may sell a portion of the cargo in order to raise 
means to make necessary repairs to the ship. The Star of Hope, 9 Wai. 
203. 

The master is not liable for injuries to cargo caused by unloading 
and reloading, in order to pass a bar; it is the duty of the mate to see to 
the loading. Nupham v. J3iessel, 9 Wai. 370. 

The power of the master to make contracts about his vessel in the 
home port of the owners is limited. The Tribune, 3 Sum. 144. 

The master cannot, by signing a false bill of lading for cargo not 
actually shipped, charge the vessel or the owner, who is not a party to 
the fraud. The Freeman v. Buckingham, 18 H. 182. 

The master is clothed with the power to decide, from the facts 
before him, whether a jettison be necessary for the common safety. 
Laurence v. Minturn, 17 H. 100. 

If the master act with reasonable prudence, according to his best 
judgment, he is not responsible for the consequences. The Gentlemen, 
1 Bl. C. C. 196. 

In cases of necessity the master is the agent of all concerned, and 
his acts, in the exercise of a sound discretion, are binding on all parties 
in interest. Miston v. Lord, 1 Bl. C. C. 355. 

LIEN FOE FREIGHT. 

The lien for freight under a charter party attaches as soon as the 
cargo is put on board. The Hermitage, 4 Bl. C. C. 474. 

A carrier may, if he see fit, deliver a part of a particular shipment 
without impairing his right to hold the residue for the freight upon the 
whole consignment from which the part so detained was taken. Sears v. 
-Bags of Linseed, 1 Cliff. 68. 

The lien for freight is inseparably associated with the possession of 
the goods, and is lost by an unconditional delivery. Wills v. Sears, 1 
Bl. 108. 

But there may be a conditional delivery to the consignee, with an 
understanding that the lien for freight shall not be affected. Wills v. 
Sears, 1 Bl. 108. 

Shipowners, as a general rule, have a lien upon the cargo for freight, 
but it may be modified or displaced either by direct words or by stipula- 
tions incompatible with the existence of such a right. 



148 LAWS OF TRADE. 

A bill of exchange or note given for a precedent debt, does not ex- 
tinguish the debt unless such was the agreement of the parties. A bill 
or note falling due before the unloading of the cargo, and protested and 
unpaid is no discharge of the lien; and the shipowner in such a case may 
stand upon it as fully as if the acceptance had never been given. The 
Bird of Paradise, 5 Wai. 545. 

A conditional and qualified delivery does not discharge the lien for 
freight, such as a delivery with the understanding that the freight is to 
be paid when it is completed. Gaugham v. Tons of Coal, 4 Bl. C. C. 368. 

LIEN FOR WAGES. 

The master's agreement in a foreign port to raise the wages of the 
seamen, will not give them a lien for such increase prior to that of cred- 
itors for advances to the ship. Sears v. Sags of Linseed, 1 Cliff. 68. 

A claim for wages after twenty-one months continuous service, is not 
deemed a stale one where there has been no change of ownership. Fisher 
v. The G. C. Morris, 27 Leg. Int. 204. 

The master sailing the vessel on shares, under an agreement to man 
and victual her at his own expense, does not affect the seaman's lien for 
wages. Fisher v. The G. C Morris, 27 Leg. Int. 204. 

FREIGHT. 

The rights of shipowners to freight depend on the bills of lading, 
and are not affected by the terms of the charter party. Wills v. Sears, 1 
Bl. 108. 

The assignee of the bill of lading who receives the goods is bound 
to pay the freight, except under special circumstances. Trask v. Di<.vall, 
4 W. C. C. 181. 

If a vessel put back to her port of shipment in distress, and the cargo 
be there sold and the proceeds received by the shipper, no freight is due. 
Miston v. Lord, 1 Bl. C. C. 354. 

The right to freight earned upon the homeward voyage 'o -ows tne 
ownership of the vessel. The Henry, 1 Bl. & H. 465. 

Freight contracted for in gross, for a voyage out and home, cannot 
be apportioned, unless under special circumstances. Weston. v. Minot, 
3 W. & M. 457. 

The crew are not authorized to make a jettison of any part of the 
cargo in case of distress without order of the master. The Nimrod, 
Ware 1. 



DECISIONS IN ADMIRALTY. 149 

An Outline of the Evidence of General 

Average. 



BY ROBERT RAE, Chicago Bar. 

1. General, gross or extraordinary average means a contribution 
made by all the parties concerned towards a loss sustained by some of 
the parties in interest for the benefit of all; and it is called general or 
gross average, because it falls upon the gross amount of ship, cargo and 
freight. 

2. In the United States, partial loss and average are understood by 
commercial men to mean the same thing, and average other than general, 
includes every loss for which the underwriter is liable, except general 
average and total loss. Wadsworth v. Pacific In. Co., 4 Wend. 33. 

3. General average is incurred where the expenses or losses arise in 
a case of emergency, not produced by the misconduct or unskilfulness of 
the master, and not resulting from the ordinary circumstances of the 
voyage. Ross v. Ship Active, 2 Wash. C. C. 226. 

4. It is also true that in order to make a case of general average, it 
is necessary not only that the ship should be in distress and the property 
endangered, and a part sacrificed in order to preserve the rest, but it is 
necessary also that this sacrifice should be voluntary. 

5. The property sacrificed for the benefit of other property must be 
embarked in a common adventure. If A's vessel is about to come in 
collision with B's, which is at anchor, and B cuts his cable and thus 
avoids it, he has no claim for contribution against A for the loss of the 
cable or anchor. The John Perkins, 21 L. Rep. 87, 97. 

G. The sacrifice mu^t be with the intention of saving the remaining 
property, and must be successful. Williams v. Suffolk Ins. Co., 3 Sum. 
513. Scudd v. Bradford, 14 Peck. 13. McPersonv. Tyson, 8 Mass. 467. 

7. The most usual form of this voluntary sacrifice, which is the 
foundation of general average, was a "jettison" of cargo to lighten 
the ship; therefore, if no possibility of saving the ship, thereby there is 
no contribution in nature of general average. Crockett v. Dodge, 3 Fairf. 
190. 

8. Goods laden on deck of sailing ship and jettisoned, do not as a 
rule make a cause for general average, Ray v. Milwaukee Belle, 18 Am. 
L. R. 311. 



150 LAWS OF TRADE. 

9. But if there be a usage for their being so carried, it is otherwise, 
and they make a case for general average. Toledo Co. v. Spears, 16 
Ind. 52. 

10. So, if the goods be carried on the deck of a propeller or steam- 
boat. Gillett v. Ellis, 11 ]J1. 579. Harris v. Moody, 4 Bosw. 210. 
Confirmed on appeal, 30 N. Y. 266. 

11. The word "jettison" not only applies to the cargo, but also to 
masts and anchors cut away, or sails and rigging cast off to save the ship 
from wreck. Walker v. U. 8. Ins. Co., 11 S. & R. 61. 

12. The right to contribution (general average) does not depend on 
any real or presumed intention to destroy the thing cast away, but on the 
fact that it has been selected to suffer alone, and thus avert the common 
peril. Sturgis v. Gary, 2 Curt. C. C. 59. 

13. If a mast be broken, and for the safety of the ship it be found 
necessary to complete the fracture and cat the mast with sails and rig- 
ging into the sea, this would form a case of general average, the amount 
of loss to be estimated at the value of the mast at the time it was cut 
away, not the price which a new mast would cost. Teetsman v. Clama- 
geran, 2 La. 195. 

14. Where cargo is exposed by shipping in lighters or otherwise for 
the general benefit, and damaged, the loss is a subject of general average, 
as the damage was a direct consequence of such exposure. Lewis \. 
Williams, 1 Hall, 430, 451. 

15. The same rule is applicable when masts are cut away for general 
preservation of vessel, and corn was thereby damaged by water, the cut- 
ting away being the indirect cause of damage. Cagrath v. Church, 1 
Carnes, 196. 

WHAT EXPENSES COME INTO GENERAL AVERAGE. 

Expenses of entering or quitting a port of distress to refit, and of 
discharging and reloading cargo there, including warehouse rent, pilotage, 
towage, port charges, etc., as also accidental damage done to cargo in. 
consequence of unloading. 

Wages and provisions of master and mariners from time vessel bears 
away from course of her voyage to a port of refuge, to the time she is 
again ready for sea. 

Disbursements made for the common benefit, whether the ship and 
cargo be eventually saved or not. Stafford v. Dodge, 14 Mass. 06. 



DECISIONS IN ADMIRALTY. 151 

Expenses of detention while frozen up in a port put into by the 
master voluntarily for repairs. 

Ransom paid to a captor whether piratical or belligerent for the 
benefit of all concerned. Douglas v. Moody, 9 Mass. 548. Lawson v 
Hall, 4 Dall. 459. 

Expenses of delay and making claim for vessel and cargo in case of 
capture. Speyer v. New York Ins. Co., 3 Johns, 88. Dorr v. Union. 
Ins. Co., 8 Mass, R. 494. 

Salvage in case of capture. Williams v. Suffolk Ins Co., 3 Sum 
ner's R., 270 and 510. 

Expenses of remunerating salvage services rendered for the common 
safety in case of shipwreck. 

Commissions and interest on advances for general average purposes. 

Commissions collecting general average. Barnard v. Adams, 10 
Howard, 270. 

Expenses of surveys and of discharging cargo, either to cool it, or 
in order to extricate ship from perilous situation as to float a stranded 
ship. This includes the hire of lighters in some cases to avoid landing 
cargo when impracticable. 

Expenses incurred to restore cargo when shifted by perils of the sea- 
Expenses of unloading part of cargo for purpose of ship getting 
into port of destination, owing to some iinusual and unforeseen obstruc. 
tion. 

Temporary repairs to ship made at an intermediate port, for the 
purpose of prosecuting the voyage and of no peculiar benefit to ship- 
owner. 

Ship's provisions consumed by workmen from the shore employed in 
repairing, and by wreckers. 

Expenses landing cargo when vessel goes into a port of refuge, so 
long as to be under the control of the master, and the voyage be not 
abandoned. Nelson v. Belmont, 5 Duer. 310. 

Expenses of shipping or hiring an anchor and chain after a chain 
has parted, or the costs of an unsuitable anchor and chain supplied under 
lifce circumstances. 

Freight lost by jettison of goods. Nelson v. Belmont, 5 Duer. 
310-322. 

CONTRIBUTING INTERESTS. 

The value of the ship for contribution is her worth to her owners in 
the state in which she arrives. 



152 LAWS OF TRADE. 

In case of voluntary stranding, the measure of loss is the value at 
the time when the ship was run aground. 

The value of the cargo for contribution is what it has produced or 
would produce at, as nearly as possible, the time of its arrival, stripped 
of freight duty and landing charges, the portion of the cargo jettisoned 
to be estimated in like manner, and added to net value of cargo saved. 

All property on board vessel at time of jettison and saved, unless 
attached to person of passengers, is to be brought into contribution. 
Harris v. Moody, 3 New York Reps. 

The value of freight for contribution is the net freight on the goods 
saved and carried, deducting crew's wages, port charges, etc. 

ADJUSTMENT. 

The proper time and place for adjusting a general average loss is on 
the arrival of the ship at her port of destination. 




NATHAN SMITH. A. W. MERRILL. 

SMITH & MERRILL, 



Successors to SMITH & 
PRODUCE 



Commission Merchants, 

AND AGENTS FOR THE 



33 Market St. CHICAGO. 



WHOLESALE DEALER IN 



Butter, Cheese 1 Provisions. 

And General Commission Merchant, 

113 & 115 S. WATER STREET, COR. DEARBORN. 

DRESSED HOGS AND GRAIN OF ALL KINDS A SPECIALTY. 



( Preston, Kean <& Co. 
Refer to \ Tappan, McKillop & Co. 
( Or any ^Wholesale Grocer, 



Chicago! 



Consigments solicited and liberal advances made thereon. 



D. RICHARDS, 



J^ICHAt^DS ^ pOCCH. 




Produce and Provision Broker, 



BUTTER & CHEESE A SPECIALTY, 



r. cm. s. 



CHICAGO. 



Orders and Correspondence Solicited. 



ESTABLISHED 184,0, 



WRIGHT GILLIES & BRO. 

233, 235 and 231 Washington Street, and 92 fall Street, Sew York, 

BRANCH HOUSE, 151 South Water St,, Chicago, 

E. D. WILDER, Manager, 



THE LARGEST HOUSE IN OUR LINE IN THE COUNTRY.- 



IMPORTERS, MANUFACTURERS AND DEALERS IN 

TEAS, COFFEES, SPICES, Etc. 



Always in stock full lines of Ground or in Kernel, of COFFEE, 
SPICES AND BIRD SEEDS Agents for the United States for -the 
EUROPEAN CHOCOLATE COMPANY. 

MANUFACTURERS OF 

JAPANNED TEA CANS, PYRAMIDS, 

and other elegant fixtures for decorating stores. We make a specialty of 
GILLIES' CRUSHED COFFEE, JAVA QUALITY. 

It is a superior article and we have no hesitation in recommending 
it. ONE MILLION POUNDS SOLD IN 1877. 

Roast Coffee received fresh from New York daily. 

We offer no goods to the public that we do not either Import or 
Manufacture and as our firm has been known for the past 38 years in 
the Eastern Markets, as square dealers, and at all times furnishing a 
superior article at low prices. We respectfully solicit the patronage of 
the trade of the Northwest. 

WRIGHT GILLIES & BRO. 

E. D. WILDER, Manager, 151 South Water Street, Chicago. 



INSURANCE. 



MOORE & JANES, 

AO-ENTS. 

119 & 121 La Salle Street, Chicago. 



Representing the following well known and Responsible 

Companies : 

HARTFORD FIRE INSURANCE CO., HARTFORD, CONN., 

ASSETS OVER $3,000,000. 

EQUITABLE INSURANCE CO., NASHVILLE, TENN. 
ASSETS OVER $300,000. 

GERMAN-AMERICAN INSURANCE CO., NEW YORK, 
ASSETS OVER $2,000,000. 

NATIONAL FIRE INSURANCE CO., HARTFORD, CONN., 
ASSETS OVER 11,000,000. 

IRVING INSURANCE CO., NEW YORK, 
ASSETS OVER $300,000. 

ST. PAUL FIRE & MARINE INS. CO., ST. PAUL, MINN. 

ASSETS OVER $800,000. 

NORTH BRITISH & MERCANTILE INSURANCE CO., 

LONDON AND EDINBURGH, 
ASSETS OVER $13,000,000. 

HAMBURG-MAGDEBURG INS. CO., HAMBURG, GERMANY, 
ASSETS OVER - $700,000. 



Total Assets Represented by us over $20,000,000. 

MOORE & JANES, Agents.