History of Chicago. From the earliest period to the present time, Part 162

Author: Andreas, Alfred Theodore
Publication date: 1884
Publisher: Chicago, A. T. Andreas
Number of Pages: 1340

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Wadsworth, Dyer & Chapin, George Steel,

Norton, Walter & Co. De Wolf & Co.,

I. H. Burch & Co.,

Charles Walker,

Gurnee, Hayden & Co.,

Thomas Richmond,

H. H. Magie & Co.,

Thomas Hale.

Neef & Church,

Raymond, Gibbs & Co.

John H. Kinzic,

"At this meeting nothing further was done than to pass resolutions stating that the growing trade of Chi- cago demanded the establishment of a Board of Trade. A constitution was then adopted and a committee appointed to draw up by-laws to be submitted at an adjourned meeting to be held on the first Monday in April following, when they were adopted. All inter- ested were invited to meet daily at the rooms of the Board over Gage & Haines's flour store, on South Water Street, which had been rented at Srio per annum. George Smith was elected president, but declining to serve, Thomas Dyer was chosen in his stead. Charles Walker and John P. Chapin were chosen first and second vice-presidents, and G. S. Hubbard, E. S. Wads- worth, George Steel, Thomas Richmond, John Rogers, H. G. Loomis. George F. Foster, K. C. Bristol, J. H. Dunham, Thomas Dyer, G. A. Gibbs, John H. Kinzie, C. Beers, W. S. Gurnee, J. H. Reed, E. K. Rogers, I. H. Burch, A. H. Burley, John Y. Read, W. B. Ogden, O. Lunt, Thomas Hale, E. W. Hadduck, I. V. Ger- main, and L. P. Hillard were appointed directors."

The members of the board at the time of its organ- ization were as follows : Gurdon S. Hubbard, E. S. Wadsworth, Matthew Laflin, George Smith, Orrington Lunt. Ira V. Germain, J. B. F. Russell, Theron Par- dee, Thomas Dyer, D. Humphrey, H. J. Winslow, George F. Foster, John King, Jr., James H. Rochester, Isaac Hardy, Zenas Cobb, Jr., R. C. Bristoll, 1. H. Dunham, A. V. G. D'Wolf, Almond Walker, H. H. Harrison, William F. DeWolf, James Winn, J. H. Reed, James H. Carpenter, J. P. Hotchkiss, John High Jr., S. L. Brown. J. R. Case, Joseph T. Ryerson, Andrew Blaikie. 1. Whitcomb, George A. Gibbs, G. M. Higgin- son, Jared Gage, Sylvester Marsh, E. H. Hadduck, John P. Chapin. George Steel, J. H. Kenzie, John Rogers, Thomas Richmond, Thomas Hale, James Peck, George C. Drew, T. V. G. Loomis, B. W. Raymond, John W. Shoemaker, Albert Neeley. Joseph R. Beals, Amos G. Throop, John L. Marsh, E. K. Rogers, C. Beers. L. P. Hilliard, John C. Dodge. John Pearson, Thomas Thompson, W. S. Gurnee, Alexander Brand, Charles Walker, Allen Richmond, M. C. Stearns, (. Sherman, G. \. Robb, H. R. Payson. A. H. Burley, I. H. Burch. W. H. Clarke. J. C. Walter. J. A. Smith, T. S. Morgan, W. L. Whiting, John S. Reed. Thomas B. Carter, T. L. Parker, F. A. Stockbridge, Julian S. Rumsey, C. L. Harmon, John C. Haines, William B. Ogden, and Jabez B. Foster .- Total membership, eighty-two.

The organization as at first effected was not a cor- porate body. It had no legal status, being only a vol-

untary organization for the purpose of facilitating the business of the city and promoting her commercial in- terests by more united action than heretofore. At that time there was no general State statute under which acor- porate organization of this kind could have been effected. So the functions of the Board in its early days were advis- ory rather than authoritative, and its many regulation -. resolutions, and mandates commanded observance and respect only in accordance with the amount of common sense or wisdom they embodied, and from the respecta- ble character of the mercantile body whose sentiment- they promulgated. It was, however, the center of deliberation on nearly every question in which Chicago had an interest, from the time of its organization, and on nearly all of thein it held pronounced views, on one side or the other, to which it gave public utterance through resolutions, manifestos, petitions to the Legis- lature and Congress, and by the appointment of com- mittees to advise with the outside elements and report. Thus the early influence of this body, however great or important a factor it may have been in molding the commercial destinies of the city. or regulating and bringing into order its methods of business, were less apparent than actual.

At the first meeting of the Board, held in April 1848, Gurdon S. Hubbard, Sylvester Marsh and John Rogers were appointed Inspectors of Fish and Provis- ions, and John Rogers and James L. Hare, Inspectors of Flour. This was the first move ever made in the city toward securing uniformity in grades, or guaran. teeing the quality of any of the merchantable product- sold. . As these officers had no legal authority to enforce an inspection, a committee of the Board was chosen to wait upon the City Council and ask the passage of an ordi- nance for the government of inspectors, whereby their offices might be recognized under the municipal law.

During the same year a committee on banks, chosen by the Board, reported a plan for a general system of State banking, which, with slight amendments, was adopted, and the committee requested to frame a bill in accordance with the amended report ; to present it to the Legislature, and urge its passage. The commit- tee were also instructed to secure a charter for the Board. The action of this committee resulted in the passage of a general act, February 8, 1849, for the es- tablishment of Boards of Trade and Chambers of Com- merce, under the provisions of which the Board was subsequently reorganized.

At the first annual meeting, held April 13, 1849, Thomas Dyer was re-elected president, and John P. Chapin and C. Walker as vice-presidents. John C. Dodge was chosen secretary and W. 1. Whiting treasurer. Several public matters claimed the attention of the Board. The spring freshet of that year was the most disastrous that had ever occurred. totally destroy- ing nearly evey bridge in the city. The Board ap- pointed a committee to devise means for facilitating intercourse with the North and West sides and the outlying settlements. The action of this city is not a matter of record.

The obtaining of daily telegraphic market report> for the benefit of members of the Board was for the first time discussed at the first annual meeting, and at committee appointed to confer with the telegraph com- panies.

The city authorities seem to have worked in confi- dential harmony with the Board, as is evinced in the fact that during the year they issued bonds for the in- provement of the harbor, after the great freshet. amounting to Si,ooo. which were turned over to the

583

THE CHICAGO BOARD OF TRADE.

Board to be negotiated, and the proceeds expended for the purpose mentioned under its direction. The Board accepted the trust, and doubtless made the money go as far as possible in dredging out the river.

The tolls on the canal, which on through freight to and from the Mississippi and from that river to tide water, and resolutions were passed favoring a rebate on the tolls on such shipments. The importance of further telegraphie extensions was discussed, and the discussions brought forth a series of resolutions favoring and earnestly urging such extension. The hour of meeting was changed from 9 to 9:30 A. M., the old hour having been found too early to insure a full attendance.

Although the proceedings of the Board had been sometimes Pickwickian in its discussions, and perhaps more miscellaneous than practical in its treatment of nearly every subject, however remotely it might con- cern the city, it had, by ignoring nothing, managed to have its say on everything. It had thus, during the first two years, not only kept itself busy, but had been instrumental in doing much to promote the prosperity of the city and to place its growing commercial import- ance more prominently before the outside world. It was aggressive in its efforts to build up the trade of Chicago from the very beginning, and entered its second stage of life with a quite extensive, if not yet world wide, reputation.

ORGANIZATION UNDER THE STATE LAW .- Feb- ruary 8, 1849, a general law relating to the establish- ment of boards of trade was passed by the State Legis- lature, and, at the annual meeting of the Board held in April, 1850, it was resolved to organize under its provisions. It was also resolved :

" That this organization shall be called . The Board of Trade of the City of Chicago.'

" Each member joining the association shall sign the constitution, and, with the exception of old members, pay five dollars, and in addition pay such sums semi- annually as shall be decided on by the vote of the Board.

" Annual and semi-annual meetings shall be held, and special meetings may be called at any time at the written request of any five members."

The treasurer's report at this meeting showed a deficit in the treasury of $146.20 To provide for this it was voted to raise the annual dues from two to three dollars. It was also resolved that the old mem- bers sign the new constitution which had been framed in accordance with the provisions of the State law, and pay three dollars each. to be applied to the payment of the outstanding debts of the old Board about to be super- seded by the new and legally constituted body and that the office furniture be transferred to the new Board. It was then voted, "That the Board of Trade do now dissolve," and the voluntary organization ceased to exist.

The corporate life of the new Board began April 13, 1850. at which time the new constitution was presented for signatures. The following week the new organiza- tion was completed by the election of officers; the pres- ident, vice-president, treasurer and secretary of the okl organization being re-elected. The new organization did not create any new enthusiasm or interest. In fact, the novelty having worn off, the membership decreased, in spite of the strenuous exertions of the officers and a few stanch supporters who appreciated its growing importance, as the trade of the city increased. The daily meetings were thinly attended, and the sessions devoid of interest except when some outside question

was brought up for discussion. To promote a more general attendance, the daily hour of meeting was again changed; the hour being from 12 M. to I P. M. Dur ing the year the Board had in consideration the free navigation of the St. Lawrence River, which was ear- nestly favored by the members, who. through a com- mittee, prepared a report bristling with arguments and replete with statistics favoring the object. The report was published, but the scheme itself fell through.

The improvement of the Illinois River, by the removal of the sand-bars, so as to render it navigible, came up for consideration, and it was decided by reso- lution of the Board, that means should be taken to dredge them out. Votes of thanks were given to the Hon. Stephen A. Douglas and General James Shields. for their successful efforts in obtaining from Congress the magnificent grants of land, which insured the com- pletion of the Illinois Central Railroad, which had already been begun; also for their unsuccessful, but no less meritorious efforts, in advocating the free naviga- tion of the St. Lawrence.

The third annual meeting in April. 1851. showed by the official reports presented a somewhat discouraging aspect of affairs. The membership had fallen off largely, the number of members having paid their dues and being otherwise in good standing, being only thirty- eight. The treasurer reported a deficit of $165.96, with no provisions to supply it. He recommended an assess- ment of four dollars on each member to pay up the old score. The time of meeting was again changed. with the object of securing a larger daily attendance, the hour of session decided upon being from 11:30 A. M., to 12:30 P. M. A bye-law was adopted forbidding members from giving untruthful or bogus reports of their transactions, on pain of expulsion. This early effort of the Board to place itself on the basis of honesty, and to purge itself of duplicity and deceit in its transactions, is worthy of note. The old officers were re-elected. During the year interest in the organization was at an extremely low point. The daily attendance dropped to nearly nothing at times, and the business transactions "on 'Change " were proportionately insig- nificant. A record was kept during the year, from which the following excerpt is given:

July 9 .- Present: C. Walker. No transactions.

July 10 .- Present: C. Walker, J. C. White, J. C. Walter.

July 12 .- Present: O. Lunt. July 13 .- Present: None. July 14 .- Present: None.

July 15 .- Present: C. Walker. July 16 .- Present: None.

July 17 .- Present: J. C. Walter. July 18 .- Present: None.

It appears from the above that during the nine days. only five members had sufficient interest in the institu- tion to put in an appearance at the place appointed for daily sessions.

The interest in outside topics also sensibly waned during the year. The only subject considered being the improvement of the llinois River, on which subject they so far took action as to appoint a delegation to attend the convention for the consideration of the matter, which was held at Peoria December 26. New rooms were rented at the corner of South Water and Clark streets, which were for the first time occupied at the fourth annual meeting, which occurred in April. IS52.

At this meeting, despite the dull and uninteresting year that had passed. the official reports were more

584

HISTORY OF CHICAGO.

encouraging. There had been an accession of fifteen members during the year, making a total of fifty-three, and the organization was out of debt. The election resulted in the choice of George Steele, president ; Thomas Hale, vice-president ; and John C. Dodge, sec- retary and treasurer. The new rooms did not seem to please the majority of members, and it was decided to move again, the rooms selected being those occupied by the secretary of the Chicago Mutual Insurance Company The next meeting was held at No. 3 Tre- mont Block. Late in the year it was decided to move again, to No. 8 Dearborn Street. In February, AMIr. Dodge tendered his resignation, and James E. Dullaba was appointed to serve out the unexpired term. The retiring secretary assumed the lease of the rooms then occupied by the Board, and instructions were given to sell the carpet and furniture. It is presumed that the new rooms were already furnished, or that if in accord- ance with the old adage, "three moves are as bad as a fire," the carpet and furniture were not worth moving again. The Board took no important action on outside matters during the year, except in the passage of some earnest resolutions, protesting against the repeal of the banking laws then in force.

The fifth annual meeting was held at the new rooms, No. S Dearborn Street, in April. 1853. The officers elected were : Thomas Hale, president ; C. H. Walker, vice-president ; L. P. Hilliard, secretary and treasurer. The new rooms did not suit, indeed they had only been hired for temporary accommodation, until a fitting place for a permanent location could be obtained. \ com- mittee was chosen to confer with certain parties then building, with a view to obtaining a long lease of rooms adapted to the wants of the Board. The quarters were not, however, changed during the year. The hour of meeting was again changed to 10 o'clock A. M., and the secretary was ordered to provide refreshments for such as attended the daily sessions, and in accordance with instructions, thereafter set up a free lunch each day consisting of crackers, cheese and ale.

Many important subjects were brought to the con- sideration of the Board during the year. The project of establishing a bank to increase the then very limited and inadequate banking facilities of the city-the pro- posed capital was $5,000.000, and resolutions passed the Board favoring its establishment. The harbor being still in a dangerous condition, a committee was appointed to take soundings, and to devise ways and means for the further improvement of the north channel. The Board also passed resolutions favoring a ship canal around Niagara Falls, on the American side. It also petitioned the City Council to make an appropriation for such improvements of the harbor as might be deemed necessary, and Thomas Hale and Orrington Lunt were appointed delegates to go to Washington to represent the harbor interests of Chicago, and to secure such favorable action of Congress as was possible. They started on their mission bearing credentials from the Board, and fortified with a full set of resolutions and memorials from that body. The improvement of the St. Clair flats came up for consideration, and delegate- were appointed to attend a joint convention of dele- .... gates from all the lake cities, held in Detroit, for the purpose of devising some plan for carrying on the desired improvement.

The sixth annual meeting was held in April, 1854. The new officers chosen were : George A. Gibbs, pres- ident ; W. D. Houghteling, vice-president : and James E. Dallaba, secretary and treasurer. New room- were rented on the corner of Wells and South Water streets

over the store of l'urington & Scranton at $250 per annum. W. D. Wilson, in consideration for services as janitor, was allowed the use of the rooms. It was voted to print the constitution and by-laws and the names of officers and members in pamphlet form. Several public questions, as they came up during the year, were, a- usual, acted on by the Board. \ remonstrance was made against the proposed location of the Government office, it being considered to far from the present or prospective center of business. The remonstrance and all other means used by the Board failed to change the location.

A most important question, and one entirely rele- vant to the legitimate business for which the Board was organized, came up for the first time during this year. Hitherto all grains had been measured in the old-fash- ioned way in a half-bushel measure. The process was slow, unreliable and cumbersome. The trade, in its accumulating proportions, had already outgrown it. it was proposed by the Board that the Boards of Trade of Milwaukee, Detroit, Toledo, and other points be re- quested to use their influence to secure such legislation in their respective States as should result in the use of weights, instead of measures in the measuring of grain, seeds, ete. This action, first started by the Chicago Board, resulted ultimately in bringing about the desired reform, thereby opening the way for all the improved methods of inspecting, grading, storing, transporting. and transferring grain in bulk, all of which may be traced in their inception to this change ; and none of which, under the old system of measurement, woukl have been possible.

The seventh annual meeting was held in April, 1855. The officers elected were: Hiram Wheeler. president; C. B. Pomeroy, vice-president, and W. W. Mitchell, sec- retary and treasurer. The time of meeting was changed to 11:30 A. M., but not proving beneficial, was subse- quently altered again to 9:30 A. M. The secretary seems to have grown lax in his duties as a caterer, as it was voted to employ some one to furnish the daily lunch of "crackers, cheese and ale." A reading-room was insti- tuted for the use of members, and newspapers from the cities of Boston, New York, Montreal, Buffalo. Oswego, Detroit and Cincinnati ordered to be subscribed for and kept on file. The important public questions acted on by the Board during the year was the project to build the Georgian Canal. The action of the Board and the final outcome of the enterprise are thus told in Colbert's history: "During this summer the project of the Georg- ian Bay Canal was actively discussed, and many urgent and imperative reasons were set forth in favor of its being built. On July 28, William Bross, of the Tribune, addressed a meeting of the Board, representing the advantages to be derived from the proposed canal, and introduced Thomas Steers, of Toronto, C. W .. who read a communication from the Board of Trade of that city, showing its willingness to cooperate with the " board " of Oswego regarding a survey. Mr. Bross then offered a a resolution to the effect that the Chicago Board of Trade will cooperate with other boards having any interest in the matter in the building of the Georgian Bay Canal, subject to the control and direction of the Canadian Govern- ment. A committee, consisting of William Bross and George Steele, went to Canada and advocated the meas- ure. A charter of incorporation was afterward obtained. but beyond the breaking of ground and presenting the president of the company with the usual gift. nothing was done, and the subject has almost entirely passed away from the memory of those who were once its most carnest advocates "

585

THE CHICAGO BOARD OF TRADE.

Sometime during the year a door-keeper was ap- pointed. The free-lunch fiends had increased to such a degree as to seriously threaten the solvency of the insti- tution. It was a flagrant abuse of hospitality, and, in the eyes of the more staid members, the free lunch was incompatible with the dignity which should attach to so important a body as the Board of Trade had become; while not a few had come to view the whole thing as an unmitigated and very costly nuisance, One disgusted member moved "that the Board will no longer be res- ponsible for refreshments." His motion was lost, but. as a compromise, the door-keeper was chosen, whose duty it was to keep out all dead-heads whom he sus- pected had unholy designs on the lunch.

The eighth annual meeting was held at the Tremont House, April 7, 1856. The Board was now fairly estab- lished, and was deemed of sufficient importance to make its membership desirable to most merchants of standing in the city. The day when it was necessary to canvass for new members was passed. At this meeting forty-five new members were elected. The officers elected were: C. H. Walker, president; G. C. Martin, vice-president, and W. W. Mitchell, secretary and treas- urer. The meetings were ever after this time well attended. The lunch was abolished; cards of member- ship were issued, a regular door-keeper appointed; and the Board, having passed its days of adolescence, started on the more business-like career of actual usefulness. More pretentious and commodious quarters were taken. May I the Board took possession of the lower floor of Walker's building at a rental of $1,200 per annum.

Rooms were rented in George Steele's building, on the corner of South Water and LaSalle streets, at a rental of $1,000 per year.

On the 6th of October one hundred and twenty-two new members were admitted.

During this year the projects of erecting a building suitable for a Merchants' Exchange, was discussed, and a committee appointed to prepare plans, solicit subscrip- tions, etc. The members of the committee reported in November that they had individually purchased a piece of ground, at the corner of Clark and Washington streets, for the sum of $180,000, suitable for the proposed build- ing. which the Board could have at the price they had paid. The offer was accepted on the condition that a sufficient amount of stock could be obtained to carry out the purpose of building. The stock was not raised. and, for years after, the building project was not revived,

Action was taken on various matters of commercial importance during the year. At that time the Welland Canal had grown to be of great importance as an avenue of transportation of Western products to tide water. The shipments through the canal were so large as to render it a serious competitor for the carrying trade with the New York & Erie Canal, which, at an early day, enjoyed almost a monopoly of the business. The freight thus diverted proved a like diminution in the trade of Buffalo, the western terminus of the Erie Canal. With the design of forcing the shipments back into their old channel, through Buffalo, a bill was presented in the New York Legislature, which, if passed. would establish a rate of tolls discriminating against all routes using the Welland Canal. Pending its passage resolu- tions were passed by the Chicago Board of Trade, pro- testing in the strongest terms against the injustice of the proposed scheme, and also urging all Canadian houses doing business in Chicago, to request their cor- respondents to memorialize the Canadian Government to enlarge the Welland Canal sufficiently to enable the

larger vessels in the carrying trade to pass through. Some further action was taken in conjunction with the St. Louis Chamber of Commerce, looking to the improvement of the Illinois River.

The first steps were taken this year for defining and regulating the standard and grades of wheat. The standards established were to be designated as "white " wheat" (winter , "red wheat" winter . and "spring wheat." From this crude classification has been evolved the whole system of the grading and inspecting now in vogue, under rules so unerring, that the grades are standard all over the commercial world. wherever American wheat is known.

In April. 1857, the ninth annual meeting was held. The officers elected were: C. H. Walker, president. G. W. Noble, vice president, and W. W: Mitchell. secretary and treasurer. Seventy - three new members were admitted. It was resolved to employ a superintendent, at a salary of $1,500. P. I. Wells was subsequently appointed to the position. He had been for several years before, the commercial editor of the Daily Press. and, since 1854, had published annual reports of the trade, commerce and manufactures of the city. They were the only compilations of commercial statistics of those years approaching anything like completeness or accuracy, His appointment opened to the Board a new department of usefulness. Under his direction a sys- tem of gathering, preserving and publishing the trade statistics of each year, was inaugurated by the Board. The first annual trade report was issued under his super- vision in 1859. Since which time the Board has been the great depository and conservator of the statistics of Chicago trade.

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History of Chicago. From the earliest period to the present time, Part 162

Author: Andreas, Alfred Theodore Publication date: 1884 Publisher: Chicago, A. T. Andreas Number of Pages: 1340

Author: Andreas, Alfred Theodore
Publication date: 1884
Publisher: Chicago, A. T. Andreas
Number of Pages: 1340