USA > Wisconsin > Milwaukee County > Milwaukee > History of Milwaukee, city and county, Volume I > Part 36
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CHAPTER XXIV
MILWAUKEE CHAMBER OF COMMERCE
In the Milwaukee Sentinel of January 1, 1922, Mr. II. A. Phuimb tells the story of the chamber's earlier activities, as follows.
"The Milwaukee Chamber of Commerce, organized in 1858, is one of the oldest of the grain exchanges in the West-the oldest with the single excep- tion of the Chicago Board of Trade.
"The Chicago exchange came into existence at about the same time, in the same year, at least, but the other exchanges, some of which are now large and important bodies, were organized later-many years later, with the excep- tion that the St. Louis Merchants' exchange came onto the scene in 1862.
"Before Civil War .- Away back in the years before the Civil war there was considerable trading in wheat in Milwaukee on the old 'corn exchange,' and it was so far baek that the word 'corn' had more particularly the mean- ing of 'grain,' as we understand the use of those words today, for there was very little corn-or 'maize'-handled in this part of the country commercially in those days. It was nearly all wheat, but a corn exchange was a grain ex- change, and such was Milwaukee's first trading organization, whose members were accustomed to gather in the railroad yards during the morning hours and buy and sell the wheat upon its arrival. The grain at that time was shipped in bags, the handling of bulk grain beginning about 1857.
"The records kept in the secretary's office show the shipments of grain from Milwaukee to the East from 1845 to 1849 as consisting entirely of wheat, but do not show the receipts until the year 1858, the year of the organization of the chamber, when the total arrivals are given at 5,827,000 bushels of all kinds of grain, less than 1,000,000 bushels covering all the corn, oats, barley and rye, the balance being wheat.
"Had Ninety-Nine Members .- In 1858, on October 21st, these early day grain merchants of what was by that time one of the most important ter- minal markets in the United States organized "The Chamber of Commerce of the City of Milwaukee,' the association being housed at 1 Spring Street, the site of Gimbel's store today. There were ninety-nine of these men, of whom the late Robert Eliot, who died in 1917, was one, and so far as the writer knows, he was last of the charter members of the Chamber of Commerce.
"The original organization of the chamber was effected under the general laws of the state, but after ten years the grain industry had grown to such importance and become so highly specialized that the need for the authority ' of law for special activities, such as inspection and weighing of the grain, and
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arbitration of business differences and things of that nature was apparent, and so application was made to the Wisconsin Legislature for a charter grant- ing certain rights and privileges and defining the powers of the association. The charter was granted, becoming effective on February 29, 1868, the date of its formal approval.
"Meanwhile the chamber had been removed, in 1863, to a building on the site of the present one, which it occupied until Alexander Mitchell erceted the building now housing the association. This was completed in 1880, the grain men being quartered in the interim at 415-417 Broadway.
"A National Factor .- During this period the Milwaukee Chamber of Com- merce became a factor in the grain trade of the United States, and Milwaukee was recognized as one of the principal markets of the country.
"In 1873 the receipts of grain of the various kinds amounted to 32,567,565 bushels, 28,457,937 bushels of which was wheat. These were extraordinarily large receipts, and for a number of years, in fact, all through the '70s, Mil- waukee handled what for those times was an immense volume of grain yearly. Milwaukee's fame as a market spread all over the world, and 'Milwaukee No. 2 wheat' was quoted in Liverpool as a standard.
"In the '80s the great markets, Milwaukee and Chicago, began to feel the effects of the establishment of exchanges at other points. In 1881 the Minne- apolis Chamber of Commerce and the Duluth Board of Trade were organized and opened up for business, as the development of the great Northwest progressed with the building of railroads and the extension of agriculture over its wide plains.
"While the grain industry at Milwaukee did not exactly retrogress, it did not progress at the rate to which it had been accustomed, and a period of comparative depression ensued, culminating in the early 1900s. Since that time the growth has been steady and substantial, and Milwaukee has main- tained a position as one of the leading grain markets of the country.
"Pioneer in Trade .- Being one of the oldest and most progressive ex- changes of the middle western states, the Milwaukee Chamber of Commerce has been in many respects a pioneer in grain exchange methods. The rules in effect in this organization have served as the patterns after which the structures of other and more recently created trading associations have been built. In fact, if one will turn to the rules of almost any of the numerous exchanges organized since 1860 he will find entire sections copied word for word from the rule book of the Milwaukee Chamber of Commerce.
"A fact that is not generally known, even among the traders themselves. is that the pit-the octagonal trading platform, with steps on the inside and outside-which is used by the traders as a convenient device for their par- tienlar purpose, was first used in the Milwaukee exchange.
"The grain industry is today one of the most important commercial activ- ities of Milwaukee. Property valued at $75,000,000 to $100,000.000 is handled yearly by the grain and seed firms, which are members of the Chamber of Commerce, and this great business is carried on with so little fuss and feathers -due to the high degree of perfection to which the grain exchanges have attained in facilitating the distribution of grain-that the average citizen
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does not realize its magniture nor the prestige it gives Milwaukee with the outside world.
"But this standing has not been maintained without effort-the grain merchants here have not had things handed to them on a silver tray. It has meant hard and continuous labor, and the element of persisteney and keeping everlastingly at it has entered into the situation. Unremitting watehfulness was necessary to prevent the other markets from benefiting from discrimina- tory railroad rates, and every so often a battle royal before the interstate commerce commission had to be waged to keep Milwaukee on her feet, for her grain merchants are facing the keenest sort of competition. New markets and new exchanges are springing up at about the rate of one a year, each one having its effect, more or less serious, in drawing grain from Milwaukee. The strength of Milwaukee, however, as a market for the sale of grain is the buying power exerted by her numerous manufacturing plants, which lends a steady and continuous demand and this makes for permanence and sta- bility-a great advantage over a strictly merchandising or distributing mar- ket."
At the opening of the Milwaukee Chamber of Commerce in 1858, the prin- cipal address was made by Edward D. Holton, portions of which are quoted elsewhere in this volume. This was followed by an appropriate speech by J. B. D. Cogswell. In his references to the preceding address of Mr. Holton, the speaker said: "We have listened to the addresses made, especially that of Mr. Holton, with much pleasure. That gentleman is himself an evidence of the thrift and prosperity of Milwaukee. He is now in the prime of life, and the patriarchs of this state are not yet whitened with age.
"The day of small things for Milwaukee is but as yesterday. The patri- archs of this city less than a generation ago laid the cornerstone of the enter- prise and prosperity which you are enjoying. So great has been your growth that the pioneers have been almost buried up in the great crowd that has followed. You are to be congratulated upon the locality and elegant room which you have chosen for your use. It is a place where you will be proud to invite the stranger and friend. The organization of the Chamber of Com- meree is indicative of the prosperity and wealth of the city.
Review of the Previous Conditions .- "It is well that such an institution is now organized. in small towns there is no need of such things; there was no commerce when Juneau came here and traded with the Indians, selling them blankets, powder and traps for their furs; there was no commerce when farm- ers drew their loads to town over heavy roads ; the place was small and every- body knew where to find his neighbor. The common road has been succeeded by the plank road, the plank road by the railroad; the farmer went through the land and sowed the seed where the prairie flower grew; the axeman and surveyor went forth, and then followed the construction of those arteries which now enter our city on every hand, and heavy trains come thundering along laden with the produce of the land, which but for these roads must have rotted in the fields and in the barnyards."
The advantages derived from such an association are numerous, the mem- bers will meet here every day, they will be near each other, they can speak
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to each other from stall to stall, and can sell whole cargoes by mere samples. This is what such an organization is for. Here may be found the newspapers from all the large eities of the Union and here will be received the telegraph reports of the eastern and foreign markets.
"There are other benefits besides," eontinned the speaker. "This institu- tion will be of direet benefit in elevating the character of the business man : it is good to come together, it is not good to be alone anywhere. Man isolated becomes selfish; if we mingle together we become philanthropic, take each other by the hand with more confidence and promote what the French call esprit de corps." Mr. Cogswell concluded his address with an appeal for the strictest business morality among the members, a high integrity which should pervade the dealings and actions of the business men and merchants of this city. "To them," he said, "was confided the future prosperity and reputation of our eity. We have a noble start and the best and only elements out of which a large and prosperous eity ean arise-a fit population, an excel- lent natural location and a superior country to back it up."
The Chamber of Commerce has through its entire career been a trading body. It has not been a civie promotional organization as chambers are in many American cities. Aside from its strictly trading activities. however, it has concerned itself in the rail and water transportation facilities of the city. It was for many years the sole guardian of Milwaukee's harbor interests, and always maintained a traffic bureau promoting expedition and efficiency in rail service.
The Chamber of Commerce has participated from time to time in move- ments designed to advance the civic and material progress of the community. It has never failed to respond to the call. Whenever the interests of the city were at stake its membership came forward readily, loyally and liberally in tendering their support.
CHAPTER XXV
THE MILWAUKEE ASSOCIATION OF COMMERCE
The effort of American cities to gain in prestige, power and prosperity must primarily be credited to individual initiative. The complex character and scope of modern business life, however, has evolved a tendency to go beyond individual effort and bring into play the concerted force and influence of the many. A body or an association of men rather than any one man becomes the instrument for promotion and for guidance. Thus every eity, large and small, has its organization of business and professional men through which is expressed the hope, ambition and aspiration of the community.
The activities engaged in by the local commercial body, in a measure at least, is a suggestive index to the commercial, industrial and civic tendeneies of the community. It supplements individual effort by collective effort, prompts a spirit of progress, stimulates enterprise and growth, brings the natural advantages of the city to their highest stage of development and advances the civic ideals and standards of the community.
The Hon. James Bryce, a former British ambassador, during an address delivered in Milwaukee some years ago said: "A new force has risen in American cities which must be dealt with, and which has a peculiar power for good. The commercial organization, properly constituted as to policy and personnel, wields an influence not only in the promotion of industrial and commercial development but becomes also a wholesome civic factor. And what could be a greater influence for good than a body of high-minded, progressive and aggressive men, organized on non-political and non-partisan lines? The official authorities do not always represent the highest ideals of the community. The non-political commercial and civic body may become the strongest factor in collecting, focusing and diffusing public opinion, in cultivating higher aims and purposes."
The extent to which commercial bodies fulfill the mission assigned to them depends upon the financial support they receive and the intellectual strength of the executive officials and upon the spirit of progress with which the mem- bership may be imbued. Much, of course, depends upon intelligent and ag- gressive leadership, and where the local business men are not too hidebound in their conservatism, an active and useful organization can be brought into life.
The nature and character of the work performed depends largely upon the natural surroundings and the possibilities of the locality. One locality has natural advantages which adapt it admirably for industrial growth, another
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Seventh Annual Banquet
Merchants Association,
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MILWAUKEE
COVER DESIGN FOR DINNER PROGRAM PROVIDED AT THE PLANKINTON HOUSE, JUNE 5, 1884, BY THE MERCHANTS' ASSOCIATION (NOW THE MILWAUKEE ASSOCIATION OF COMMERCE)
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THE MILWAUKEE ASSOCIATION OF COMMERCE
by virtue of peculiar location enjoys commercial advantages. But, whatever the local conditions may be, as to advantages and disadvantages, it neverthe- less remains that the efforts of commercial organizations are directed along economie and civic lines.
Outline of Association History .- The Milwaukee Association of Commerce is one of the oldest institutions of its kind in the United States. It was on March 5, 1861, that twenty-three public-spirited business men, headed by John Nazro, then the hardware king of Milwaukee, came together for the purpose of organizing a business association,
They sought to stimulate local commercial activities, establish trade con- nections with the outside world, bring current business usage and methods upon a higher plane, cultivate cordial relations among business men and spread the fame and prestige of Milwaukee as a progressive and prosperous commereial center.
Since the beginning of the association Milwaukee has seen its little shops and stores grow in number and size, its business districts grow into important marts of trade and commeree, its few small factories multiply themselves into thousands of manufacturing plants many of which have grown into industries of world-wide reputation. It covers a period when Milwaukee grew from a small struggling community into a great city occupying a proud place among the sister eities of the nation.
While the original founder merely sought the extension of trade it took many years to develop correct ideas, as to the mission and purposes of a com- mercial organization. Many obstacles and difficulties were encountered and overcome and only with patient application and loyalty to the cause in hand was an efficient working body finally brought into life. Milwaukee's best citizenship was identified in the development of the organization and took a lively and active part in all its efforts to promote the growth and prosperity of the eity.
Among the association achievements of recent years are the erection of the Exposition building, the permanent location of the State Fair in Milwau- kee, the establishment of the Milwaukee School of Trades and construction of the Auditorium Building and the preparation of the initial plans for the acquirement of Jones Island as a public wharf and shipping center.
The Earlier Beginnings .- The suggestion for some form of organization of business men had been under consideration for several years before anyone took definite steps in that direction. The immediate cause for the organiza- tion was an excursion trip to the City of Philadelphia undertaken in January, 1861, by a small group of Milwaukee merchants. Those who participated discussed the subject with some enthusiasm and upon their return a meeting was called.
A local paper of that day described them as a "body of enterprising and wholesouled men" who saw a future for the city and believed in striving upon broad lines for its growth, development and prestige.
On March 5, 1861, the following, then leading business men of the city met: Lester Sexton, Sexton Brothers & Company; W. P. Young, Young & French ; F. J. Bosworth, H. Bosworth & Sons; W. S. Candee, Candee, Dibble Vol. 1-25
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& Company ; J. T. Bradford, Bradford Brothers; A. H. Atkins, Atkins, Steele & White; George J. Sivyer, JJ. A. Benediet & Company : E. Terry, Terry & Cleaver ; JJohn De Bow, Hanley & De Bow; Edward O'Neill, J. Dahlman & Company ; E. H. Terry, Goodrich & Terry; T. A. Greene, Greene & Button ; J. S. Rieker, Jewell, Davis & Company; John Nazro, George Traey, W. M. Sinclair, Henry Fiss, Jr., Edward Truslow, George Bremer, George William- son, J. A. Dutcher, G. P. Hewitt and Clarence Shepard.
The name chosen for the young organization was that of the Merchants Assoc'ation of Milwaukee. The officers elected were the following: Presi- lent, John Nazro: viee president, G. P'. Hewitt ; secretary, J. A. Dutcher ; treasurer, F. H. Terry ; directors: J. T. Bradford, George Bremer, Lester Sax- ton, F. J. Bosworth and W. M. Sinclair.
The first promotional effort that was undertaken by the association con- sisted of the employment of a man named Captain Mapes who visited the various sections of the state to make propaganda for Milwaukee as a trading center. This was in 1862. During the same year the organization together with the Chamber of Commerce raised a company of soldiers for the Civil war.
In 1865 George W. Allen made the charge that the fire insurance rates were exorbitant in that they were four times as high as those exaeted in Chicago. The charge was substantiated in a subsequent committee report. The insurance companies responded with considerable sareasin but the asso- ciation eventually won out and the rates were reduced to an acceptable basis. At the same time the fire protection of the eity was improved so as to meet the requirements of the companies.
During the following year a unique report was made to the effect that "not one member had failed in business." An effort was made to hold high the eredit of the business men of the city and to worry through the "storm and stress" period of the Civil war without bringing commercial calamity upoz the city.
In 1866 George II. Walker, one of the three original pioneers of the city, died. The association adopted a resolution which embodied the following sentence : "May the fair white city, now so young and vigorous, become great among the cities of the world, and may the name or the virtues of one of its founders, George H. Walker, never be forgotten."
During the same year Guido Pfister went to Madison to seeure legislation in the interest of the city. The legislators of both Minnesota and Wisconsin visited Milwaukee in 1869 for the purpose of studying problems of city gov- ernment. Under the laws then existing the association had the appointment of fish inspectors. The fish industry had been an important one for many years. The last to serve in the capacity of such inspectors were Edward Fur- long, J. W. Barnum and Edward Burke.
In 1875 funds were collected to secure the state fair and all business houses and factories were closed for a day in order to enable the employes to attend the fair. Funds were also gathered to aid the fire sufferers of Oshkosh.
The same year a committee consisting of Charles T. Bradley, E. II. Ball and Elias Friend was sent to New York to induee capital to seek investment in local enterprises. In 1890 funds were raised to help the New Richmond
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tornado sufferers and for the starving Porto Rieans. In 1900 the sum of $15,000 was raised to retain the state fair.
Until 1893 the organization was known as the Merchants Association. A Manufacturers' Club had been organized a few years before and in 1894 a consolidation was effected and the new organization with a membership of 346 was named the Merchants and Manufacturers Association. That year Mr. John E. Hansen was the president. He urged a campaign to increase the membership to 500. The headquarters were then located in the University Building.
It would be difficult to erowd into a single chapter the long list of labors performed during the period that now followed and the results obtained. There were, of course, years when little or nothing was accomplished. but there also came periods when the actual services performed on behalf of the city's commercial and industrial interests were of immeasurable value.
Efforts in Transportation .- The association members soon recognized the faet that efforts would have to be made against diserimination in railroad rates and service. The protests were frequent and usually attended with success.
Among the first moves made by the association was an agitation for a union depot. This movement failed as the railroads claimed financial inability to build. In 1863 the association aided in the sale of $75,000 of bonds of the Fox River Valley Railroad. Three years later a large delegation witnessed the opening of the MeGregor and Western Railroad at Creseo, la.
The Northern Railroad to Menasha was completed in 1872 when a party of 200 merchants made an excursion trip over the line. Then followed the os- tablishment of a traffic bureau. With an expert in charge, the association has been able to render a valuable service to the business public. Thousands of complaints were investigated, shipping routes prepared, overcharges collected. rate legislation fostered, etc.
While the association has always advocated more railroads for Milwaukee it has not been inclined to disparage the facilities now existing. Its position is outlined in the following which is taken from the history of the association prepared in 1910 :
Transportation Facilities .- "Much has been said in recent years about Mil- waukee's transportation facilities. It has been asserted again and again that the eity needs more railroads and that our connections with the outside world should be materially strengthened. This ery still holds good. It will hold good in any growing community, more especially when it is recognized that shipping connections create trade and add to the prosperity of such community.
"But, here it should also be remembered that the local commerce must grow to a magnitude that will employ all additional facilities. The mere passing through the city of trains means little. Freight that originates here as well as the freight that is destined for Milwaukee really counts and means commercial activity and prosperity.
"Again we must not underestimate what we have. The two railroad lines which enter here are among the greatest railway systems in the country. They
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tap the great Northwest and connect us directly with the Pacific coast. They carry our goods to the North and to the South.
"The connections with the East are via the Great Lakes. The various boat lines and car ferries connect with the important railroad lines which run to the ocean ports and through them connect with European centers. Thus, it may be said that Milwaukee is linked either by water or land routes with the four ends of the world.
"But, while this is true it does not preclude the desirability of more trans- portation facilities. The cry for more roads still has efficacy when it is re- membered that more direet connections will bring us in closer toneh with the other markets and afford more extended opportunity to stimulate new trade relations. In 1879 active steps were taken to secure the construction of the Lodi branch of the Chicago & North Western Railway to Milwaukee. In 1883 the effort to induce the C., M. & St. P. Ry. to build a union station was renewed.
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