Weight of Machine, 3.500 Pounds. Price, $1,200. 3 *- ac 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. GF Nos. 1 Br Have un er conduct In solicit and best en L I E> OF THE UN1VLRSITY OF ILLINOIS PRLSENTLD BY tiewton M. Harris 1941 I 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 W D GRAIN, ] SICOM: s L . W 0-8 o O %o HOME OFFI Eft OF C0 fc 2 3 L161 O-1096 O 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 - e- t-i rt- . -. ft 5" vT*" S- 2 *l _. p b = 5 X 10 *" w i ^ P- O3 TABLE, *i 03 C ^ w w = << I W P ?* M S* (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. . 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 oo 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 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 ley 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.