Genesis of the Omaha Grain Exchange
OW that the Omaha Grain ex
change In to operation, the wetkn
and months of hU'iy scheming nl
N
fn work that preceded the opening
last Monday seem to h:ive had
more purpose, point and celerity than peo
Jilo were willing to think during the Ion
period of preparation. Trior to this era
tho business men of Omaha knew that
pomething wan wanting to the elty; they
knew that Omaha should be busier H'il
Kreator, and that the time whh eome for
advaneement. lint they did not know what
to do. Then came A. Jl. Stic kney, president
of the Chicago Great Western, and told
the people of market towns. Of cou:sc,
that was It, but no one Imd been able be
fore to make ull the varied Interest of tho
city nee that Omaha should be a market
town. A valiant and undirected outcry for
Ktttln and product! followed, and then Mr.
Stlckney came again and unfolded the
Kraln exchange, and made the way clear.
Again he Incorporated the Kraln terminal?,
that there might be land and room for tho
Industry; lust of all, ho made n rate.
This was the genesis of the Omaha Grain
exchange. Tho new market, after six days
of business, Is all Unit even the most san
guine had hoped. The business In futures
is large and the cash transactions bid fair
to Increase very rapidly.
"We have made a most excellent start,"
said a director of the exchange. "I think
that no one has been anything but pleased
by tho allowing so far. The cash market
Is, of course, what we want, but there Is
every reason for conlldence In Its rapid
growth. The rate situation Is not alto
gether satisfactory, because we do nut
know Just what the final outcome of all this
cutting and withdrawing will bo. The
rates us they are at preaent are very
favorablo to the market. The uncertainty
as to future changes may for u short time
deter men from taking up the grain busi
ness here, but, when we have pussed
through this short period of disturbance
we will bo on the high road to success."
The local exchange lias been moJe'el
Bomewhut after -the Minneapolis market,
but In drawing up the rules and regula
tions governing It, tho directors have gone
through the printed matter furnished by
all the prominent exchanges In the coun
try and have tried to tuko from each the
best points. After visiting tho Minneapolis
exchange and consulting wt.li men high In
the , grain business, the clearing house
mcthed of business was udopted. This
provides . that all transactions made in
grain during the day for future delivery
shall be cleared through the exchange
clearing office. That Is, at the close of
business or before 2:30 o'clock each day, '
all such transactions must be place! In
clearing when upon the acceptance of
such transactions the clearing oHlce as
sumes the position of buyer to the seller
and seller to the buyer. Every Ilrm is
required to make out statements showing
every transaction for future delivery with '
amount, price, date, and party purchas
ing; also to make a memorandum rhowlng
the balance between himself and the clear
ing oBlce. If the balance is due the house,
the Arm must send a check or if it Is the
opposite, the exchange pays. This makes
a dally settlement on all transactions.
The manager of the clearing office may
call for margins to protect the office under
certain conditions, and all members settling
ihrough the office are required to keep a
balance with t,he same. Fines are provided
' ' i '.
4
SXAiOMIMQ GRAIN AT THE
L
1
VIEW ON TOR F LOO II OF THE OMAHA
by a Staff Artist.
against error and tardiness In tiling pap rs.
In cases of default in payment of mar
gins or balances, the manager has the
right to sell tho property of the purchaser
to satisfy claims. The clearing house It
privileged to collect a fee of 1 cents per
1.000 bushels bought or sold.
The regulations provide that the trading
hours shall bo from 9:30 o'clock In the
morning until 1:15 in the afterno in, ex
cept Saturdays, when noon shall be the
closing hour. A gong announces the or.en
Ing and closing of this period. The cash
transactions are to be oxpeeiei after 11
o'clock und before noon. The rest of the
timo Is to be given largely to future
transactions. Transactions during hours
outside of the exchange hall are punl"h
ablo by a line or 110 or J'-'a
No transactions will be allowed of less
than one car In amount, and in future de
livery deals, unless otherwise stated, 5,000
bushels will be the unit. One thousand
bushel transactions will be possible. The
regulations provide for all brokerage and
commissions, and also for a fine of from
$100 to J500 or expulsion for any member
who shull be guilty of violating these rules
by remitting any such commission by re
funds, rebates, allowances to railroad
agents, or In any other way. It Is believed
by the directors that the rules provide full
means of discipline and for the control of
business in such a way as to Insure its
entire regularity and consistency with the
alms of tho exchange, and the advance
ment of the Omaha market.
Tho Inspector of grains will keep open
office from 9 o'clock in the morning until 6
In the afternoon until April 15. after which
two hours longer must be served. The In
spectors are required to make their reasons
for grading grain fully known by notations
on their books. Tbo weight alone shall not
determine the grade. The Inspector is
V
1 1 '
r :
V
-: -"vTT"""-" -
-s -
SAMJLJS TABLE; OMAHA OSAXH BaXHAHaB.-Pb.oto by BUS ArtlsC
GRAIN EXCHANGE ON THE MORNING
charged with the condition and cleanli
ness of the grain cars.
Tho control ond business of the exchange
rests In the following persons: G. W. Wat
tles, president; 8. A. McWhortcr and E. E.
Biuc?, vice presidents; 15. E. Truce, A. L.
Reed. A. C. Smith, N. II. Tpdlko, A. B.
Juuulth, Nathan Merrlam. G. W. Wattles,
S. A. McWhortcr and F. T. Klrkendall.
directors; A. II. Merchant, pecretary, and
S. Morphy, chief clerk. Besides these there
Is Inspector IIojl, a stenographer, a door
keeper and other minor officials.
The beginning of the Grain exchange,
though no one knew It, was the opening
of tho line of the Grcnt Western to this
city. The coming of this roud had been
looked forward to with much hope, for Its
president was known to ,be an Iconoclast
and u smnshcr of the stereotyped railway
man's ideals. Much was hoped for by
Omaha. When the road was in running
order, a party of Omaha men went to Fort
ltodge to meet the railway magnates and
escort them to Omaha. At the Commercial
club President Stlckney made a speech
which reemed to put life Into every one
who heard It. It presented the possibilities
of Omaha as a market town In a way which
surprised all hearers. It was understood
that the new road would put In a rate
which would give Omaha a chance to begin
grain dealing. Every one was .eager to
begin work, but no one knew Just how.
Dining Octolier it was announced that Mr.
Stlckney had purchased a large tract of
land between Omaha and South Omaha to
be used as a location for mills and eleva
tors, with terminal trackage to bo put In
by a company which he incorporated No
vember 24 as the Omaha Grain terminals.
This was a second boom for the new idea,
as good locations for a large number of
grain locations were secured. A. B. Stlck
ncy Nathan Merrlam, John L. McCague,
- S
1
k
a
OF ITS OPENING. Flashlight Photo
A. G. Charlton and W. D. Mellugh were
the incorporators, and other roads than
the Great Western did not take stock.
The exchange Itself was born November
2, when Mr. Stlckney visited Omaha with
a large party of Minneapolis grain cap
italists. In a speech he outlined such a
corporation, which was necessary for a
market before any elevators or mills would
locate here. He closed by taking two
shares of J500 each for the railroad. Be
fore the meeting ended over seventy shares
hal been taken. O. W. Wattles was em
powered to secure additional members and
to procure printed mutter from other ex
changes as a guide. Within a few days the
membership was raised to 150. Mr. Wattles
and others worked In securing members and
in drawing up articles of incorporation
until November 10, when an organization
meeting was held and officers elected and
the exchange incorporated.
Weekly meetings followed and the ex
change was plunned closely after the sug
gestions of Mr. Stlckney. The new organi
zation was given the use of the call room
In the Board of Trade building for one
year, and an attempt was made to begin
trading with the first of the year. Some
time was taken In getting a secretary for
the exchange and the compilation of rules
and regulations and the fitting of the new
trading hall took so much time that not
until last Monday could operations be
begun.
The exchange, it was considered by all,
was the first necessary step In making
Omaha a grain center. When It should
bo in operation the market would be an
actuality. No one could expect railways
to make grain rates when ' no grain was
called for. During the formation of the
exchange the rates have been passing
through a period of readjustment which
has one day filled the promoters of the
enterprise with pleasure and the next d-R
filled them with gloom. A very satisfac
tory conclusion Is the ultimate expecta
tion. The development of the grain terminals
awaits spring. Plans have been made for
the grading and trackage and houses are
now being removed. With the market
going elevators will come here naturally
and the flouring mills will come where
the elevators are. These are the steps
by which Omaha is to become a grain
market.
Glimpse Into Mythylogy
Aeneas was boasting of the deep friend
ship of Achates.
"That boy would do anything for me!'
he declared, , . '
"All right," said a cynical comrade, "Just
ask him to indorse your note."
Afraid to make the test, Aeneas began
talking about the weather.
Aesculapius had Just restored Ilippolytuji
to life.
"Wonderful I" declared the people.
"Not at all." was the airy reply. "Dowle
did It!"
Enraged at the sacrilege, Jupiter got him
With a thunderbolt
Jupiter was talking with his son, Apollo.
"In addition to your other titles," he
aid, "I Intend making you the god of
poetry."
"Good! exclaimed Apollo. How I will
get a chance to meet Ella Wheeler Wil
cox." Pleased beyond expression, he Inform e4
Hebe that the drinks were on him. MBa
wauke Bentlnet, .....