necessary to re-wire the entire building. The work was done in the most approved and thorough manner in accordance with the plans submitted by our electrical engineer. To supply the electricity required by these changes there were installed two new dynamos, and as the compound engines required a higher steam pressure than our old boilers could supply, these were replaced by five new boilers constructed of heavy steel.

There has also been added a condenser and cooling apparatus the working of which shows a marked saving in expense. Your Directors decided to replace the old hydraulic elevators by the Sprague Electrical Elevators.

The old method of driving our ventilator fans by rope transmission was replaced by electrical methods.

A short-lift elevator has been constructed to run from the ground floor to the Exchange Hall floor, which, besides relieving the other elevators from excessive loads, and providing greatly improved elevator service to the tenants of our building, is of special advantage to the members of the Board during the hours of 'change.

Your Directory, also, has made a much needed change in the old "Call Room," so that it is now used as a Visitors' Room and is of great convenience both to the members of the Board and their customers.

In order to arrive at an estimate of the value of this room to members of the Board, your Directors caused an investigation to be made of the number of entrances to the room during the session of the Board, which result shows from 4,500 to 5,000 entries during a single session.

Your Board of Directors is satisfied that the expenditures connected with the Board of Trade Building have been abundantly justified in the light of efficiency, safety and economy.

Every room in the Board of Trade Building is now rented.

An arrangement has been made by which a reduction of $1,250.00 per annum has been secured in the rate of insurance paid on the building.

Your Board of Directors has placed the assessment for the ensuing fiscal year at $70.00, and is gratified that, notwithstanding extraordinary though necessary expenditures, it was not obliged to make the assessment for any larger sum.

The receipts of grain and flour in its grain equivalent aggre

gated in 1896, 253,802,134 bushels, as compared with 189,432,819 bushels in 1895, and 187,553,469 bushels in 1894; and the shipments aggregated in 1896, 219,710,781 bushels, as compared with 171,464,137 bushels in 1895, and 148,638,822 bushels in 1894.

The number of cattle, hogs and sheep arrived in the market during the year was 13,850,603, valued at $179,876,997; as compared with 14,162,513 arrived during 1895, valued at $200,584,380.

The shipments of meat in a great variety of forms during the year aggregated 1,729,375,732 pounds, as compared with 1,697,953,766 pounds in 1895, and 1,750, 376. 155 pounds in 1894; of pork during the year 1896, aggregated 258,266 barrels, as compared with 300,029 barrels in 1895, and 222,676 barrels in 1894.

The amount of clearances reported by the Board of Trade Clearing House for the year 1896 was $81,814,059.63, and the aggregated balances for the year amounted to $29,064,348.19, as against $78,133,437.50 and $28,726,490.75, respectively, for the year 1895.

After the payment of all bills the Clearing House paid to the association $5,350.15, which is $1,631.88 more than the revenue derived from the business of 1895.

Your Committee on Transportation has frequently convened for the consideration of questions within the scope of its jurisdiction and has, in co-operation with the Chicago Freight Bureau, guarded the interests of shippers and receivers against all acts or contemplated acts on the part of railroads, inimical to Chicago or in violation of equity in freight rates and in terminal facilities.

Your committee trusts that members of the Board will bring all matters to its attention, however apparently trivial, involving the principle which should govern the distribution of transportation privileges, viz.: absolute equality of the patrons of transportation lines with respect to freight rates, and an impartial enjoyment of all the advantages which railways are empowered to confer.

The Commissioner of the Freight Bureau, whose ability and experience peculiarly qualify him to deal with transportation problems and the intricacies of tariff schedules, will in due time make his report, which will show in detail the work of the committee and the important questions which have engaged its attention during the year. It is only by incessant watchfulness that encroachments upon the rights of the public by transportation lines can be prevented and railway managers reminded that railroads were made for the public and not the public for railroads.

Your Committee believes that the adoption of a uniform classification, as proposed and set forth in Senate Document No. 120, introduced by Senator Cullom, would solve many problems which now vex the business of the country. The adoption of this document is earnestly advocated by the National Transportation Association, and by the principal organizations of the country.

Your Membership Committee has held regular weekly meetings for the examination of all applicants for membership, as to their fitness to participate in the privileges of this Association. Your Committee unhesitatingly withholds its approval from all applicants who are, or who have been, directly or indirectly connected with "Bucket Shops," and requires in every instance a written statement under oath that they will not, under any circumstances, engage in or be in any way connected with the "Bucket Shop

business.

It submits its report in detail at a regular meeting of the Board of Directors and no applicant is approved unless he receives at least ten affirmative ballot votes of the Directory.

Your Committee on Meteorological Observations has been very courteously and materially aided in the discharge of its duties by Prof. Garriott of the Weather Bureau, and is pleased to acknowledge the cordial co-operation of this efficient government officer in providing the members of the board with the latest and most reliable meteorological data, valuable not only to the members of this association but to their numerous correspondents throughout the Northwest.

Your Committee on Legal Advice has been called upon frequently to consider, with the attorney of the board, questions that have arisen before the various tribunals of this association with reference to the rules of the board and their relation to the laws of the state. The duties of the committee are exceedingly important and much depends upon the care with which these duties are performed.

In the last report of your Directory it was stated that Harry M. Greene had filed a bill in the Superior Court of Cook County for an injunction, the object of which was to restrain the Board of Trade from trying him upon charges that had been preferred against him. A temporary injunction was issued, and thereupon the attorney of the board moved to dissolve the injunction and dismiss the bill. After argument this motion was granted and the

bill was dismissed. Greene then appealed to the Appellate Court where the decree of the Superior Court was affirmed; the Appellate Court holding that a bill cannot be maintained under any circumstances against the Board of Trade or its Directors to restrain the Board of Directors from trying a member upon charges preferred.

In regard to the petition filed in the Superior Court of Cook County by H. H. Baumann for a writ of certiorari against the Board of Trade, the object of which was to restore him to membership, the attorney prepared and filed a return, and no attempt has been made by Baldwin's attorney to have the case tried.

During the year Francis J. Kennett and John F. Harris were suspended from the privileges of the Board. Each of them thereupon filed a petition of mandamus to be restored to the privileges of membership. The cases were argued before Judge Windes, who held that Kennett had no case entitling him to be restored, but that on account of the admission of certain testimony on file before the Board of Directors, Harris was entitled to maintain his petition of mandamus. Since that time the Board of Directors, on the petition of Harris, has restored him to membership. The Kennett case has not yet been appealed by his attorney. It is proper to observe here that these cases were heard before the Murry Nelson case was finally decided by the Supreme Court.

Since the last report the Murry Nelson case has been heard and decided by the Supreme Court of the State in favor of the Board of Trade, in a decision of great importance, which finally settles the question involved. That opinion holds that where a member has been suspended or expelled, the board was exercising its disciplinary powers, and that no court will interfere with the exercise of such powers; that the trial before the directors. is a trial before a tribunal of the members' own choosing and that where they have jurisdiction over the member and the subject matter, the courts will not interfere with their decisions.

This decision is of incalculable value to the board, and renders. it hopeless to undertake to overthrow the decisions of the Board of Directors or even to review them by proceedings in courts.

During the year a number of cases were filed by the AttorneyGeneral against the elevator proprietors. These cases were heard before Judge Tuley, and he decided that the elevator proprietors had not the right to deal in grain. A copy of the opinion in full

may be had upon application to the secretary. This opinion absolutely supports the doctrine which has been insisted upon by your Directory from the beginning of the elevator controversy, viz. That a licensed custodian of property, upon whom the state confers special and exceptional facilities and prerogatives, for the discharge of a public trust and for the general welfare, has no shadow of right whatsoever, either directly or indirectly, to use such facility and prerogatives for the promotion of his private interests.

It is gratifying to call your attention to the fact that no case in the last seven years to which the Board of Trade of the city of Chicago has been a party, has been decided adversely to the board.

Your Committee on Flaxseed Inspection has performed the duties which devolved upon its members, and has frequently conferred with our efficient Chief Inspector of Flaxseed in order that the reasonableness and integrity of our inspection may be properly understood and appreciated. The trade is kept fully, systematically and accurately informed of receipts, shipments and stocks.

The receipts of flaxseed during the year aggregated 10,299,525 bushels, and the shipments 5,734,654; as compared with 8,525,257 bushels and 4,726,818 bushels respectively, during 1895. The quantity of flaxseed stored in regular elevators and afloat in Chicago at the close of the business December 26th, 1896, aggregated 2,043,657 bushels, as against 895,177 bushels upon the corresponding date in 1895.

Your Warehouse Committee has attended to its duties as prescribed by the rules of the board, and has exercised great care that warehouses declared regular warehouses for the storage of grain and flaxseed have conformed to all the requirements laid down in the rules and regulations of the Board. The Committee on Weighing is gratified to report that notwithstanding a large increase in the volume of grain weighed over that weighed during the preceding year, no serious complaints have been brought to its attention.

Your Committee on Market Reports has considered its duties among the most important of those of any standing committee of the Association. It has therefore from time to time made diligent inquiry among the members of the board as to the wants of the trade with reference to prices in other markets of the various commodities dealt in by members of our exchange. It has also done