PREFACE

This study of the history of the Twin Cities was begun five years ago, and has been concerned particularly with tracing the development of metropolitan economy in the Northwest. While in itself, this constitutes a rather narrow field of investigation, it has been supplemented by considerable attention to the broader aspects of metropolitan economy throughout the United States and in Europe. The results of the latter study do not appear directly in this monograph, but have aided materially in its preparation.

The material on which the monograph is based has come not only from printed sources, both primary and secondary, but more especially from numerous reports, municipal, state, and federal; from newspapers and manuscript materials found in the Minnesota Historical Society and in the libraries of the commercial organizations of the Twin Cities; and from interviews with business men familiar with the development and present situation of the cities.

The whole study bears witness to the guidance and help of Professor N. S. B. Gras, without whose encouragement the work would probably not have been undertaken; without his direction and assistance it could certainly not have assumed its present form.

MILDRED HARTSOUGH

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TABLE OF CONTENTS

Chapter I. The metropolitan concept...

Introduction, I.

Survey of theories of economic development: List, 2; Hildebrand, 2; Schmoller,

3; Bücher, 3.

Stages of economic life: pre-village, 3; village economy, 3; town economy, 4;

concept of national economy, 4; concept of metropolitan economy, 6.

Metropolitan economy: commercial phase, 6; industrial phase, 7; transportation,

8; finance, 9; the metropolitan center and the area, 9; non-economic phases

of metropolitan life, 10.

Metropolitan economy in Europe, 10.

Metropolitan economy in America: in the East, 12; the Middle West, 12; the

Northwest, 13.

Development of the Twin Cities: factors in their location, 13; early rivals, 15;

difference in functions performed, 15; relative newness of the area, 16; the

Twin Cities as the nucleus of the Northwest, 17.

Chapter II. Establishment and early growth of the Twin Cities..

Beginning of American occupation of the Northwest: establishment of Fort

Snelling, 20; arrival of the first settlers, 21.

St. Paul: founding, 21; advantages over Mendota, 22; it becomes headquarters

for the American Fur Company, 23.

The fur trade: beginning of trade with the Pembina district, 23; the Hudson's

Bay Company trades through St. Paul, 24; decline of the fur trade, 25; the

part played by St. Louis in the fur trade, 25.

The beginning of lumbering in the Northwest, 26; establishment of St. An-

thony, 27.

Agriculture: development, 28; trade in agricultural products, 28.

Development of business in St. Paul: retail trade, 28; rapid growth after 1850,

29; beginning of wholesale trade, 30.

Development of the wholesale trade: in Minneapolis and St. Anthony, 31; panic

of 1857, 32; expansion of trade in St. Paul, 32; especially since the Civil

War, 33; change in the relative importance of the branches of wholesale

trade, 34; wholesale trade in Minneapolis, 35.

The establishment of manufactures in St. Paul, 35.

Trade between the Northwest and the East: early dependence on St. Louis, 35;

growing importance of Galena and the upper river towns, 36; transfer of

trade from St. Louis, 37.

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Chapter III. Industrial growth of the Twin Cities to 1880..

The first saw mill and grist mill at the Falls of St. Anthony, 38.

Lumbering in the St. Croix valley, 39; on the upper Mississippi, 39; market-

ing of the lumber, 40; movement of the industry away from Minneapolis, 40;

present importance of Minneapolis in the industry, 41.

The development of surplus agriculture in Minnesota, 42; trade in agricultural

products, 42.

Flour milling at Minneapolis: first mills, 43; rapid growth after 1865, 44; the

revolution in milling processes, 44; Minneapolis the "Flour City," 45.

The grain trade: the first elevators, 46; the Minneapolis Millers' Association, 46.

Other phases of industrial life: in Minneapolis, 47; St. Paul, 48.

Commercial interests in Minneapolis, 49.

Comparison of business in Minneapolis and St. Paul, 1878, 49.

Chapter IV. Development of the Twin Cities as a metropolitan center since 1880...

Nature of the development since 1880, 51; rapid growth of Minneapolis, 51.

Development of jobbing: competition with Chicago, 53; specialization between

Minneapolis and St. Paul, 54; establishment of branches of eastern houses,

55; jobbing of fruits and produce, 55; automobiles, 55; motion picture

films, 56; the distribution of labor, 57; the Twin City jobbing area, 58.

The grain trade in Minneapolis: organization of the Minneapolis Chamber of

Commerce, 59; growth of the grain commission business, 59; elevator ca-

pacity, 60; line elevator business, 60; state weighing and inspection, 61; the

trade in coarse grains, 63.

Manufacturing in St. Paul: general development, 63; relative importance of

different lines, 64; the meat-packing industry, 66.

Manufacturing in Minneapolis: flour milling, 68; the metal industries, 69; lin-

seed oil, 69; the Minneapolis industrial district, 70; the Midway district, 70.

Chapter V. Transportation and rates..........

Early transportation in the Northwest: water, 72; the first roads, 73; navigation

on the Minnesota, 73; on the upper Mississippi, 74; on the Red River, 74.

Communication with the East: two main routes, 74; Chicago and St. Louis, 75.

Opening of the railroad period: the beginning of railroad agitation, 77; the

land grant, 79; early railroad projects, 79; state railroad bonds, 79; the first

railroad, 81; the important period of construction, 81; transportation other

than rail, 82.

Construction of the railway net: lines to the West, 83; first lines to the East,

84; survey of roads in 1873, 85; narrow-gauge roads, 86; survey of lines,

1887, 87; the Minneapolis, St. Paul, and Sault Sainte Marie, 87.

The rate problem: factors affecting freight rates in the Northwest, 88; illustra-

tions of the rapid fall in rates, 91; the rise of Duluth as a competitor, 92;

competition with Chicago, 93; milling-in-transit, 94; federal regulation of

railways, 96; the rate agreement between Chicago, the Twin Cities, and

Duluth in 1897, 99; activities of the Minnesota Railroad and Warehouse

Commission, 101; the Minnesota Rate Case, 102; readjustments of rates

since 1900, 103; survey of the present situation, 110.

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