"The situation of Chicago in the great agricultural center of the United States brought it into prominence at an early day as the center of the live stock trade. This position it has never lost. However great may be the development of other sections of the country, Chicago can not fail to continue to be the leader in this class of business. Its location as a railroad center and its position as a distributing point is made secure by the steadiness of its growth and the magnitude of its present operations. There is greater competition in this market than in any other. The Chicago market is the purchasing point, not only for the local packers, large and small, the exporters, and the speculators, but also for a great number of smaller packing houses scattered over the country, and for the feeders and breeders of the most fertile and largest agricultural sections of the United States."[10]

Prior to the year of 1833, Chicago had no provisions to export, and as late as 1836, an actual scarcity of food there created a panic among the inhabitants.

The first shipment of cattle products from Chicago was made in 1841, by Newbury and Dale on the schooner, Napoleon, bound for Detroit, Michigan. This shipment consisted of 287 barrels of salted beef and 14 barrels of tallow.

Statistics of Chicago 1837.
Population:
Whites3989
Colored160
Males2579
Females1570
Total4149
Buildings:
Dwellings398
Drygoods stores29
Grocery stores26
Hardware stores5
Drug stores3
Churches5

There were two weekly papers published in Chicago at this time: The American, a whig paper, and the Democrat.

The first market in the way of stock yards in Chicago was located on the north branch of the Chicago river. These yards were used chiefly for swine. In 1836, the first cattle yards were opened on a tract of land near twenty-ninth street and Cottage Grove avenue. A few pens had been erected here to accommodate the cattle trade. The first scales for weighing livestock ever used in that country were used in these yards.[11]

In 1855, there were two regular stock yards in Chicago; one, called the Merrick Yard, is now known as the Sherman Yards, and the other was called the Bullshead Yard. A great many eastern people came to Chicago at this time to buy fat cattle to take back east. Most of the cattle they bought were driven over into Indiana to Michigan City, to be shipped on east. John L. Hancock was the only packer in Chicago at this time. Ice was not used, and packing was done during the cool seasons of the year.

One element of the success of Chicago as a market was the fact that stock might be pastured without charge on the prairies near the city, while the owners awaited favorable market conditions in the eastern states. The cattle were herded on the open prairies just outside of the city, and the buyers of Chicago rode out each day and bought the cattle in such numbers as they needed.

In 1865, the growth of the livestock traffic had increased so rapidly that the several railroad companies that centered in Chicago, together with the managers of the stock yards already existing, combined for the erection of the Union Stock Yards. These were opened for business on Christmas day, 1865.[12]