SELL
IT OR SMELL IT
by
Leon A. Carrow
Delivered to The
November 9, 1998
In
the late nineteenth century, there were scattered throughout
Such were the beginnings for a boy born in 1893 at home, of course, in a small
community called Viducla, situated within the capitol
Responsibility for education rested with the rabbi and other elders in the
community, concentrating on the Hebrew language and the reading of the Old
Testament. Charles was an enthusiastic student who absorbed his studies
quickly. Yiddish was the spoken language at home, and only a minority of those
in the community was familiar with the Lithuanian language. One of those who
had mastered Lithuanian sufficiently to be conversant was the itinerant peddler
who bought and sold his wares to both Jews and non-Jews. Besides his function
as buyer and seller of goods, the peddler served as the communicator between
all of the communities he visited in the countryside.
Charles eagerly awaited each and every visit of the peddler; he would follow
him on his rounds, watch carefully the negotiations of the purchase and the
sale, and join him on day long trips to the non-Jewish areas where he would
learn the basics of the Lithuanian language. The peddler's tales of happenings
in far off places conjured up the imagination and dreams in the mind of the
entranced young child.
By the time Charles was nine years old, the rabbi and his other teachers came
to the conclusion that his further, significant education could only take place
where there were more scholarly teachers. All were in agreement that this was
available in a locale some forty miles distant. With the aid of the peddler who
arranged the itinerary including people who would house him on the way, and
after receiving the blessing of his parents, Charles took off with a knapsack
on his back to walk the forty miles to his new home, to live with a family whom
he obviously had never met. There he remained for two years, studying the
Talmud intensely, returning to his parents at the age of eleven.
Back home Charles, now the eldest male child since his older brother had been
sent off to
After ten days my father, along with hundreds of other immigrants, was
deposited at
The recent immigrant, realizing once again the importance of education,
enrolled in night school to learn the English language. He studied this as
fervently as he had when pouring over the Talmud, resulting in a fluency
without the accent which was evident in so many others. In the store, working
with food excited him far more than dealing with the staples of the Lithuanian
peddler. It was the fresh fruits and vegetables which heightened his senses;
certainly more than a box of cereal or even a piece of meat or poultry. After
five years he was restless, continually thinking of other opportunities; thus,
one day Charlie took the streetcar to the South Water Street Market, rented a
horse and wagon and bought a load of watermelons.
The market, situated on both sides of
Congestion caused by horses and wagons lining
This concept, proposed by Daniel Burnham in 1909, in his master plan for a
greater
The impetus for change was slowed by the country's entry into World War I, but
by 1920 Wacker and his Commission were in high gear with plans to replace the
aged market place. A young entrepreneur such as my father, now a naturalized
citizen with a record of Army service in France, was more immersed with
thoughts of buying his own horse and wagon, enhancing his stake in the world of
commerce, dealing directly with produce growers, acquiring a business partner,
and getting married with hopes of raising a good sized family. Older, more
established occupants of the Street struggled for their historic location. One
opponent of change contended that "We want to stay where Nature put us,
here on the old waterfront," and others, not surprisingly, said, "We
were here first, we belong here, and have no place to go."
Wacker and his group were adamant, however, in the need for change. A ruling of
the Federal Government stipulating that the height of new bridges across the
river be raised strengthened their position. In January, 1922 the Commission
published South Water Street Facts, which included a detailed account of the consequences
of meeting the new requirements. In essence, South Water Street would have to
be either "humped' up to meet every north-and- south street from Michigan
through Franklin and then Lake Streets, or bodily raised an average of six
feet. Either of these methods would cost about the same- nine million dollars.
The Commission, however, strongly recommended an alternative with little
additional public cost; namely, the creation of upper and lower thoroughfares
in South Water Street giving the city two greatly needed east-and-west streets.
Its report included the following: "By its connection with Canal Street,
the South Water Street improvement will form the northern boundary of a circuit
of wide traffic arteries around the congested center, composed of South Water
Street on the north, Canal Street on the west, Roosevelt Road on the south, and
Michigan Avenue on the east. Not only will this quadrangle greatly relieve loop
congestion, but the removal of the South Water Street produce market to a
better, more economical and better adapted location will take 16,000 market
vehicle trips per day off loop streets-thus freeing traffic movement on the
north-and-south and the east-and west streets- and reducing the present
congestion in the downtown district sixteen per cent."
In spite of continued legal battles, the plan was finally approved,
condemnation was authorized, and construction of what was to become upper and
lower Wacker Drive was begun in late 1924.
Frantically needing some organization in light of the impending court order to
move, the merchants formed the South Water Market Trust which investigated
possible sites for the new market; chosen was the so- called Valley District,
then notorious as a center of criminal life and activity, some two and one -half
miles southwest of the existing facility. Land was purchased, demolition of the
tumble -down houses was begun, and architects were hired who began the feverish
chore of drawing up the plans so that construction of the new buildings could
begin. The court order calling for relocation was handed down in January, 1925,
and the last day of market activity occurred on August 27, 1925.
The new market, covering eight square blocks, bounded by Racine Avenue on the
west, Morgan Street on the east, 14th Place on the north, and the Baltimore and
Ohio Railroad on the south, opened for business on August 29, 1925. It
consisted of six three story buildings housing a total of 166 stores, each of
which was but 24 feet wide and 81 feet deep. Each building had an elevated
loading dock-sidewalk 30 inches above the street, which was 90 feet wide.
Streets in the South Water Market were and are the only unnamed streets in the
city. Any place in the market is simply "South Water Market." Numbers
having no connection with the city's regular street numbering system identified
the various units.
Initially, the 90-foot -wide expanse enabled the horse drawn wagons and compact
trucks to easily transact business at the loading docks, and the market became
the central fruit and vegetable distribution point for restaurants, hotels,
hospitals, small retail chains, independent stores, and smaller wholesale
markets. This ease was short lived as the wagons and horse troughs disappeared,
replaced by larger and larger trucks.
Congestion reappeared, and with it an increasing noise level brought on
primarily by the insistent shouting of the produce market men, universally
practiced by all, from owner to laborer on the docks. Much of the produce
reaching Chicago came by rail, and in 1925 the Chicago Produce Terminal, a
75-acre tract at Ashland Avenue and 28th Street opened. This rail yard at its
height of operation in the late forties and early fifties, received annually as
many as 120, 000 carloads of fresh fruits and vegetables, from all of the
contiguous states. Some of these were scheduled for local unloading, others
were reconsigned and re-iced , if necessary, for forwarding, while still others
were held for higher prices or inspection by prospective buyers. However,
almost 70,000 carloads were destined to be unloaded for the South Water Market.
On a given morning samples of the fruit were transferred onto the floor of the
auction warehouse located at the Terminal. As reported in the Chicago Tribune,
"The dealers would adjourn to the auction room, equipped with
loudspeakers, and the drama began. Bids often involved an elaborate system of
gestures and silent signals. A subtle glance at the auctioneer could raise a
bid of five cents, blowing a ring of smoke toward the ceiling another five. It
was an old-fashioned, Old World way of doing business, handed down from
generation to generation, with a simple handshake often clinching a deal."
My father, at that time, no longer had a unit in the market per se; he and his
partner, (whose association lasted for thirty-five years, supposedly without a
written contract), were now dealing exclusively in carload lots.
While his partner functioned as the "inside" man, Charlie would
travel throughout the country for weeks or months at a time conducting business
and cementing long standing friendships with the growers of watermelons,
apples, potatoes, onions, and peaches. Although obviously involved with the
purchase of a given crop, acting alone or in partnership with the grower, he
also participated in all aspects of the process up to and including its
shipment by rail. Sensing the emerging importance of the "chain" food
stores, he forged alliances with their buyers, who came to the producers and
bought from people like my father since the "chains" at that time had
no distribution centers of their own.
Charlie's son was imbued at an early age with the vibrant and tumultuous face
of the produce market place; utter congestion of both man and machine, fresh
aroma of fruit and vegetable, lingering smell of fragments of discarded food
stuff, loud and raucous shouting in more than one language, taunting and ethnic
slurs without rancor, continuous haggling of the bid and asked price. I inhaled
all of this, but in addition was, on many trips with my father able to explore
and appreciate the mysteries of nature. Whether it was in the peach and apple
orchards of Michigan and New York, the watermelon fields of Mississippi and
Florida, the potato and onion fields of Alabama, I was struck by the passion
and unspoken ardor of those who dealt with this commodity. I remember with
fondness the exact manner in which my father rolled in his fingers an apple or
peach testing its texture and goodness, or the simple tapping on a watermelon
to diagnose the condition of its innards. Such memories resulted in the
following:
Father
Caress the supple, ripened fruit,
Firmly held in the palm of a hand;
Loving fingers softly rotate
Slowly upon the surface.
A measured, faint smile emerges;
Not seen nor appreciated except
By those who can absorb.
Pass on to the next,
Quality assessed by simple percussion.
Approval by a subtle nod, dissent
By frozen stare.
Professional attainment, logged
In undocumented journals.
Fingers, hand of a surgeon
.
When I was a child, the business of perishable fruits and vegetables was
strictly a seasonal one. For instance, there were no watermelons in Chicago
prior to the 4th of July, and these were gone once summer had passed. In my
home, seasonal designations were often replaced by the fruit or vegetable of
the time; thus, Spring became potato season, Summer was watermelon season, Fall
was apple season, and Winter the time for pinochle and planning for the coming
year. By the 1950's the increased presence of airfreight along with the greater
capability of shipping perishables by sea brought to an end many of the
seasonal limitations. This era also marked the beginning of the decline in
shipments by rail. With the federal government building more and more
inter-state highways, with larger and larger trucks housing self contained
refrigeration units, deliveries could be measured more in terms of minutes or
hours rather than in days.
Eventually, more than 75% of produce docking in South Water Market arrived by
truck, resulting finally, in the closure of the Produce Terminal along with its
auction facilities.
Congestion in the market, while ever present since the turn of the century,
became more serious with increasingly strangling consequences each passing
year. The chief villains were the trucks themselves; a one-piece vehicle grew
eventually to 38 feet, while tractor-trailers extended to 45 feet in 1980 and
later to 54 feet. Considering the width of the major market thoroughfare, even
one-piece trucks of sufficient size, parked at opposite docks, left little room
to maneuver. As early as 1960, the Market Service Association, representing the
merchants, passed a rule restricting receiving to the hours of 9 a.m. to
midnight, and shipping from midnight to 9 a.m. This rule was often ignored.
Compounding the problem was the vertical movement of goods in the stores
between the basement, the ground, and the top floor. Loading and unloading by
forklift or by hand was dependent on the one, original freight elevator. It was
estimated in 1980 that this labor intensive, inefficient mode of operation
created a cost of moving a package into a produce house and out again from 50
cents to $1 per package, depending on weight. That same year, Jerry Crimmins
wrote in the Chicago Tribune: "After 55 years in the same location, the
market, a collection of competing wholesale merchants, is being choked by truck
congestion and bled by high overhead caused by antiquated facilities. Some
experts in the produce business predict if South Water Market, one of Chicago's
basic institutions, does not move, it will wither away. Others say the market
can never die because its function is indispensable. Even these experts believe
present conditions may cause the number of wholesale merchants on the market to
dwindle to a few big ones, reducing competition."
Indeed, the numbers had already decreased, called by one merchant a war of
attrition, caused in part by the difficult conditions in which they were forced
to operate. In 1960, there were 155 wholesale produce merchants at South Water
Market, in 1970 there were 87, and by 1980 the number was down to 67. The
Market Service Association, with a Board of Directors of eleven merchants, an
organization whose major stated purpose was to represent all of the merchants
and act as their official mouthpiece, was founded in the late 20's. Initially,
all owners signed on, becoming dues paying members, with a monthly fee assessed
to cover watchman service, equipment maintenance such as street lighting,
canopies, etc. In the ensuing years, when change in individual ownership
occurred, not all chose to join the Association, though legally they had an
obligation to do so. This divergence has not been enforced, and has contributed
to the description of the Association as being "very loosely organized;"
nevertheless, it has been a voice in and deliberation for merchants,
particularly in efforts regarding relocation of the market.
As early as the 1960's plans had been proposed to move the market; the grandest
plan of all, conceived in the early 70's but never progressed beyond the first
trimester, was to move the market, along with Chicago's entire food industry,
to the Lake Calumet Area. Later, in 1979, the city, through its Economic
Development Commission along with consultation from the executive director of
the modern Maryland Wholesale Food Center Authority, laid out plans to move the
market to an 80 acre site at 31st and California Avenue. Bob Strube, the
largest owner of units in the market and then president of the Market
Association, aware of the necessity for a move, championed its cause. Over a
quarter of a million dollars was collected in seed money from 36 of the produce
merchants for planning a new market that would have wider streets and more
practical buildings.
However, roadblocks like shrapnel were thrown into the deliberations; many were
unconvinced of the prediction voiced by some industry experts that South Water
Market must move or face extinction, and virtually all of these were reluctant
to go into debt, as would be necessary to build a new market. In addition,
there was the expressed fear that Chicago might end up with two wholesale
produce markets in different locations competing with each other. Those willing
to invest in a new facility wanted some assurance that all produce wholesalers,
even the reluctant ones, would be forced to leave South Water Street once the
new facility was built. To accomplish this, condemnation of all of the
properties would be necessary; a move, which was considered to be very
difficult at best since other food businesses, namely the meat and grocery
wholesalers were mixed in with the produce houses.
The struggle went on for months; the city was willing to make concessions which
would financially benefit, to some degree, the individual merchants, and
officers of the Association repeated the necessity and value of the move citing
the large overhead carried by all working in an antiquated facility. But the
smaller, and in some cases the older entrepreneurs who had made it on their own
continued their objection to the move. Finally, the consultant left, seed money
was returned to the 36 produce men, and the market continued without physical
change. Bob Strube was quoted in the Chicago Tribune: "I'll be moving
South Water Market on the day I go to my grave. I want to move the market, but
I don't know how to do it."
Throughout the 80's the Market's role as the dominant factor in the wholesale
business in the Midwest gradually diminished. Competition increased from the
smaller but newer and more efficient regional centers in St. Louis, Milwaukee,
Minneapolis, Cleveland, and Indianapolis where labor cost and overhead were
appreciably less, and buying directly from the growers with speedy interstate
delivery by truck bypassed the gridlock of South Water Street. Growers would
accommodate smaller buyers by "drop shipping" produce to their place
of business. More importantly, chain stores became more and more significant in
the retail produce arena; they bought directly from the growers, then shipped to
their warehouses, distribution centers, and ultimately to their stores via
their own trucks. South Water Market still functioned, albeit in a lesser role,
but the situation was serious enough for Bob Strube to tell the Sun Times in
1989: "If we're going to save the wholesale food market, we're going to
have to move within ten years."
Enter the City of Chicago. The deputy commissioner of planning and development,
Charles Thurow, in an article written by Henry Henderson, was quoted as saying:
"There is no way these 62 competing businesses can structure themselves to
effect a move. The city has to be the glue." Thurow was put in charge of
the project; he knew that this would be the 8th major attempt to rebuild and/or
move the market since 1950. Having already issued a report on Chicago's
wholesale food distribution markets, he was well aware of the current markets
inadequacies, including, of course, the enormous inefficiencies and costs
caused by the huge trucks delay in delivering and unloading their wares.
Seeking to recoup some of the dominance as the major Midwest distribution
center, the City, in 1993, engaged the services of Stein and Company who were
charged to develop the overall plan for a new market.
A 62 acre tract with railroad connections off Ashland Avenue between the South
Branch of the Chicago River and the Stevenson Expressway was chosen; an ideal
location for trucks coming on the interstate highways. Stein estimated the
total cost at $100 million, financed by the city's committed general obligation
bonds, possible federal and state funds, and private funding. The latter
"was especially tricky," said Thurow, noting that these small
merchant businesses basically had no inventory that the banks could take as
collateral. Further, each merchant owned his storefront valued by him her at
from a quarter to one half of a million dollars, in contrast to other mall type
operations where the proprietor would lease from a central market authority. As
Richard Stein pointed out, "The physical value of the buildings other than
the market being there was zero." That being the case, it was thought that
banks were unlikely to loan money without a strong central market management.
Stein proceeded to formulate the plans with the reorganization of the market as
a cooperative, with Stein and Company as manager, each merchant trading his
storefront for equivalent space in the new facility on a long term lease basis,
with possible ownership after ten years. In February, 1994 Stein completed a
detailed information package of the Chicago Wholesale Food Market with specs,
drawings, prices, financing; "the whole thing." Included was the
schedule with construction completion and opening in late 1995.
Rosemary Auster, who with her husband owned eight units second only to the
Strube Company, headed the Market Service Association. Very favorably inclined
toward a market move, she led the discussions with the developer and city. In
the midst of the prolonged deliberations the Teamsters Union, representing the
"hustlers" (laborers on the docks and in the storefronts), voted to
strike in November, '94 after the Association rejected the request by the union
that the hustlers' hourly wage be raised from $16.50 to $19.00. The strike was
a selective one, closing only those houses owned by the eleven officers and
board of the Market Association; all others remained open with a "service
agreement " agreed to by the union. With legal consultation, Auster acted
as lead negotiator, and all merchants, perhaps for the first and only time, acted
cohesively through the Service Association. Throughout eleven weeks of the
contentious strike, pickets endured the rigors of an early Chicago winter,
while the owners withstood the predictable threats and intermittent property
damage. Much of the merchandise on hand at the Austers and all others who were
struck ultimately had to be dumped. The eventual compromise resulted in a wage
of $18, along with a wage and benefit package amounting to a total of $26 per
hour, maintaining these employees as probably the highest paid of all produce
wholesale laborers in the country.
Once the strike ended Rosemary Auster, though focusing her major efforts on the
reopening of her produce house resumed participation in dialog with the City,
voicing major concerns that she and others had. Finally, Thurow, acknowledging
insufficient numbers of merchants, particularly the dominant players unwilling
to buy in, terminated the proposal. He cited some of the reasons for the
failure: individual competitiveness with some distrust of each other, their
conception that they were losing value even with the City willing to buy their
old places "for something," their inability to comprehend that once
the market moved, their real estate value would go to zero, no incentive for
collective action, and their incorrect feeling that Stein had a secret deal to
his advantage. Thurow concludes: "They shot themselves in the foot because
never again would they get such a sweetheart deal."
Stein identified the strength of the market a mark of the individual operator.
Of different socio-economic, ethnic, and intellectual backgrounds, he
considered them all quintessential, expertly knowing how to price and move
merchandise. He felt that the market would have moved if "one could have
gotten a critical mass of those guys to agree to it; but they didn't trust each
other, they liked where they were, they didn't like change, and most were in
their fifties or more." Considering the woeful inadequacies of the present
facility secondary to antiquity, the market will disappear as such, Stein
noted. Auster summarized the failure of the move in 94-95 simply due to the
fact that the whole deal was very costly, and not economically feasible. The
biggest drawback, there being no proposal as to what to do with the units on
South Water. Two views, as quoted by Henderson in his article, express the
antipathy of some of the independents regarding the then proposed move:
"We can't afford it. The new place will be more expensive and we'll have
to charge more. I've had fifty customers tell me, if you move to a new market,
you're going to lose us. The only way they're going to get me out of here is
feet first." And, "Why the bureaucracy? Get some engineers, build a
new market. There's never been a management committee running South Water Market
in 65 years."
Today the large tract of land is gone, the dream of Rosemary Auster for the
development of a mega market dealing with produce, meat, poultry, fish, and
flowers along with an upscale restaurant to attract the tourist trade remains a
dream. Volume at South Water is down, in some part as a consequence of the
strike, but to a greater extent due to the increasing presence of chain stores
and large food service operations who bypass the terminal market by purchasing
from growers with shipment directly to their own warehouses; in addition, a
greater preponderance of food brokers who also buy directly and service
customers, often without ever seeing the product.
Still, the independent, though diminished in number survives, ranging from the
Strube Company with seventeen storefronts and at least twelve Strubes in
employ, to the next largest Auster and Company, to a one-unit owner with a
niche such as Pets Calvert. Founded by a Greek immigrant in the old market,
Pets Calvert has occupied the same storefront on the northeast corner of the
current market since its opening; it has remained in the family throughout its
existence, now being run by its third owner, fourth generation Mike O'Neill.
The strength of his firm is derived in large part from its long standing ties
with growers and shippers throughout the nation; in the past, exclusive deals
with these formed a greater component of the business than that which occurs
today. This has led to some loss in flexibility of pricing a product since the costs
are generally more well known, but the bartering and haggling is just as
ferocious as ever, always by shouting, never in a conversational tone of voice.
O'Neill describes the market as obviously obsolete, likening it to driving a
1927 Ford to California on the interstate. With the one ancient, dilapidated
elevator, coolers in the basement and third floor, two to three men, (with
labor costs staggering), unloading trailers at the back, trying to get out
orders in the pre dawn, all is noise, congestion, and commotion. Underlying the
entire process is timing, with the oft quoted declaration: "Sell it or
smell it."
Rosemary Auster, continuing as president of the Market Association, reaffirms
her enthusiasm for the business, citing the daily challenges and excitement out
weighing the twelve hour days starting at 3:00 A.M., noting that the market has
changed but it is not dying. The importance of ethnic and exotic produce along
with more Hispanics and Asians merchants in the market place is a nationwide occurrence.
Chain stores, while becoming increasingly dominant, continue to rely on South
Water almost daily to supplement products for which they are short, and all the
other businesses and institutions buying produce remain as customers. There
will always be a need for a terminal market in Chicago, Auster contends.
The impetus for a move, instigated by the City in 1992 was primarily an
economic one, though cognizant of long range plans of the University of
Illinois to expand its campus south towards South Water Market. This
development, with property acquisition now well under way, would be adjacent to
South Water to the east, south, and north. It is obvious to Auster that the
University, with its vision to create an in town campus including residential
quarters, would not want a produce terminal as its next door neighbor. She
states: "It's simply common sense that the two would not be able to live
together nicely. Would you want your daughter walking to her dorm with huge
trailer trucks driving down the street?" "And unfortunately,"
she continues, "produce does produce garbage; it is not the perfume
business."
Some feel that the institution known as South Water will disintegrate slowly,
and then disappear. Others are certain that a move will occur; if so, where,
when, and under what circumstances remains as clouded as peering through
cataract stricken eyes. But once the surgery is done and a clear vision
results, almost certainly we will see an antiseptic, one story, singularly
efficient warehouse with the virtual absence of smells, pleasant and
unpleasant, of the incessant shouting with verbal insults between buyer and
seller followed by a friendly lunch, and of the apparently general chaos.
Perhaps a photograph of the ancient freight elevator will hang on one wall,
reminding us of the flavor of the old place.
EPILOGUE
As
reported by Crain's Chicago Business in their October 19th issue, a large South
Water firm, Anthony Marano Co., has signed a contract to purchase one-third of
Ashland Market Place, a 500,000 plus square-foot distribution center planned by
the real estate firm of Hiffman Shaffer Associates. This is the same site on
which Stein and Co., in 1993, had formulated plans to construct the Chicago
Wholesale Food Market. However, when those plans were rejected by the
wholesalers, the city subsequently sold the river front portion of the
property, which is now being utilized for the construction of a new printing
plant for the Chicago Sun-Times, resulting in the site of the proposed new
market place being only one half of the original size.
Reacting to the opinion of some that the site is unsuitable, 26 of the 45
active South Water produce firms have formed a limited liability company called
the Produce Market Relocation which has begun looking for alternative sites
that would accommodate a home for a new market. One concern of this group is
that the Ashland project's smaller size severely reduces the chances of keeping
the wholesalers together in a single place, the way South Water has functioned
since its inception. They estimate that in the space available, no more than 15
tenants could be accommodated. In response, a spokesman for the developer is
quoted as saying: "We have clearly not designed the building for the small
vendor."
Crain's reports that the city's Department of Planning and Development, the
force behind the 1993 efforts at relocation of the market, will continue to
work with the merchants. A spokesman there says: "Hopefully, the Produce
Market Relocation group will give them a unified voice, so that we can give
them the assistance they need."
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