Deep Furrows Part 12

For a full hour he kept the chutes open and filled his interested auditor with all the latest brands of misrepresentation and ridicule.

He explained why it was that the farmers' effort was nothing but a joke and how foolish it would be for any farmer to send business to it. He was a good salesman, this traveller, and he was sure he had "sold" this rather intelligent hayseed when he got to the end of his talk and his station was called.

"I've really enjoyed this," a.s.sured Partridge gratefully. "As a farmer I'm naturally interested in that sort of thing, you know, and I've got a particular interest in that little grain company. My name is Partridge and I only want to say----"

But the traveller had grabbed his club bag and was off down the aisle as fast as he could go. Salesmans.h.i.+p is punctuated by "psychological moments" and good salesmen always know when to leave. He did not look around. His ears were very red.

It was funny. No, it wasn't, either! Lies about the Company, thought the then President, would travel a thousand miles before the Truth could get its boots on! It was not a matter for amus.e.m.e.nt at all.

As the "little d.i.n.ky affair" became a compet.i.tor of increasing strength in the grain trade the efforts of a section of the grain men, particularly the elevator interests, to discredit it among the farmers became more and more marked. While the farmers' company was not openly attacked, influences nevertheless were constantly at work to undermine in roundabout ways. The elevator men were in a strong position to fight hard and they pressed every advantage. At practically every s.h.i.+pping point they had agents whose business it was to secure s.h.i.+pments of grain in car lots as well as buying on street. Many of these men were very popular locally and as individuals were good fellows, well liked by their farmer friends. A rebate on the charges for loading grain through an elevator or the mere fact that letting the elevator have it saved the bother of writing a letter--these were excellent inducements to the unthinking farmer, and when added to this was the element of personal acquaintance with the buyer, it was hard to refuse.

For your farmer is a man of simple code. He is not versed in subterfuge and diplomacy. He takes words at their face value, unless he distrusts you, just as he hands them out himself. He lives a clean, honest life and earns his money. If in some cases his viewpoint is narrowed by treading much in the same furrows, it is at least an honest viewpoint in which he really believes. And one of the things in which the average farmer prides himself is that he will "never go back on a friend." Even a red Indian would not do that!

In selling to the elevator these same farmers probably had no intention of unfriendliness to the farmers' trading company. They hoped to see it succeed but did not appreciate their individual responsibility in the matter or realize that while their own personal defection represented a loss to the Company of just one s.h.i.+pment, the loss became vital when multiplied many times all along the line. And the Company had no agent on the ground to argue this out, face to face.

Although many requests for the appointment of such local agents reached the office, the directors decided that it would be poor policy as it would mean appointing agents everywhere and abuses might develop. It would be easy under such a system for an impression to get abroad that favoritism was being shown in appointments; jealousies and disappointments might be the result. On the other hand, one of the greatest sources of strength which the Company could foster would be a sense of individual responsibility among its farmer shareholders--each shareholder an agent for his own grain and that of his non-member neighbors, each doing his part to keep down the handling cost of his grain and build up his own company. In the meantime it were better to lose some grain than run the risk of disrupting the whole movement--to let the elevators enjoy their advantage until it became a nullity by education of the farmer himself.

Such educational work was already a regular part of the routine.

Pamphlets and circulars were issued from time to time, dealing with prevailing conditions, advocating amendments to the Grain Act, etc., and explaining the need for government owners.h.i.+p of elevators. The feeling that the Provincial governments should acquire and operate all storage facilities in the way of elevators and warehouses was spreading rapidly among farmers and business men.

In the second year the Grain Growers' Grain Company began to export several small s.h.i.+pments, more for the sake of the experience than anything else. A very extensive line of credit was necessary to go into the export business and, until the arrangement with the Home Bank developed this, their hands were tied in the matter of exporting for themselves. Their third year in business, though, found their financial relations so improved that they were able to do a considerable and profitable business in the exporting of grain, thereby advancing definitely towards one objective which the farmers had had from the first. Most of the grain which the Company handled in this way was sold to exporters in the Eastern States and in Eastern Canada, this method being found more satisfactory than selling direct to buyers in the Old Country at this time.

In spite of everything, therefore, things were swinging the farmers'

way. The whole Farmers' Movement was expanding, solidifying, particularly in Alberta, which for so long had been primarily a cattle country. Grain production was now increasing rapidly in this Province of the Foothills and Chinooks and the future s.h.i.+pment of Alberta grain to the Pacific Coast and thence via the new Panama Ca.n.a.l route was a live topic. Owing to special conditions prevailing in the farthest west of the three Prairie Provinces the Grain Growers' movement there did not solidify until 1909 into its final cohesion under the name, "United Farmers of Alberta."

Prior to this the farmers of Alberta had been organized into two groups--the Canadian Society of Equity and the Alberta Farmers'

a.s.sociation. The first had its beginnings among some farmers from the United States--mostly from Nebraska and Dakota--who settled near Edmonton and who in their former home had been members of the American Society of Equity. These farmers in 1904-5 organized some branches of the American Society after arrival in the new land and, becoming ambitious, formed the Canadian Society of Equity with the idea of owning and controlling their own flour and lumber mills and what not.

For this Purpose they got together a concern called "The Canadian Society of Equity, Limited," and bought a timber limit, so called.

They secured shareholders in all parts of Alberta and the concern went to smash in 1907, this unfortunate failure making doubly shy those farmers who had been bitten.

Meanwhile, in 1905, the members of the local branch of the American Society of equity which had been established at Clover Bar had reached the conclusion that the work of the Society did not meet the requirements of conditions in Alberta and that it was not desirable to have the farmers of the province organized into two camps--the Society of Equity on one hand and the Alberta branches of the Territorial Grain Growers' a.s.sociation on the other. Especially now that the Territories were to be established into the Provinces of Saskatchewan and Alberta, it was desirable that reorganization and a change of name take place.

Accordingly the Clover Bar branch of the American Society of Equity and the Strathcona branch of the Territorial Grain Growers' a.s.sociation got their heads together on a proposal to amalgamate into one farmers'

organization under the name, Alberta Farmers' a.s.sociation.

Under the impression that this was a veiled scheme of the Grain Growers to swallow their organization whole, the Society of Equity turned down the idea of amalgamation. The Clover Bar farmers withdrew from the Society and joined the Strathcona Grain Growers in forming the nucleus of a provincial farmers' a.s.sociation as planned.

Owing to the mixed nature of Alberta's agricultural population and to the general distrust of farmers' organizations the new Alberta Farmers'

a.s.sociation faced a difficult situation. But the principles laid down by their leaders were so fair, so sane and broad-minded, that in two years the a.s.sociation became an influence in almost every line of trade in the province. They organized a very successful seed fair, a feature of which was a meeting to discuss improvement of the market for live stock, especially hogs; this resulted in the appointment of a Pork Commission. At their convention in 1906 the a.s.sociation took stand on such important matters as the special grading of Alberta Hard Winter Wheat, the establishment of a terminal elevator at the Pacific Coast, of a pork-packing and beef-chilling plant by the Provincial Government, etc. In the discussion of everything affecting the welfare of the farmers the a.s.sociation played an important part and it was at their request that the Provincial Government sent an agent to investigate the markets of British Columbia with the idea of closer relations.

A second attempt to amalgamate with the Canadian Society of Equity, which had succeeded the American Society, had fallen through and there were still two farmers' organizations in the Province of Alberta.

However, with the progress being made with the Provincial Government in connection with the pork-packing and beef-chilling plant and with the Dominion Government in regard to government owners.h.i.+p of terminal elevators, the farmers as a whole began to see the need of closer union. Such wide measures as a system of government-owned internal elevators were bringing the farmers of all three Western provinces into closer conference and in 1908 the feeling in favor of amalgamation of all Alberta farmers into one organization began to crystallize.

Finally in September a conference was held between representatives of the Alberta Farmers' a.s.sociation and the Canadian Society of Equity.

The const.i.tution drafted at this conference was submitted to the annual conventions of both bodies at Edmonton on January 13th, 1909. The following morning the delegates of the Canadian Society of Equity marched from their hall to the convention of the Alberta Farmers'

a.s.sociation and amid great cheers the two became one under the name, United Farmers of Alberta, with "Equity" as their motto, and with a strong coalition directorate.[1]

Until now each of the organizations had had its separate official organ; but on amalgamation these were dropped and the _Grain Growers'

Guide_ adopted as the official organ for Alberta. First published under the auspices of the Manitoba Grain Growers' a.s.sociation, the _Guide_ now represented the farmers' movement in all three provinces.

The wisdom of its establishment was being proved steadily. Its circulation was gathering momentum with every issue. It was now coming out as a weekly and its pages were filled with valuable information for the farmer on every subject dealing with the marketing of his produce.

Also it was proving a wonderful educator on such large questions as government owners.h.i.+p of elevators, the tariff, control of public service corporations and so forth. The farmer was getting information which he had never been able to obtain before and he was getting it without distortion, uncolored by convenient imagination, plain as Fact itself.

An up-to-date printing plant had been installed to print the _Guide_ and do a general job-printing business, and this was organized as a separate company under the name of the "Public Press, Limited."

In addition to all the difficulties which usually attend the building of a publis.h.i.+ng enterprise to success, the farmers' own journal had to face many more which were due to the special nature of its policies.

Manufacturers who disapproved of its att.i.tude on the tariff, for instance, refused for a long while to use its advertising columns.

Each year as the _Guide's_ struggle went on there was an annual deficit and had it not been for the grants with which the Grain Growers' Grain Company came to its rescue, the paper must have gone under. For this financial a.s.sistance the farmers' trading company got no return except the satisfaction of knowing that the money could not be spent to better advantage in the interests of Western farmers.

With the rapid developments in Alberta and the probable future s.h.i.+pment of Alberta grain via the Panama Ca.n.a.l route, branch offices were being opened at Calgary by Winnipeg grain dealers. Not to be behind in the matter of service, the farmers' company followed suit. A Seed Branch Department to supply good seed grain was another improvement in service and the farmers by this time were taking a keen interest in their trading organization.

When the third annual meeting came around, there was no longer any doubt that a farmers' business organization _could_ succeed--that this venture of the Grain Growers was _not_ going to go off with a loud bang--at least, not yet.

But, as the President remarked, it seemed that they had no more than touched the fringe of what remained to be accomplished. One of the immediate questions pressing for solution, he considered, was government owners.h.i.+p of elevators.

"Our Company's experience has demonstrated completely," he said, "that our grain marketing conditions can never reach a proper basis as long as the elevators necessary for that marketing are allowed to remain in private hands for private gain. The Grain Growers' a.s.sociations are the one thing above everything else that stands between the farmer and the power of merciless corporations. They have undoubtedly been the greatest s.h.i.+eld this Company has had since its organization; they have helped the Company to prove, far beyond any question of doubt, the advantages of co-operation."

And what had the elevator men to say about all this? Surely these farmers were becoming a menace! At the present rate of speed another three years would see them in control of the grain business and was that good for the grain business? Was it good for the farmer? The elevator men did not think so.

Strangely enough, they were not worrying greatly about government owners.h.i.+p. They were more interested in the fact that the volume of grain which had flowed so faithfully all these years was being split up by all these commission men--these hangers-on who invested little or no capital but necked right up to the profits of the trade as if they owned the whole business!

Trouble was brewing on the Winnipeg Grain Exchange--had been for some time.

Then one day word reached the office of the Grain Growers' Grain Company that by a majority vote the Grain Exchange had suspended, for a period of one year, the Commission Rule under which grain was handled.

Thus did things come to a showdown.

[1] See Appendix--Par. 10.

CHAPTER XII

THE SHOWDOWN

It's scarcely in a body's power Tae keep at times frae being sour Tae see how things are shared.

--_Robert Burns_.

A fight was on between the elevator interests and the commission merchants of the Winnipeg Grain Exchange--a fight for existence. For, with the Commission Rule of the Exchange eliminated, those firms which handled grain on a straight commission basis would be forced to meet the compet.i.tion of the elevator buyers and the chances were they would be forced to handle grain at a loss; the best they could hope for would be to cover their costs.

It will be remembered that this Commission Rule, established in 1899, was that a charge of one cent commission per bushel should be made for handling grain and that all members of the Exchange dealing in grain must show that the price paid was the price at the terminal (Fort William) less the freight and one cent per bushel commission. This commission could be neither more nor less than one cent; for at that time it was felt that business could not be done, offices maintained and an efficient and reliable service given for less. It was a charge which both farmers and grain men considered fair and reasonable.

The trouble in the Exchange started when the commission men claimed the right to have country agents and to pay them on a commission basis of one-quarter cent per bushel. The elevator companies were able to buy at elevator points through their salaried representatives but the commission men were prohibited from having country agents except on a salary basis, and this they could not afford, handling grain on commission.

For some years past there had been considerable dissatisfaction among Exchange members in regard to the operation of the Commission rule, doubt being entertained that all the members were keeping good faith in the collection of the full commission charge of one cent to non-members of the Exchange and one-half cent per bushel to members on country consigned and purchased grain. Although the Council of the Exchange had held many special meetings in an endeavor to find a remedy and to investigate the charges, the results had not been very marked owing to the difficulty of securing the evidence to support such charges.

This was given as a reason for the doing away with the one cent commission restriction altogether for a trial period of one year.

Thereby the trade was put on a "free for all" basis, as the President of the Exchange then in office pointed out. It meant that Exchange members were "enabled to pay owners of grain in the country any price they desired without regard to actual market values as regularly established on the floor of the Exchange." It was the personal opinion of the President that to preserve stable markets with uniformity and discipline amongst Exchange members a commission rule was absolutely necessary and he predicted that perhaps in a short while, after the suspension of the Commission Rule had been given a fair trial, the Exchange might see its way clear to rescind the suspension.