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diff --git a/.gitattributes b/.gitattributes new file mode 100644 index 0000000..6833f05 --- /dev/null +++ b/.gitattributes @@ -0,0 +1,3 @@ +* text=auto +*.txt text +*.md text diff --git a/21657-8.txt b/21657-8.txt new file mode 100644 index 0000000..d5e59bd --- /dev/null +++ b/21657-8.txt @@ -0,0 +1,8639 @@ +The Project Gutenberg EBook of Deep Furrows, by Hopkins Moorhouse + +This eBook is for the use of anyone anywhere at no cost and with +almost no restrictions whatsoever. You may copy it, give it away or +re-use it under the terms of the Project Gutenberg License included +with this eBook or online at www.gutenberg.org + + +Title: Deep Furrows + +Author: Hopkins Moorhouse + +Release Date: June 1, 2007 [EBook #21657] + +Language: English + +Character set encoding: ISO-8859-1 + +*** START OF THIS PROJECT GUTENBERG EBOOK DEEP FURROWS *** + + + + +Produced by Al Haines + + + + + +DEEP FURROWS + + + Which Tells of Pioneer Trails Along Which + the Farmers of Western Canada Fought + Their Way to Great Achievements + in Co-Operation + + + +By + +HOPKINS MOORHOUSE + + + + +TORONTO AND WINNIPEG + +GEORGE J. McLEOD, LIMITED + +PUBLISHERS + + + + +COPYRIGHT, CANADA, 1918 + +BY GEORGE J. McLEOD, LIMITED + + + + +TO THE + +MEN AND WOMEN OF THE SOIL + + + + +CONTENTS + +CHAPTER + + Foreword + I The Man on the Qu'Appelle Trail + II A Call to Arms + III The First Shot is Fired + IV "That Man Partridge!" + V "The House With the Closed Shutters" + VI On a Card in the Window of Wilson's Old Store + VII A Fight for Life + VIII A Knock on the Door + IX The Grain Exchange Again + X Printers' Ink + XI From the Red River Valley to the Foothills + XII The Showdown + XIII The Mysterious "Mr. Observer" + XIV The Internal Elevator Campaign + XV Concerning the Terminals + XVI The Grip of the Pit + XVII New Furrows + XVIII A Final Test + XIX Meanwhile, in Saskatchewan + XX What Happened in Alberta + XXI In the Drag of the Harrows + XXII The Width of the Field + XXIII The Depth of the Furrows + XXIV And the End is Not Yet + Appendix + + + + +FOREWORD + +Once in awhile, maybe, twenty-five or thirty years ago, they used to +pack you off during the holidays for a visit on Somebody's Farm. Have +you forgotten? You went with your little round head close clipped till +all the scar places showed white and you came back with a mat of +sunbleached hair, your face and hands and legs brown as a nut. + +Probably you treasure recollections of those boyhood days when a raw +field turnip, peeled with a "toad-stabber," was mighty good eatin'. +You remember the cows and chickens, the horses, pigs and sheep, the old +corn-crib where generally you could scare up a chipmunk, the gnarled +old orchard--the Eastern rail-fenced farm of a hundred-acres-or-so. +You remember Wilson's Emporium at the Corners where you went for the +mail--the place where the overalled legs of the whole community drummed +idly against the cracker boxes and where dried prunes, acquired with +due caution, furnished the juvenile substitute for a chew of tobacco! + +Or perhaps you did not know even this much about country life--you of +the Big Cities. To you, it may be, the Farmer has been little more +than the caricatures of the theatres. You have seen him wearing blue +jeans or a long linen duster in "The Old Homestead," wiping his eyes +with a big red bandana from his hip pocket. You have seen him dance +eccentric steps in wrinkled cowhide boots, his hands beneath flapping +coat-tails, his chewing jaws constantly moving "the little bunch of +spinach on his chin!" You have heard him fiddle away like two-sixty at +"Pop Goes the Weasel!" You have grinned while he sang through his nose +about the great big hat with the great big brim, "All Ba-ound Ra-ound +With a Woolen String!" + +Yes, and you used to read about the Farmer, too--Will Carleton's farm +ballads and legends; Riley's fine verses about the frost on the pumpkin +and "Little Orphant Annie" and "Over the Hill to the Poorhouse!" And +when Cousin Letty took you to the Harvest Home Supper and Grand +Entertainment in the Town Hall you may have heard the village choir +wail: "Oh, _Shall_ We Mortgage the Farm?" + +Perhaps even yet, now that you are man grown--business or professional +man of the great cities--perhaps even yet, although you long have +studied the market reports and faithfully have read the papers every +day--perhaps that first impression of what a farmer was like still +lingers in a more or less modified way. So that to you pretty much of +an "Old Hayseed" he remains. Thus, while you have been busy with other +things, the New Farmer has come striding along until he has "arrived in +our midst" and to you he is a stranger. + +Remember the old shiny black mohair sofa and the wheezy, yellow-keyed +melodeon or the little roller hand-organ that used to play "Old +Hundred"? They have given place to new styles of furniture, upright +pianos and cabinet gramophones. Coffin-handles and wax flowers are not +framed in walnut and hung in the Farmer's front parlor any more; you +will find the grotesque crayon portrait superseded by photo +enlargements and the up-to-date kodak. The automobile has widened the +circle of the Farmer's neighbors and friends, while the telephone has +wiped distance from the map. + +In the modern farm kitchen hot and cold water gushes from bright nickel +taps into a clean white enamel sink, thanks to the pneumatic water +supply system. The house and other farm buildings are lighted by +electricity and perhaps the little farm power plant manages to operate +some machinery--to drive the washing machine, the cream separator, the +churn and the fodder-cutter or tanning-mill. There is also a little +blacksmith shop and a carpenter shop where repairs can be attended to +without delay. True, all these desirable conveniences may not be +possessed generally as yet; but the Farmer has seen them working on the +model farmstead exhibited by the Government at the Big Fair or in the +Farm Mechanics car of the Better Farming Special Trains that have +toured the country, and he dreams about them. + +More scientific methods of agriculture have been adopted. The Farmer +has learned what may be accomplished by crop rotations and new methods +of cultivation. He has learned to analyze the soil and grow upon his +land those crops for which it is best suited. If he keeps a dairy herd +he tests each cow and knows exactly how her yield is progressing so +that it is impossible for her to "beat her board bill." No longer is +it even considered good form to chop the head off the old rooster; the +Farmer sticks him scientifically, painlessly, instantaneously dressing +him for market in the manner that commands the highest price. So with +the butter, the eggs and all the rest of the farm products. + +Do you wonder that the great evolution of farming methods should lead +to advanced thought upon the issues of the day? In the living room the +Family Bible remains in its old place of honor, perhaps with the +crocheted mat still doing duty; but it is not now almost the only book +in the house. There is likely to be a sectional bookcase, filled with +solid volumes on all manner of practical and economic subjects--these +as well as the best literature, the latest magazines and two or three +current newspapers. + +Yes, a whole flock of tin roosters have rusted away on top of the barn +since the Farmer first began to consider himself the Rag Doll of +Commerce and to seek adjustments. It is the privilege of rag dolls to +survive a lot of abuse; long after wax has melted and sawdust run the +faithful things are still on hand. And along about crop time the +Farmer finds himself attracting a little attention. + +That is because this business of backbone farming is the backbone of +Business In General. As long as money is circulating freely Business +In General, being merely an exchange in values, wears a clean shirt and +the latest cravat. But let some foreign substance clog the trade +channels and at once everything tightens up and squeezes everybody. + +Day by day the great mass of the toilers in the cities go to work +without attempting to understand the fluctuations of supply and demand. +They are but cogs on the rim, dependent for their little revolutions +upon the power which drives the machinery. That power being Money +Value, any wastage must be replaced by the creation of new wealth. So +men turn to the soil for salvation--to the greatest manufacturing +concern in the world, Nature Unlimited. This is the plant of which the +Farmer is General Manager. + +On state occasions, therefore, it has been the custom in the past to +call him "the backbone of his country"--its "bone and sinew." Without +him, as it were, the Commercial Fabric could not sit up in its High +Chair and eat its bread and milk. Such fine speeches have been +applauded loudly in the cities, too frequently without due +thought--without it occurring to anyone, apparently, that perhaps the +Farmer might prefer to be looked upon rather as an ordinary +hard-working human being, entitled as such to "a square deal." + +But all these years times have been changing. Gradually Agriculture +has been assuming its proper place in the scheme of things. It is +recognized now that successful farming is a business--a profession, if +you like--requiring lifelong study, foresight, common sense, close +application; that it carries with it all the satisfaction of honest +work well done, all the dignity of practical learning, all the comforts +of modern invention, all the wider benefits of clean living and right +thinking in God's sunny places. + +And with his increasing self-respect the New Farmer is learning to +command his rights, not merely to ask and accept what crumbs may fall. +He is learning that these are the days of Organization, of Co-Operation +among units for the benefit of the Whole; that by pooling his resources +he is able to reach the Common Objective with the least waste of effort. + +He has become a power in the land. + + +These pages record a story of the Western Canadian farmer's upward +struggle with market conditions--a story of the organized Grain +Growers. No attempt is made to set forth the full details of the whole +Farmer's Movement in Western Canada in all its ramifications; for the +space limits of a single volume do not permit a task so ambitious. + +The writer has endeavored merely to gather an authentic record of the +earlier activities of the Grain Growers' Associations in the three +Prairie Provinces--why and how they came to be organized, with what the +farmers had to contend and something of their remarkable achievements +in co-operative marketing during the past decade. It is a tale of +strife, limned by high lights and some shadows. It is a record worthy +of preservation and one which otherwise would pass in some of its +details with the fading memories of the pathfinders. + +If from these pages the reader is able to glean something of interest, +something to broaden--be it ever so slightly--his understanding of the +Western Canadian farmers' past viewpoint and present outlook, the +undertaking will have found its justification and the long journeys and +many interviews their reward. + +For, under the alchemy of the Great War, many things are changing and +in the wonderful days of reconstruction that lie ahead the Farmer is +destined to play an upstanding part in the new greatness of our +country. Because of this it behooves the humblest citizen of us to +seek better understanding, to meet half way the hand of fellowship +which he extends for a new conception of national life. + +The writer is grateful to those farmers, grain men, government +officials and others who have assisted him so kindly in gathering and +verifying his material. Indebtedness is acknowledged also to sundry +Dominion Government records, to the researches of Herbert N. Casson and +to the press and various Provincial Departments of Agriculture for the +use of their files. + +H.M. + +WINNIPEG, March 1st, 1918. + + + + +DEEP FURROWS + + +CHAPTER I + +THE MAN ON THE QU'APPELLE TRAIL + + Among the lonely lakes I go no more, + For she who made their beauty is not there; + The paleface rears his tepee on the shore + And says the vale is fairest of the fair. + Full many years have vanished since, but still + The voyageurs beside the camp-fire tell + How, when the moon-rise tips the distant hill, + They hear strange voices through the silence swell. + --_E. Pauline Johnson._ + _The Legend of Qu'Appelle._ + + +To the rimming skyline, and beyond, the wheatlands of Assiniboia[1] +spread endlessly in the sunshine. It was early October in the year +1901--one of those clear bright days which contribute enchantment to +that season of spun gold when harvest bounties are garnered on the +Canadian prairies. Everywhere was the gleam of new yellow stubble. In +serried ranks the wheat stocks stretched, dwindling to mere specks, +merging as they lost identity in distance. Here and there stripes of +plowed land elongated, the rich black freshly turned earth in sharp +contrast to the prevailing gold, while in a tremendous deep blue arch +overhead an unclouded sky swept to cup the circumference of vision. +Many miles away, yet amazingly distinct in the rarefied air, the smoke +of threshers hung in funnelled smudges above the horizon--like the +black smoke of steamers, hull down, at sea. + +On this particular autumn afternoon a certain black dot might have been +observed, so lost in the immensity of landscape that it appeared to be +stationary. It was well out upon the trail that wound northward from +Indian Head into the country of the Fishing Lakes--the trail that +forked also eastward to dip through the valley of the Qu'Appelle at +Blackwood before striking north and east across the Kenlis plain +towards the Pheasant Hills. In reality the well kept team which drew +the big grain wagon was swinging steadily ahead at a smart pace; for +their load of supplies, the heaviest item of which was a new plow, was +comparatively light, they were homeward bound and the going in the +earlier stages of the long journey was smooth. + +The driver sat hunched in his seat, reins sagging. He was a man of +powerful physique, his skin deep coppered by long exposure to prairie +winds and sun. In repose the face that was shadowed by the wide felt +hat would have appeared somewhat deceptive in its placidity owing to +the fact that the strong jaw and firm mouth were partly hidden by a +heavy moustache and a thick, black beard, trimmed short. + +Just now it was evident that the big farmer's mood was far from +pleasant. Forearm on knee, he had surrendered completely to his +thoughts. His fists clenched spasmodically and there was an angry +glint in his eyes. Occasionally he shook his head as if the matter in +mind were almost too hopeless for consideration. A sudden surge of +resentment made him lash his booted leg with the ends of the lines. + +"Confound them!" he muttered aloud. + +He had just delivered his first load of the season's new wheat. Three +nights before, by lantern light, he had backed his horses to the wagon +and hauled it twenty-five miles to the railway at Indian Head. His +stay there had not been conducive to peace of mind. + +To reach the rails with a heavy load in favorable weather was simple +enough; it merely required time. But many such trips would be +necessary before his crop was marketed. Some of the farmers from +beyond the Qu'Appelle would be hauling all winter; it was in winter +that the haul was long and cruel. Starting at one, two or three +o'clock in the morning, it would be impossible to forecast the weather +with any degree of accuracy, so that often they would be overtaken by +blizzards. At such times the lack of stopping-places and shelter in +the sparsely settled reaches of the trail encompassed the journey with +risks every whit as real as pioneer perils of marauding Indians or +trailing wolf-packs. + +Snow and wind, however, had no place in the thoughts of the lonely +farmer at the moment. Such things he had been used to ever since he +first homesteaded; this long haul with the products of his toil he had +been making for many years. What immediately concerned him was the +discouraging prospect of another wheat blockade instead of any +improvement in conditions which had become unbearable. With the +country as full of wheat as it was this year it required no great gift +of prophecy to foretell what would happen. + +It was happening already. The railway people were ignoring completely +the car-distribution clauses of the Grain Act and thereby playing in +with the elevator interests, so that the farmers were going to be just +where they were before--at the mercy of the buyers, their legitimate +profits filched by excessive dockage, low grades, depressed prices, +exorbitant storage charges, even short weights in some cases. All this +in spite of the strong agitation which had led to Government action, in +spite of the Royal Commission which had investigated the farmers' +claims and had recommended the Grain Act, in spite of the legislation +on the statutes! Law or no law, the farmer was still to be preyed +upon, apparently, without a single weapon left with which---- + +The eyes of the man in the broad-brimmed hat grew grave. Scoff as he +might among the men of the district when the serious ones voiced their +fears to him, his own thoughts always came back to those fears. From +the Red River Valley to the foothills long-smouldering indignation was +glowing like a streak of fire in the prairie grass; a spark or two more +and nothing could stop the conflagration that would sweep the plains +country. If the law were to fail these red-blooded and long-suffering +homesteaders there would be final weapons alright--real weapons! It +was no use shutting one's eyes to the danger. Some fool would do +something rash, and with the farmers already inflamed and embittered, +there was no telling what desperate things might be attempted. + +That was the fear which stirred and perplexed the solitary traveller; +for he had heard things that afternoon--seen things that he did not +like but could not ignore. He recognized an undercurrent of feeling, a +silence more ominous than all the heated talk, and that was where the +danger lay. Something would have to be done, and that soon. But what? +What? + +So engrossed was he that beyond an occasional flip of the reins or a +word to the horses he paid no heed to his surroundings. A huge +jack-rabbit sprang up, almost from beneath the noses of the team, and +went flying off in great leaps over the stubble. A covey of prairie +chicken, fat and fit, whirred into the air and rocketed away. But he +scarcely saw them. Had he looked up he might have noticed a horseman +loping down a cross trail with the evident intention of heading off the +wagon. But the rider had pounded almost within hailing distance before +the other was aware of his approach. + +It was Bob McNair of the "Two-Bar Ranch," as he insisted upon calling +his wheat farm. He waved an oil-spattered Stetson and came into the +trail with a rush, pulling up the wiry broncho with a suddenness that +would have unseated one less accustomed than McNair, former corporal, +Royal North-West Mounted Police. + +"Howdy, W. R. Thought 'twas your outfit. Good job I aint a Blackfoot +on the warpath," he laughed. "I'd sure 'a' had your scalp sneaked +before you could draw a bead!" He swung alongside, stepped into the +wagon, looped the bridle-rein over the handle of the new plow and, +climbing forward, shook hands heartily and sat down. + +"You're looking fit, Bob," welcomed the other with evident pleasure. +"What brings you over this way? Everything going alright?" + +"So-so," nodded McNair. "Been over Sintaluta to see about gettin' a +car, among other things." + +"Of course you got it?" + +"Sure! Oh, sure I got it--got it still to get!" and McNair burst into +a flow of language that did even him justice. More or less vehement at +all times, the one-time corporal exhibited so much vigor in his remarks +that his good-natured auditor had to laugh. "I ain't tryin' to be +funny!" finished McNair. "I mean every dashed word of it, Motherwell. +If I don't get some of it out o' my system I'll bust to bits, that's +what. Say, I met Sibbold. He told me some of you fellows was meetin' +over at the Head to-day. What about it?" + +"Why, yes, Johnny Millar got a few of us together to talk things over. +Lot of talk alright. Some of the boys were feeling pretty hot, I can +tell you! But I can't see that anything came of it except some +resolutions--the usual sort, you know." + +"Pshaw! I was hopin' it meant action of some kind." The ex-rancher +was silent for a moment. Then his right fist went into his left palm +with a smack. "The only kind o' resolution that'll get anythin' is +made o' lead and fits in a rifle breech! And I want to tell you, old +man, if there ain't some pretty quick right-about-facin' in certain +quarters, I'll be dashed if I ain't for it! An' I won't be standin' +alone, either!" he added grimly. + +W. R. Motherwell[2] glanced sharply at the tense face. + +"Don't talk nonsense!" he reproved quietly. + +"I ain't talkin' nonsense. Not on your life! If I am, then I reckon I +know a hundred or so hard-headed farmers who're doin' the identical +same. An' if I know that many in my territory, W. R., how many d'you +suppose there are if we take in Manitoba and clean through to the +mountains?" + +"Then all I've got to say is: there are more and bigger fools in the +country than I had any idea of." + +"What d'you mean, talkin' like that?" + +"That's just what I've got to say to you, McNair," retorted the big +farmer with heat. "What do _you_ mean, talking like that? If you're +serious in what you say----" + +"I said I was, didn't I?" snapped the other. + +"Then you ought to be tied up on the Two-Bar and muzzled, for you're +plumb mad, McNair! It's just that kind of firebrand talk that's +hurting our cause. The farmers have got enough enemies now, God knows, +without making a lot of new ones. Doggone your hide, Mac, what're you +trying to do?--Stir up another rebellion like that of '85?" + +"If it's necessary--you bet I am!" he brazened. + +"You, of all men!" + +"An' why not me? Just because I've worn the Queen's uniform, eh? +Well, let me tell you, sir, I belonged to a body of men who stood for +British justice an' a square deal to even the meanest Injun in the +Territories." The ex-mounted policeman spoke with pride. "We'd never +have handled the beggars if it hadn't been for that. Even the Injuns +were men enough to recognize justice, an' that's more'n these +commercial blood-suckers to-day can do! If our case was in the hands +of the Force it'd rest on its merits an' us grain growers'd get +justice. Instead, where is it?--in the hands of a pussy-footed, +hifalutin' bunch o' political windbags in the East who don't care a +damn about us hayseeds out West! An' what's more----" + +"The Royal Mounted stood for law and order, Bob; but you'd class +yourself with the half-breeds, would you? Have another little +rebellion like that of '85 with all the----" + +"Not like '85," interrupted the rancher. "No, sir, this one'll be +bloodless; but it'll knock the spots off the 'breeds' little shindig +all the samee!" + +"You spoke of rifles, McNair. Guns go off," interpolated the other +sententiously. "What'n the mischief do you expect to gain by that sort +of thing?" + +"A hearing, by Jingo! That's more'n all your letters to the papers an' +your meetin's an' resolutions have got us. We'll show 'em we mean +business----" + +"Rot! How did we get the Royal Commission except by those letters and +meetings? That put the Manitoba Grain Act on the statutes, didn't it? +Mean to say we're no farther ahead? We've got the whole grain trade +under control and supervision----" + +"Like ducks you have!" The former rancher threw back his head and +laughed. + +"We've got the privilege of loading our wheat direct on cars through +the flat warehouses or any other way we like----" + +"What's the good o' that if a man can't get a car when he wants it?" +demanded McNair impatiently. "The elevator gang 've organized to grab +everything in sight. I know it. You know it. Everybody knows it, by +heaven! So what's the use o' talkin'?" + +"We've got to be fair, though. The elevator people have put a lot of +money--Say, why can't we organize, too?" suggested Motherwell with a +flash of inspiration. "We haven't tried that yet. That's +constitutional. That's what the livestock breeders have done," he said +eagerly. + +McNair shook his head. + +"I tell you, Bill, it's too late for that sort o' thing," he objected. +"Unless you mean organizin' to fight--" + +"Exactly." + +"With guns, if necessary?" + +"It won't be necessary." + +"Possibly not to shoot anybody. The showin' mebbe'll turn the trick. +Now, look here. My idea is that if a bunch of us fellows got together +on the quiet some night an' seized a few elevators--Say, wouldn't it +bring things to a head so quick we'd get action? The law's there, but +these fellows are deliberately breakin' it an' we got to show 'em----" + +"The action you'd get would be the wrong kind, Mac," protested W. R. +Motherwell emphatically. "You'd land in jail!" + +"Don't see it that way," persisted McNair. "Wouldn't give a +continental if I did so long's it woke a few people up." + +"I tell you you're on the wrong trail unless you want to get it where +the chicken got the axe!" + +"Doggone it, man! Ain't that where we're gettin' it _now_?" + +"Whereas with the right kind of organization----" + +"Don't believe it," grunted McNair, starting to climb back to his +horse. "The time for any more o' these here granny tea-parties is past +to my way o' thinkin' an' if we can't agree on it, we'd better shut up +before we get mad." He vaulted easily into the saddle. "But I'll tell +you one thing, W. R.--there's the sweetest little flare-up you ever saw +on its way. I was talkin' the other day to Ed. Partridge, the Railton +boys, Al. Quigley, Billy Bonner and some more----" + +"And I'll bet they gave you a lot of sound advice, Mac!" laughed +Motherwell confidently. + +"That's alright," resented McNair, the tan of his cheek deepening a +trifle. "They're a pretty sore bunch an' a fellow from down Turtle +Mountain way in Manitoba told me----" + +"That the mud-turtle and the jack-rabbit finally agreed that slow and +steady----" + +"Bah! You're sure hopeless," grinned the owner of the Two-Bar, giving +his horse the rein. + +"Hope_ful_," corrected W. R. Motherwell with a laugh. "Tell Wilson, if +you see him, that Peter Dayman and I are expecting him over next week, +will you? And I say, Mac, don't kill too many before you get home!" he +called in final jocularity. + +The flying horseman waved his hat and his "S'long" came back faintly. +The other watched till horse and rider lost themselves among the +distant wheat stocks. The twinkle died out of his eyes as he watched. + +So McNair was another of them, eh? After all, that was only to be +expected of an old Indian fighter and cow-puncher like him. Poor Bob! +He had his reputation to sustain among the newcomers--hard rider, hard +fighter, hard drinker; to do it under the changed conditions naturally +required some hard talking on occasion. While Mac had become civilized +enough to keep one foot in a cowhide boot planted in the practical +present, the other foot was still moccasined and loath to forget the +days of war-paint and whiskey-traders, feathers and fears. Over the +crudities and hardships, the dirt and poverty, the years between had +hung a kindly curtain of glamor; so that McNair with his big soft +kerchiefs, his ranger's hat, his cow-puncher's saddle and trappings and +his "Two-Bar" brand was a figure to crane an Eastern neck. + +Likeable enough chap--too much of a man to be treated as a joke to his +face, but by no means to be taken seriously--not on most occasions. In +the present instance, with feeling running as high as it was in some +quarters, that crazy idea of seizing a few elevators at the point of a +gun--! What in heaven's name would they do with them after they got +them? Nevertheless, McNair might find rattle-brained listeners enough +to cause a heap of trouble. There were always a few fellows ready for +excitement; they might go in for the fun of it, then before they knew +it the thing would curdle over night like a pan of milk in a +thunder-storm. + +"He's just darn fool enough to try some funny work," muttered the +anxious driver of the grain wagon. "Jailing him only makes a hero of +him and that's the kind of thing the beggar glories in. The +son-of-a-gun!" + +One by one throughout the afternoon the miles crept tediously beneath +the wagon. The sun which had steeped the stubble in gold all day had +turned the sky and was poising for its nightly dip below the horizon by +the time the long misty blue line of the Qu'Appelle hills began to +creep from the prairie. When the lone traveller at last could count +the deep shadowy coulees the sun had disappeared, but the riot of +after-fires still burned brightly in the west. He had passed his own +place hours before, but had stopped there only for a change of horses +and a brief rest; a parcel and an important message which he wished to +deliver in person at Fort Qu'Appelle without delay was extending his +day's journey. + +Six hundred feet below the level of the plain the grassy slopes of the +Qu'Appelle Valley bowled to the blue lakes. Hugging the water's edge, +the buildings of the romantic old fort scattered in the twilight. The +winding trail stood out like a white thread that reached down the +valley towards the Catholic Mission of Lebret. + +Before heading into the steep descent the farmer from over Abernethy +way slipped on his heavy cardigan jacket; for behind the rim of the +hills the sunset fires were dying and already the coolness of the +October night was making itself felt. At the mouth of a coulee he +spoke to a solitary Indian, standing motionless before a camp fire. +The appetizing odor of roasting wild fowl reminded him that he was more +than ready for the "bite to eat" which he would enjoy with the good +Father Hugonard at the Indian Mission--he of the dark, gentle eyes, the +quick understanding, the quiet tones. There would be much to talk +about. + +So it proved. The hour was growing late when finally he bade good-bye +to his pleasant host and resumed his journey in the starlight, +refreshed and encouraged. For here in the seclusion of this peaceful +valley, since the days of the great buffalo herds, Father Hugonard had +ministered to the Indians, starved with them, worked patiently with +them through many seasons of flowers and snows. Nevertheless, out of +many discouragements and privations had this sterling man retained an +abiding faith in the triumph of righteousness in all things. + +In the quiet beauty of the wonderful October night was little place for +the anxious thoughts of the day. Bitterness of spirit, the bickerings +of men, commercial Oppression and injustice--these were things far +removed from the planets of the Ages that sparkled like jewels in the +vault of Night. A vagrant breeze whispered in the valley sedges to the +placid lake. High in the air, invisible, migrating _wavies_ winged +into the south, the distant gabble of their passing falling weirdly +earthward. + +The trail began to ascend sharply. Off to the right the sky was +growing rapidly lighter behind a distant hill and presently a lop of +yellow moon crept slowly over the edge and rose into the air like a +broken chalice, chasing the shadows to their retreats. + +As he watched it the driver of the grain wagon recalled again the old +Indian legend that haunted this valley and had given it its name--how, +long ago, a young Indian chieftain was paddling his canoe through these +waters on his way to win a bride when suddenly above "the night wind's +melancholy song" he heard a voice calling him through the twilight. +"Qu'appelle? Qu'appelle?" he answered in French. "Who calls?" But +only his own voice came back in echoes while the gloom of night +deepened and a wan moon rose silently behind the distant hill. Then +when he reached the Indian encampment it was only to see the death +fires lighted on the shore, to hear the wail of women and to learn that +just before her lips had closed forever, his beloved had called for +him--just at the moon-rise. Thus, ever since, the Indians claimed, +strange spirit voices spoke through the lone valley at every rising of +the moon. + +Thrilled by the beauty of the valley scene, misty in the moonlight, the +big farmer half unconsciously drew rein and listened. All he could +hear at first was the impatient stamp of his horses' feet, the mouthing +of the bits as the animals tossed their heads restlessly, the clink of +the trace-chains; but presently he sensed a subdued undertone of night +noises that wafted mysteriously over the silver water. It was nothing +that could be recognized definitely; rather was it an impression of +strangely merged minor sounds that grew upon him as imagination was +given play under the influence of time and place. It was easy to +supply interpretations of that faint medley, even while one knew that +it was merely the murmur of night airs in the dry grasses, the whisper +of the water-edges, the stirring of restless water-fowl in the dying +reeds. + +The man who had ridden all day with his thoughts began unconsciously to +apply other meanings to the sound, to people the night with dim faces +and shapes that came trooping over the edge of the tablelands +above--toil-bent figures of old pioneer farmers, care-worn faces of +women and bright eager faces of little children who were holding out +their hands trustfully to the future. There seemed to be a +never-ending procession--faces that were apathetic from repeated +disappointments, faces that scowled threateningly, brave faces tense +with determination and sad faces on which was written the story of +struggle hidden within many a lonely wind-buffeted shack on the great +bosom of the prairie. + +Was it, then, that all the years of toil and hardship were to come to +naught for this great company of honest workers, these brave pioneer +men and women of the soil? Was all their striving forward to find them +merely marking time, shouldered into the backwater while the currents +of organized commercialism swept away their opportunities? Were not +these producers of the world's bread themselves to partake of the +fruits of their labor? + +Yes! Surely the answer was _Yes_! It was their Right. Wrong could +not endure forever in the face of Right; else were the world a poor +place, Life itself a failure, the mystic beauty of God's calm night a +mockery. + +The man from Abernethy roused himself. It would be nearly dawn before +his team would reach their home stalls. He whistled to the horses and +they plunged into the black shadows of the coulee up which the trail +rose in steep ascent from the valley. When they emerged into the +moonlight he drew rein for a moment. + +Somewhere back in a forgotten arroyo a coyote yapped lonesomely. +Around through the night were flung the distant glow-dots of the +burning straw piles, and as he filled his lungs with the fresh sweet +air the hope of better days warmed the heart of the belated traveller. +The Hand which set the orbits of the universe created the laws of Truth +and Justice and these never could be gainsaid. Everything would come +out aright if only men were steadfast in faith and duty. + +He gave the horses their heads and they were off once more through the +cool night upon the wheatland sea that was bounded only by far purple +shadows. + + + +[1] The provinces of Saskatchewan and Alberta, Western Canada, were not +created until 1906. Prior to that the entire country west of the +Province of Manitoba was known as the North-West Territories, of which +the District of Assiniboia was a part, the part which subsequently +formed the southern portion of the Province of Saskatchewan. + +[2] Hon. W. R. Motherwell, Minister of Agriculture, Province of +Saskatchewan. + + + + +CHAPTER II + +A CALL TO ARMS + +And my hand hath found as a nest the riches of the people: and as one +gathereth eggs that are left, have I gathered all the earth.--_Isaiah_ +10:14. + + +For five thousand years Man has grown wheat for food. Archaeologists +have found it buried with the mummies of Egypt; the pictured stones of +the Pyramids record it. But it was the food of princes, not of +peasants--of the aristocracy, not of the people; for no man could +harvest enough of it with his sickle to create a supply which would +place it within the reach of the poor. While century after century[1] +has passed since wheat was first recognized as the premier nourishment +for the human body, it is only of recent times that it has become the +food of the nations. + +The swift development of grain growing into the world's greatest +industry goes back for a small beginning to 1831. It was in that year +that a young American-born farm boy of Irish-Scotch extraction was +jeered and laughed at as he attempted to cut wheat with the first crude +reaper; but out of Cyrus Hall McCormick's invention soon grew the +wonderful harvesting machinery which made possible the production of +wheat for export. Close on heel the railways and water-carriers began +competing for the transportation of the grain, the railways pushing +eagerly in every direction where new wheat lands could be tapped. In +1856 wheat was leaving Chicago for Europe and four years later grain +vessels from California were rounding Cape Horn. The nine years that +followed saw the conquest of the vast prairies of the American West +which were crossed by the hissing, iron monsters that stampeded the +frightened bison, out-ran the wild horses and out-stayed the lurking +Indian. + +No sooner had the railways pushed back the frontier than wheat began to +trickle steadily upon the market, to flow with increased volume, then +to pour in by train-loads. Sacks were discarded for quicker shipment +in bulk; barns and warehouses filled and spilled till adequate storage +facilities became the vital problem and, the need mothering invention, +F. H. Peavey came forward with an idea--an endless chain of metal cups +for elevating grain. From this the huge modern elevator evolved to +take its place as the grain's own particular storehouse. With the +establishment of exchanges for conducting international buying and +selling the universalizing of wheat was complete. + +These things had come to pass while that great region which is now +Western Canada was still known as a Great Lone Land. Pioneer settlers, +however, were beginning to venture westward to the newly organized +Province of Manitoba and beyond. The nearest railroad was at St. Paul, +Minnesota, from which point a "prairie schooner" trail led north for +450 miles to Winnipeg at the junction of the Red and Assiniboine +rivers; the alternative to this overland tented-wagon route was a +tedious trip by Red River steamer. It was not until 1878 that a +railway was built north into Manitoba from St. Paul; but it was +followed shortly after by the projection of the Canadian Pacific +Railway, which reached Vancouver in 1886. + +Then began what has been called the greatest wheat-rush ever known. +Land, land without end, to be had for the asking--rich land that would +grow wheat, forty bushels to the acre, millions of acres of it! +Fabulous tales, winging east and south, brought settlers pouring into +the new country. They came to grow wheat and they grew it, the finest +wheat in the world. They grew it in ever increasing volume. + +Successful operation of new railroads--even ordinary railroads--is not +all glistening varnish and bright new signal flags. The Canadian +Pacific was no ordinary railway. It was a young giant, reaching for +the western skyline with temerity, and it knew Trouble as it knew sun +and wind and snow. The very grain which was its life-blood gorged the +embryo system till it choked. The few elevators and other facilities +provided could not begin to handle the crop, even of 1887, the heavy +yield upsetting all calculations. The season for harvesting and +marketing being necessarily short, the railroad became the focus of a +sudden belch of wheat; it required to be rushed to the head of the +lakes in a race with the advancing cold which threatened to congeal the +harbor waters about the anxiously waiting grain boats before they could +clear. With every wheel turning night and day no ordinary rolling +stock could cope with the demands; for the grain was coming in over the +trails to the shipping points faster than it could be hauled out and +the railroad was in a fix for storage accommodation. + +It was easy to see that such seasonal rushes would be a permanent +condition in Western Canada, vital but unavoidable; so the Canadian +Pacific Railway Company cast about for alleviations. They hit upon the +plan of increasing storage facilities rapidly by announcing that the +Company would make special concessions to anyone who would build +elevators along the line with a capacity of not less than 26,000 +bushels and equipped with cleaning machinery, steam or gasoline +power--in short, "standard" elevators. The special inducement offered +was nothing more nor less than an agreement that at points where such +elevators were erected the railway company would not allow cars to be +loaded with grain through flat warehouses, direct from farmers' +vehicles or in any other way than through such elevators; the only +"condition" was that the elevator owners would furnish storage and +shipping facilities, of course, for those wishing to store or ship +grain. + +At once the noise of hammer and saw resounded along the right-of-way. +Persons and corporations whose business it was to mill grain, to buy +and export it, were quick to take advantage of the opportunity; for the +protection offered by the railway meant that here was shipping control +of the grain handed out on a silver platter, garnished with all the +delectable prospects of satisfying the keenest money hunger. + +On all sides protests arose from the few owners of ordinary warehouses +who found their buildings useless, once the overtopping elevator went +up alongside--from small buyers who found themselves being driven out +of the market with the flat warehouses. But these voices were drowned +in the swish of grain in the chutes and the staccato of the elevator +engines--lost in the larger exigencies of the wheat. The railway +company held to their promises and the tall grain boxes reared their +castor tops against the sky in increasing clusters. + +To operate a standard elevator at a country point with profit it was +considered necessary in the early days to fill it three times in a +season unless the owner proposed to deal in grain himself and make a +buyer's profit in addition to handling grain for others. The cost of +building and operating the class of elevator demanded by the railway +company was partly responsible for this. Before long the number of +elevators in Manitoba and the North-West Territories increased till it +was impossible for all of them to obtain the three fillings per season +even had their owners been inclined to perform merely a handling +service. + +But those who had taken up the railway's offer with such avidity and +had invested large sums of shareholders' capital in building the +elevator accommodation were mostly shrewd grain dealers whose primary +object was to buy and sell. These interested corporations were not +constructing elevators in order to admire their silhouettes against the +beautiful prairie sunsets! In every corner of the earth the Dollar +Almighty, or its equivalent, was being stalked by all sorts and +conditions of men, some of whom chased it noisily and openly while +others hunted with their boots in one hand. Properly enough, the grain +men were out for all that their investment could earn and for all the +wheat which they could buy at one price and sell at another. That was +their business, just as it was the business of the railway company to +transport the grain at a freight rate which would net a profit, just as +it was the farmer's business-- + +But to the farmer it seemed that he had no business! He merely grew +the grain. Apparently a farmer was a pair of pants, a shirt and a +slouch hat that sat on a wagon-load of wheat, drove it up the incline +into the elevator and rattled away again for another load! To farm was +an occupation easily parsed--subjunctive mood, past tense, passive +voice! The farmer was third person, singular! He came and went in +single file like an Indian or a Chinaman--John Doe, Yon Yonson and +Johann X (his mark)--every kind of Johnny on no spot but his own! As +soon as his grain was dumped each of him went back to the land among +the dumb animals where the pomp and vanity of this wicked world would +not interfere with preparations for next year's crop! + +Wheat was bought upon the grading system--so much per bushel for this +grade, so much for that, according to the fluctuations of supply and +demand upon the world's markets. But the average farmer at that time +knew little or nothing about what went on in the great exchanges of the +cities; there was no means of learning the intricacies of the grain +business and many farmers even did not know what a grain exchange was. +All such a man knew was that his wheat was graded and he received a +certain price for it. + +The railway company's refusal to furnish cars for loading direct from +the farmer's wagon compelled the shipper to sell to the elevator +operator for whatever price he could get, accepting whatever weights +the operator allowed and whatever "dockage" he chose to decree. The +latter represented that portion of the farmer's delivery which was +supposed to come through the cleaning sieves as waste material such as +dirt, weed seeds, broken wheat kernels, etc. To determine the +percentage of dockage in any given load of wheat the ordinary human +being would require to weigh and clean a pound of it at least; but so +expert were many of the elevator operators of those days that they had +no trouble at all in arriving at the dockage by a single glance. Nor +were they disconcerted by the fact that the country was new and grain +frequently came from the thresher in a remarkably clean condition. + +With everything thus fallow for seeds of discord the Big Trouble was +not long in making itself manifest. All over the country the Bumping +of the Bumpkins apparently became the favorite pastime of elevator men. +Certain persons with most of their calluses on the inside cracked the +whip and the three-ring circus began. Excessive dockage, short +weights, depressed prices! The farmers grew more and more bitter as +time passed. To begin with, they resented being compelled by the +railway to deal with the elevators; it was a violation of that liberty +which they had a right to enjoy as British citizens. The grain was +theirs to sell where they liked, and when on top of the refusal to let +them do it came this bleeding of their crops, their indignation was +fanned to white heat. + +It was useless for the farmers to build elevators of their own; for +these had to conform to the requirements of the railway and, as already +stated, it was impossible to run them profitably without making a +buyer's profit in addition to the commission for handling and storage. +The farmers were not buyers but sellers of grain and with very few +exceptions, where conditions were specially favorable, the farmers' +elevators that were attempted were soon in difficulties. + +Leading farmers began to write strong letters to the newspapers and it +was not long before the agitation became so widespread that it reached +the floor of Parliament. Mr. James M. Douglas, member for East +Assiniboia, during two successive sessions introduced Bills to regulate +the shipping and transportation of grain in Manitoba and the North-West +Territories and these were discussed in the House of Commons. A +Special Committee of the House was appointed finally to investigate the +merits of the case and as considerable difference of opinion was +expressed as to the actual facts, the appointment of a Royal Commission +to make a full and impartial investigation of the whole subject in the +public interest was recommended. + +This Royal Commission accordingly was appointed on October 7th, 1899, +and consisted of three Manitoba farmers--W. F. Sirett, of Glendale; +William Lothian, of Pipestone, and Charles C. Castle, of Foxton--with +His Honor E. J. Senkler, of St. Catharines, Ontario, as Chairman; +Charles N. Bell, of Winnipeg, acted as Secretary. Owing to the illness +and death of Judge Senkler, Albert Elswood Richards (afterwards the +late Hon. Mr. Justice Richards, of Winnipeg), succeeded as Chairman in +February, 1900. + +Sittings were held at many places throughout Manitoba and the +North-West Territories and much evidence was taken as to the grievances +complained of, these being mainly: (1) That vendors of grain were being +subjected to unfair and excessive dockage at the time of sale; (2) That +doubt existed as to the fairness of the weights allowed or used by +owners of elevators; (3) That the owners of elevators enjoyed a +monopoly in the purchase of grain by refusing to permit the erection of +flat warehouses where standard elevators were situated and were thus +able to keep prices of grain below true value to their own benefit and +the disadvantage of the public generally as well as others who were +specially interested in the grain trade. + +Meanwhile the railway companies had hastened to announce that they +would furnish cars to farmers who wished to ship direct and do their +own loading. This concession, made in 1898-9, resulted in somewhat +better prices and better treatment from the elevator operators. But +farmers who lived more than four or five miles from the shipping points +could not draw in their grain fast enough to load a car within the time +allowed by the railway; so that the situation, so far as these farmers +were concerned, remained practically unchanged. + +In March, 1900, the Royal Commission made a complete report. They had +done their work thoroughly. They found that so long as any farmer was +hampered in shipping to terminal markets himself he would be more or +less at the mercy of elevator operators and that the only proper relief +from the possibility of undue dockage and price depression was to be +found in the utmost freedom of shipping and selling. To this end they +considered that the railroads should be compelled by law to furnish +farmers with cars for shipping their own grain and that flat warehouses +should be allowed so that the farmer could have a bin in which to +accumulate a carload of grain, if he so wished. This, the +commissioners thought, should be the farmer's legal right rather than +his privilege. Loading platforms for the free use of shippers were +also recommended. + +It was the further opinion of the Commission that the law should compel +elevator and warehouse owners to guarantee the grades and weights of a +farmer's grain and to do this the adoption of a uniform grain ticket +system was suggested. At the same time, the commissioners pointed out, +these guarantees might lead to such careful grading and docking by the +elevator operator as might appear to the farmer to be undergrading or +overdocking; so that the farmer's right to load direct on cars was a +necessary supplementary protection. + +The annual shortage of cars during the rush season following harvest +was found to be a direct cause of depression in prices. When cars were +not available for immediate shipments the grain soon piled up on the +elevator companies who were thereby forced to miss the cheaper +transportation by boat from the head of the lakes or assume the risk of +carrying over the grain until the following spring; in buying, +therefore, they naturally allowed a wide margin to cover all possible +contingencies. Increase of transportation facilities during October +and November accordingly was imperative. + +With no rules to regulate the grain trade except those laid down by the +railways and the elevator owners, the need was great for definite +legislation similar to that which obtained in the State of Minnesota +and, as a result of the Royal Commission's recommendations, the +Manitoba Grain Act was placed upon the statutes and became operative in +1900. To supervise the carrying out of the law in connection with the +grain trade a Warehouse Commissioner was appointed, Mr. C. C. Castle +who acted on the Royal Commission being selected for this responsible +office. + +A sigh of relief went up from many intelligent farmers who had begun to +worry over the conditions developing; for they looked upon the Manitoba +Grain Act as a sort of Magna Charta. With the grain trade under +official control and supervision along the lines laid down by the Royal +Commission, they felt that everything would be alright now. It was +like calling in a policeman to investigate suspicious noises in the +house; like welcoming the doctor's arrival upon an occasion of sudden +and severe illness. Unfortunately, the patient's alarming symptoms +sometimes continue; sometimes the thief makes a clean get-away; King +John had no sooner left Runnymede than he proceeded to ignore the Great +Charter and plan new and heavier scutages upon the people! + +Up till now the elevator owners had been operating with nothing more +definite than a fellowship of interests to hold them together; but upon +appearance of the Grain Act they proceeded to organize the North West +Elevator Association, afterwards called the North West Grain Dealers' +Association. By agreeing on the prices which they would pay for wheat +out in the country and by pooling receipts the members of such an +organization, the farmers suspected, would be in a position to strangle +competition in buying. + +The new Act was aiming point blank at these very things by affording +the farmer an opportunity of loading his grain direct into cars through +flat warehouses, if he chose, and shipping where he liked. But because +many farmers did not know with just what the new weapon was loaded or +how to pull the trigger, the railways and elevators merely stepped up +and smilingly brushed the whole thing aside as something which were +better hanging on a high peg out of harm's way. + +The crop of 1900 being comparatively light, the ignoring of the +car-distribution clauses of the Act did not obtrude as brazenly as it +did the year following. But when grain began to pour in to the +shipping points in 1901 and the farmers found the railway unheeding +their requests for cars their disgust and disappointment were as +complete as their anger was swift. It was the rankling disappointment +of men whose rights have been officially decreed only to be +unofficially annulled; it was the hot anger of a slap in the face--the +anger that makes men fight with every ounce of their strength. + +The quick welling of it planted anxiety in the minds of such +level-headed farmers as W. R. Motherwell and Peter Dayman, of +Abernethy; Williams, of Balcarres; Snow, of Wolseley; Sibbold and +Millar, of Indian Head. While the two latter were riding into town +with wheat one day John Sibbold suggested to John Millar that, as +secretary of the local Agricultural Society, it might be a good thing +if he called a meeting to talk things over. It was the high state of +feeling manifested at this meeting which furnished W. R. Motherwell +with food for thought on the lonely Qu'Appelle trail. And it was the +idea that it might be advisable to hold similar mass meetings +throughout the country that brought Peter Dayman driving over to the +Motherwell place, not long after, to discuss it. + +These two men had been friends and neighbors since 1883. Each of them +felt that the time had come for definite action of some kind and they +spent the greater part of the day in talking over the situation in +search of the most practical plan of campaign. There was little use in +the farmers attempting to organize in defence of their own interests +unless the effort were absolutely united and along broader lines than +those of any previous farmers' organization. Politics, they both +agreed, would have to be kept out of the movement at all costs or it +would land on the rocks of defeat in the same way that the Farmers' +Union and Patrons of Industry had been wrecked. + +It was in the middle eighties when the West was settled but sparsely +that the farmers had attempted to improve their lot by the formation of +"Farmers' Unions." The movement had had a brief and not very brilliant +career and as the offspring of this attempt at organization some +progressives with headquarters at Brandon, Manitoba, had tried to enter +the grain trade as an open company. When one of the chief officers of +this concern defected in an attempt to get rich the failure dragged +down the earnest promoters to deep financial losses. + +Again in the early nineties the farmers had rebelled at their pioneer +hardships by organizing the "Patrons of Industry," a movement which had +gained strength and for a while looked healthy. It had got strong +enough to elect friends to the Legislature and was sowing good seed +when again temptation appeared, centred in the lure of commercial +success and politics. Some of the chief officers began to misuse the +organization for selfish ends and away went the whole thing. + +There was no use in repeating these defeats. Couldn't some way be +devised of sidestepping such pitfalls? The great weakness of the +farmers was their individual independence; if they could be taught to +stand together for their common interests there was hope that something +might be accomplished. + +The sitting-room clock ticked away the hours unheeded as these two +far-sighted and conscientious farmers lost themselves in earnest +discussion. The lamps were lighted, but still they planned. + +Finally W. R. Motherwell reached across the table for a pad of +note-paper and drafted the call to arms--a letter which summoned the +men of Wolseley, Sintaluta and Indian Head, of Qu'Appelle, Wideawake +and other places to gather for _action_. There and then copies were +written out for every leading farmer within reach, and in order that no +political significance might be attached to the call, both men signed +the letters. + +When Peter Dayman drove away from the Motherwell place that night +perhaps he scarcely realized that he carried in his pocket the fate of +the farmers of Western Canada. Neither he, W. R. Motherwell, nor any +other man could have foretold the bitter struggles which those letters +were destined to unleash--the stirring events that were impending. + + + +[1] Wheat was first grown in Canada in 1606 at Port Royal (now +Annapolis) in Nova Scotia, where Champlain and Pourtincourt built a +fort and established a small colony. A plot of ground was made ready +and wheat planted. "It grew under the snow," said Pourtincourt, "and +in the following midsummer it was harvested." + + + + + +CHAPTER III + +THE FIRST SHOT IS FIRED + +Let us have faith that Right makes Might, and in that faith let us dare +to do our duty as we understand it.--_Abraham Lincoln_. + + +The eighteenth of December, 1901, was a memorable day in the little +prairie town of Indian Head. Strangers from East and West had begun to +arrive the night before and early in the day the accommodations were +taxed to the limit while the livery stables were overflowing with the +teams of farmers from every direction. All forenoon the trails were +dotted with incoming sleighs and the groups which began to congregate +on Main Street grew rapidly in size and number. The shop-keepers had +stayed up half the night to put the final touches to their holiday +decorations and make their final preparations for the promised rush of +Christmas buying. + +Many prominent men would grace the town with their presence before +nightfall. The Premier of the North-West Territories, Hon. F. W. G. +Haultain, would be on hand, as well as Hon. G. H. V. Bulyea and Senator +William D. Perley; coming to meet them here would be Premier R. P. +Roblin and other gentlemen of Manitoba. Certain boundary matters, +involving the addition of a part of Assiniboia to the Province of +Manitoba, were to be discussed at a public meeting in the Town Hall at +night. + +Messrs. Motherwell and Dayman had chosen their date well, many farmers +having planned already to be at Indian Head on the 18th. The grain +growers' meeting was announced for the afternoon and so keen was the +interest that when order was called the chairman faced between sixty +and seventy-five farmers, as well as a number of public men, instead of +the dozen-or-so whom W. R. Motherwell had ventured to expect. + +Although it was December out of doors, the temperature of that meeting +was about one hundred in the shade! As the discussion expanded feeling +ran high. Farmer after farmer got to his feet and told the facts as he +knew them, his own personal experiences and those of his neighbors. +There was no denying the evidence that it was full time the farmers +bestirred themselves. + +W. R. Motherwell and Peter Dayman spoke earnestly in favor of immediate +organization along strong, sane lines. The farmer was always referred +to as the most independent man on earth, and so he was; but it was +individual independence only. He had come lumbering into the country +behind his own oxen with his family and all his worldly goods in his +own wagon; had built a roof over their heads with his own hands. Alone +on the prairie, he had sweated and wrestled with the problem of getting +enough to eat. One of the very first things the pioneer learned was to +stand on his own two feet--to do things by himself. His isolation, the +obstacles he had overcome by his own planning, the hardships he had +endured and survived--these were the excuses for his assertiveness, his +individualism, his hostility to the restrictions of organization. He +was a horse for work; but it was an effort for him to do team work +because he was not used to it. + +This was the big barrier which would have to be surmounted in the +beginning if battle were to be waged successfully against present +oppressive conditions. The right kind of organization was the key that +would unlock a happier future. The farmer was as much a producer as +any manufacturer who made finished articles out of raw material; but +his was the only business in which full energies were expended upon +production of goods to sell while the marketing end was left for the +"other fellow" to organize. That was why he was obliged to do as he +was told, take what was given him or haul his wheat home and eat it +himself. + +Like all such meetings, it was not without its few pails of cold water. +These were emptied by some who hinted dark things about "political +reasons," and it was easy to make the trite statement that history +repeats itself and to predict that the formation of such a farmers' +association as was proposed would be riding only for the same fall +which had overtaken former attempts. The enthusiasm refused to be +dampened and it broke out in unmistakable accents when without waste of +words Angus McKay nominated W. R. Motherwell as provisional President +of the "Territorial Grain Growers' Association." John Millar as +provisional Secretary and a board of directors[1] were quickly chosen. + +When it was all over and Senator William D. Perley rose slowly to his +feet, it was to deliver a parting message of confidence that the +farmers were taking the right step in the right manner. There were few +men who could be listened to with greater respect than the elderly +Senator and as the silence of his audience deepened it was almost as if +the white-haired gentleman's dignified words were prophetic. He had +been familiar with a somewhat similar movement in New Brunswick, he +said, and back there by the Atlantic this movement was still very much +alive and doing good work. Long after those who were present at this +meeting had passed away, it was his prediction that this newborn +organization of prairie farmers would be living still, still expanding +and still performing a useful service to the farmers generally. + +The meeting adjourned with the general feeling that at last matters +were advancing beyond mere talk. The sixth of January was set as the +date for a second meeting to draft a constitution and prepare a +definite plan of campaign. Emphasis was laid upon the importance of a +good attendance; but when the date arrived the leaders of the new +movement were disappointed to find that, including themselves, there +were just eleven farmers present. While this did not look very +promising, they proceeded with their plans and it is a tribute to the +careful thought expended at that time that the constitution then framed +has stood the test of many years, even much of the exact phraseology +remaining to-day. The idea of having local associations scattered +throughout the country, each with its own officers, governed by a +central organization with its special officers, was adopted from the +first. + +Among those present was C. W. Peterson, Deputy Commissioner of +Agriculture for the North-West Territories. He freely offered his +services in the capacity of secretary; but the offer was turned down so +flat and so quickly that it was breath-taking. The incident reflected +very vividly the jealousy with which the farmers were guarding the new +movement rather than any depreciation of the Deputy Commissioner's +ability; every man of them was on the alert to deflect the thinnest +political wedge, imagined or otherwise, that might come along. They +would trust nobody with an official connection and the appointment of +John Millar, who was one of themselves, was confirmed without loss of +time. There was no salary attached to any office, of course; nobody +thought of salaries. The farmers who knew the feel of spare cash in +those days were seventh sons of seventh sons. + +Winter and all as it was, the leaders of the young organization did not +let the snow pack under their feet. No sooner were the preliminaries +over than they set about preparing for the first convention of the +Association by hitching up and travelling the country, organizing local +associations. W. R. Motherwell, John Millar and Matt. Snow, of +Wolseley, tucked the robes around them and jingled away in different +directions. Wherever they went they were listened to eagerly and the +resulting action was instantaneous. The movement took hold of the +farmers like wildfire; so that by February thirty-eight local grain +growers' associations had been formed, each sending enthusiastic +delegates to the first Annual Convention, which was held at Indian Head +in February, 1902. + +All that summer, pacing the rapidly growing wheat, the Territorial +Grain Growers' Association spread and took root till by harvest time it +was standing everywhere in the field, a thrifty and full-headed +champion of farmers' rights, lacking only the ripening of experience. +There had been as yet no particular opportunity to demonstrate its +usefulness in dollars and cents; but with the approach of the fall and +market season the whole organization grew tense with expectancy. There +seemed little reason to believe that the railway people would do other +than attempt to continue their old methods of distributing cars where +and when they chose and to disregard, as before, those provisions of +the Grain Act which aimed to protect the farmer in getting his fair +share of cars in which to load direct. + +Thus it soon turned out. The officers of the Association at once +warned the Canadian Pacific Railway Company that if they persisted in +such practice the farmers would be compelled to take legal action +against them. It looked so much like the attack of a toddling child +against a man full grown that the big fellow laughed good-naturedly. +Who, pray, were the "Territorial Grain Growers' Association"? + +"We represent the farmers of Western Canada," retorted the unabashed +officers of the little organization "and we want what the law allows us +as our right. What's more, we propose to get it!" + +That was about the message which W. R. Motherwell and Peter Dayman went +down to Winnipeg to deliver in person to the Canadian Pacific Railway +Company. The official whom they interviewed manipulated the necessary +levers to start the matter on its way through the "proper channels" +towards that "serious consideration" into which all good politicians +and corporation officials take everything that comes unexpectedly +before them. W. R. Motherwell could not wait for the unfolding of this +hardy perennial and left Peter Dayman at Winnipeg to follow up +developments. + +When the latter got back home he brought with him a bagful of promises. +The practical improvement in the situation which was to support these +promises, however, evidently got wrapped up in somebody else's order +and delivered to another address. As soon as the Association were +satisfied that relief was not to be forthcoming they promptly filled +out a standard form of information and complaint and notified the +railway that they were going to take legal action at Sintaluta against +the Company's station agent; if no results were forthcoming there, they +assured the Company, they would take action against every railway agent +in the Territories who was guilty of distributing cars contrary to the +provisions of the Grain Act. The complaint went before Mr. C. C. +Castle, the official Warehouse Commissioner; the information was laid +before Magistrate H. O. Partridge at Sintaluta. + +All over the country the newspapers began to devote valuable space to +the impending trial. It was talked about in bar-rooms and +barber-shops. Some anti-railroaders declared at once that the farmers +hadn't a minute's chance to win against the C. P. R. The news +percolated eastward, its significance getting lighter till it became +merely: "a bunch of fool hayseeds out West in some kind of trouble with +the C. P. R.--cows run over, or something." At Ottawa, however, were +those who saw handwriting on the wall and they awaited the outcome with +considerable interest. Several public men, especially from Regina, +made ready to be in actual attendance at the preliminary trial. + +The farmers were out in force, for they realized the importance of this +test case. It was not the agent at Sintaluta they were fighting, but +the railway itself; it was not this specific instance of unjust car +distribution that would be settled, but all other like infringements +along the line. The very efficacy of the Grain Act itself was +challenged. + +Two hours before the Magistrate's Court sat to consider the case, J. A. +M. Aikins (now Sir James Aikins, Lieutenant-Governor of Manitoba), who +was there as the legal representative of the C. P. R., tapped the +President of the farmers' Association on the elbow. + +"Let's make a real case of it while we're at it," he smiled, and +proceeded to suggest that instead of laying information against the +railway company on two charges, the Association should charge them also +with violating some five or six other sections of the Act. "Then we'll +have a decision on them, too, you see. For the purpose of this case +the Company will plead guilty to the offences. What do you say?" + +"Don't you do it, W. R.! Not on your life, Mister!" + +The farmers within earshot crowded about the two. They suspected +trickery in such a last-minute suggestion; either the railway people +were very sure they had the case in their pocket or they were up to +some smooth dodge, you bet! + +President Motherwell shook his head dubiously. + +"How can we change the information on such short notice?" he objected. +"It would mean risking an adjournment of the court." + +"That's what they're after! Stick to him, Motherwell!" + +But it did seem very advisable to have the meaning of those other +doubtful sections of the Act cleared up, and as C. P. R. counsel went +more fully into the matter the desirability of it for both sides became +even more apparent. + +"Tell you what we'll do, Mr. Aikins," said W. R. Motherwell, finally +turning to him after consulting the others, "if you'll give your +pledged word before this assembled crowd of farmers that you won't take +any technical advantage of the change you've suggested us making in the +information--by raising objections when court opens, I mean--why, we'll +make the change." + +"Certainly," agreed Mr. Aikins without hesitation, and in solemn +silence he and the President of the Association shook hands. + +This alteration in the information made the issue even more +far-reaching and it was a tense moment for the farmers who packed the +little court room when the Magistrate opened proceedings and on behalf +of the Warehouse Commissioner, Mr. T. Q. Mathers (now Chief Justice +Mathers, of Winnipeg), rose to his feet for argument. After the +evidence was complete and the Magistrate at last handed down his +decision--fifty dollars fine and costs, to be paid by the +defendant--the victorious grain growers were jubilant and especially +were the officers of the young Association proud of the outcome. + +The case was carried to the Supreme Court by the Railway Company, which +made every effort to have the decision of the lower court reversed. +When the appeal case came to trial, much to the disgust and chagrin of +the railway authorities and the corresponding elation of the farmers, +the Magistrate's decision was sustained. At once the newspapers all +over the country were full of it. Oracles of bar-room and barber-shop +nodded their heads wisely; hadn't they said that even the C. P. R. +couldn't win against organized farmers, backed up by the law of the +land? Away East the news was magnified till it became: "The farmers +out West have licked the C. P. R. in court and are threatening to tear +up the tracks!" At Ottawa Members of Parliament dug into Hansard to +see if they had said anything when the Manitoba Grain Act was passed. + +Empty cars began to roll into Western sidings and they were not all +spotted to suit the elevators but were for farmers who had signified a +desire to load direct. It was unnecessary to carry out the threat of +proceeding against every delinquent railway agent in the Territories; +for the delinquencies were no longer deliberate. The book in which by +turn the orders for cars were listed began to be a more honest record +of precedence in distribution, as all good car-order books should be. + +For the railway authorities were men of wide experience and ability, +who knew when they were defeated and how to accept such defeat +gracefully. It meant merely that the time had come to recognize the +fact that there was a man inside the soil-grimed shirt. The farmer had +won his spurs. While the railway people did not like the action of the +Association in hauling them into court, in all fairness they were ready +to admit that they had received full warning before such drastic action +was taken. + +If the railway officials began to regard the farmer in a new light, the +latter on his part began to appreciate somewhat more fully the task +which faced these energetic men in successfully handling the giant +organization for which they assumed responsibility. After the tilt, +therefore, instead of the leaders of the grain growers and the railway +looking at each other with less friendly eyes, their relations became +more kindly as each began to entertain for the other a greater respect. + +Best of all, applications were beginning to pour in upon the Secretary +of the Territorial Grain Growers' Association--applications from +farmers everywhere for admission to the organization. Skeptics who had +been holding out now enrolled with their local association and, as fast +as they could be handled, new locals were being formed. + +And at this very time, over in the hotel at Sintaluta, a grain grower +of great ability and discernment was warning an interested group of +farmers against the dangers of over-confidence. + +"At present we are but pygmies attacking giants," declared E. A. +Partridge. "Giants may compete with giants, pygmies with pygmies, but +pygmies with giants, never. We are not denizens of a hamlet but +citizens of a world and we are facing the interlocking financial, +commercial and industrial interests of a thousand million people. If +we are to create a fighting force by co-operation of the workers to +meet the giants created by the commercial co-operation of the owners, +we have scarcely started. If we seek permanent improvement in our +financial position and thereby an increase of comfort, opportunity and +sense of security in our lives and the lives of our families, the fight +will be long and hard. + +"And we are going to need every man we can muster." + + + +[1] See Appendix--Par. 1. + + + + +CHAPTER IV + +"THAT MAN PARTRIDGE!" + +Any man can work when every stroke of his hand brings down the fruit +rattling from the tree to the ground; but to labor in season and out of +season, under every discouragement, by the power of faith . . . that +requires a heroism which is transcendent. And no man, I think, ever +puts the plow into the furrow and does not look back, and sows good +seed therein, that a harvest does not follow.--_Henry Ward Beecher_. + + +It was a handy place to live, that little tar-paper shanty around which +the prairie wind whooed and whiffed with such disdain. So small was it +that it was possible to wash oneself, dress oneself and get breakfast +without getting out of bed. On the wall was a shelf which did duty as +a table. There were also a little box stove and some odds and ends. +When the roof leaked, which was every time it rained, it was necessary +to put pans on the bed to catch the drip. + +But it was better than the tent in which E. A. Partridge and his +brother slept through their first star-strewn winter nights on the open +prairie--more pretentious than the tent and assuredly not so cold. The +two boys were proud of it, even though they were fresh from +civilization--from Simcoe County, Ontario, where holly-hocks topped the +fences of old-fashioned flower gardens in summer and the houses had +shingles on top to keep out the weather, and where there were no +coyotes to howl lonesomely at night, where--Well, never mind. Those +houses belonged to other people; the shanty was theirs. All around +stretched acres and acres of snow; but there was land under that +snow--rich, new land--and that was theirs, too, by right of +homesteading. + +It was about Christmas time in 1883 when E. A. Partridge was +twenty-one. The place was near Sintaluta, District of Assiniboia, +North-West Territories, and homesteading there in the days before the +Rebellion was no feather bed for those who tackled it. A piece of +actual money was a thing to take out and look at every little while, to +show to one's friends and talk about. + +Season after season the half starved agricultural pathfinders lost +their hard-earned crops by drouth and what was not burned out by the +sun was eaten by ubiquitous gophers. The drouth was due, no doubt, to +the frequent prairie fires which swept the country; these found birth +in the camp-fire coals left by ignorant or careless settlers on their +way in. Under the rays of the summer sun the blackened ground became +so hot that from it ascended a column of scorching air which interfered +with the condensation of vapor preceding the falling of rain. Clouds +would bank up above the prairie horizon, eagerly watched by anxious +homesteaders; but over the burned area the clouds seemed to thin out +without a drop falling upon the parching crops. + +Forty-three acres, sown to wheat, was the first crop which the +Partridge brothers put in. The total yield was seven bushels, obtained +from around the edges of a slough! + +One by one discouraged settlers gathered together their few belongings +and sought fresh trails. Lone men trudged by, pack on back, silent and +grim. Swearing at his horses, wheels squealing for axle-grease, tin +pans rattling and flashing in the hot morning sun, a settler with a +family stopped one day to ask questions of the two young men. He was +on his way--somewhere--no place in particular. + +"I tell ye, boys, this country ain't no place fer a white man," he +volunteered. "When y'ain't freezin' ye're burnin' up, an' that's what +happens in hell!" He spat a stream of tobacco juice over the wagon +wheel and clawed his beard, his brown face twisted quizzically. "God +A'mighty ain't nowheres near here! He didn't come this fur +West--stopped down to Rat Portage![1] Well, anyways, good luck to ye +both; but ef ye don't git it, young fellers, don't ye go blamin' me, by +Jupiter!" He cracked his whip. "Come up out o' that, ye God-forsaken +old skates!" And, mud-caked wheels screeching, tin pans banging and +glaring, he jolted back to the trail that led away in distance to No +Place In Particular. + +But along with some others who confessed to being poor walkers, the +Partridge boys stuck right where they were. They set about the +building of a more permanent and comfortable shack--a sod house this +time. It took more than seven thousand sods, one foot by three, three +inches thick; but when it was finished it was a precocious raindrop or +a mendacious wind that could find its way in. + +About thirteen miles distant was a little mud schoolhouse, and one day +E. A. Partridge was asked to go over and teach in it. It was known +that back East, besides working on his father's farm, he had taught +school for awhile. Learning was a truant for the younger generation on +the prairies at that time, there being only a few private schools +scattered here and there. Though it was not much of an opportunity for +anything but something to do, the offer was accepted, and every +morning, after sucking a couple of eggs for a breakfast, E. A. +Partridge took to loping across the prairie on a "Shag" pony. + +But the little school put an idea into his head. He wondered if it +might be worth while starting a private school of his own, and in 1885 +he thought the Broadview locality offered profitable prospects. He +decided to go down there and look over the situation. + +By this time the occupants of the sod house numbered four--three +Partridge brothers and a friend. The problem of fitting out the +school-teacher for his Broadview trip so that he would create the +necessary impression among strangers was one which called for +corrugated brows. The solution of it was not to be found in any of the +teacher's few text-books; it quite upset Euclid's idea that things +which were equal to the same thing were equal to one another--when it +came to finding enough parts to make a respectable whole! For among +the four bachelors was not one whole suit of clothes sufficiently +presentable for social events. Everything was rough and ready in those +days and in spite of the hardships the friendly pioneer settlers had +some good times together; but the sod house quartette had never been +seen at any of these gatherings--not all four at one time! Three of +them were always so busy with this or that work that they had to stay +home, you know; it would have been embarrassing to admit that it was +only by pooling their clothes they could take turns in exhibiting a +neighborly spirit. As it was, there was often a secret fear of +exhibiting even more--an anxiety which led the visitor to keep the wall +at his back like a man expecting general excitement to break loose at +any moment! + +On reaching Broadview the prospects for the new school looked bright, +so the hopeful pedagogue sent back word to the sod house to this effect. + +"And don't you fellows forget to send my linen," he wrote jokingly. +"Make the trunk heavy, too. I don't know how long it will have to +represent my credit!" + +When the trunk arrived it was so heavy that it took two men to carry it +into the hotel. When in the secrecy of his own room E. A. Partridge +ventured to look inside he found his few books, a pair of "jumper" +socks--and a lot of stones! Also there was an old duster with a piece +of paper pinned to it, advising: "Here's your linen!" + +The Broadview school did not last long for the reason that the second +North-West Rebellion broke out that year and the teacher joined the +Yorkton Rangers. Fifty cents a day and grub was an alluring prospect; +many a poor homesteader would have joined the ranks on active service +for the grub alone, especially when the time of his absence was being +allowed by the Government to apply on the term set for homestead duties +before he could come into full possession of his land. Many farmers +earned money, also, teaming supplies from the railway north to +Battleford and Prince Albert. + +In common with his fellow grain growers, the five years that followed +were years of continuous struggle for E. A. Partridge. The railway +came and the country commenced to settle quickly. The days of prairie +fires that ran amuck gave way to thriving crops; but at thirty and +forty cents per bushel the thriving of those who sowed them was another +matter. + +This man with the snappy blue eyes and caustic tongue was among the +first to foresee "the rising colossus," the shadow of which was +creeping slowly across the farmer's path, and he watched the "brewing +menace" with growing concern. With every ounce of his tremendous +energy he resented the encroachment of Capital upon the liberties of +Labor. Being of the people and temperamentally a democrat, he had a +great yearning for the reorganization of society in the general +interest. His championship in this direction earned him the reputation +in some quarters of being full of "fads," a visionary. But his +neighbors, who had toiled and suffered beside him through the years, +knew "Ed." Partridge, man to man, and held him in high regard; they +admired him for his human qualities, respected him for his abilities, +and wondered at his theories. On occasion they, too, shook their heads +doubtfully. They could not know the big part in their emancipation +which this friend and neighbor of theirs was destined to play through +many days of crisis. Not yet had the talley begun. + +But events even now slowly were shaping. With the winning of their +first clash the farmers' movement was achieving momentum. In the +latter part of December, 1902, down in the town of Virden, Manitoba, a +committee was appointed at a meeting of the Virden Agricultural +Society, to arrange a district meeting for the purpose of organizing +the first Grain Growers' Association in Manitoba. As soon as the date +was set J. W. Scallion wrote to W. R. Motherwell, urgently asking him +to assist in the organization. Although roads and weather were rough, +the President of the Territorial Grain Growers' Association at +considerable inconvenience went down to Virden, taking with him Matt. +Snow and copies of the constitution and by-laws upon which the +Territorial Association was founded, With this assistance a strong +local association was formed at Virden on January 9th, 1903, with +capable officers[2] and a first-year membership of one hundred and +twenty-five. + +The same difficulties that faced the farmers farther West were being +experienced in Manitoba and the newspapers were full of protesting +letters from country points. As President of the Virden Grain Growers' +Association, J. W. Scallion wrote letters to every place where +complaints were being voiced and urged organization. At every +opportunity it was advocated through the press that from the eastern +boundary of Manitoba to the Rocky Mountains the farmers should organize +themselves for self-defence against oppression, present or possible, by +"the interests." In about six weeks over fifteen local associations +had been formed in Manitoba and Virden began calling for a Provincial +association. Accordingly, on March 3rd and 4th, 1903, the Manitoba +grain growers held their first convention at Brandon with one hundred +delegates present, representing twenty-six local associations. Great +enthusiasm marked the event and the officers[3] chosen were all men of +initiative. + +The members of the parent organization watched the rapid expansion on +all sides with sparkling eyes. Their own second annual convention at +Indian Head revealed considerable progress and the promise of greater +things to come. On the invitation of the delegates from the Regina +district it was decided to hold the third annual convention at the +capital and the rousing gathering which met there in due course was +productive of such stimulus and publicity that its effect was felt long +afterward. + +At every convention the farmers found some additional weak spot in the +Grain Act and suggested remedial legislation. Records are lacking to +show in what order the various changes came; but step by step the +farmers were gaining their rights. It all seemed so wonderful--to get +together thus and frame requests of the Government at Ottawa, to find +their very wording incorporated in the Act. The farmers scarcely had +dared to think of such a thing before. To them the ear of a government +was a delicate organism beyond reach, attuned to the acoustics of High +Places only; that it was an ear to hear, an ear to the ground to catch +the voice of the people was a discovery. At any rate when W. R. +Motherwell and J. B. Gillespie, of the Territories, D. W. McCuaig and +R. C. Henders, of Manitoba, went to Ottawa for the first time they were +received with every consideration and many of their requests on behalf +of the farmers granted. + +With such recognition and the recurring evidence of advantageous +results the jeering grins of a certain section of the onlooking public +began to sober down to a less disrespectful mien. Those who talked +glibly at first of the other farmers' organizations which they had seen +go to pieces became less free with their forebodings. + +In 1904 the farmers began to press for something more than the proper +distribution of cars and the freedom of shipment. They were +dissatisfied with the grading system and the re-inspection machinery. +Some of them claimed that the grading system did not classify wheat +according to its milling value. Some wanted a change in the +Government's staff at the office of the Chief Grain Inspector where the +official grading was done. Some wanted a sample market; some didn't. +The farmers were about evenly divided. + +The Department of Agriculture for the Territories commissioned +Professor Robert Harcourt, Chemist of the Ontario Agricultural College, +to conduct tests as to the comparative values of the different grades +of wheat. E. A. Partridge, of Sintaluta, and A. A. Perley, of +Wolseley, undertook to secure eight-bushel samples of the various +grades from their districts. These were carefully sacked and shipped +to the Chief Grain Inspector at Winnipeg, where he graded them and +forwarded them to Professor Harcourt, sealed in such a way that any +tampering with the shipment would be detected readily. + +These samples were all of 1903 crop. There had been a bad snowstorm in +September of that year and much wheat had been standing in stook. The +farmers believed that the grain was not frozen or injured in any way +and that they were defrauded to some extent in the grading of their +wheat. The samples represented all grades from "No. 1 Hard" to "Feed." +They were milled with exceptional care to prevent mixing of the various +lots and the flours obtained were put through three different baking +tests. + +The conclusion reached was that there did not appear to be much +difference in the value of the different grades of wheat. Even the +"Feed" sample proved by no means useless for bread-making purposes, +either in yield or quality; the only thing that rendered it less +available for bakers' use was its darker color. All who saw the loaves +were surprised at the quality of this bread. + +The tests on these 1903 samples confirmed the farmers in their opinion +that on 1903 wheat the spread in price between No. 1 Hard and No. 4 was +not in harmony with the milling quality. From No. 1 Hard the amount of +flour obtained was 70.8 per cent. as against 68 per cent. from the No. +4 grade. The large percentage of stook-frozen grain that went into the +lower grades because it was technically debarred from the higher ones +no doubt raised the milling value, it was thought, of all the grades +that year. + +The Department of Agriculture for the Territories therefore decided to +repeat the tests with 1904 wheat. The samples with which Professor +Harcourt was furnished represented the grain just as it was sold by the +farmer and graded either at the elevator or by the Chief Grain +Inspector; it was not a composite sample of the commercial grades. The +second tests practically confirmed the work done the previous year. +The milling, chemical and baking tests failed to show very wide +differences in the composition and milling value of the grades +submitted. The conclusion reached was that the difference in +composition and milling value was nearly as great between samples of +any one grade as between the various grades. + +The farmers began to feel that it would be a good thing to have a +representative at Winnipeg to watch the grading of their cars and to +look after their interests generally. The Department of Agriculture +for the Territories was asked by the Sintaluta grain growers to appoint +a man and W. H. Gaddes was commissioned to act for two weeks. Then the +farmers began to wonder if they could not send down a man of their own; +at one of their meetings the question was put and those present +subscribed five dollars apiece for the purpose. + +Thus it came about that on the 7th of January, 1905, there stepped from +the train at the C. P. R. depot in Winnipeg a man who looked no +different from any one of a dozen other farmers who daily reached the +city, tanned of cheek and bright of eye. But his business in town was +of a very special nature. In his pocket was a hundred dollars and the +grip in his hand was packed for a month's stay. + +It was a month of "cold shoulders" and patronizing manners for E. A. +Partridge. No band music was played in his honor, no festive board was +spread, nor was he taken around and shown the sights of the city. On +the contrary, he was made to feel like a spy in the camp of an enemy; +for he found himself entirely without status, the grain dealers +recognizing him merely as a farmers' representative, whatever that was. +Even at the office of the Chief Grain Inspector he was looked upon as a +man who was meddling with something which he wasn't supposed to know +anything about. + +Nevertheless, the Chief Inspector himself gave him information at times +and there were one or two others who took the trouble to explain some +things about which he asked questions. Among the latter was a grain +man by the name of Tom Coulter. For the most part, however, the +presence of the "farmers' representative" at Winnipeg was looked upon +as a joke; so that information as to the grain business became for him +largely a still hunt. He visited offices, listened to how interviews +were conducted over the telephone and picked up whatever loose ends he +could find to follow up. + +"Who is that fellow, anyway?" asked a grain man who had just got back +to the city. He jerked his thumb over his shoulder. + +"Oh, him!" laughed his partner as he saw who was indicated. "Only that +gazabo from Sintaluta who's been nosing around lately. Some hayseeds +out the line sent him down here to learn the grain business. They +believe that all wheat's No. 1 Hard, all grain buyers are thieves, and +that hell's to be divided equally between the railways and the milling +companies!" + +"So that's the guy, eh?--that's that man Partridge!" + + + +[1] The new name of Rat Portage is Kenora (Ontario). + +[2] See Appendix--Par. 2. + +[3] See Appendix--Par. 8. + + + + +CHAPTER V + +"THE HOUSE WITH THE CLOSED SHUTTERS" + +Knock, knock, knock! Who's there, i' the name of Beelzebub? Here's a +farmer . . .--_Macbeth_. + + +When wheat ceased to be grown for local needs and overflowed upon the +markets of the world, becoming a factor in finance, arenas where its +destiny was decided were established in the large centres of trade. In +these basins of commerce the never-ending flow concentrated and wheeled +for a short space before in re-directed currents it rolled on its way +to ocean ports. Here, according to the novelists, frantic men were +sucked into the golden eddies, their cries strangled and their fate +forgotten even as they were engulfed by the Leviathan with which they +adventured; or they emerged with eyes bloodshot, voices gone and +clothes torn, successful speculators of a day. Perhaps the general +reader is more familiar with these mad scenes of "The Pit," as the +trading floor is called, than with the steadily turning marketing +machinery of which they are but a penumbra. + +The modern grain exchange is much more than a mere roulette wheel for +the speculator. Its real purpose is to provide a centre for the +legitimate trader. It is a great information bureau of world +happenings where every item of news concerning the wheat in any way is +gathered and classified--drouth, rain, frost, rust, locusts, hail, +Hessian fly, monsoon or chinch bug. In every corner of the earth where +the wheat streams take their rise, from green blade to brown head the +progress of the crop is recorded and the prospects forecasted--on the +steppes of Russia, the pampas of the Argentine, the valley of the San +Joaquin, the prairies of Western Canada and the Dakotas, the fields of +India, Iowa, Illinois and Kansas. Good news, bad news, the movements +of ships, the prices on the corn exchanges of London and Liverpool, at +Chicago, on the bourses of Paris, Antwerp and Amsterdam--all are +listed. With such a Timepiece of International Exchange ticking out +the doings of nations, both buyer and seller can know what prices will +govern their dealings. In office or farmhouse an ear to a telephone is +all that is necessary. + +A grain exchange, then, is the market-place where grain dealers meet to +secure information and maintain regulations for the prompt performance +of contracts. The exchange organization does not deal in grain, but +has for its sole purpose the protection of those who do and the +facilitating of transactions; in other words, it is on the ground to +see that the grain trade is carried on in an honest and capable manner +and to punish offenders against proper business ethics and established +rules. + +Its membership is composed of grain dealers doing business in the +exchange's territory--milling companies, exporting companies, line +elevator companies as well as independent dealers and "commission men." +Besides seeking a supply of wheat to keep their mills busy for the +season, the milling companies sell wheat. It is the business of the +exporters to make shipment to other countries. Wheat is sold to +exporters and millers by the elevator companies, who are interested in +running as much grain as possible through their elevators at country +points. The chief business of independent dealers is to handle wheat +that stands "on track," ready for shipment, either buying outright from +the farmer or handling it for him on a commission basis. + +The "commission man" is in an especially good position to do a +clean-cut business. He assumes no burden of large capital investment +and operating expense, as do the elevator companies. His chief need is +a line of credit at a bank and from this he pays advances to his +clients, his security being the bills of lading of wheat consigned to +him. He does not need to buy or sell on his own account and, unlike +the exporter, he does not have to risk changes in freight rates or in +prices or make deliveries by given dates. As for the satisfactory +milling quality of the crop--that is something for the miller to worry +over. In order to do business it is necessary only for the commission +man to be a member of the exchange and to obey its rules. + +For a long time Winnipeg has been known as the greatest primary wheat +market in the world. That means that a greater volume of new wheat, +direct from the producer, passes through the Winnipeg market than +anywhere else, not even excepting Chicago where the first grain +exchange to reach international development was established in 1848. +The Winnipeg market is fed by the vast wheat area of Western Canada and +frequently between two and three million bushels of wheat go through +Winnipeg in a single day. During the rush season sixty or seventy cars +of wheat leave Winnipeg for the East every twenty minutes of every +twenty-four hours. The freight boats on the lakes load 460,000 bushels +in three-and-a-half hours.[1] + +It is interesting to note that nowhere else in the world is a great +public grain market like the Winnipeg market found located four hundred +miles away from the storage point where grain dealt in is kept for sale +delivery. Geographically Fort William and Port Arthur at the head of +the great lakes water route would provide the natural delivery point +for Western grain which has been routed eastward[2] and there the +location of the exchange might be looked for logically. It so happens, +however, that the eastern edge of the vast grain fields lies four +hundred miles west of the twin harbors, the country between not being +adapted for farming, and to avoid the delay of mail transit and to +operate the trading effectively it was necessary to locate the exchange +at Winnipeg, the great metropolitan railway centre where the incoming +grain concentrated. + +In Western Canada the grain is stored in bulk by grades, thereby +cheapening handling cost. Unlike most countries--which sell grain on +sample--Western Canadian grain has been sold by grade. The inspection +and grading of wheat, therefore, is a very important factor in the +grain trade of Canada and is in full charge of Dominion Government +officials. Upon their verdict depends the price per bushel which will +be paid for any shipment of grain, market quotations varying for +different grades; whether stored, sold at home or sold abroad their +certificate of grade brands that particular wheat throughout. The huge +river of grain flows in upon them unceasingly; at times the inspectors +have to work at top speed to avoid being engulfed. The variety of +Nature's response to the growing conditions in changing seasons must +not confuse them from year to year; but with sharpened senses and sound +judgment they must steer a sure course through the multiplicity of +grades and grade subdivisions. + +The thoroughness of the system adopted by the Grain Inspection +Department is shown by description of the work done at Winnipeg. +Offices and staffs in charge of deputy inspectors are maintained in the +different railway yards. They work in shifts night and day; for during +the mad seventy-or-so days in which the Western crop stampedes for the +lakefront there is no let-up to the in-rolling wheat-bins which come +swaying and grinding in over the rails like beads on a string--the +endless rosary of harvest thanksgiving. Wheat samples must be obtained +from each car and no train can be moved until a placard has been placed +at the end of it, reading: "Grain Inspectors have finished this train." +A fifty-car train can be sampled in about an hour and a half, which is +comfortable time for a change of engines and crews. + +The sampling gangs work with all the precision of gun crews--each man +with a particular thing to do. One goes down the train, opening car +doors and leaving an empty sample bag in each car. Running up a short +ladder, the sampler climbs over the top of the inner door, which +extends above the "load line"; the standard sampler which he uses is a +cylindrical brass rod, so constructed that when it is "stabbed" to the +bottom of the car the grain which fills it is a correct sample of wheat +at every depth. Seven such samples are procured from different +sections of the car, and the track foreman, standing on a ladder, +watches these poured onto a cloth with an eye to detecting evidence of +"plugging" with an inferior quality of grain; these seven samples +having been mixed thoroughly, a canvas bag is filled from the result +and the two-and-one-half pounds which it will hold become the official +sample. The rest of the mixture is dumped back and the car resealed. + +The foreman has filled out a sample ticket with car number, date, load +line, initials of sampler and any other notations necessary--such as +leakages, etc. His own name is stamped on the back of the ticket, +which goes into the sample sack. Copies of the way bills with full +information as to all cars, shipping points, consignees or advisees and +destinations are obtained from the railway yard office and these, +together with the samples, are sent twice a day to the Chief Grain +Inspector's office at the Grain Exchange. + +Here the samples are inspected and graded in a room with special +lighting facilities. The grading is done only in broad daylight. The +quality of the grain, its condition and the admixtures are determined +respectively by judgment of hand and eye, by elaborate mechanical +moisture tests and by a sieving and weighing process. The whole sample +is examined closely for color, plumpness, weight, etc., in order to fix +its grade as No. 1 Hard, No. 1 Northern, 2 Northern, 3 Northern; 1 Hard +and 1 Northern must weigh at least sixty pounds, 2 Northern fifty-eight +pounds, and so on. Grades below these are set by the Grain Standards +Board. Damp or wet grain is marked "No Grade," which means that it is +considered unfit for storing and therefore has a lower market value. +Grain which is heated or bin-burnt is "condemned." If it is unsound, +musty, dirty, smutty, sprouted or badly mixed with other grain, etc., +it is "rejected." Grain which, because of weather or other conditions, +cannot be included in the grades provided by statute is given a +"commercial grade." + +It will be seen at once that here is work requiring great nicety of +judgment and that long experience is necessary to enable the grader to +reach his decisions quickly and accurately. When the grading is +completed the sample is placed in a small tin box and filed +systematically; it is supposed to remain thus stored until there is no +longer the possibility of a demand for re-inspection and finally the +samples are sacked and sold to the miller with the highest bid, the +money being paid to the Dominion Government. + +Grade certificates, bearing the Chief Grain Inspector's signature, are +issued for each shipment and sent at once to the elevator company, +miller or commission agent to whom the car is consigned. These grade +certificates, together with the weight certificate and the bill of +lading, make the grain negotiable on the market; the dealer does not +see the actual grain, merely handling these papers. + +If dissatisfaction with grade or dockage arises, the owner of the grain +or his agent can obtain re-inspection at the office of the Chief Grain +Inspector free of charge, and, if still dissatisfied, appeal can be +made to the Survey Board. This is a board of twelve men; the governing +rules and regulations are established by the Grain Commission. Six +members are recommended by the Winnipeg Board of Trade and two each by +the Minister of Agriculture in each of the three prairie provinces.[3] +The verdict of the Survey Board is final. + +Now, back in 1905 the machinery for moving the crop upon its way was +little understood by the average Western Canadian farmer. The wheels +went around, gave a click and away went his wheat; but in approaching +it all with the idea of understanding everything he was in the position +of the small boy examining the works of a watch to see how it told the +time. He felt that he ought to understand what went on down at +Winnipeg; for of course where there were so many rules and regulations +to be broken there must be "funny work." It was the natural suspicion +of the man who lived much to himself in the quiet spaces, who could not +believe that grain dealers could be honest and build palatial +residences in Winnipeg while his own toil in producing the grain was +rewarded with a living only. It looked as if the roost was being +robbed and with his newborn initiative he wanted to find out how it was +done and who was doing it. + +The satisfactory manner in which things are conducted in the grain +trade to-day is the result of long experience and gradual improvement +of conditions. It must be remembered that in the earlier days the +trade was not so well organized for efficiency and in 1905 when E. A. +Partridge began to probe for "plugging" he had a big job on his hands, +especially in view of the fact that he was treated for the most part as +a meddler who was not entitled to reliable information. + +There are two ways of reaching a conclusion--one by approaching it +logically on facts laid down; the other by jumping to it across a +yawning lack of detail. At the end of his month of investigation the +farmer's scout had a regular rag-bag of material out of which to +fashion a patchwork report. A grain man might have condemned it as a +"crazy quilt" because bits of high color obtruded inharmoniously. But +if here and there an end was short or a bit of information on the bias, +it was because the "Farmers' Representative" had not been treated with +sufficient frankness. He had to make the best of the materials allowed +him and his natural tendency to bright-colored metaphor may have been +quickened. He hit out straight from the shoulder in all sincerity at +conditions as they appeared to him. + +He thought he saw five companies controlling the exporting business, +and also their margin of profit, so that they were able to keep out +smaller dealers who might have the temerity and the necessary capital +to try exporting on their own account. He saw the smaller dealers in +turn stem-winding their prices by those of the exporters, controlling +the prices paid for street and track wheat throughout the country; +thereby, he reasoned, it became possible to set special prices at any +given point by the simple expedient of wiring the necessary +instructions to the operator at that point to pinch independent +competition. He saw elevator companies cutting their charges at +certain points to kill off competition from "farmers' elevators" which +sold to independent dealers. All this he was sure he saw. + +The sampling appeared to be carried on in a systematic and satisfactory +manner. The grading, too, appeared to be uniform enough as regarded +the standard grades; but in the item of color there seemed just cause +for complaint. Lack of color, a trifling number of imperfectly formed +kernels or the suspicion of a wrinkle on the bran apparently doomed a +sample to low grade no matter how heavy and flinty the wheat might be. + +This seemed scarcely fair to Partridge, who bore in mind that the sunny +seasons of past years had been succeeded by cloudier ones, the dry +autumns by wet ones and that with stacking discontinued and much of the +farmers' wheat left long in stock, bleaching was bound to follow. So +that if the Chief Grain Inspector were a "crank on color," he should +remember that beauty was only skin deep. + +The fracture and microscopic and weighing tests seemed to be the only +reasonable tests which could be applied quickly; the milling test was +the only one which was absolutely correct. Any rapid eye test which +pretended to determine whether there was sixty-one per cent. or +fifty-nine per cent. of Red Fife wheat in a given sample struck the +Farmers' Representative as farcical; yet this was sufficient to make +the difference of a grade and sometimes a difference of seven cents per +bushel in the price obtained. + +The whim of the Inspector likewise decided how many lean berries in a +plump sample would disqualify it for "plump" classification and how +many mature or defective berries among sound wheat, would disqualify it +from being classed as "sound." With a single concocted sample as a +basis of judgment Partridge considered that the grading of the lower +grades often was very unjust to the producer, especially to the owners +of plump frosted wheat; the process of concocting the basic sample was +very interesting; but the result was "a nightmare." + +W. H. Gaddes, who had preceded him to Winnipeg, agreed with him in +this. Also, Mr. Gaddes denounced the Survey Board at that time as +unsatisfactory in its composition, open to suspicion in its findings +and in practice--so far as outsiders' wheat was concerned--simply a +machine to register confirmation of the Inspector's previous grading. + +It was Partridge's belief that "many a fraud perpetrated in a line +elevator" was added to the "iniquities" of the Inspector, in whose +personal integrity he had every confidence. For this reason he was +inclined to be lenient with the hard-working and conscientious +officials of the Government. Nevertheless, it appeared wise that a +farmers' special agent be maintained permanently at Winnipeg to +safeguard the interests of the farmers, especially if certain powers +were allotted to him under the Inspection Act. + +In making his report to the Territorial Grain Growers' Association +Partridge went into the whole situation as he saw it and particularly +was he outspoken in regard to "that House with the Closed Shutters," as +he called the Winnipeg Grain and Produce Exchange. In fact, his gas +attack upon the Exchange was ablaze with the fires of hostility. + +And for the use of his reckless language Partridge was to be called to +account in due course. + + + +[1] Although only about ten per cent. of the arable area in Western +Canada is under cultivation there are already 3,500 country elevators. +Terminal elevators at the head of the lakes with a storage capacity of +forty-four million bushels and interior Government terminals with ten +and one-half million bushels capacity are overflowing already. Wheat +exports of Canada have increased from 2,284,702 bushels in 1867 to +157,745,469 bushels in 1916. Per capita Canada has more railway +mileage than any country in the world. + +[2] In early days nearly all grain was routed eastward via Winnipeg; +but with the development of the grain trade and the opening of the +Panama Canal some Western Canadian grain travels west and south. +Facilities for inspection and grading have been established at Calgary, +Superior, Duluth, Saskatoon, Moose Jaw, Medicine Hat and Vancouver. + +[3] In 1905 three members of the Survey Board were recommended by the +Winnipeg Board of Trade and three each by the respective Departments of +Agriculture in the three Prairie Provinces. + + + + +CHAPTER VI + +ON A CARD IN THE WINDOW OF WILSON'S OLD STORE + + . . . Is it vain to hope + The sons of such a land will climb and grope + Along the undiscovered ways of life, + And neither seek nor be found shunning strife, + But ever, beckoned by a high ideal, + Press onward, upward, till they make it real; + With feet sure planted on their native sod, + And will and aspirations linked with God? + --Robert J. C. Stead. + + +Ideas grow. The particular idea which now began to occupy the thoughts +of E. A. Partridge to the exclusion of everything else was a big idea +to begin with; but it kept on growing so rapidly that it soon became an +obsession. + +Why couldn't the farmers themselves form a company to undertake the +marketing of their own wheat? That was the idea. If a thousand +farmers got together in control of ten million bushels of wheat and +sold through a single accredited agency, they would be in the same +position exactly as a single person who owned ten million bushels. If +the owner of ten thousand bushels was able to make a better bargain +than the owner of one thousand, what about the owner of ten million +bushels? + +"Would the owner of ten million bushels peddle his wheat by the +wagonload at the local shipping point or by the carload in Winnipeg?" +mused Partridge. "Would he pay one hundred thousand dollars to a +commission man to sell his wheat, with perhaps a nice rake-off to an +exporter, who turns it over at a profit by selling it to a British +dealer, who blends it and makes a good living by selling the blend to a +British miller?" + +His pencil travelled swiftly on the back of an envelope. + +"Would he pay one hundred and seventy-five thousand dollars to the line +elevator and stand a dockage of one hundred thousand bushels in +addition? Would he pay the terminal elevator seventy-five thousand +dollars' worth of screenings? Would he pay two and one-half million +dollars for transportation when 'by a little method known to large +exporters' he could save one and a quarter million dollars out of this +item? + +"You just bet he wouldn't!" concluded this man Partridge. "And +supposing we had ten thousand farmers in one company and each farmer +produced, on an average, five thousand bushels of wheat--that would put +the company in control of the sale of _fifty_ million bushels, not ten! +Why, there's the answer to the whole blame thing--so simple we've been +stepping right over it!" + +Pools, mergers, combines, trusts and monopolies were but various forms +of the same co-operative principle acting within narrow limits to the +benefit of the co-operatives and the prejudices of the outsiders. The +remedy lay not in legislative penalties against co-operation but in the +practice of co-operation on a large scale by the people. That would +provide the most powerful weapon of defence against financial +buccaneering. Universally employed, it would bring about an industrial +millennium! + +But this was dreaming, of course. None knew better than E. A. +Partridge that if even a small part of it was to come true, there lay +immediately ahead a great educational campaign. Ignorance and +suspicion would require to be routed. It would be difficult to +convince some farmers that his motives were unselfish. Others would be +opposed to the idea of a farmers' trading company in the belief that it +would wreck the Association. "We must keep our organization +non-partizan, non-political and non-trading" had been the slogan from +the first. + +Nothing daunted by the difficulties which loomed in the foreground, +Partridge obtained permission from his Territorial associates to tell +the central Manitoba Grain Growers' Association the result of his +investigations at Winnipeg. The Manitoba convention was about to be +held at Brandon and on his way back home he remained over to address +the delegates. They listened carefully to what he had to say; but when +he began to urge the necessity of the farmers themselves going into +trading in grain his fire and enthusiasm caused more excitement where +he was standing on the platform than in the audience. The best he +could do by his earnestness was to create sufficient interest for a +committee[1] to be appointed with instructions to investigate the +possibilities of the scheme and report at the next annual convention of +the Manitoba Grain Growers' Association. + +On arrival at Sintaluta, however, he succeeded in stirring up his +neighbors to the proper pitch of enthusiasm. They knew him at +Sintaluta, listened to him seriously, and the leaders of the little +community shook hands on the idea of organizing, in the form of a joint +stock company, "a scheme for the co-operative marketing of grain by +farmers." + +When he made his report of the Winnipeg investigations at the annual +convention of the Territorial Grain Growers' Association at Moose Jaw +he found that while the principle which he advocated was favorably +received--just as it had been in Manitoba--many farmers drew back +distrustfully from the idea of "going into business." Their experience +with business in the past had not been of a nature to instill +confidence in such a venture and if the enterprise failed, they feared +it would discredit the Association. There was a strong prejudice +against any Association director or officer being closely identified +with such a propaganda. + +Back to Sintaluta went E. A. Partridge. A public meeting was called to +discuss the situation. It was to be held in the Town Hall on January +27th (1906) and in preparation for it a preliminary meeting was held in +the sitting-room of the hotel and a committee[2] appointed to prepare a +synopsis of what was to be done. + +This synopsis was presented to the thirty farmers who gathered in the +Town Hall and a lengthy resolution was passed unanimously, setting +forth the aims and objects of the prospective trading company. +Everybody present undertook to subscribe for shares. + +Justification for what they were attempting was found in "the +widespread discontent existing among the grain growers of the West with +conditions governing the marketing of their grain." It was pointed out +also that the isolation of farmers from each other, their distance from +the secondary and ultimate markets and their ignorance of the details +of the grain business--that these things rendered them individually +liable to suffer grave injustices, even without their knowledge and +certainly without hope of remedy by individual efforts. The scientific +selling of wheat was just as important to the farmer as the scientific +growing of it and this scientific knowledge could be obtained only by +actually engaging in the business at some important commercial centre +where the methods of successful operators could be studied. + +There was every reason to believe that a scheme which limited its +activities at first to acquiring a seat on the Grain Exchange and doing +a straight commission business, or at most a commission and +track-buying business--that such a co-operative scheme stood an +excellent chance of success. Without much financial risk, it should +prove immediately profitable, afford protection from crooked practices +and at the same time the shareholders could gain an insight into the +whole grain business and thereby equip themselves for greater +enterprises; it would not be long before they would be in a position to +deal intelligently with their problems and pertaining legislation. +Besides all this there was the possible piling up of a surplus revenue, +over and above dividends, which could be turned to good account in +uncovering conditions in Eastern Canadian and European markets and +learning the best ways to meet those conditions. + +For these reasons the grain growers of Sintaluta, Saskatchewan, went on +record at this meeting in the little Town Hall as heartily recommending +the formation of a joint stock company which was to be composed wholly +of farmers and to be known as "The Grain Growers' Grain Company, +Limited," with shares at twenty-five dollars each. It was stipulated +that no one person could hold more than four shares, that even these +were not to be transferable except by vote at annual meeting, and that +no man could have more than one vote at annual meetings. With this +single far-sighted stroke the possibility of control passing into the +hands of any clique was removed. + +In furtherance of the plans set forth a committee[3] was named to take +charge of the preliminary organization work until relieved by the +election of a provisional directorate at an organization meeting which +it was hoped to hold at Brandon the following March. This committee +was authorized to conduct a campaign for subscriptions in the meantime, +printed receipts to be issued for the same. + +Such was the scheme to which the farmers of Sintaluta subscribed to a +man. Two hundred shares at Sintaluta to begin with and Sintaluta only +one point in the West! The Committee went to work with enthusiasm. +Ten dollars was spent in printing a prospectus. E. A. Partridge got a +card and blocked out on it: GRAIN GROWERS' GRAIN COMPANY. This he hung +in the window of Wilson's old store at Sintaluta, where a dollar was +paid for the use of a desk. Here in the evenings would assemble +William Hall, Al Quigley, William Bonner and E. A. Partridge to send +out circulars and keep the pot boiling till enough funds were on hand +to let Quigley out canvassing on board wages. + +On February 28th the Manitoba Grain Growers' Association held their +1906 convention and as chairman of the committee appointed the year +before to report upon the matter, E. A. Partridge again urged the +advisability of establishing a company to handle the farmers' grain. +By this time the plan had taken more definite shape and he pressed the +claims of the proposed commission company with such logic and eloquence +that besides having the committee's report adopted by the Association +unanimously, he secured the interest of quite a few delegates. There +was, nevertheless, much adverse criticism, not a little apathy and some +levity. + +"Let's hold a meeting of our own," suggested someone. The word was +passed for all who were interested to meet in the council chamber of +the Brandon Town Hall. Between twenty and thirty farmers attended this +meeting and the plans of the Sintaluta men for a co-operative trading +company were approved. It was decided to meet at the Leland Hotel in +Winnipeg some time in March or April to formulate plans for an active +campaign. + +For two days those in attendance at this second meeting discussed the +details of the undertaking. A great many different views were +expressed, not all of them favorable. There were those who objected to +the chosen name of the prospective company as being a handicap upon the +Association movement in case the venture failed. The Sintaluta +provisional directorate was allowed to stand and the canvassing +committee was enlarged to include a number of Manitoba men who were to +take the field for a stock canvass. + +That stock-selling campaign will dodder through to the Final Memory of +those who took part in it. The man who stood on the street-corner and +offered ten-dollar gold-pieces for a dollar had no harder task. Blood +from stones! Milk from dry cows! Although ten per cent. on each share +was all the cash that was asked apparently some farmers were so hard up +that if yarn were selling at five cents per mile, they couldn't buy +enough of it to make a pair of mitts for a doodlebug! + +"If you take four shares," admitted Al Quigley at his meetings, "I +can't guarantee that you're not losing four times $2.50, which is ten +dollars. But you lose that much when you draw a load of wheat up to +the elevator anyway," he argued. "You might just as well let another +ten go to see what's become of the first ten!" + +"Huh!" grunted a skeptical farmer after one of E. A. Partridge's +meetings. "This here thing's just a scheme for Partridge to feather +his nest! You bet he didn't get any o' my money," he bragged. "Did he +get you, Pete?" + +"He did, Ben, an' I'll tell you why. This thing'll probably go bust; +but I put a hundred into it. Supposin' I put a hundred in a horse an' +he dies on me. Same thing, ain't it? I got to have horses to do +farmin' an' I just go an' buy another one. I figure it's worth takin' +a hundred-dollar chance on this thing to try her out." + +Up in the northern part of Manitoba was one man who was meeting with +pretty fair success. His name was Kennedy and his friends who knew him +best called him "Honest John." His plan was simple--to start talking, +talk for awhile, then keep right on talking. + +"For God's sake, Kennedy, if $2.50 will stop you talking, here it is! +We're sleepy!" + +Then he would stop talking. + +One by one the original canvassers dropped out of the field till almost +the only one left besides E. A. Partridge was this hard-talking +enthusiast up in the Swan River country who wound himself up for the +night and tired them out--but got the money! + + + +[1] See Appendix--Par. 4. + +[2] See Appendix--Par. 5. + +[3] See Appendix--Par. 6. + + + + +CHAPTER VII + +A FIGHT FOR LIFE! + + My dear little Demus! you'll find it is true, + He behaves like a wretch and a villain to you . . . + --Aristophanes. + + +It was characteristic of John Kennedy to keep everlastingly at it. He +was used to hard things to do. In this life some men seem to get +rather more than their share of tacks in the boots and crumbs in bed! +But every time Fate knocked him down he just picked himself up again. +Always he got up and went at it once more--patiently, conscientiously, +smiling. Even Fate cannot beat a man like that and John Kennedy was a +hard fighter in a quiet way who did not know how to quit. + +With four younger brothers and an equal number of younger sisters to +crowd up to the home table down there on the farm near Beaverton, +Ontario County, Ontario, it was advisable for the eldest son to work +out as a farm boy. He was thirteen years old when he first hired out +to a farmer for the summer and he was to receive twenty-four dollars +for the season. But the farmer had a hard time that year and at the +end of the summer-- + +"John," said the poor fellow with ill-concealed embarrassment, "I--I'm +afraid I can't pay you that money. But you know that big flock of +sheep down in the back pasture? Well, tell you what we'll do. Over at +Beaverton I've got an uncle who's a tailor. I can give you a suit of +full cloth of homespun and call it square," and though the boy wanted +the money for fifty things he had to take the homespun suit. + +Three or four hobble-de-hoy years of it on the farms of the +neighborhood and young Kennedy literally took to the woods and drove +the rivers in Muskoka and Michigan as a lumberjack till he was a chunk +of whalebone in a red flannel shirt and corked boots and could pull the +whiskers out of a wild-cat! With varying success he fought the battle +of life and learned that many things glitter besides gold and that the +four-leafed clover in this life after all is a square deal between men. + +The appeal of E. A. Partridge at the convention of the Manitoba Grain +Growers in 1906 therefore found John Kennedy feeling responsive. He +knew the unjust position in which the farmers were placed; for he was a +farmer himself--up in the Swan River Valley--and he was a delegate from +the Swan River Grain Growers' Association. The idea of forming a +farmers' commission company for handling the farmers' grain sounded +like a very satisfactory solution of a very unsatisfactory state of +affairs and he threw himself whole-heartedly into the campaign to sell +enough stock to obtain a charter. + +Up in the newer part of the country, which was his own particular +territory, he found the farmers ready enough to listen; for they had +suffered up there from the evils at which the new movement was aiming. +He found also that the most interested members of his audiences were +men who could least afford to lose any money. + +An effort was made to discredit the whole proposition as a political +move of the Conservative Party. Throughout the Swan River district, +the Dauphin district and all the way down to Neepawa the rumor spread +ahead of the meetings; so that the speakers were asked many pertinent +and impertinent questions, J. W. Robson, a Swan River farmer who was at +that time a Conservative Member of the Manitoba Legislature, was giving +his services free as a speaker on behalf of the proposed company; John +Kennedy was known to be a political supporter of J. W. Robson. One and +one make two; two and two sometimes make a fairly large-sized political +rumor. But Mr. Robson was a ready and convincing speaker who was known +to be a farmer first and last and Mr. Kennedy attributes the practical +results obtained as due largely to Mr. Robson's logic and sincerity. + +Along in June Kennedy received a telegram from Winnipeg that startled +him. It contained the first intimation that difficulties were arising +at Ottawa to prevent the proposed farmers' company from getting their +charter. Taking the first train, he found on his arrival at Winnipeg +that Francis Graham and W. A. Robinson, the two committeemen who met +him, had not yet notified E. A. Partridge. A wire was despatched at +once to Sintaluta and the Chairman joined them by first train. For two +days the Board wrestled with this unexpected difficulty which +threatened to annihilate the company before it got started. + +The application of the Organization Committee for a charter was refused +on the ground that the shares of a company with a capital of $250,000 +could not be less than $100 each. Their solicitor tried in vain to +induce the Department to change its views, all canvassing to sell stock +being discontinued by the Committee in the meantime. + +"Well, let 'em keep their charter if they want to," said Kennedy +finally. "This discussion's not getting us anywhere and if we can't +get a Dominion charter, why we can't get it." + +"Guess you're right, John. We might as well quit and go on home." + +"Who said anything about quitting?" Kennedy brought down his big fist +on the table with a thump. "We'll get a Manitoba charter. That's what +I mean." + +The others shook their heads. A Provincial charter would be useless +for what they were proposing to do, they contended. Kennedy disagreed +so emphatically that he refused to stop arguing about it till at last +he and John Spencer were delegated to see the Manitoba authorities. In +the course of a few days the arrangements for a Provincial charter were +complete, and the Committee turned its attention to selling enough +stock to be ready for business by the middle of the following month. + +By this time the harvest season was so near at hand that prompt action +was necessary if they were to do any business that fall. Under the +Manitoba charter the company could open for business with a provisional +directorate and as five members of the original committee were in +Winnipeg and available for quick action, it was decided to go ahead as +it would be impossible to hold a representative general meeting of the +shareholders before harvest and it was advisable in the interests of +the subscribers to take advantage of the opportunity to do business in +the meantime. + +Provisional organization therefore was undertaken during the week of +the Winnipeg Industrial Exhibition, in a tent on the Fair grounds, and +July 26th was set as the date. When space was sought for the erection +of their sixteen-foot tent, however, they found themselves classed with +the "Sunflower Belles" and "Katzenjammer Castle" and it was only after +the payment of fifty dollars that permission was granted for the +erection of the tent. Here to the accompaniment of a raucous medley of +sounds--the beating of tom-toms, the ballyhooing of the sideshows, the +racket of the machinery exhibits and the cries of the peanut and +lemonade vendors--the farmers' trading company was organized with +provisional officers[1] and directorate in legal shape to start the +wheels in motion as a joint stock company. + +But before actual business could begin a manager must be located who +knew all the ins and outs and ups and downs of the grain business; also +a seat upon the Winnipeg Grain Exchange must be purchased before the +farmers could enter the arena as dealers in grain. None of the +officers of the young company which was about to try its wings +overlooked the fact that nothing could be more foolhardy than for +farmers like themselves, direct from the green pastures, to attempt the +plunge they were about to take without proper guidance as to the depth +of the water and the set of the currents. They knew they were +embarking in a most intricate and difficult business and with so much +at stake on behalf of the whole farming population of Western Canada it +was necessary to place the helm in the hands of somebody who could +pilot them through the shoals. At best it promised to be a stormy +passage. + +About the only man in sight for the position was Thomas Coulter, of the +Independent Grain Company. He had treated E. A. Partridge with more +consideration as the "Farmers' Representative" than most of the other +grain men and there was a possibility that he might be persuaded to +take the offer seriously. But on approaching him, Mr. Coulter did not +become excited over the prospect of managing a farmers' company in the +grain business; even he was not inclined to take too seriously the +effort of the farmers to do their own trading. How long would the +farmers stand behind the company in the face of the competition that +would be brought to bear? That was the question that bulged right out +in front; for, as everybody knew, farmers never had been able to hang +together very long when it came down to a matter of dollars and cents +in their individual pockets. Finally, however, he agreed that there +might be a fighting chance and accepted the management. + +So far so good. But what about the seat on the Grain Exchange? The +price of it was $2,500. One thousand shares of the company's stock had +been disposed of with ten per cent. paid up and from the $2,500 thus +realized the expenses of organization had to be met, the charter paid +for, the legal fee and expenses at Ottawa in connection with the effort +to secure a Dominion charter, office rent, printing bills and what not. + +"Which leaves us about $1,000 to buy a $2,500 seat and finance our +first business operations," said John Spencer with the look of a +worried Secretary-Treasurer. + +"We'll have to issue a twenty per cent. call on subscribed stock," +admitted the President reluctantly. "In the meantime I'll have to see +if some of the boys out at Sintaluta will go security for the fifteen +hundred. Thank heaven, these fellows down here think we're a hilarious +joke! The only chance we've got to get through the fence with this +thing is for them to keep right on laughing at us till we get our toes +in the sand!" + +He wrote to Sintaluta, explaining the situation, and five of E. A. +Partridge's friends[2] at once responded by going to the bank with +their personal notes for the amount needed. + +"With support like that we're going to win, boys," cried the President +proudly when the bank notified them that the money was available. + +Financial arrangements were established with the Bank of British North +America and when a room had been rented on the top floor of the old +Tribune building and circulars sent broadcast among the farmers, +soliciting grain, the wheels began to turn. + +The little office was opened for business on September 5th (1906). It +was so small that even two or three people got in each other's way, +though all they were doing was to watch the mails anxiously for the +first indications as to whether the farmers would stand behind the big +idea that was now put to the test. Then came the bill of lading for +the first carload of grain consigned to the new company, followed +quickly by the second, the third, fourth, fifth, sixth--two at a time, +three, ten, fifteen per day! Every foot of space in the little office +was a busy spot and the lone typewriter clickety-clacked on the +second-hand table with cheerful disregard of lunch hours. By the end +of the month the weekly receipts had risen to one hundred cars of grain. + +It became necessary to move to a larger office and accommodation was +obtained in the Henderson Block. At the present rate, a whole floor +would be needed soon. + +Over at the Grain Exchange some men were talking seriously. They were +talking about E. A. Partridge and they were not laughing. The +Secretary of the Exchange was instructed to write a letter. + +Partridge hit the desk so hard that the paper-knife with which he had +sliced open that letter hopped to the floor. + +"They're after us already!" he exploded. + +It looked that way. The Company's seat on the Grain Exchange was held +in the name of the President and the letter summoned him to appear +before the Council of the Exchange to answer to a charge of having +sinned against the honor and "diginity" of that institution and of +violating its rules. A short time before the young company had issued +a circular setting forth their intention of dividing co-operatively +whatever profits were earned; in other words, the man sending the +larger amount of grain would receive the larger profits. This, the +Exchange claimed, was a violation of the strict rules of the Grain +Exchange and would have to be abandoned. + +"You are virtually splitting the commission with the shipper," claimed +the Exchange, "and we can't allow that for a minute." + +"It's up to you to prove I'm guilty, not up to me to come here and +commit myself," argued Partridge. "If you can find any profits that +have been distributed co-operatively by the Grain Growers' Grain +Company, go ahead. Nor have I sinned against your 'diginity'!" he +added, sarcastically taking advantage of the stenographer's error in +spelling. "For that matter, you've been digging into me ever since I +came on here!" + +"You can't do any more business with our members till you change your +ways," declared the Exchange and forthwith, on October 25th, notice was +posted to all Exchange members that any of them found dealing with the +farmers' company would be penalized themselves. + +Expelled from trading privileges! Practically boycotted! It was a +straight punch on the nose that threatened to put the young +organization out of business for the final count. Membership in the +Exchange was absolutely imperative if the farmers were to be in a +position to sell grain to exporters; they were not strong enough yet to +export direct to Old Country markets and all the exporters through whom +they were compelled to deal were members of the Exchange. + +"The whole thing's just a pretext!" cried Partridge vehemently. "We +haven't got any by-law regarding distribution of profits +co-operatively; the only thing they've got to go on is that circular. +They're beginning to get scared of us and they see a chance to put us +out of business." + +If this were the object, it looked as if it might be achieved in short +order. The grain was pouring in steadily by the carload and with no +buyer daring to deal with them in face of the mandate from the +Exchange, of which they were all members, the new company was in a +quandary to dispose of the incoming grain on a falling market. The +only thing they could do was to wait until they had sufficient of any +grade to make a shipment of from 8,000 to 10,000 bushels of that grade +and try to place it somewhere in the East. The Manager was sent east +hurriedly to see what connections he could establish while his office +assistant mailed letter after letter to eastern points in an endeavor +to work several contracts. + +The farmers who shipped their grain to the new company were expecting +to receive seventy-five per cent. of an advance from the bank on their +bills of lading and a prompt remittance of the balance when the +Inspection Certificate and Outturn were in the hands of the Company. +With the grain piling up on their company day by day, it was not long +before the overdraft at the bank began to assume alarming proportions. + +Luckily the Assistant Manager succeeded in making several sales in the +East, which eased away from the crisis which was shaping. It was quite +patent that it would have been suicide for the young trading +organization to notify the farmers to stop sending in business. They +dare not do that. + +In desperation the President and Vice-President went to the Manitoba +Government and laid their case in full before the cabinet. Premier R. +P. Roblin (now Sir Rodmond Roblin) was very much surprised to learn the +facts. + +"The Government certainly cannot countenance any such action on the +part of the grain dealers," he declared emphatically. "We cannot allow +them to boycott a company composed of farmers who have as much right to +sell grain as any other body of men." + +Accordingly the Government set a time limit within which the Exchange +had the option of removing the ban against the farmers' company or of +losing their Provincial charter. In the meantime, however, this did +not obtain restoration of trading privileges, without which the +farmers' company could not do business with Exchange members except by +paying them the full commission of one cent per bushel. + +The situation, therefore, was approaching a crisis rapidly. The +company was fortunate in having the friendship of their local bank +manager; but even he could not go on forever making advances on +consigned grain and there was some suspicion that letters were reaching +the head office of the bank in Montreal, advising that the quicker this +particular account was closed out the better off the bank would be. + +Then one morning the local manager called on the Executive and his face +was grave. + +"This is not the first time I've heard from the Head Office about this +account, as you know," he began at once, "but I'm afraid it's the last +call, gentlemen." He handed a letter to the President. "As you see, I +am instructed to close out your account at once unless further security +is forthcoming. I'm sorry; for I believe you've merely run into hard +luck in getting squared away. But--I'm not the bank, you understand." + +"What do you want us to do? What can we do?" asked Partridge +anxiously. "This thing will straighten out, Mr. Machaffie. We're +getting the business. You know that. We're going to get back our +trading privileges and everything will be alright." + +The banker shook his head slowly. + +"I'm sorry, gentlemen. But do you know what your overdraft amounts to +now?" + +"Three hundred and fifty-six thousand dollars," murmured the +Secretary-Treasurer. + +"Exactly." + +"What are we to do?" + +"Before coming here I've been to see the Scottish Co-Operative +Wholesale Society about taking some of your wheat. Fisher is ready to +help you out if he finds he's not overstepping the rules of the +Exchange. I may be able to carry you along for a short time if you +three gentlemen, the Executive of your company, will give the bank your +personal bond without limit as to the amount. I have even gone so far +as to draw up the document for signature, if it meets with your +approval." + +"What about that, Kennedy? Spencer?" + +"Guess we've got to do it," nodded Kennedy. + +"Looks like it," agreed Spencer. + +"Then--down she goes!" decided Partridge, dipping his pen in the ink. +The others signed after him. + +"That means we three go down with the ship," he remarked quietly after +the door had closed upon the bank manager. "I appreciate you two +fellows signing that thing." He got up and shook hands with each of +them in turn. "If bad gets worse and we go to smash----" + +"It can't get worse and we're not going to smash," reassured the others. + +But that remained to be seen. Although placing grain in the East was +robbing them of profits, it was the best that could be done to tide +things over. The three active officials were on the anxious seat from +morning till night. It had got down now to a question of meeting each +day's events as they came and frequently the lights blazed in the +little office till two and three in the morning while the provisional +officers raked the situation from every angle in an endeavor to +forecast the next day's difficulties and to prepare for them. + +For three months the overdraft at the bank had averaged $275,000, due +almost entirely to the conditions resulting from the action of the +Exchange. It was useless to worry over the amount of interest which +this accommodation was costing and the profits which might have been +rolled up had things been different; the real worry was to keep going +at any cost. For, as the bank manager had intimated, the whole thing +was just hard luck rather than any unsoundness in the business. It was +a fine paradox that the more pronounced the success of the idea itself +became, the greater grew the danger of complete failure because of the +predicament! Death by wheat! An ironical fate indeed for a grain +company! + +Upon investigation, the farmers' company discovered that their original +idea of distributing their profits co-operatively--as embodied in the +circular to which the Exchange had objected--was contrary to the +provisions of the Manitoba Joint Stock Companies' Act under which they +held their charter. Therefore the co-operative idea in connection with +profits was formally dropped by the Grain Growers' Grain Company. This +had been done at a directors' meeting on December 22nd (1906), when a +resolution had been passed, cancelling the proposal contained in the +objectionable circular.[3] But although the Exchange had been notified +immediately and repeated applications for reinstatement had been made, +the farmers' company was still struggling along in the throes of their +dilemma--proof positive, concluded the farmers, that the Grain Exchange +had used the co-operative suggestion as a mere pretext to oust the +Company from the field altogether. + +In piled the wheat, car after car of it! A considerable portion of it +had been bought on track and farmers who had consigned their grain were +anxious, naturally, to have it disposed of without delay. With prices +going down and navigation on the point of closing, the best hopes of +the management became centred in getting a big shipment away to Buffalo +by boat. That would enable them to escape a big item in storage +charges and to place the grain in line for export at rates considerably +below the all-rail figures. + +"With those bills of lading in the bank, we've no control of them and +the bank can do just about as it likes," reviewed the President one +night. "If they should come down on us to sell our wheat inside of +forty-eight hours--we're goners, boys! All that those fellows over at +the Exchange have got to do is to shove down the market thirty points +and our name is _mud_! The loss to the farmers who've shipped us their +grain will kill this movement and every one like it in the West for all +time to come. This company will be as dead as a doornail and so will +we financially as its bonded backers." + +Kennedy was running a finger tentatively down the window-pane. It left +a streak in the forming frost. + +"What I want to know is, how long ought it to take to load up this +whole boatload we're trying to move?" + +"Oh, about seventeen hours or so." + +"And how long have they been at it already? Five days, ain't it? And +she's not away yet! What d'you suppose that means?" he snapped. He +began to throw things into a grip. He made for the door. + +"Where'n the mischief are you going, John?" + +"Fort William--can just make the train if I hustle. The _J. P. Walsh_ +gets out of that harbor with that wheat of ours, by Hickory!--if she +has to be chopped out with an axe!" + +Two days later a telegram reached the little office: + +_S.S. J. P. Walsh_ cleared to-day for Buffalo. Three hundred and ten +thousand bushels. Last boat out. KENNEDY. + + + +[1] See Appendix--Par. 7. + +[2] See Appendix--Par. 8. + +[3] This resolution was confirmed at a meeting of the shareholders, +February 5th, 1907. + + + + +CHAPTER VIII + +A KNOCK ON THE DOOR + +Every man is worth just as much as the things are worth about which he +is concerned.--_Marcus Aurelius_. + + +That big shipment to Buffalo, along with several others which were +placed in the East with the market recovering, relieved the situation +greatly. Also, the Scottish Co-Operative Wholesale Society's Winnipeg +office decided to stand by the farmers' co-operative marketing venture +and risked disapproval to buy some of the young company's wheat; not +only that, but the farmers' company was allowed the regular commission +of one cent per bushel on the purchase and the cheque paid in to the +bank amounted to $58,298. This friendly co-operation the farmers were +not quick to forget and they still speak of it with gratitude. + +It began to look as if the struggling farmers' agency might worry +through the winter after all. The strain of the past few months had +told upon the men at the head of the young organization and especially +upon the provisional President, who felt keenly the responsibilities of +his office. Of a sensitive, high-strung temperament, E. A. Partridge +suffered reaction to such a degree that at times he became almost +despondent. + +He began to talk of resigning. He felt that he had done quite a lot in +getting things under way and that the hard fight which the farmers +would have to wage before the trading company was established +permanently would be carried on more successfully by a younger man. So +frequently had his motives been questioned by suspicious farmers at +organization meetings that he thought it would be better for the +company if he occupied a less prominent place in the conduct of its +affairs. The idea seemed to be prevalent that the organizers were +enthusiastic for direct financial reasons. "Those fellows are talking +for what they are going to get out of it," was an open accusation at +times--a misconception so unjust that on several occasions Partridge +had refuted it by pledging to resign from the presidency as soon as the +company was on its feet. + +"You men keep saying how much I've got out of this," he reproved in +disheartened tones. "Gentlemen, I'll admit that I've got a little +silver out of this. But it isn't in my pocket; it's in my hair!" + +Partridge had no respect for a "quitter," however. He did not propose +to take it easy until the farmers' agency did get into proper running +order. Although his associates tried to dissuade him altogether from +the course he had planned, the best he would promise was to remain at +his post until the first annual meeting. + +Immediately preceding the annual convention of the Manitoba Grain +Growers' Association at Brandon in February a general meeting of Grain +Growers' Grain Company shareholders was held with about two hundred +represented. Until now the company had been operating under a +provisional directorate only and it was the purpose of the meeting to +complete organization. Since opening for business the shareholders had +practically doubled in number and over 1,500,000 bushels of farmers' +grain had been handled by their own agency, its ability to dispose of +wheat at good figures being demonstrated in spite of deprivation of +trading privileges on the Exchange. Putting a conservative estimate +upon the holdings of the farmers' venture into co-operative marketing, +its paid-up capital remained intact, its organization expenses +paid--including the membership on the Grain Exchange--and there still +was left a respectable margin of profit. To this showing the +shareholders responded by electing the provisional directorate as +directors for the balance of the year, adding two[1] to their number, +while the same officers were left in charge. + +In connection with the directorate it was pointed out that it might be +better to have the trading company's directorate independent of the +Association's directorate. The suggestion came from a tall young man +who had a habit of thinking before he spoke and it was but one of many +practical ideas which he had thrown out at the meeting. + +"That young chap, Crerar, of Russell--makings of an able man there, +Ed," commented the re-elected Vice-president later. "Know anything +about him?" + +"I know his father better than I do him," nodded the President +thoughtfully. "I met his father in the old Patron movement years ago. +I've got a great respect for his attitude of mind towards moral and +economic questions. I like that young man's views, Kennedy; he seems +to have a grasp of what this movement could accomplish--of the aims +that might be served beyond the commercial side of it. In short, he +seems to be somewhat of a student of economics and he has the +education--used to be a school-teacher, I believe." + +"Remember when I went up to Russell, during their Fair in October, to +tell them what the Exchange was trying to do to us? Well, he was at +the meeting and came over to my room at the hotel afterward," remarked +Kennedy. "That's how interested he was. We had quite a talk over the +whole situation. Told me he had an arrangement to buy grain for Graves +& Reilly, besides running the Farmers' Elevator at Russell, and he +offered to ship us all the grain that wasn't consigned to his firm. +We've got quite a few carloads from him during the season." + +"If there were only a few more elevator operators like him!" sighed +Partridge. "When I was up there last July, selling stock, only eight +men turned out," he recalled. "Crerar was one of them. I sold four +shares. Crerar bought one. Say, he'd be a good man to have on the +next directorate. How would it be if I wrote him a letter about it?" + +But "Alex." Crerar laid that letter aside and promptly forgot it; he +did not take it seriously enough to answer it. If there was anything +he could do to help along a thing in which he believed as thoroughly as +he believed in the grain growers' movement and the farmers' agency he +was more than willing to do it; but executive offices, he felt, were +for older and more experienced men than he. + +As manager of an elevator in his home town, as buyer for a grain firm +and as a farmer himself he had had opportunities for studying the +situation from many angles. From the first he had followed the +organization of the farmers with much interest and sympathy. He could +not forget his own early experiences in marketing grain when the +elevators offered him fifty-nine cents per bushel, nineteen cents under +the price at the terminal at the time. The freight rate on his No. 1 +Northern wheat he knew to be only nine cents per bushel and when he was +docked a bushel and a half to a load of fifty bushels on top of it all +he had been aroused to protest. + +A protest from young Crerar was no mild and bashful affair, either. It +was big-fisted with vigor. But when, with characteristic spirit, he +had pointed out the injustice of the price offered and the dockage +taken--the elevator man, quite calmly, had told him to go to the devil! + +"There's no use going to the other elevators, for you're all alike," +said young Crerar hotly. + +"Then take your damned grain home again!" grinned the elevator operator +insolently. + +So the young farmer was compelled to sell his first wheat for what he +could get. He was prepared to pay three cents per bushel on the +spread, that being a reasonable charge; but although plenty of cars +were available at the time, the spread cost him ten cents, a direct +loss of seven cents per bushel. Besides this he was forced to see +between twenty-five and thirty bushels out of every thousand +appropriated for dockage, no matter how clean the wheat might be. That +was in 1902. + +It was hard to forget that kind of treatment. And when, later on, +young Crerar accepted an offer of $75 per month to manage a Farmers' +Elevator at Russell he bore his own experience in mind and extended +every possible consideration to the farmers who came to him. The +elevator company, as a company, did not buy grain; but as +representative of Graves & Reilly, a Winnipeg firm, he bought odd lots +and for this service received an extra fifty dollars per month. + +Financially, it was better than teaching school. He had made ten +dollars the first summer he taught school and to earn it he had walked +three miles and a half each morning after milking the cows at home, +arriving at the school soaking wet with dew from wading in the long +prairie grass. And even at that, the trustees had wanted a "cheaper" +teacher! A woman, they thought, might do it cheaper. + +The young schoolmaster objected so earnestly, however, that the +argument was dropped. He needed this money to assist in a plan for +attending the Collegiate at Portage la Prairie. He taught the school +so well that after studying Latin at Manitoba College in 1899, the +trustees were glad to get him back the following year at a salary of +$35 per month. + +But milking cows at home night and morning and teaching school in +between was not an exciting life at best for a young fellow ambitious +to go farming. So at last he acquired a quarter-section of Hudson Bay +Company land near Russell and took to "baching it" in a little frame +shack. + +In the fall some lumber was required for buildings and it so happened +that along came an old chap with a proposition to put in a portable +sawmill on a timber limit up in the Riding Mountains nearby. The old +man meant business alright; he had the engine within ten miles of its +destination before he was overtaken and the whole machine seized for +debt. It looked as if the thousands of logs which the residents of the +district had taken out for the expected mill had been piled up to no +purpose. Crerar, however, succeeded in making a deal for the engine +and, with a couple of partners, began sawing up logs. The little +sawmill proved so useful that he ran it for four winters. When finally +it was burned down no attempt was made to rebuild. Its owner was +entering wider fields of activity. + +After meeting Partridge and Kennedy his interest in the affairs of the +farmers' little trading concern was quickened. He was much impressed +with the fact that here were men so devoted to an idea--so profound in +their belief that it was the right idea--that its advancement was their +first and only thought at all times. Alex. Crerar liked that. If a +thing were worth attempting at all, it was worth every concentration of +effort. What these men were trying to accomplish appealed to him as a +big thing, a bigger thing than most of the farmers yet realized, and it +deserved all the help he could give it. The little agency was in the +thick of a fight against tremendous odds and that, too, had its appeal; +for to a natural born fighter the odds meant merely a bigger fight, a +bigger triumph. + +Accordingly, the young man lost no opportunity to boost things along. +He was able to consign many carloads of grain in a season. If an idea +occurred to him that he thought might be of service he sat down and +wrote a letter, offering the suggestion on the chance that it might +prove useful to the Executive. He did everything he could to build up +the Company's business in the Russell district and when he returned +home from the shareholders' organization meeting he kept right on +sending in business, offering helpful suggestions and saying a good +word when possible. + +As the weeks went by and it became more apparent that they would wind +up their first year's business satisfactorily, E. A. Partridge decided +definitely that he would not accept another term as President. There +were several good men available to succeed him; but he could not get it +out of his head that the one man for the tasks ahead was the young +fellow up at Russell. When he went there in June to speak at a Grain +Growers' picnic he drew Crerar aside for an hour's chat, found out why +he had not answered the letter suggesting that he play a more active +part, and liked him all the better for his modesty. + +Without saying anything of what he had in mind he returned to Winnipeg +and sent the Vice-President to Russell to size up the situation +quietly. When Kennedy got back he agreed with the President's choice +of a successor. + +The Company was holding its first annual meeting on July 16th and care +was taken that the unsuspecting Crerar was on hand. The Vice-president +button-holed him, explaining that he was wanted on the Board of +Directors and in spite of his protest the President himself nominated +him and he was elected promptly. + +But when at the directors' meeting that night the President told the +Board that he had been looking around for a young man to take charge +and that T. A. Crerar was the man--when everybody present nodded +approval, the man from Russell was speechless. If they had asked him +to pack his grip and leave at once for Japan to interview the Mikado, +he could not have been more completely surprised. + +"Why, gentlemen" he objected, "I don't know anything about managing +this company! I could not undertake it." + +"What is the next order of business?" asked E. A. Partridge. + +The shareholders were almost as much surprised as the newcomer himself +when the name of the new president was announced. Many of them had +never heard of T. A. Crerar. Had the young president-elect been able +to see what lay ahead of him-- + +But, fortunately or unfortunately, that is one thing which is denied to +every human being. + + + +[1] See Appendix--Par. 7. + + + + +CHAPTER IX + +THE GRAIN EXCHANGE AGAIN + +"How many tables, Janet, are there in the Law?" + +"Indeed, sir, I canna just be certain; but I think there's ane in the +foreroom, ane in the back room an' anither upstairs." + --_Scotch Wit and Humor (Howe)_. + + +The efforts of the elevator faction of the Winnipeg Grain and Produce +Exchange, apparently to choke to death the Grain Growers' Grain +Company, had awakened the farmers of the West to a fuller realization +of the trading company's importance to the whole farmers' movement. +The Grain Growers of the three prairie provinces had been watching +things closely and they did not propose to let matters take their +course unchallenged. A second Royal Commission had been appointed by +the Dominion Government in 1906, under the chairmanship of John Millar, +Indian Head, Saskatchewan, to probe conditions in the grain trade and +the farmers felt that certain evidence which had been taken by this +Commission at Winnipeg justified their claims that they were the +victims of a combine. + +In the latter part of November (1906) the President of the Manitoba +Grain Growers' Association, D. W. McCuaig, laid formal charges against +three members of the Winnipeg Grain and Produce Exchange--charges of +conspiring in restraint of trade--and when these gentlemen appeared in +the Police Court it was evident that the Exchange intended to fight the +case every inch of the way. The farmers discovered that the legal +talent of Winnipeg had been cornered; for of the twenty lawyers to whom +their solicitor, R. A. Bonnar, K.C., could turn for assistance in the +prosecution every one appeared to have been retained by the defendants. +The case involved such wide investigation that such assistance was +imperative and finally the Grain Growers secured the services of +ex-Premier F. W. G. Haultain,[1] of Saskatchewan. + +The preliminary hearing in the Police Court proved to be most +interesting and at times developed considerable heat among the battling +legal lights. The defendants and their friends were so confident that +commitment for trial would not be forthcoming at all that when the +Magistrate decided that he was justified in so ordering, the grain men +were shocked somewhat rudely out of their complacency. + +Following up this preliminary victory, the Manitoba Grain Growers +turned to the Manitoba Government and demanded that the charter under +which the Grain Exchange operated be amended in certain particulars. +The deputation from the Grain Growers met the Committee on Agriculture, +the House being in session, and asked that the powers of the charter be +limited so that business would be conducted on an equitable basis +between buyer and producer. They asked that the Exchange be allowed to +set no limit as to the number of persons who might enjoy its +privileges, the question of the reputability of such persons to be +decided by a majority of the members and that a seat purchased for the +use of any firm or corporation should entitle that firm to the +privileges of the Exchange even though registration of membership was +under the name of an individual; also that the right to membership +should include the right to delegate the trading powers to anyone in +the employ of the firm or corporation. + +The Grain Growers also asked that arbitrary interference with the +business methods employed by individual firms or corporations and +inquisitional inquiry into such be prohibited; also that the penalties +and disabilities against those breaking the common rules and the +maximum-price rule be abolished; that the right to define the +eligibility of a person as an employee or fix a limit to salary in any +way be denied; also that the expulsion of no member should be +considered final until assented to by the Minister of Agriculture and +that all by-laws should receive the assent of the Lieutenant-Governor +in Council before becoming legal and binding. + +The farmers asked that the Government have full access to the minute +books, papers and accounts of the Grain Exchange and that provision be +made for the public to have free access to a gallery overlooking the +trading room during the sessions of the Exchange so that the +transactions occurring might be observed and the prices disseminated +through the public press. They further wished to see gambling in +futures made a criminal offence. + +Roderick McKenzie, Secretary of the Manitoba Association, told how the +existing Grain Exchange had about three hundred members, of whom one +hundred were active and fifty-seven of these active members represented +the elevator interests. He said that the interests of the fifty-seven +were looked after by twelve elevator men in the Exchange and that these +twelve men agreed so well that they allowed one of their number to send +out the price which should be paid for wheat for the day. + +The Committee on Agriculture promised to consider the requests and +later, when they met to do so, members of the Grain Exchange attended +in force to present their side of the case. They claimed that a great +deal of the trouble existing between the producer and the Grain +Exchange was due to misconception of the Exchange's methods of action. +The Exchange was only a factor in the grain business and under their +charter they were allowed to make by-laws and regulations, these being +necessary in such an intricate business as handling grain. + +The wiring of prices to country points was done by the North-West Grain +Dealers' Association, which had nothing to do with the Exchange but was +a distinct and separate organization for the purpose of running +elevators at country points as cheaply as possible. The highest +possible prices were quoted and the plan was merely to avoid duplicate +wiring. + +The grain men claimed that it was impossible to handle the wheat of the +country unless futures were allowed while to carry on its business +properly the Exchange must have the power to say who should be members +and otherwise to regulate its business. If the producer was getting +full value for his wheat why should the Grain Exchange be interfered +with? + +The Exchange was willing that its membership should be extended. Their +books always would be open to Government inspection in future and they +would also repeal the rule regarding track-buyers' salaries. The press +was already admitted and it would be found that when the new building +which the Exchange was erecting was completed there would be a gallery +for the use of the public during trading hours. + +If the Legislature were to amend the charter, declared the Exchange's +spokesman, the Exchange would demand that the charter be cancelled _in +toto_ and a receiver appointed to distribute the assets. The Exchange +was tired of being branded thieves and robbers and they should be let +alone to do their business. If this were not satisfactory, then they +wished to be put out of business altogether. + +The Grain Growers protested that it was not their desire to have the +charter cancelled. They were not blind to the usefulness of the +Exchange if it were properly managed and all they asked was that this +organization be compelled to do what was right. The reason the +Exchange had admitted the Grain Growers' Grain Company, the farmers +claimed, was so that they could have it under discipline, being afraid +of a combination of farmers in the interests of the producer. The +farmers had lost confidence in the manipulations of the Exchange and +wanted official protection. + +The question of declaring deals in futures to be a criminal offence was +outside provincial jurisdiction and the farmers withdrew that part of +the request. They wished everything else to stand, however. + +At this juncture a recommendation was made that a conference be held +between the Government, the Grain Growers, the Exchange, reeves of +municipalities, bankers, railroads, etc., for discussion of everything +pertaining to the handling of wheat, including amendments to the Grain +Exchange charter. The idea appealed to the Premier and before the +Committee he pledged that the resolutions passed at the proposed +conference would be converted into legislation. + +After adopting the Agricultural Committee's report the Government did +not act independently regarding the suggested charter amendments, as +the farmers had hoped they would; instead, the whole thing was shelved, +pending the suggested conference. When this conference was held in the +latter part of February, however, the Government was duly impressed by +the earnestness of the Grain Growers. Many strong speeches were made, +including one powerful arraignment by J. W. Scallion, of Virden, whose +energetic leadership had earned him the title: "Father of all the Grain +Growers." The Government promised to amend the Exchange charter at the +next session of the Legislature. + +The activity of the Manitoba Grain Growers' Association was putting a +new face upon the struggle of the Grain Growers' Grain Company for the +restoration of their trading privileges on the floor of the Exchange. +It demonstrated that the farmers could act in concert if occasion arose +and that the Grain Growers' Associations were in accord with the +principles for which the farmers' trading company was fighting. When, +therefore, the Manitoba Association took a hand in the matter by +officially urging the Manitoba Government to assist in restoring the +Company to its former position on the Exchange in order that it could +enjoy the rights of the seat for which it had paid, the Government was +forced to take action. + +It is doubtful if a Minister of the Crown in Manitoba ever had been +called upon to make a more remarkable official statement than that +which now appeared in print in connection with this matter. In the +absence of Hon. R. P. Roblin it became the duty of the Acting-Premier +to make it. Hon. Robert Rogers, then Minister of Public Works in the +Manitoba Government, was the official head of the Government in the +Premier's absence and in the _Winnipeg Telegram_ of April 4th, 1907, +the statement appeared as follows: + + +"The action of the Council of the Winnipeg Grain Exchange in refusing +trading privileges to the Grain Growers' Grain Company is regarded by +the Government as an arbitrary exercise of the powers conferred upon +them (the Exchange) through their charter from the Legislative Assembly +of Manitoba, and unless remedied by the Exchange, the Government will +call the Legislature together during the present month for the purpose +of remedying the conditions by Legislative amendments." + + +On April 15th the farmers' trading company was admitted once more to +the full privileges of their seat on the Exchange. + +The case against the three members of the Grain Exchange, who had been +indicted under Section 498 of the Criminal Code, came to trial in the +Assize Court a week later, on April 22nd, before Judge Phippen. It was +now a matter for Crown prosecution and under direction of the +Attorney-General, R. A. Bonnar, K.C., proceeded vigorously. The Grain +Growers claimed that the Exchange had rules and regulations which had +been carried out in restraint of trade and that in combination with the +North-West Grain Dealers' Association there had been a practice of +restricting the price to be paid for grain to certain daily figures, +sent out by the parties conspiring. + +Also, they expected to show that there had been a combine in existence +between the elevator companies so that there was no competition in the +buying of grain at certain points while there was an agreement that +only a certain amount of street wheat would be received at the various +elevators, the whole thing amounting to the restriction of wheat buying +within certain limits fixed by the combination of the buyers who +belonged to the combine--this to the consequent barring out of the +small buyer from the trade. The latter, the Grain Growers argued, was +prevented from buying by the rule which called for the payment of a +salary to track buyers and prohibited the hiring of men on commission; +there were points where the quantity of grain offered for sale was too +limited to justify the payment of a fifty-dollar salary to the buyer. + +Another point of complaint was that the Grain Exchange membership was +restricted to three hundred, the members having agreed among themselves +that no more seats be added although all present seats were sold and +many more might be sold to eligible citizens. + +Also, claimed the prosecution, there was a practical boycott of +expelled members in that the members of the Exchange were forbidden to +deal with expelled members; it was practically impossible to do +business in grain in Western Canada unless connected with the Grain +Exchange, one firm having experienced this difficulty. + +The rule which barred the purchasing of grain on track during the hours +of trading on the Exchange was, they would endeavor to show, an act in +restraint of trade and the three men under indictment, the prosecution +hoped to prove, had been active in the enactment of the alleged illegal +by-laws of the Grain Exchange. + +Prior to the enactment of these obnoxious laws of the Exchange the +farmers had been sought by the buyers, whereas since the rules had been +established the farmer must seek the purchaser. While the prices given +out were fixed by the Grain Exchange in what was claimed to be open +competition, the prosecution intended to show that it was a gambling +transaction pure and simple, the price-fixing being nothing more than +the guess of the men who acted for their own gain. + +The trial lasted for a month, during which time a great many witnesses +were examined--grain men and farmers--and the whole grain trade +reviewed. The array of legal talent for the defence was very imposing +and the case attracted much attention because, aside from its interest +to the grain trade and the farming population, it promised to test the +particular and somewhat obscure section of the Criminal Code under +which the indictment was laid. At one stage of the proceedings the +tension in court became so high and witnesses so unwilling that upon +reproval by the court regarding his examination, leading counsel for +the Grain Growers picked up his bag and walked out in protest, willing +to risk punishment for the breach of etiquette rather than remain. +After the Grain Growers' executive and counsel had conferred with the +Government, however, the Grain Growers' counsel was prevailed upon to +resume the case. + +The finding of the court did not come as much of a surprise; for it was +apparent before the trial ended that the section of the Code was +considered ambiguous by the presiding Judge. The latter held that all +restraints suggested by the evidence were agreed to, whether +justifiably or not, as business regulations and before finding the +defendants guilty these restraints must appear to be "undue," according +to his reading of the section. It was necessary to respect the right +of a particular trade or business or of a particular class of traders +to protect their property by regulations and agreements so long as the +public interests were not thereby "unduly" impaired; to the Judge's +mind there was no question that the public had not been _unduly_ +affected. + +After reviewing the case the Judge held that the gravamen of the whole +charge hung upon the Commission Rule of the Exchange--that one cent +commission per bushel should be made in handling grain; so that the +price paid would be the price at the terminal (Fort William) less the +freight and one cent per bushel commission, neither more nor less. +Witnesses agreed that this was the lowest profit on which the business +could live. Fort William prices were the highest the world's markets +could justify. Owing to the presence in the statute of the word, +"unduly," therefore, the Judge could not find the defendants guilty. + +The Grain Growers were much dissatisfied with the decision; for they +believed that they had adduced evidence to support their case and did +not relish losing it on a technicality. Appeal was made, therefore; +but the appeal court upheld the judgment of the assize court. + +Apparently, deduced the farmers, this meant that men could conspire to +create monopolies by driving all competitors out of business so long as +they did not do it out of pure malice--so long as they justified it on +the grounds of "personal interest"--so long as the things they did were +not "malicious restraints, unconnected with any business relations of +the accused!" In other words, if men merely conspired to advance their +own business interests they committed no offence under the then +existing law; to be liable to punishment they must be actuated by +malice. + +So that all the turmoil and talk, court proceedings and conferences, +deputations and denunciations, evidence and evasions--all the +excitement of the past few months practically left conditions just +where they were. For the amendments to the Grain Exchange charter +would not materialize till the Legislature met again next year. + +But there was one spot where the clouds had rifted and the light shone +through. The Grain Growers' Grain Company had won back its place on +the Exchange. More and more the farmers began to pin their faith to +their little fighting trading company "at the front." It appeared to +be the concentration point for the fire of enemy guns. In all +probability hostilities would break out anew, but the men in charge +were good men--loyal and determined; they could be relied upon to take +a full-sized whack at every difficulty which raised its head. + +The first of these to threaten was on the way. + + + +[1] Now Chief Justice Haultain. + + + + +CHAPTER X + +PRINTERS' INK + +The fewer the voices on the side of truth, the more distinct and strong +must be your own.--_Channing_. + + +As the farmers saw it, there was no reason in the world why the bank +should do what it did. The Company had closed its first year with net +profits sufficient to declare a seven per cent. cash dividend and the +profits would have been augmented greatly had it not been for the heavy +interest payments which accrued on the unusual overdrafts imposed by +special conditions. In spite of their extremely limited resources and +the handicaps forced upon them, the volume of business transacted had +exceeded $1,700,000 during the first ten months that the farmers had +been in business; their paid-up capital had been approximately eleven +thousand dollars of which over seven thousand had been required for +organization outlay. The number of shareholders had nearly doubled +during the ten months and everything was pointing to rapid advancement. +The Company had been a good customer of the bank, which had received +about $10,000 in interest. The security offered for their line of +credit was unquestioned. + +Yet the new directors had scarcely settled into place for the +approaching busy season before, without warning, the bank notified them +that they wished to close out the account. + +When men set themselves up in business they expect to have to compete +for their share of trade. The farmers did not expect to find their +path lined with other grain dealers cheering them forward and waving +their hats. They expected competition of the keenest. What they could +not anticipate, however, was the lengths to which the fight might go or +the methods that might be adopted to put their Agency out of business +altogether. + +Hitherto the grain grower had been in the background when it came to +marketing and handling grain. He was away out in the country +somewhere--busy plowing, busy seeding, busy harvesting, busy +something-or-other. He was a Farm Hand who so "tuckered himself out" +during daylight that he was glad to pry off his wrinkled boots and lie +down when it got dark in order to yank them on again, when the rooster +crowed at dawn, for the purpose of "tuckering himself out" all over +again. It was true that without him there would have been no grain to +handle; equally true that without the grain dealers the farmer would +have been in difficulty if he tried to hunt up individual consumers to +buy his wheat. The farmer interfering in the established grain trade +was something new and it was not to be supposed that when the surprise +of it wore off things were not liable to happen. + +The farmer was quick to infer that the action of the bank in cutting +off the trading company's credit without apparent cause was another +move of the opposing forces. It was so palpably a vital spot at which +to strike. + +This time, however, the threatening cloud evaporated almost as soon as +it appeared. The manager, W. H. Machaffie, resigned and assumed the +management of another bank. He was a far-sighted financier, Mr. +Machaffie, and almost the first account he sought for the Home Bank was +that of the Grain Growers' Grain Company. The Home Bank was new in the +West and in the East it had been an old loan company without big +capitalistic interests, its funds being derived mostly from small +depositors; but while at that time it was not among the wealthiest +banking institutions of the country, it was quite able to supply full +credit facilities. + +The opportunity for the farmers' company and the young bank to get +together to mutual advantage was too good to be overlooked. Under the +banking laws of Canada valuable special privileges are granted in view +of the important part which the banks play in the country's +development. Government returns indicate that the greater part of the +business done by banks is carried on upon their deposits. If the +working people and the farmers, as is generally accepted, form the +majority of these depositors of money in banks, then were not many +loans which went to monopolistic interests being used against the very +people who furnished the money? If the farmers could acquire stock in +a bank of their own, would they not be in a position to finance their +own requirements rather than those of corporations which might be +obtaining unreasonable profits from the people at large? Such an +investment would be safe and productive at the same time that it +strengthened the farmers' hands in their effort to do their own trading. + +With all this in view the directors of the Grain Growers' Grain Company +made a heavy investment in Home Bank stock and were appointed sole +brokers to sell a large block of the bank's stock to Western farmers, +working men and merchants. On the sale of this they were to receive a +commission which would, they expected, be enough to cover the expense +of placing the stock. As the business expanded the Company would be +assured of an extended line of credit as it was needed. + +And the business certainly was expanding. Although the prospects for +the new crop were not as bright as they had been the year before, a +substantial increase in the amount of grain they would handle--owing to +the increase in the number of shareholders--was anticipated by the +management. They were not prepared, however, for the heavy volume that +poured in upon them when the crop began to move; it was double that of +their first season and the office staff was hard pressed to keep pace +with the rising work. There now seemed no reason to believe that the +success of the farmers' venture was any longer in doubt so far as the +commercial side of it was concerned. + +But the President and directors had in mind a much broader objective. +It was not enough that the farmer should receive a few more cents per +bushel for his grain. + +"We must bear clearly in mind," warned T. A. Crerar, "that there are +still those interests who would delight in nothing more than in our +failure and destruction. A great many improvements require yet to be +made in our system of handling grain. The struggle for the bringing +about of those reforms is not by any means accomplished. As a great +class of farmers, composing the most important factor in the progress +and development of our country, we must learn the lesson that we must +organize and work together to secure those legislative and economic +reforms necessary to well-being. In the day of our prosperity we must +not forget that there are yet many wrongs to be righted and that true +happiness and success in life cannot be measured by the wealth we +acquire. In the mad, debasing struggle for material riches and +pleasure, which is so characteristic of our age, we often neglect and +let go to decay the finer and higher side of our nature and lose +thereby that power of sympathy with our fellows which finds expression +in lending them a helping hand and in helping in every good work which +tends to increase human happiness and lessen human misery. In keeping +this in view we keep in mind that high ideal which will make our +organization not alone a material success but also a factor in changing +those conditions which now tend to stifle the best that is in humanity." + +An important step towards the upholding of these ideals was now taken +by the directors. The President and the Vice-President happened to be +in a little printshop one day, looking over the proof of a pamphlet +which the Company was about to issue, when the former picked up a +little school journal which was just off the press for the Teachers' +Association. + +"Why can't we get out a little journal like that?" he wondered. "It +would be a great help to our whole movement." + +About this time the Company was approached by a Winnipeg farm paper +which devoted a page to the doings of the grain growers. + +"If you'll help us to get subscriptions amongst the farmers," said the +publisher, "we'll devote more space still to the doings of the grain +growers." + +"But why should we build up another man's paper for him?" argued the +President. "Why can't we get out a journal for ourselves?" + +The idea grew more insistent the longer it was entertained, and +although at first E. A. Partridge, who was on the directorate, was +opposed to such a venture, he finally agreed that it would be of untold +assistance to the farmers if they had a paper of their own to voice +their ideals. The logical editor for the new undertaking was E. A. +Partridge, of course, and accordingly he began to gather material for +the first issue of a paper, to be called the _Grain Growers' Guide_. + +Partridge had a few ideas of his own that had lived with him for a long +time. On occasion he had introduced some of them to his friends with +characteristic eloquence and the eloquence of E. A. Partridge on a +favorite theme was something worth listening to; also, he gave his +auditors much to think about and sometimes got completely beyond their +depth. It was then that some of them were forced to shake their heads +at theories which appeared to them to be so idealistic that their +practical consummation belonged to a future generation. + +In connection with this new paper it was Partridge's idea to issue it +as a weekly and as the official organ of the grain growers' trading +company instead of the grain growers' movement as a whole. He thought, +too, that it would be advisable to join hands with _The Voice_, which +was the organ of the Labor unions. The President and the other +officers could not agree that any of these was wise at the start; it +would be better, they thought, to creep before trying to walk, to issue +the paper as a monthly at first and to have it the official organ of +the Grain Growers' Associations rather than the trading company alone. + +This failure of his associates to see the wisdom of his plan to +amalgamate with the organ of the Labor unions was a great +disappointment to Partridge; for he had been working towards this +consummation for some time, devoutly wished it and considered the time +opportune for such a move. He believed it to be of vital importance to +"the Cause" and its future. In October he had met with an unfortunate +accident, having fallen from his binder and so injured his foot in the +machinery that amputation was necessary; he was in no condition to +undertake new and arduous duties in organizing a publishing proposition +as he was still suffering greatly from his injury. On the verge of a +nervous breakdown, it required only the upsetting of the plans he had +cherished to make him give up altogether and he resigned the editorship +of the new magazine after getting out the first number. + +"I'm too irritable to get along with anybody in an office," he +declared. "I know I'm impatient and all that, boys. You'd better send +for McKenzie to come in from Brandon and edit the paper." + +This suggestion of his editorial successor seemed to the others to be a +good one; for Roderick McKenzie had been Secretary of the Manitoba +Grain Growers' Association from the first and had been a prime mover in +its activities as well as wielding considerable influence in the other +two prairie provinces where he was well known and appreciated. He was +well posted, McKenzie. + +So the Vice-President wired him to come down to Winnipeg at once. + +Yes, he was well posted in the farming business, Rod. McKenzie. He had +learned it in the timber country before he took to it in the land of +long grass. At eleven years of age he was plowing with a yoke of oxen +on the stump lands of Huron, helping his father to scratch a living out +of the bush farm for a family of nine and between whiles attending a +little log schoolhouse, going on cedar-gum expeditions, getting lost in +the bush and indulging in other pioneer pastimes. + +Along in 1877, when people were talking a lot about Dakota as a farming +country, McKenzie took a notion to go West; but he preferred to stay +under the British flag and Winnipeg was his objective. A friend of his +was running a flour-mill at Gladstone (then called Palestine), +Manitoba, and young McKenzie decided to take a little walk out that way +to visit him. It was a wade, rather than a walk! It was the year the +country was flooded and during the first thirty days after his arrival +he could count only three consecutive days without rain. In places the +water was up to his hips and when he reached the flour-mill there was +four feet of water inside of it. + +Such conditions were abnormal, of course, and due to lack of settlement +and drainage. After helping to build the first railway through the +country Roderick McKenzie eventually located his farm near Brandon and +so far as the rich land and the climate were concerned he was entirely +satisfied. + +Not so with the early marketing of his grain, though. He disposed of +two loads of wheat at one of the elevators in Brandon one day and was +given a grade and price which he considered fair enough. When he came +in with two more loads of the same kind of wheat next day, however, the +elevator man told him that he had sent a sample to Winnipeg and found +out that it was not grading the grade he had given him the day before. + +"The train service wouldn't allow of such fast work, sir," said +Roderick McKenzie. "I suppose you sent it by wire!" He picked up the +reins. "That five cents a bushel you want me to give you looks just as +good in my pocket as in yours." + +So he drove up town where the other buyers were and three of them +looked at the wheat but refused to give a price for it. One of them +was a son of the first elevator man to whom he had gone and, said he: + +"The Old Man gave you a knockdown for it, didn't he?" + +"Yes, but----" + +"Well, we're not going to bid against him and if you want to sell it at +all, haul it back to him." + +As there was nothing else he could do under the conditions that +prevailed, McKenzie was forced to pocket his loss without recourse. + +With such experiences it is scarcely necessary to say that when the +grain growers' movement started in Manitoba Roderick McKenzie occupied +a front seat. He was singled out at once for a place on the platform +and was elected Secretary of the Brandon branch of the Association. At +the annual convention of the Manitoba locals he was made Secretary of +the Provincial Association, a position which he filled until 1916, when +he became Secretary of the Canadian Council of Agriculture. + +His activities in the interests of the Association have made him a +well-known figure in many circles. From the first he had been very +much in favor of the farmers' trading company and only the restrictions +of his official position with the Association had prevented him from +taking a more prominent part in its affairs. As it was, the benefit of +his experience was frequently sought. + +McKenzie was plowing in the field when the boy from the telegraph +office reached him with John Kennedy's message. + +"They don't say what they want me for; but I guess I'm wanted or they +wouldn't send a telegram--Haw! Back you!" And like Cincinnatus at the +call of the State in the "brave days of old," McKenzie unhitched the +horses and leaving the plow where it stood, made for the house, packed +his grip and caught the next train for Winnipeg. + +John Kennedy met him at the station. + +"What's wrong?" demanded the Secretary of the Manitoba Grain Growers' +Association at once. "I came right along as soon as I got your wire, +Kennedy. What's up now?" + +"The editor of the _Grain Growers' Guide_. Partridge wants you to take +his place." + +"ME? Why, I never edited anything in my life!" cried McKenzie, +standing stock still on the platform. + +"Pshaw! Come along," laughed Kennedy reassuringly. "You'll be +alright. It ain't hard to do." + + + + +CHAPTER XI + +FROM THE RED RIVER VALLEY TO THE FOOTHILLS + + It ain't the guns or armament nor the funds that they can pay, + But the close co-operation that makes them win the day; + It ain't the individual, nor the army as a whole, + But the everlastin' team-work of every bloomin' soul! + --_Kipling_. + + +At one of the early grain growers' conventions it had been voiced as an +ideal that there were three things which the farmers' movement +needed--first, a trading company to sell their products (with +ultimately, it might be, the cheaper distribution of farm supplies); +second, a bank in which they could own stock; third, a paper that would +publish the farmers' views. So that if the new Executive of the +Company had done little else than break ground for better financial +arrangements and a farmers' own paper, their record for the year would +have shown progress. + +But when the second annual meeting of the Company was held they were +able to show that the volume of farmers' grain handled was almost five +million bushels, double that of the first year, while the net profits +amounted to over thirty thousand dollars. The number of farmer +shareholders had increased to nearly three thousand with applications +on file for another twelve hundred and a steady awakening of interest +among the farmers was to be noticed all over the West. All this in +spite of the general shortage of money, a reduced total crop yield and +the keenest competition from rival grain interests. + +It had been apparent to the directors that if the business grew as +conditions seemed to warrant it doing, it would require to be highly +organized. Bit by bit the service to the farmer was being widened. +For instance, the nucleus of a Claims Department had been established +during the year; for under the laws governing the Canadian railway +companies the latter were required to deliver to terminal elevators the +amount of grain a farmer loaded into a car and to leave the car in a +suitable condition to receive grain. The official weights at the +terminal were unquestioned and if a farmer could furnish reasonable +evidence of the quantity of grain he had loaded, any leakage in transit +would furnish a claim case against the railway. During six months the +farmers' company had collected for its shippers nearly two thousand +dollars in such claims, a beginning sufficient to illustrate that the +Company was destined to serve the farmers in many practical ways if +they would only stand behind it. + +IF the farmers would stand behind it! But would they? It was a +question which was forever popping up to obscure the future. Many +tongues were busy with inuendo to belittle what the farmers had +accomplished already and to befog their efforts to advance still +farther. At every shipping point in the West industrious little +mallets were knocking away on the Xylophone of Doubt, all playing the +same tune: "Just Kiss Yourself Good-Bye!" No farmers' business +organization ever had been a success in the past and none ever could +be. This new trading venture was going to go off with a loud bang one +of these fine days and every farmer who had shipped grain to it would +stand a first-class chance of losing it. You betcha! The Grain +Growers' Associations mightn't be so bad; yes, they'd done some good. +But this concern in the grain business--run by a few men, wasn't it? +Well, say, does a cat go by a saucer of cream without taking a lick? +"Farmers' company" they called it, eh? Go and tell it to your +grandmother! + +The worst of it was that in many localities were farmers who believed +this very suggestion already--that the Company belonged to the men at +the head of its affairs. Discouraged by past failures and without much +respect for the dignity of their occupation, their attitude towards the +Company was almost automatic. That it was a great co-operative +movement of their class, designed to improve economic and social +conditions, was something quite out of their grasp. And upon these +strings, already out of tune, elevator men strummed diligently in an +effort to create discord. + +From the first it had been like that. Friends who would speak a good +word for the struggling venture at the time it was most needed were +about as scarce as horns on a horse. On the other hand the organizers +ran across "the knockers" at every turn. A traveller for one of the +milling companies, for instance, happened to get into conversation on +the train with E. A. Partridge one day. The latter was a stranger to +him and he naturally supposed he was talking to "just a farmer." The +subject of conversation was the grain trade and this traveller began to +make a few remarks about the "little grain company" that had started up. + +"What about that company?" asked Partridge with visible interest. +"I've heard a lot about it." + +"Oh, it's just a little dinky affair," laughed the traveller. "They've +got a little office about ten feet square and they actually have a +typewriter! They get a car or two a month. Don't amount to anything." + +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," assured 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. Salesmanship 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 amusement at all. + +As the "little dinky affair" became a competitor 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 +shipping point they had agents whose business it was to secure +shipments 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 shipment, 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 ownership 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 shipments, 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 shipment of Alberta grain +to the Pacific Coast and thence via the new Panama Canal 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' +Association. 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' Association 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' Association got +their heads together on a proposal to amalgamate into one farmers' +organization under the name, Alberta Farmers' Association. + +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' association as planned. + +Owing to the mixed nature of Alberta's agricultural population and to +the general distrust of farmers' organizations the new Alberta Farmers' +Association 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 Association 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 Association 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 Association 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 ownership 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' Association and the Canadian Society of Equity. +The constitution 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' +Association 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' Association, 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 ownership 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 publishing 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 attitude 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 assistance 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 shipment +of Alberta grain via the Panama Canal 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 ownership 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' Associations are +the one thing above everything else that stands between the farmer and +the power of merciless corporations. They have undoubtedly been the +greatest shield 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 +ownership. 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 competition 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. + +"Just so," nodded the commission men among themselves. "The logical +and certain result will be the weeding out of the commission men and +track buyers, who give practically the only element of competition that +exists in the trade! One of the curses of our Canadian commercialism +is the strong tendency to monopoly and this looks like an effort to +create an absolute elevator monopoly of the grain trade, which is the +staple industry of the country." + +But if the small dealers on the Exchange were aroused, what about the +farmers' trading company? They did business on a commission basis only +and with the elevators offering to handle the farmers' grain for +nothing, or next door to it, what would happen? Would the farmer be +"unable to see past his nose," as was predicted? Would he forget the +conditions of the early days and grab for a present saving of five or +ten dollars per car? If the farmers did not stand together now, they +were licked! It was a showdown. + +There was only one thing to do--take a referendum of the shareholders +as to the basis on which they wished the year's business handled. The +Board of Control of the Grain Growers' Grain Company therefore issued +the following circular letter, which was mailed to every farmer +shareholder: + + +"This matter we now bring to your notice is the most important yet. + +"At a meeting of the Grain Exchange, held a few days ago, the +Commission Rule was suspended for a year. This means that there is no +fixed charge for handling grain, and any company or firm can, if they +wish, handle car lots for nothing. How did this come about? The +Elevator Companies did it with the aid of Bank Managers and other +Winnipeg men outside of the Grain Trade, who hold seats on the +Exchange, and voted with them. The intention of these Elevator +Companies is to handle all grain for 1/2c. per bushel or for nothing in +order to take it away from the Commission Men, who have no elevators, +and especially to keep it away from the Grain Growers' Grain Company. + +"The Elevator Companies can handle farmers' cars for nothing and still +not lose anything. How? In four ways-- + +"1st. They all buy street grain and the immense profits they make on +this will make up for any loss they have in handling cars for nothing. + +"2nd. The dockage they get on street grain and on car lots passed +through their elevators helps them. + +"3rd. The charges on the cars loaded through their elevators helps +them. + +"4th. When they get your car it is sent to their own terminal +elevator, and they earn the storage on it there which is very +profitable. + +"The commission man, such as ourselves, has none of these things to +fall back on. His profit is what is left out of the cent a bushel +commission after all expenses such as rent, taxes, insurance, wages for +office help, telegrams, telephone, etc., are paid. + +"The Elevator Combine know this. They know the weakness of the +commission dealers' position and the strength of their own, and knowing +it, deliberately cut out the commission and will offer to handle the +farmers' grain for nothing in order to put the only opposition they +have out of business. And mark you! this is aimed at our company more +than any other, though we believe they are after all commission +dealers. Some of them have said so. They want to kill us and they +think they have at last found a way. Their dodge is simple. By +handling cars for half a cent or nothing, they are going to bribe the +farmers and our own shareholders to send cars away from us, and by +keeping grain from us help to kill us and plant us that deep we shall +never come up again. + +"In this way they hope to 'rule the roost' and get back the good old +days they had ten or twelve years ago. + +"Can they succeed? It depends on the men who ship the grain. If they +support the combine by giving the elevators (or the commission houses +that work for the elevators under a different name) their cars, they +may soon expect to find themselves in a worse position than they have +ever been before. + +"As a prominent commission man said the other day, 'The elevator +companies are asking the farmers to help at their own funeral.' It is +an anxious time for our own company. We have shown that with anything +like fair play it may succeed. We have been growing stronger and, we +believe, doing some good. Are our shareholders and friends going to +take the bribe that is meant to put us out of business? We hope and +believe not. For this reason we are taking a referendum vote of our +shareholders." + + +It was at this crisis that the _Grain Growers' Guide_ had an +opportunity of demonstrating its value to the farmers as a fighting +weapon. It seized the cudgels and waded right into the thick of the +controversy without fear or favor. It came out flat-footed in its +charges against the elevator interests and emphasized the warning of +the Company in language that carried no double meaning. + +"We have no quarrel with the Winnipeg Grain Exchange as an Exchange," +said the _Guide_. "It is a convenience for gathering reports from +other parts of the world, market conditions, and for drafting rules +that facilitate and simplify business dealings. + +"As we have often pointed out, however, the Exchange is being used by +the Elevator Interests that seem to dominate it, to further their own +particular ends with the result that the nefarious methods of the +Elevator Trust bring suspicion and condemnation upon the Exchange and +its members. + +"The demand for the Royal Grain Commission arose from the methods +pursued by the Elevator Companies in dealing with the farmers at +country points. The pooling of receipts at country points is not +forgotten by the farmers; heavy dockage and unfair grading and low +prices paid when the farmers were compelled to sell and could not help +themselves, are also not forgotten. + +"Every injustice and disturbance in the trade that has taken place +since grain commenced to be marketed in Manitoba, can be traced to the +Elevator Monopoly. + +"The farmers of this country owe nothing to the Elevator Trust and we +have confidence enough in them to believe that they will not be bought +over by them now. The Commission Men and Track Buyers certainly owe +nothing to this trust either. They have helped in the past to carry +the suspicion and sin arising from its methods and it commences to look +as if they were getting tired of carrying the load." + +Column after column of such plain talk was given place in the _Guide_ +week after week, together with reports of Grain Exchange proceedings, +interviews with commission men and elevator men, pronouncements of +Grain Exchange officials and comment upon pamphlets circulated amongst +the farmers by the North-West Grain Dealers' Association, etc. +Everything having a bearing upon the situation was brought to light and +analyzed. Letters from farmers throughout the country were published +as fast as they reached the editor's desk, and they were coming pretty +fast, about as fast as the mail could bring them. + +They were reaching the office of the farmers' trading company by the +bagful. The Company had asked three definite questions of the farmers +in connection with the commission to be charged on grain shipped to the +Company--whether or not the old rate should be maintained in spite of +the action of the Exchange; whether the commission should be reduced; +whether the whole matter should be left to the discretion of the +directors. The letters poured in by the thousand and only two per +cent. of the farmers recommended any reduction in the rates; of the +remainder, seventy per cent. were in favor of the Company maintaining +the one cent commission and the other twenty-eight per cent. were +willing to abide by the decision of the directors. + +The comments contained in some of these letters revealed strong +feeling. Many farmers were ready to pay two cents commission per +bushel if necessary, rather than sell to "the monopolies." + +"I will pledge myself to ship every bushel of grain I grow to the +Farmers' Company," wrote one, "even though the directors found it +necessary to charge me five cents per bushel, coin." + +"No, they cauna draw the blinds ower the daylights o' a Scotchman," +assured one old son of the heather. "I am verra pleased to leave the +hale concern in your hands as I do believe you are thoroughly plumb and +always square." + +With this encouragement the directors announced that they would +continue to charge a commission of one cent per bushel on wheat shipped +to them, just as if the Commission Rule had not been suspended by the +Exchange. Other commission merchants, they knew, intended to reduce +their charges to half a cent per bushel; the elevator men, they +expected, would handle the grain for the same and in many cases for +nothing in order to persuade the farmers to ship their way. It would +be a great temptation to many farmers who had been sitting on the +fence, shouting "Sic 'em!" but never lifting a little finger to help, +and it was to be expected that those with limited vision would ship +their grain where they could make the biggest saving at the time. + +Notwithstanding, the directors believed that the majority of the +farmers would not prove one cent wise and many dollars foolish by +failing to realize what the future might hold in store if the elevators +succeeded in killing off competition. Finding that it was possible to +handle oats on a smaller margin, they made the farmers a gift reduction +of half a cent per bushel on oat shipments; otherwise the former rate +was sustained. + +The wheat ripened. Harvesting began. The long grain trains commenced +to drag into Winnipeg across the miles of prairie. By the middle of +September the weekly receipts of the farmers' company were running to +744 cars. In 1907 they had handled about five per cent. of the crop +and seven and one-half per cent. of the 1908 crop; of the total number +of cars so far inspected in this year of "free for all" methods, the +Grain Growers' Grain Company handled about fifteen per cent. + +When the end of the season brought the figures to a final total it was +found that the farmers' organization had handled well over sixteen +million bushels of farmers' grain. This was an increase over the +preceding year of nearly nine million bushels, or 114 per cent. It was +nearly one and one-half million bushels greater than all the previous +years of operation and represented one-eighth of all the grain +inspected during the year in Western Canada. + + + + +CHAPTER XIII + +THE MYSTERIOUS MR. "OBSERVER" + +Observation tells me that you have a little reddish mold adhering to +your instep. . . . So much is observation. The rest is deduction. + --_Sherlock Holmes_. + _Sign of Four (Doyle)_. + + +In Prehistoric Days, when one man hied himself from his cave to impress +his ideas upon another the persuasion used took the form of a wallop on +the head with a stone axe. It was the age of Individual Opinion. But +as Man hewed his way upward along Time's tangled trails personal +opinions began to jog along together in groups, creating Force. With +the growth of populations and the invention of printing this power was +called Public Opinion and experience soon taught the folly of ignoring +it. + +In the course of human aspiration Somebody who had a Bright Mind got +the notion that in order to get his own way without fighting the crowd +all he had to do was to educate the "Great Common Pee-pul" to his way +of thinking and by sowing enough seed in public places up would come +whatever kind of crop he wanted. Thus, by making Public Opinion +himself he would avoid the hazard of opposing it. The name of this +Sagacious Pioneer of Special Privilege who manufactured the first +carload of Public Opinion is lost to posterity; all that is known about +him is that he was a close student of the Art of concealing Artifice by +Artlessness and therefore wore gum rubbers on his feet and carried +around a lot of Presents to give away. + +It is quite possible to direct the thought of Tom-Dick-and-Harry. A +skillful orator can swing a crowd from laughter to anger and back +again. The politician who prepares a speech for a set occasion builds +his periods for applause with every confidence. But it was to the +public prints that they who sought the manufacture of Public Opinion +were in the habit of turning. + +There has always been something very convincing about "cold print." +The little boy believes that the cow really did jump over the moon; for +isn't it right there in the nursery book with a picture of her doing +it? And despite the disillusionments of an accelerated age many +readers still cherish an old-time faith in their favorite newspaper--a +faith which is a relic of the days when the freedom of the press was a +new and sacred heritage and the public bought the paper to learn what +Joseph Howe, George Brown, Franklin, Greeley or Dana thought about +things. This period gave place gradually to the great modern +newspaper, the product in some cases of a publishing company so +"limited" that it thought mostly in terms of dollars and cents and +political preferments. + +When the cub reporter rushed in to his city editor with eyes sparkling +he cried out enthusiastically: + +"Gee, I've got a peach of a story! Old John Smith's daughter's eloped +with the chauffeur. She's a movie fan and----" + +But it did not get into the paper for the very good reason that "Old +John" was the proprietor of the big departmental store which took a +full-page advertisement in every issue the year around. The editor +would have used it soon enough, but--the business office--! + +Then there was the theatrical press-agent, a regular caller with his +advance notices and free electros of coming attractions, his press +passes. + +"Give us a chance, old man," he pleaded, perhaps laying down a good +cigar. "Say, that was a rotten roast you handed us last week." + +"Yes, and it was a rotten show!" the editor would retort. "I saw it +myself." + +The telephone rings, maybe--the business office again. + +"The Blank Theatre have doubled their space with us, Charlie. Go easy +on 'em for awhile, will you?" + +The floor around the editor's desk was scuffed by the timid boots of +the man who wanted his name kept out of the paper and the sure tread of +the corporation representative who wanted his company's name mentioned +on every possible occasion. Business interests, railway corporations, +financial institutions--many of these had a regular department for the +purpose of supplying "news" to the press. Some American railroads +finally took to owning a string of papers outright, directly or +indirectly, and one big Trust went so far as to control a telegraphic +news service. + +In fact, to such a pass did things come in the United States that the +exploitation of the press became a menace to public interest and a law +was passed, requiring every publication to register the name of its +proprietor; in the case of corporate ownerships the names of the +shareholders had to be filed and the actual owners of stock held in +trust had to be named also. This information had to be printed in +every issue and the penalties for suppression or falsification were +drastic. + +No such law was passed in Canada, although the reflection of the +situation in the United States cast high lights and shadows across the +northern boundary. Partizan politics were rife in Canada and too often +have party "organs" and "subsidies" dampered down the fires of +independence in the past. A few journals, however, even in the days +before the great changes of the War, placed a jealous guard upon their +absolute freedom from trammelling influences and to-day they reap the +reward of public confidence. + +While not a newspaper, the _Grain Growers' Guide_ was a highly +specialized journal for the Western farmer, aiming frankly at educating +him to be the owner of his land, his produce, his self-respect and his +franchise; to make him self-thinking and self-reliant and to defend him +from unjust slurs. + +The editorial responsibility of carrying out such a programme in the +face of existing conditions required a well chosen staff. In Roderick +McKenzie, then Secretary of the Manitoba Grain Growers' Association, +the farmers had an editor upon whose viewpoint they could depend; for +he was one of themselves. But lacking practical experience in +newspaper work, it was necessary to secure an Associate Editor who +would figure largely in the practical management of the publication. +McKenzie was finding that his duties as Secretary of the Association +were becoming too heavy for him to attempt editorial services as well; +so that not long after the appointment of an Associate Editor he +decided to devote his whole time to his official duties. + +In its selection of a young man to take hold the _Guide_ was fortunate. +George Fisher Chipman was not only a very practical newspaper man to +meet the immediate needs of the young journal, but he was capable of +expanding rapidly with his opportunities. Well versed in the economic +problems of the day, he was known already in many magazine offices as a +reliable contributor upon current topics. He was well poised and, as +legislative reporter for the _Manitoba Free Press_, Chipman had made +something of a reputation for himself on both sides of the political +fence as a man who endeavored to be fair and who upheld at all times +the traditional honor of the press. + +By training and inclination Chipman was in complete sympathy with the +Farmers' Movement in Western Canada. Away east, in the Valley of +Evangeline, near Grand Pré, Nova Scotia, he was brought up on a farm, +learning the farmers' viewpoint as afterwards he came to know that of +the big men in the cities. He believed in co-operation, his father +having been a leader in every farmers' organization in Nova Scotia for +more than twenty years. + +It was not long before the young editor's influence made itself +manifest in the official paper of the Western farmers. He saw many +ways of improving it and organizing it for the widest possible service +in its field. Editorially he believed in calling a spade a spade and, +being free from political restrictions, Chipman did not hesitate to +"get after" politicians of all stripes whenever their actions seemed to +provide fit subject for criticism. + +By the time the Commission Rule difficulty arose the _Guide_ had +increased its weekly circulation by many thousands. The new editor +seized the opportunity for "active service" and waged an effective +campaign. The Grain Exchange finally restored the One-Cent Commission +Rule and never since has it been dropped. + +Meanwhile, however, hostilities broke out anew in an unexpected +direction. They took the form of "letters" to the press and they began +to appear in five papers which were published in Winnipeg--two +newspapers and three farm journals. Concealing his identity under the +_nom-de-plume_, "Observer," the writer attacked the Grain Growers' +Grain Company and the men at the head of it. Declaring himself to be a +farmer, Mr. "Observer" endeavored to discredit the farmers' trading +organization by casting suspicion upon its motives and methods of +business. As letter followed letter it became evident that the object +in view was to stir up discontent among the farmers with the way their +own agency was being conducted. + +After issuing a single, dignified and convincing refutation of these +attacks, the Company ignored the anonymous enemy. But the gauntlet was +picked up by the _Grain Growers' Guide_. It lay right at the editor's +feet. Chipman recognized a direct challenge and did not propose to +drop the matter with a denial in the columns of his paper--even with a +dozen denials. His old reportorial instinct was aroused. Who was this +mysterious "Observer"? Why was he going to so much trouble as to +launch a systematic campaign? One thing was certain--he was NOT a +farmer! + +All good newspaper reporters have two qualifications well developed; +they are able to recognize news values--having "a nose for news," it is +called--and they are able to run down a "story" with the instinct of a +detective. G. P. Chipman had been a good reporter--a good police +reporter particularly. He had the detective's instinct and it did not +take him long to recognize that he was facing a situation which could +be uncovered only by detective work. + +In the first place, he reasoned, the letters were too cleverly +written--so cleverly, in fact, that they could be the product of a +professional writer only, most likely a Winnipeg man. This narrowed +the search at once. By process of elimination the list of possible +"Observers" was soon reduced to a few names. It was an easy matter to +verify the suspicion that the "letters" were paid for at advertising +rates and the question uppermost became: "Who are the greatest +beneficiaries of these attacks?" + +"The elevator interests, of course!" was Chipman's answer to his own +question. He began to make progress in his investigations and before +long he became very much interested in an office which happened to be +located in the Merchant's Bank Building, Winnipeg. Here a certain +bright newspaper man with some farming experience had taken to business +as a "Financial Agent"--telephone, stenographer and all the rest of the +equipment. + +So sure was Chipman that he was on the right track in following this +clue that finally he shut the door of his private office and wrote up +the whole story of the "deal" which he expected to have been made +between certain elevator men and this clever editorial writer who knew +so much about money that he had opened up a Financial Agency. With the +whole "exposure" ready for publication and the photograph of the +"suspect" handy in a drawer of the desk, Chipman asked the "Financial +Agent" to call at the _Guide_ office. + +"Thought you might like to look over that copy before we use it," +explained the editor casually when his visitor's pipe was going well. +He handed the write-up across his desk. "I want to be fair and there +might be something----" + +There decidedly was!--a number of things, in fact! Not the least of +them was the utter surprise of the pseudo Financial Agent. He did not +attempt to deny the truth of the statements made for publication. + +According to the story which he told the editor of the _Guide_, it had +been the original intention to have these "letters to the press" signed +by leading elevator men themselves; but when it was decided to hire an +expert press agent to mould public opinion in such a way as to offset +the "onesidedness" of the farmers' movement, none of the elevator men +cared to assume the publicity. The name, "Observer," would do just as +well. A committee was organized to direct and supervise the work of +the press agent and the chairman of this committee conducted the +negotiations with the newspaper man who was to undertake the +preparation of the "letters" and other material. + +By the terms of his contract the press agent was to be paid in equal +monthly instalments at the rate of $4,000 per year, with a contract for +two years. For this he was to write letters which would turn public +opinion against this Grain Growers' Grain Company, which was getting so +much of the farmers' grain, and minimize the growth of sentiment in +favor of government ownership of internal and terminal elevators. +These communications he was to have published in the various papers of +Winnipeg and the West. Such was the story. + +The better to conceal the wires beneath this publicity campaign and the +identity of the writer, Mr. "Observer" opened his office as a Financial +Agency and became a subscriber to the _Grain Growers' Guide_--one +paper, of course, which could not be approached for the purpose in +view. It was necessary, nevertheless, to clip and file the _Guide_ +very carefully for reference; hence the subscription. + +The space used by the "correspondence" was paid for at regular +advertising rates. The advertising bill each week amounted to about +$150. But one factor in the success of the plan had been +overlooked--the influence of the _Guide_. No sooner had the official +paper of the Grain Growers pointed out the situation to its readers and +suggested that papers which accepted material antagonistic to the +farmers' cause were no friends of the farmers--no sooner was this +pointed out than letters began to arrive in batches at the offices of +all the papers which were publishing the "Observer" attacks. Most of +these letters cancelled subscriptions and so fast did they begin to +come that one after another the papers refused to publish any more +"Observations," paid for or not. + +For unknown reasons it was decided to call off the attempt to create +public opinion against government ownership of elevators and with the +letters aimed at the farmers' trading activities being refused +publication, the employers of "Observer" had no further work for him to +do. + +As they were still paying his interesting salary each month, they +offered him $1,500 to tear up his contract, he said. But with more +than a year and a half still to run--over $6,000 coming to him--Mr. +"Observer" had a certain affection for that contract. Fifteen hundred +dollars? Pooh, pooh! He would settle for--well, say So-Much. + +"You're talking through your hat!" scoffed his employers in effect. + +"It's a six-thousand-dollar hat!" smiled "Observer" pleasantly. + +"Well, we won't pay any such lump sum as you say," virtually declared +his employers, not so pleasantly. + +"Just as you wish, gentlemen. I'll wait, then, and draw my +salary--$333.33 1/3 every month, according to contract. I know you +don't want me to sue for it; because we'd have to air the whole thing +in the courts and there would be a lot of publicity. So we'll just let +her toddle along and no hard feelings." + +He got his money. + +The alleged attempt of these elevator men, whether with or without the +sanction of their associates, to make public opinion by means of the +"Observer" letters began in the fall of 1909. It lasted but a few +weeks. + + + + +CHAPTER XIV + +THE INTERNAL ELEVATOR CAMPAIGN + + What constitutes a state? . . . + Men who their duties know, + But know their rights, and knowing, dare maintain. + --_Sir William Jones._ + _Ode after Alcaeus._ + + +Now, about this Government Ownership of Elevators. The Grain Growers +had had it in mind right along. The elevators were the contact points +between the farmer and the marketing machinery; therefore if his +fingers got pinched it was here that he bled. Complaints of injustice +in the matter of weights, dockage, grades and prices colored the +conversation of farmers in many parts of the country and, rightly or +wrongly, many farmers were profoundly dissatisfied with existing +conditions at initial elevators. These elevators provided the only +avenue by which grain could be disposed of quickly if transportation +facilities were not fully adequate. It seemed to the farmers, +therefore, that the only way to avoid monopolistic abuses was for the +provincial governments to own and operate a system of internal storage +elevators and for the Dominion authorities to own and operate the +terminals. The elevators, declared the farmers, should be a public +utility and not in private hands. + +This feeling first found definite expression in a request by the +Manitoba Grain Growers prior to the Manitoba elections in 1907. The +Manitoba Government declined to act on the request of the Grain Growers +alone, but called a conference of municipal reeves and others +interested. This conference was held in June and urgently requested +the Manitoba Government to acquire and operate a complete system of +storage elevators throughout the province, as asked for by the Grain +Growers. Nothing was done at the first session of the renewed +government, however. + +Meanwhile the Grain Growers were circularizing the three Prairie +Provinces on the need for a government system of elevators and at the +annual conventions of the organized farmers in Manitoba, Saskatchewan +and Alberta in 1908 strong endorsement of the idea was made. An +"Inter-Provincial Council of Grain Growers' and Farmers' Associations" +[1] had been created, and this body urged the several executives to +wait upon their respective governments and try to obtain definite +action. + +At the suggestion of Premier Roblin, of Manitoba, a conference of the +three premiers was arranged through the Secretary of the +Inter-Provincial Council. It was the hope of the farmers that this +might lead to uniform legislation, introducing government ownership of +the elevators, and that the three provincial governments would join in +an appeal to the Dominion Government for co-operation. In each +province the whole subject had been dealt with exhaustively in the text +prepared by the Grain Growers--the conditions making a government +system of elevators necessary, how it could be created and the +practicability of its operation, the question of financing and the +beneficial results that would follow. It was the idea of the farmers +that the provinces would purchase existing storage houses at a fair +valuation, issuing government bonds to finance the undertaking and +build new elevators where needed. + +The provincial Premiers met at Regina on May 4th, 1908, talked over the +matter, then sent for George Langley, M.P.P., one of the directors of +the Saskatchewan Grain Growers' Association who occupied a seat in the +Saskatchewan Legislature. They appointed Mr. Langley as a sort of +ambassador in their negotiations with the Grain Growers' +representatives, sending him to the Inter-Provincial Council to present +verbally a couple of alternative propositions--that the Railways should +be asked to build loading elevators with storage bins or that the +management of the elevators should be taken away from the present +owners and profits limited while the farmers' organizations became +responsible for grades, weights, etc. + +Back came the Grain Growers with a document which repeated their former +demands and amplified their argument. They claimed that they were +entitled to what they were asking if only because the farmers formed +the major part of the population and their demands could be granted +without placing any tax upon the remainder of the people. They +requested a conference with the three Premiers to go into the matter in +detail. + +Not until November 4th, 1908, did this conference take place in Regina. +When they did get together the Premiers were not posted well enough on +details to promise anything more definite than that they would consult +their colleagues and make reply in due course. + +It was the end of January, 1909, before the Inter-Provincial Council +had an official reply. The Premiers pointed to grave and complicated +questions which stood in the way of granting what the farmers were +asking. Constitutional difficulties, financial difficulties, +legislative difficulties--all were set forth in a lengthy and well +written memorandum. The British North America Act would have to be +amended to grant the provinces authority to create an absolute monopoly +without which success would not be assured. In short, there was such a +tangle of overlapping jurisdictions, public interest in trade and +commerce, federal rights, railway rights and so on that the Premiers +could not see their way clear at all in spite of their great desire to +help the farmers at all times. + +The Grain Growers passed the document to their legal adviser and R. A. +Bonnar, K.C., gave them his opinion in writing. That opinion was very +complete, very authoritative, and poked so many holes in the +"constitutional difficulties" that the farmers could see their way much +more clearly than the Premiers, to whom they made dignified rejoinder. +They handed on the holes while they were at it in the hope that the +heads of the three Provincial Governments could take a peek through the +"difficulties" for themselves and see just how clear the way really was +after all. + +The Provincial Premiers, however, took the step which logically +followed their reply to the farmers. Resolutions were introduced in +the Alberta and Manitoba Legislatures that His Excellency the +Governor-in-Council be memorialized in regard to the elevator question +and asked to provide government ownership and operation or to have the +necessary powers to deal with the matter conferred upon the provinces. + +Thus things rode until December 14th, 1909, when the Committee on +Agriculture in the Saskatchewan Legislative Assembly recommended the +appointment of a commission to make searching enquiry into the subject +of government control and operation of the internal elevators as asked +for by the Saskatchewan Grain Growers' Association. + +Two days later, at the annual convention of the Manitoba Grain Growers, +Hon. George Coldwell announced for the Manitoba Government that they +had accepted the principle of establishing a line of internal elevators +as a public utility, owned by the public and operated for the public. +So unexpectedly did this good news come that the farmers were amazed at +their own success. They had fought for it long and earnestly and +victory meant a very great deal; but it had seemed still beyond reach. + +In the case of Manitoba it only remained now to get together and thresh +out the details. A strong committee was appointed to conduct +negotiations with the Government and there was prepared a memorandum of +the plan which the farmers recommended the Government to follow. This +was presented on January 5th, 1910. + +The Government and the Grain Growers then each got ready a bill for +consideration by the Legislature. Many conferences took place. The +Government refused the farmers' bill and the farmers did not approve of +the Government's proposals. While leaving full financial control in +the hands of the Government, the Grain Growers demanded that the +operation of the elevators be undertaken by an absolutely independent +commission without any political affiliations whatsoever; it was +provided also that no officer of the Grain Growers could act on this +commission. The Government did not deem it wise to let control of the +managing commission out of its hands. So negotiations were broken off. + +The Manitoba Government now prepared a new bill, but did not remove the +features to which the farmers were objecting. This bill was passed and +the Government voted $50,000 for initial expenses and $2,000,000 for +acquiring elevators. Beyond a weak protest from the North-West Grain +Dealers' Association the elevator owners had not shown much excitement +over the situation. While the Manitoba Grain Growers were not +satisfied that the Government plan would work out successfully and +therefore refused to assume responsibility in connection with it, they +were ready nevertheless to lend their best co-operation to the Manitoba +Elevator Commission when it got into action. + +In the Province of Saskatchewan an altogether different plan was +evolved in due course. The investigating commission, appointed +February 28th, 1910, consisted of three well qualified men--George +Langley, M.P.P.; F. W. Green, Secretary of the Saskatchewan Grain +Growers' Association; Professor Robert Magill, of Dalhousie University, +Nova Scotia, the latter acting as chairman. The commission held +sittings at many points in Saskatchewan, taking evidence from a large +number of farmers, went to Winnipeg to meet representatives of elevator +companies, the Exchange and Government officials, and also visited +several American cities. Their final report, consisting of 188 +typewritten pages, was handed to the Saskatchewan Government on October +31st, 1910. + +In addition to the comprehensive scheme outlined by the Saskatchewan +Grain Growers many different suggestions were considered by the +commission, such as government ownership and operation, state aided +Farmers' Elevators, municipal elevators and various modifications of +these plans. All, however, were discarded by the commission in favor +of an experiment in co-operative ownership and management by the +farmers themselves, assisted financially by the Provincial Government. + +The scheme presented by the executive of the Saskatchewan Grain +Growers' Association appeared to be unworkable because it overstepped +mere public ownership and operation of initial elevators to include +methods of sampling, grading before shipment, bank and government +loans, features outside the power of a provincial legislature. The +schemes of municipal and district elevators, while appealing to local +loyalty for patronage, did not secure the farmers' direct pecuniary +interest to make the elevators successful in the face of competition. +As to the Manitoba plan, the commission were unanimous in advising +against it in view of the financial risk and the disadvantages of +political influences which would tend to make themselves felt. + +Instead, therefore, of a plan aiming at ownership of initial elevators +by the State and management by the Government of the day, the +commission recommended ownership and management by the growers of +grain. Such a co-operative scheme would aim equally well at removing +initial storage from the ownership of companies interested in grain +trading--would recognize as promptly the feeling of injustice in the +minds of many farmers--would seek just as fully to create marketing +conditions which would give the farmer satisfaction and confidence. +While both the Manitoba scheme and the proposed co-operative scheme +involved financial aid by the State, the commission saw reason to +believe that with control and management in the hands of the farmers +themselves many of the risks and limitations of other plans would be +avoided. + +It is to be noted that in reporting upon general conditions in the +grain trade of Canada in 1910 the Saskatchewan Elevator Commission +pointed out the great change which had taken place since 1900. One +factor in this had been the construction of new transcontinental lines +and thousands of miles of branch railway lines together with a great +increase in car supply and a more efficient and cheaper system of +transportation. Again, the use of loading-platforms had introduced +real competition with the elevators, almost fifteen million bushels of +the 1908-09 crop in Western Canada having been shipped direct by the +farmers. The development of co-operation among the farmers through the +Grain Growers' Associations had led to much advantageous legislation, +while Farmers' Elevators and Public Weigh Scales had had a salutary +effect at many shipping points. The organization of the Grain Growers' +Grain Company as a farmers' own selling agency likewise had exerted a +wide influence for good all over the West, enabling the farmers to +obtain first-hand information about existing methods of dealing in +grain. Finally, the protection afforded by the Manitoba Grain Act was +not to be questioned; for while it was impossible to draft any Act +which would prevent all the abuses alleged, it had been the means of +providing many weapons of defence for the farmer and unfamiliarity with +these provisions by individual farmers was scarcely to be blamed upon +the Act itself. + +The improvement in conditions, compared with earlier years, was +recognized by most of the farmers appearing before the commission and +many of them had no personal complaint to make in regard to weights, +grades or prices. They were advocates of provincial ownership not so +much on their own behalf as upon behalf of settlers in newer districts. +The commission, therefore, while not saying that there were no cases of +sharp practice or no grounds for dissatisfaction, were impressed by the +fact that however powerless farmers had been in earlier days they were +now in a very different position. The strong feeling which many +farmers had against the line elevator companies was based upon +experiences of rank injustice and bitter recollections of the past; for +this the elevator people could blame nobody but themselves. But the +factors enumerated undoubtedly had improved the situation from the +farmers' standpoint and it only remained to strengthen these factors to +give the farmer complete control in the matter of initial storage. + +The commission were unanimous in recommending co-operative organization +of the farmers as the probable solution of the situation in +Saskatchewan. They suggested the enactment of special legislation to +provide for the financing of the undertaking by the farmers themselves, +assisted by a government loan. That is, the farmers surrounding a +point where an elevator was needed would subscribe the total amount of +capital necessary to build it, paying fifteen per cent. in cash, the +crop acreage of the shareholders at that point to total not less than +2,000 acres for each 10,000 bushels capacity of the proposed elevator; +these conditions fulfilled, the government would advance the remaining +eighty-five per cent. of the subscribed capital in the form of a loan, +repayable in twenty equal annual instalments of principal and interest, +first mortgage security. The commission also suggested that the +responsibility of preliminary organization be thrown upon the farmers +themselves by appointing the executive of the Saskatchewan Grain +Growers' Association as provisional directors of the new grain handling +organization. + +When the matter came before the Saskatchewan Legislature the annual +convention of the Saskatchewan Association was being held at Regina and +the farmers declared themselves ready to assume responsibility and go +ahead. A bill was introduced by the Government, embodying the +recommendations of the Commission, and the Act incorporating The +Saskatchewan Co-Operative Elevator Company, Limited, was assented to on +March 14th, 1911. + +Because of the unusual financial arrangements with the Provincial +Government the capital stock was not set at a fixed amount but left +subject to change from time to time by the Government. In order to +protect the credit of the Province the Government thus was able to +control the amount of stock the company could issue and thereby the +amount of money the Government might be called upon to advance for the +construction or purchase of elevators. Shares were placed at $50 each, +available for farmers only, and a limit was set upon individual +holdings. + +It was provided that each local unit would have a local board of +management and appoint delegates to an annual meeting where a Central +Board of Management would be elected. The company was empowered not +only to own and operate elevators and buy and sell grain, but to own +and operate lumber yards, deal in coal and other commodities and "do +all things incidental to the production, storing and marketing of +grain." + +By June 16th, 1911, the Provisional Directors[1] were able to call the +first annual meeting of the new organization, having fulfilled the +requirement of the Act that twenty-five "locals" be first organized, +and by July 6th--the date of the general meeting at Moose Jaw--an +additional twenty-one "locals" were ready. Thus they were able to +start with forty-six units, representing $405,050 capitalization with +8,101 shares held by 2,580 shareholders. + +The newly-elected directors[2] proceeded forthwith to let contracts for +forty new elevators, standard type of thirty and forty thousand bushels +capacity with cleaning machinery and special bins. Six existing +elevators were purchased. + +The Grain Growers' Grain Company agreed to act as selling agents for +this new baby sister and wide-spread interest became manifest as the +Grain Growers took another step into commercial circles. + + + +[1] See Appendix--Par. 8. + +[2] See Appendix--Par. 12. + +[3] See Appendix--Par. 12. + + + + +CHAPTER XV + +CONCERNING THE TERMINALS + +I have but one lamp by which my feet are guided; and that is the lamp +of experience. I know no way of judging the future but by the +past.--_Patrick Henry_. + + +With the establishment of co-operative elevators for the storing of +grain at interior points the farmers of Western Canada launched out +upon the greatest experiment in co-operation this continent has seen. +The success of these elevators, owned and controlled by the farmers +themselves, in all probability would evolve the final phase of internal +storage in connection with the Canadian grain fields. + +Co-incident with their agitation for government ownership of elevators +at country points, the farmers were urging upon the federal authorities +the desirability of government control and operation of terminal +storage facilities. It was not enough that the Provincial Governments +of the Prairie Provinces should protect the farmers within their +boundaries; for the terminal storage of grain was a part of the system +and the farmers contended that corporation control of the terminals by +grain dealers was leading to abuses and manipulations of the grain that +were not in the best interests of the country. + +Grateful as they were, therefore, for the efforts to improve early +conditions by legislation, it was the opinion of the Grain Growers that +these contraventions of the Grain Act would be prevented only by +acquisition of the terminals by the Dominion Government. Mere +legislation and supervision by the Government would not provide an +effective remedy. + +At the head of the lakes the grain passed out of the control of the +transportation companies into the hands of the grain dealers; it was +the only point in transit where it became subject to manipulation. +With the exception of those owned by the C. P. R., the terminal +elevators were operated by dealers, largely controlled by United States +concerns and managed by experts from across the line. It was +frequently charged that terminal operators forgot that they ought to be +warehousemen solely and sought profits outside those of legitimate +elevation and storage charges, although these authorized charges paid +ample return on capital investment. The farmers wanted this temptation +of handling and mixing grain at the terminals removed so that terminal +operators could not tamper with the grain while it was in their +custody. The claims of the Grain Growers that mixing was going on at +Fort William and Port Arthur were based upon the report of the Royal +Grain Commission which had investigated the grain trade in 1906-7. + +The first definite step taken to lay these matters before the Dominion +Government was in the winter of 1908 after the formation of the +Inter-Provincial Council of Grain Growers' and Farmers' Associations. +At a meeting of these representatives of all the organized farmers it +was decided to send delegates to Ottawa. When these gentlemen reached +their destination in May, 1909, they found themselves face to face with +a large and active group of grain men, railway officials and bankers +who had gathered to take a hand in the interview with Sir Richard +Cartwright, then Minister of Trade and Commerce. Beyond some +concessions regarding special binning of grain, nothing came of this +trip apparently, although the Western farmers were supported strongly +by the Dominion Millers' Association. + +A second memorandum was presented early in 1910 and the Grain Growers +were granted a very respectful hearing by the Government; for, while +the organized farmers represented but part of the farming constituency +in the West, they had the sympathy of the entire farming community +behind them in these requests. They went home, however, feeling the +need of concentrating their energies on organization if they were to +get actual action from politicians. + +They had not much more than got home safely before something happened +which proved their assertions that all was not as it should be down on +the lake-front. Mr. C. C. Castle, Warehouse Commissioner, one day held +in his hand some official reports from the Inspection Department +concerning certain elevator concerns and compared the figures with the +returns made to the authorities by these concerns themselves. He shook +his head at the discrepancies and started an investigation. There were +three companies involved and after full evidence was taken legally +these three companies were prosecuted for returning untrue statements +and in the Police Court at Winnipeg they were fined a total of $5,550 +by the Magistrate. + +The next thing was the drafting of a Grain Bill which aimed to improve +certain matters. It was considered by the Senate and passed. It +reached the House of Commons and Hon. Frank Oliver took it by the +halter and led it about. Before anything could happen to it, however, +and the judges get a chance to study its good and bad points, July +(1911) came along and Parliament dissolved like a lump of sugar dropped +into a cup of tea and in the hub-bubbles of a general election +everything was _in statu quo_, as they say. And when the race was over +and the Party Nags back in their stalls, lo! new tenants were taking +their turn at sliding around on the polished Treasury Benches and +having a sun bath! + +The new Minister of Trade and Commerce was Hon. George E. Foster. He +looked over the Grain Bill, passed his hand along its withers and +patted it on the rump. Then he sat down and made a copy of it, +idealizing it by injecting a few "betterments," then trotted it out for +inspection with tail and mane plaited and bells on its patent-leather +surcingle. He did not claim to be its real father--only its +foster-father. He introduced it to the House with a very lucid review +of the whole agitation for improvement in the Grain and Inspection Acts +since "Johnny" Millar, of Indian Head, Saskatchewan, handed in the +Royal Grain Commission report in 1907. + +The new Government proposed to grant government control of terminal +elevators only on a limited and experimental scale. They wanted to +test out the principle by lease or construction of two or three +terminals at the head of the lakes before undertaking the financial +responsibility of handling the entire terminal system. Heretofore +there had been government supervision merely; but now for an experiment +there would be government operation as well while the management of the +remaining terminals would have to be satisfactory to the Government. + +"The demand of the West is that the grain should not be manipulated at +the terminals," declared Mr. Foster. "It does not matter a pin as to +how that is brought about so that the thing itself is accomplished." + +The new bill provided for sample markets and the farmers did not like +this unless the Government acquired the terminals as had been +requested. Owing to the grain blockade, due to car shortage, feeling +was running high in the West and the farmers eyed the new legislation +closely. They came upon a clause which startled them and in the row +that followed it looked at one time as if the new Bill would be led to +the boneyard and killed. + +One of the proposals of the Government was the formation of a Board of +Grain Commissioners with wide discretionary powers. They would be made +responsible for the proper conduct of the entire grain trade and deal +with all matters pertaining thereto. They were to have the absolute +say-so in regard to car distribution and there was one clause that +threatened this protection for which the Western farmers had fought so +hard in earlier days. + +At once consternation spread among the Grain Growers, their +apprehensions based upon bitter experience. They protested vehemently. +Letters, petitions and resolutions slid all over the official +Government desks and delegations followed to Ottawa. Not the organized +grain growers alone, but the whole Western farming element was up in +arms. + +Nevertheless, the new Grain Bill passed the House of Commons and +browsed over to the Senate. + +It was the farmers' last chance to stop it. R. McKenzie and J. S. +Wood, of the Manitoba Grain Growers; J. A. Maharg and F. W. Green, of +the Saskatchewan Grain Growers, and E. J. Fream, of the United Farmers +of Alberta--these practical men figuratively took off their coats and +waded in when they got in conference with Senate members. They +preferred to see the whole bill killed unless the objectionable clause +regarding car distribution were struck out; they saw the old-time +elevator abuses again becoming possible and quite nullifying the many +good features which the new legislation possessed. + +The final upshot was that somewhat unexpectedly Hon. Senator Lougheed, +leader in the Upper House, withdrew the offending clause on behalf of +the Government, although the Government felt that the farmers were +unduly excited. + +The new Board of Grain Commissioners was appointed without delay and +consisted of three men who understood Western conditions--W. D. +Staples, of Treherne, Manitoba; Frank E. Gibbs, of Fort William, and +Dr. Robert Magill, now Secretary of the Winnipeg Grain Exchange. Dr. +Magill was made Chief Grain Commissioner, for he had rendered excellent +services in the past and commanded the respect of the entire West. + +The Board was not long in reaching the conclusion that if grain dealing +companies were to be eliminated from the business of owning and +operating terminal elevators, outright purchase and breaking of leases +would be necessary. The companies refused to lease to the Government +voluntarily on any terms which the Board could recommend. Some would +not lease on any terms whatever, claiming that to lease their terminals +would dislocate their whole system of interior elevators, involving a +loss of capital which had been invested legitimately. Apart from this, +the Board had its hands so full with other important things that +expropriation and all that it involved would claim their whole time and +energy to the neglect of other urgent matters. + +Accordingly, the Grain Commissioners recommended that the Government +meet the immediate need of increased terminal facilities at the head of +the lakes by building a three-million-bushel elevator, thoroughly +equipped for storing, cleaning, drying and handling grain and with +provision for future extensions to a capacity of thirty million +bushels. They also approved of the Grain Growers' Grain Company +leasing one of the C. P. R. elevators. In this way both the Board and +the Grain Growers would gain first-hand knowledge of terminal elevator +conditions. + +While formulating a policy for terminal elevators the Grain +Commissioners considered the need for terminal storage in the interior +as well as at the lakefront. The increase in the area of the grain +fields, particularly in Alberta, was straining the transportation +facilities to the limit and the construction of the Grand Trunk Pacific +promised to open up still more acreage. Railway rolling stock, railway +yard accommodations at Winnipeg and Fort William and elevator storage +were not keeping pace with the annual volume of new grain. The +Government Inspection Department was up to its eyes in grain, working +night and day during the rush season, while lake and ocean tonnage +likewise were inadequate. Even the eleven million bushels of extra +storage capacity being built at the lake at the time the Board was +considering the situation would soon fill and overflow. Congestion at +eastern transfer houses or terminal points was threatening, water +freight rates were up and the export market disturbed and there was no +reserve of storage capacity in Western Canada to meet emergencies. In +a wet season the drying plants at Fort William and Port Arthur were far +from adequate. Delayed inspection returns and terminal outturns, due +to the recurring car shortage, prevented the farmers from financing and +widened the spread between street and track prices as the close of +navigation approached. + +Reviewing all this, the Grain Commissioners came to the conclusion that +it was time to consider seriously the erection of Government terminal +facilities nearer the grain fields. Especially in Alberta was the need +great for inspection and terminal storage to be nearer the producer. +It would relieve congestion, benefit the whole grain trade and provide +for the future possibility of alternate shipping routes via Hudson Bay +or the Panama Canal. + +It was true that the Royal Grain Commission of 1906-7 had raised +objections to interior terminals and inspection, such as the extra +expense of handling, the extra loss to the grain in handling and +re-handling, the possibility of the railways solving the car shortage +problem, the difficulty of getting shippers to send their grain to such +elevators and so forth. But the Board considered that, in view of +other possible routes than the Eastern, these objections were not +strong enough to balance the benefits. Accordingly they recommended +the Government to take action, the elevators to be regarded as public +terminals in which mixing of grades would be forbidden. + +While the farmers in all three Prairie Provinces were busy with these +vital matters, the Grain Growers' Grain Company meanwhile was wading +along through all the difficult seasons of car shortage, expanding its +usefulness and trying its best to give the maximum of service the while +it was reaching out into the export field in an experimental way. + +Then, in 1911, a situation arose unexpectedly that caused turmoil among +the officers of the pioneer company and led to considerable anxiety +among the Grain Growers all over the West. For, through an excess of +zeal upon the part of an employee, the Grain Growers' Grain Company +suddenly found itself dragged into the maelstrom of "The Pit." It was +accused of trying to corner the oat market and was forced to fight for +very life. + +So that at last it looked indeed as if Chance had delivered the farmers +into the hands of those who preferred to see them eliminated altogether +from the market. + + + + +CHAPTER XVI + +THE GRIP OF THE PIT + +Now, infidel, I have thee on the hip! + --_Merchant of Venice._ + + +The visitors' gallery is an excellent vantage point from which to view +the trading floor of the Exchange. It runs the full width of the south +wall. The chairs entrenched behind the rail have acquired a slippery +polish from the shiftings of countless occupants just as the wall +behind has known the restless backs of onlookers who have stood for +hours at a stretch. + +It is here that the curious foregather--good people from every walk of +life except the grain business. The tourist who is "just passing +through your beautiful city" and has heard that Winnipeg has the +largest primary wheat market in the world--the tourist drops in to see +the sights. Friend Husband is there, pretending to be very bored by +these things while fulfilling his promise to take Friend Wife "some day +when there's something doing." Young girls who only know that bulls +hate anything red and that bears hug people to death--they are there, +thrilled by the prospect of what they are about to witness with but a +very vague idea of what it will be. A dear old lady from the quiet +eddies of some sheltered spot has been brought in by the rest of her +party to see "goin's on" of which she does not approve because gambling +is a well-known sin. She is somewhat reassured by noting a few seats +away a man who wears the garb of a clergyman; presently he will take +notes for his forthcoming sermon on "The Propinquity of Temptation and +Its Relation to the Christian Life." The two young women who whisper +together in the corner have been reading stockmarket stories in the +magazines and they are wondering which of the traders, assembling on +the floor below, will have his coat and collar torn off and which will +break down and give vent to those "big, dry man-sobs" when his fortune +is wrecked! + +Not the least of the sights at the Grain Exchange is the Visitors' +Gallery! + +Two tanned farmers are discussing quotations and general conditions in +a matter-of-fact way. War demands, the unfavorable United States +Government report and rumors of black rust are making for a bullish +condition. Cables are up and the market promises to be wild this +morning. The gong will go in five minutes. + +"The Pit" is out in the middle of the floor. There is an octagonal +platform, raised a couple of feet from the floor level. In the centre +of this platform three wide steps descend to floor level again; so that +the traders standing on the different steps are able to see over one +another's heads and note each other's bids. On the west side of the +Pit is an elevated, built-in desk like those seen in court-rooms, +somewhat resembling an old-fashioned pulpit; here three men sit +throughout the session. One keeps his fingers on the switch-box which +operates the big clock on the north wall where the fluctuations of the +trading are flashed on a frosted dial in red-light figures. At his +left sits a second man whose duty it is to record the bidding on an +official form for the purpose. At the right is a telegraph operator +who sends the record of the trading as it occurs to other big +Exchanges--Minneapolis, Chicago, New York, etc. + +The telegraphic report registers in several instruments attached to the +big blackboard that occupies the entire north wall. Operators with +chalk and chalk-brush in hand move about the platform at the base of +this blackboard, catching the quotations from the clicking instruments +and altering the figures on the board to keep pace with the changing +information. A glance at this great blackboard will furnish the latest +quotations on wheat, oats, barley, flax, corn, etc., the world over. + +Ranged along the entire east wall are the clacking instruments of the +various telegraph companies for the use of the brokers and firms +trading on the Winnipeg Exchange. Telephone booths at the north, seats +for friends of members on the west side, weather maps, etc., beneath +the gallery--these complete the equipment of the big chamber. + +The group about the Pit, waiting for the market to open, grows rapidly +as 9.30 approaches. Members of the Exchange saunter in from the +smoking-room, swap good-natured banter or confer earnestly with their +representatives on the floor. In response to the megaphoned bellow of +a call boy, individuals hurry to the telephone booths. Messengers +shove about, looking for certain brokers. The market is very unsteady; +it may go up or down. The men are clustering about the Pit now; most +of them are in their shirt-sleeves and they are on tip-toe like +sprinters who wait for the starter's pistol. Some of them have +instructions to dump wheat on the market; some have been told to buy. +Hundreds of thousands of bushels will change hands in the first few +minutes. The market may go up or it may go-- + +Bang goes the gong! They're off! Above the red abbreviation, OCT., at +the bottom of the big clock the blood-red figure 5 indicates the +opening of the market at $1.45 even. With a mad swirl the trading +begins in a roar of voices. A small forest of arms waves wildly above +jostling bodies. Traders dive for each other, clutch each other and +watch the clock. The red figure 5 has gone out and 7/8 has in turn +vanished in favor of 5/8--1/2--3/8--4--(?) Instead of going up, she's +falling fast. Before the market closes the price may rebound to $1.55. +Somebody will make a "clean-up" to-day and many speculators will +disappear; for margins are being wiped out every minute. + +To the Gallery it is a pandemonium of noise, unintelligible in the +volume of it that beats against the void of the high chamber. Only one +shrill voice flings up out of the roar: + +"Sell fifty Oc, sev'-eights!" He offers 50,000 bushels of wheat for +October delivery at $1.43 7/8 per bushel. It's that fellow down there +with the blazing red tie half way up his collar. He hits out with both +hands at the air as he yells. A surge of buyers overwhelms him. They +scribble notes upon their sales cards and go at it again. + +Down there in the mêlée those men are thinking fast. With every flash +of the clock the situation changes for many of them. Some pause, +watching, listening; others who have been quiet till now suddenly break +in with a bellow, seemingly on the point of punching the noses of the +men with whom they are doing business. Lightning calculation; +instantaneous decisions! "Use your discretion" many of them have been +cautioned by their firms and they are using it. A moment's hesitation +may cost a thousand dollars. Trading in the Pit is no child's play; +rather is it a severe strain even upon those who know every trick, +every firm and the character of its dealings, every trader and his +individuality, his particular methods--who know every sign and its +meaning, who can read the coming shout by the first movement of the +lips. And always, in and out, are darting the telegraph messenger boys +with yellow slips that cause upheavals. + +"Why don't they take their time and do their trading more quietly and +systematically?" ventures Friend Wife up in the gallery. + +"And lose a cent a bushel while they're turning around, eh?" laughs +Friend Husband. "On a hundred thousand bushels that'd only be a +thousand dollars. Of course that's mere car-fare!" + +The dear old lady from the quiet eddies of Shelterville is shaking her +head in disapprobation and communing with herself upon the iniquities +of gambling. + +"My, oh my! What won't men do for money! Jt-jt! Just look at 'em! +Fightin' like that for money they ain't earnt! An' that nice lookin' +young feller with the intelligent gold specs!--Dear me, it's enough to +make a body sad!" + +She could not know that but comparatively few of the traders below were +representatives of brokerage firms which were trading on margins for +speculating clients--that most of the traders were negotiating +legitimate deals in futures for firms who actually had the grain for +sale, for exporters who would take delivery of the actual wheat for +shipment, for milling companies who would grind it into actual flour. + +Because trading for delivery in future months affords opportunity for +speculation, it is not to be condemned necessarily. It is the balance +wheel which steadies the entire grain business. Even the speculating +element is not without its uses at times and the layman who ventures to +condemn This or That out of hand will do well to make sure he +understands what he is talking about; for the business of the grain +dealer is so subject to varying conditions and so involved in its +methods that it is one of the most difficult to be found in the +commercial world. + +Trading in futures finds birth in the very natural disinclination of +Mr. Baker to buy his flour by the warehouseful. He does not want to +provide storage for a year's supply, even if he could stand such a +large bite out of his capital without losing his balance. So while the +bakery man is anxious to order his flour in large quantities for future +use, he is equally anxious to have it delivered only as he needs it, +paying for it only as it reaches him--say, every three months. + +Before contracting for the delivery of the flour on this basis Mr. +Miller must look to his wheat supply on a similar basis of So-Much +every So-Often and he, too, has an eye on storage and, like his friend +the baker, he "needs the dough," as they say on the street, and he does +not want to part with any more hard-working money than he can help. +Accordingly he looks around for somebody who has wheat for sale and +will sell it right now at a fixed price but defer delivery and payment +to a future date. With the price of his wheat thus nailed down, Mr. +Miller can set the future price on his flour to his customers, taking +delivery and paying for the wheat as he requires it for filling his +flour orders. + +In the meantime where is the wheat? Out near the fields where it was +grown, in country elevators perhaps, ready for transportation to market +as the law of supply and demand dictates instead of the whole crop +being dumped at once and smothering prices below the cost of +production. Or perhaps it is in store at the terminal where Mr. +Exporter can handle it. It will be seen that the mutual arrangement to +buy and sell for future delivery simplifies matters for everybody in +the grain trade. + +The manner in which the legitimate trader in futures protects himself +from price fluctuation is easily understood. While a deal in cash +wheat would refer to a definite shipment as shown by warehouse +receipts, a deal for future delivery is merely an obligation involving +a given quantity of grain at a given time at a given price. Being +merely a contract and not an actual shipment, the seller does not +require to produce the grain immediately nor is the buyer required to +hand over the purchase price when the trade is made. Thus it is +possible to buy a thousand bushels to-day for October payment and sell +a thousand bushels to-morrow for October delivery, cancelling the +obligation. The trade can be balanced at any time before October 1st. +Again, a thousand bushels of October wheat may be bought (or sold) +to-day and the future switched to May 1st by the sale (or purchase) of +a thousand bushels for May delivery. + +Take the man with the blazing red tie half way up his collar, the man +who this morning offered to sell fifty thousand bushels for October +delivery at $1.43 7/8. Suppose that he represents a company with a +line of elevators at country points. To his office at Winnipeg has +come word from country representatives that fifty thousand bushels have +been purchased for the company. At once he enters the Pit and sells +fifty thousand bushels for delivery at a future date, thereby "hedging" +the cash purchase out in the country. Once this future of fifty +thousand is sold the company no longer is interested in market prices +so far as this grain is concerned. If the market goes up, their cash +grain is that much more valuable, offsetting the loss of an equal +amount on the future delivery; if the price goes down, what is lost on +the cash wheat will be gained on the future. So that the difference +between the price paid for the grain at the country elevators and the +price at which they sold "the hedge" is the only thing which need +concern the grain company and it is here they must look for expenses +and profits. This method of hedging enables a grain company to make +purchases in the country on much smaller margins than was possible in +the early days when the marketing machinery was less completely +organized. It eliminates to the greatest extent the necessity of +speculating to cover risks. + +The speculator's opportunity comes in connection with the fluctuations +of the market in deliveries. He merely bets that prices will go up or +down, as the case may be. He is not dealing in actual wheat but in +margins. He buys to-day through his broker, who has a seat on the +Exchange, and deposits enough money to cover a fluctuation of say ten +cents per bushel. If October wheat to-day is quoted at $1.45 his +deposit will keep his purchase in good standing until the price has +dropped to $1.35. He must put up a further deposit then or lose the +amount he has risked already, the broker selling out his holding. If +the speculator is on the right side of the market--if he has guessed +that it will go up and it does go up--he can sell and pocket a profit +of so-many-cents per bushel, according to the number of points the +price has risen. If he has bet that the market will go down the +situation merely is reversed. + +The machinery for handling the huge volume of business transactions in +a grain exchange must be complete and smooth running to the last +detail, so designed that every contingency which may arise will be +under control. For simplicity and efficiency in this connection the +Winnipeg Grain Exchange occupies a unique position among the great +exchanges of the American continent; in fact, it is a matter for wonder +that its methods have not been copied elsewhere. + +The Winnipeg Grain and Produce Exchange Clearing Association is a +separate organization within the Exchange and to it belong all the +Exchange members who deal largely in futures. Each day the market +closes at 1.15 p.m. By two o'clock every firm trading on the floor +must hand in a report sheet, showing every deal made that day by the +firm--the quantity of wheat bought or sold, the firm with whom the +trade was made, the price, etc. If on totalling the day's transactions +it is found that they entail a loss, the firm must hand over a cheque +to the Clearing House to cover the loss; if a gain in price is totalled +the Clearing House will issue a cheque for it to the firm so gaining. +Thus, if Jones & Brown have bought wheat at $1.39 and the market closes +at $1.35 they lose four cents per bushel on their purchase and must +settle the difference with the Clearing House. All differences between +buyers and sellers must be settled each day and if the volume of trades +has been heavy, the Clearing House staff work on their books--all +night, if necessary--until everything has been cleared for next day's +business. The firm which loses to-day may gain by to-morrow's trades, +maintaining good average business health. Any private trading which +may take place after official trading hours is known as "curb" trading. + +The rules of the Clearing House are very strict. Any firm which fails +to report by two o'clock is fined. The Clearing House assumes +responsibility for all purchases and sales and, being actually liable, +keeps close tab on every firm. Each firm has a certain credit on the +books of the Clearing House, allotted impartially, according to its +standing, and this credit forms the fixed basis of that firm's +dealings. If its activities exhaust the line of credit, the Clearing +House calls for "original margins" at once--a deposit of so-many cents +per bushel for every bushel involved and for every point which the +market drops. The amount per bushel called for is entirely at the +discretion of the Clearing House authorities and if the quantity of +grain reaches dangerous proportions the deposit required may be set so +high that it becomes practically equivalent to cash purchase. To +"corner the market" under these conditions would require unlimited +credit with the Clearing House. + +When Jones & Brown are "called" for deposit margins they drop +everything and obey. They have just fifteen minutes to reach the bank +with that cheque, have it "marked" and rushed to the Clearing House. +If they fail to arrive with it the Manager of the Clearing House will +step into their office and if there were any "hemming and hawing" Jones +& Brown would be reported at once to the Secretary of the Exchange who +would call a hurry-up meeting of the Exchange Council and Messrs. Jones +& Brown would find themselves posted and all trades with them forbidden. + +All clerical errors in regard to trades are checked up by the Clearing +House and fines paid in for mistakes. Only a nominal charge is made +for its services--enough to pay overhead expenses--but the fines have +enabled the Clearing House to accumulate a large Reserve Fund which +gives it financial stability to provide for all responsibilities should +occasion arise through failure of any firm. All futures which have not +been cancelled before delivery date are negotiated through the Clearing +House and with its assistance the grain can be placed just where it +should go and tremendous quantities of it are handled without a hitch +and with the utmost despatch. + +Excitement in the Pit is not always over wheat. It may be oats. It +was Canadian Western Oats which became the storm centre in 1911 when +the Grain Growers got into difficulty with the "bears." Traders who +attempt to boost prices are known as "bulls"; those who are interested +in depressing the market are "bears." A trader may be a bear to-day +and a bull to-morrow; thus the opposing groups are constantly changing +in make-up and the firm which was a chief opponent in yesterday's +trading may be lined up alongside the day following, fighting with +instead of against. It is all in the day's business and the strenuous +competition on the floor, into which the uninitiated visitor reads all +manner of animosity and open anger, is a very misleading barometer to +the actual good feeling which prevails. + +In recording what now took place in the Pit in connection with the +farmers' commission agency it will be well to remember that the rest of +the traders would have acted in the same way toward any firm which was +fool enough to leave the opening for attack. It may be that as the +thing developed some of those who were specially interested in the +downfall of the farmers' organization seized the opportunity to ride +the situation beyond the pale of business ethics and in their eagerness +to be "in at the death" revealed special vindictiveness. But in view +of the long struggle with this element it was only what the Grain +Growers should have expected when they ran their heads deliberately +into the noose. + +The situation was this: Shortly after New Year's the export demand for +Canadian Western Oats became heavy and it looked as if in Great Britain +and all over Europe, where the oat crop had been small, there would +continue to be a shortage of oats. In spite of this situation, +however, no sooner was the proposed reciprocity agreement reached +between the Canadian and United States governments of the day, on +January 26th, than market prices began to go down. + +The then Manager of the Grain Growers' Grain Company came to the +conclusion that this price lowering was a local condition and that the +export market for oats was too strong to justify it or sustain it. + +"I'll just step into the market and buy some oats," said he. "Later on +I'll sell for export at a satisfactory figure." Accordingly, one fine +morning he went into the Pit and began to buy. + +The Manager's motive in attempting to sustain the market may have been +of the best; but it was the first time that such methods had been +attempted by the Grain Growers--methods which were not at all in +keeping with the avowed principles of the Company. The Board of +Control had every confidence in their Manager and, although he was +merely a salaried employee and not an executive officer, he had been +given a pretty free hand in the conduct of the Company's operations. +Apparently it did not occur to him that he should consult the Board +before entering the market on a speculative basis. Had the Board known +what he was about to do they would have vetoed it; but when they did +discover what was afoot it was too late to prevent the situation. It +developed very swiftly. + +"The Grain Growers are up to the neck in May oats," was the whisper +which passed about among the other traders. That was all that was +necessary. + +"Sell May oats! Sell May oats!" + +On every side of the Pit they were being offered by thousands of +bushels--five--twenty-five--fifty thousand! The idea was to load up +the Grain Growers' Grain Company to the point where their line of +credit with the Clearing House would become exhausted, after which +every bushel would require a marginal deposit. Then when the Company +could carry no further burden the Clearing House would be forced to +dump back the oats onto the market, breaking it several cents per +bushel. At this lower price the traders who had obligated themselves +to make these big deliveries would buy back the necessary supply of +oats at a profit and everything would resume the even tenor of its +way--except the Grain Growers, of course. Their serviette would be +folded. Their chair would be pushed back from the table! They would +be _through_! + +Up until now all the troubles of the farmers in marketing their own +grain may be said to have come from sources outside themselves; but in +the present instance they had nobody to blame but themselves for the +predicament. It arose at a time, too, when the other grain dealers +were beginning to recognize the farmers as a force in the grain +market--a force which had come to stay. It was unfortunate, therefore, +that just as they were beginning to acquire a standing as a solid and +sensible business concern, the Grain Growers' Grain Company should find +themselves driven into a corner, their backs to the wall, the focus of +pointing fingers and gleeful grins. + +The fact that a salaried employee, not an officer of the Company, had +acted on his own initiative without the consent of the directors was no +excuse for a reliable business concern to tender as such. The first +question flung back at them naturally would be: "Then your 'Board of +Control' doesn't control, eh?" For although the Board of Control did +not know what their Manager was doing until it was too late to prevent +it, they should have known. That is what they were there for--to +protect the shareholders from managerial mistakes. + +However, there they were. The only thing they could do was to fight it +out to a finish in the Pit and, if they survived, to see that no +similar mistakes occurred in the future. + +All sorts of rumors were flying about the corridors of the Exchange, +gathering momentum as they passed from lip to lip, swelling with the +heat of the excitement until it was a general guess that the Grain +Growers must be loaded with anywhere between five and eight million +bushels of oats more than they had been able to sell. + +It was only a guess, though, and a wild one. Many traders would have +given a good round sum to know exactly how the farmers' company stood +on the books of the Clearing House. Only the Clearing House and the +Company itself knew the true figures and the Clearing House officials +were men of the highest integrity who dare not be approached for secret +tips. + +Thanks to the splendid export connection which had been built up in the +Old Country and to the equally solid financial relations with the Home +Bank, the farmers' agency was selling oats for export very rapidly. It +began to look as if they would get out from under the threatening +avalanche without much loss, if any. + +The Company's old-time enemies apparently saw an opportunity to +undermine its credit at this crisis; for attacks began to appear in +print--accusations of speculation, of official negligence and so forth. +If the Grain Growers could be prevented from paying for the large +quantity of oats, delivery of which they would have to take on May 1st +to complete the export sales made during the winter--if they could be +made to fail in filling these export orders when navigation opened, +they would be smashed. + +But in attacking the credit of the Grain Growers, these opponents +overlooked the rapid increase in paid-up capital and the ability of the +farmers to secure money outside of Winnipeg. It was not being +forgotten by the Grain Growers that upon the first day of May there +would be delivered to them over 2,200,000 bushels of oats. + +When the day arrived, therefore, the money was on hand to meet every +contingency. Every bushel was paid for immediately. Within a few +weeks half of the quantity was riding the waves of the Atlantic, bound +for the Old Country to fill part of the sales already made there. + +Before long some of the grain companies which had sold the oats were +trying to buy them back. Had the farmers' company been a speculating +firm they might have turned upon the market and cornered the oats with +a vengeance. It was one of those rare occasions when a corner could +have been operated successfully to a golden, no-quarter finish; for the +export demand was sustained and the local market could have been made +to pay "through the nose" for its fun. + + + + +CHAPTER XVII + +NEW FURROWS + +Fishes, beasts and fowls are to eat each other, for they have no +justice; but to men is given justice, which is for the best.--_Hesiod_. + + +The situation was changing indeed for the Grain Growers in Western +Canada. In spite of all opposition the farmers had made themselves a +factor in the grain trade and had demonstrated their ability to conduct +their affairs on sound business principles. Co-operative marketing of +grain no longer was an untried idea, advocated by a small group of +enthusiasts. The manner in which the farmers' pioneer trading agency +had weathered the stormy conditions of its passage from the beginning +and the dignified stand of its directors--these gradually were earning +status in the solid circles of the business world. + +Out in the country also things were different. Those farmers who at +first had been most certain that the trading venture would crumble away +like so many other organized business efforts of farmers in the past, +now were ready to admit their error--to admit that a farmers' business +organization, managed by farmers, could succeed in such ample measure +that its future as a going concern was assured. Instead of hovering on +the outskirts of its activities, like small boys surrounding a giant +fire-cracker on Victoria Day--waiting for the loud bang so freely +predicted--these gentlemen were beginning to look upon it as a safe +investment. + +The success of the Grain Growers' Grain Company was an argument for +co-operation which could not be overlooked and the co-operative spirit +spread rapidly among the farmers in many districts. + +It will be remembered that the promoters of the grain company had +intended originally to operate under a Dominion charter but were +compelled by circumstances to content themselves with provincial +powers. The farmers now were finding themselves too restricted and +application was made for a new charter which would facilitate the +transaction of business in other provinces than Manitoba. Special +powers were asked for and by special Act of Parliament the charter was +granted in 1911 in the face of considerable opposition at Ottawa from +those whom the farmers regarded as representing the Canadian +Manufacturers' Association and the Retail Merchants' Association. + +For the trend of the organized farmers was quite apparent. No secret +had been made of the views entertained by the Grain Growers regarding +co-operation. To familiarize every member of the various organizations +with the history of co-operative achievements in other countries had +been the object of many articles in the _Grain Growers' Guide_ and much +speech-making from time to time. The possibility of purchasing farm +supplies co-operatively in addition to co-operative marketing of grain +was being urged convincingly. And during the long winter evenings when +the farmer shoved another stick into the stove it was natural for him +to ask himself questions while he stood in front of it and let the +paring from another Ontario apple dangle into the ash-pan. + +"The fellow who made that stove paid a profit to the Iron an' Steel +Trust who supplied the raw iron ore," considered he. "Then he turned +around an' added a profit of his own before he let the wholesaler have +it. Then the wholesaler chalked up more profit before he shipped it +along to Joe Green over in town an' Joe just naturally had to soak me +something before I got her aboard for home. That's profits on the +profits! It's a hot proposition an' it's my money that goes up the +flue!" + +When he added further profits which he figured might be due to +agreements between supposed competitors in prices, the Grain Grower was +quite ready to believe that he had paid about twice as much for that +stove as the thing would cost him legitimately if he dealt with the +maker direct. Here was the High Cost of Living that everybody was +talking about. The remedy? The same chance as the Other Fellow for +the farmer to use the resources of Nature and, by co-operation, the +reduction to a minimum of production and distribution cost. + +"I've done it with my grain. Why can't I do it with what I need to +buy?" That was what the Grain Grower was asking himself. "Why must I +feed and clothe and buy the smokes for so many of these middlemen?" + +So when the directors of the grain-trading company came before him with +the suggestion of buying a timber limit in British Columbia in order to +put in their own saw-mills eventually to supply building materials on +the prairie, the Grain Grower slapped his leg and said: "Good boy! An' +say, what about a coal mine, too?" + +That was the beginning of great developments for the organized farmers +of Western Canada. It was the beginning of new furrows--the opening up +of new vistas of emancipation, as the farmer saw it. And as the +furrows lengthened and multiplied they were destined to cause much +heart-burning and antagonism in new directions. + +The timber limit which the Grain Growers' Grain Company purchased was +estimated to contain two hundred and twenty-two million feet of lumber. +A Co-Operative Department was opened with the manufacture and sale of +more than 130 carloads of flour at a saving to the farmer of fifty +cents per cwt, even this small beginning registering a drop in milling +company prices. Next they got in touch with the Ontario Fruit Growers' +Association and sold over 4,000 bbls. of apples to Western farmers at +the Eastern growers' carload-lot price, plus freight, plus a commission +of ten cents per barrel. More than one hundred carloads of coal were +handled in one month and the farmers then got after the lumber +manufacturers for lumber by the carload at a saving of several dollars +per thousand feet. + +Still experimenting, the Grain Growers' Grain Company added to the list +of commodities in 1912-13--fence posts, woven fence wire, barbed wire +and binder twine. Followed other staples--cement, plaster, sash and +doors, hardware and other builders' supplies; sheet metal roofing and +siding, shingles, curbing, culverts, portable granaries, etc.; oil, +salt and other miscellaneous supplies; finally, in 1914-15, farm +machinery of all kinds, scales, cream separators, sewing machines and +even typewriters. Of binder twine alone nearly seven million pounds +was handled during this season. Thus did co-operative purchasing by +the farmers pass from experiment to a permanent place in their +activities. + +Expansion was taking place in other directions also. In 1912 the +Company leased from the Canadian Pacific Railway a terminal elevator at +Fort William, capacity 2,500,000 bushels. A small cleaning elevator +was acquired at the same place and, with an eye to possible +developments at the Pacific Coast, a controlling interest in a small +terminal elevator in British Columbia was purchased. At Port Arthur, +on a six-hundred-foot lake frontage, a new elevator has just been built +with a storage capacity of 600,000 bushels. + +So much for terminal facilities of this farmers' pioneer trading +organization. Now, what about the country elevators for government +control of which the farmers had campaigned so vigorously in the three +Prairie Provinces? As we have seen, the problem had been handled in +Saskatchewan along very different lines to the method adopted in +Manitoba. In Manitoba the 374 elevators, owned by the Provincial +Government and operated by the Provincial Elevator Commission, showed a +loss. It was even hinted in some quarters that the Manitoba Government +had no intention in the first place of operating at anything but a +loss. Whether or not there was any ground for these irreverent +suspicions, the fact remained that the Government elevator system in +Manitoba was beginning to assume the bulk of a snow-white elephant. +The Government, not entering the field as buyers, had tried to run the +elevators as a storage proposition solely. In 1910-11 the loss had +exceeded $84,000 and the year following was not much better. At last +the Government said in effect to the Grain Growers: + +"We've lost money on this proposition. We tried it out to please you +farmers, but you're still dissatisfied. Try to run 'em yourselves!" + +"We'll just do that," replied the farmers, although the Grain Growers' +Grain Company was not enthusiastic over the prospect of converting the +elevator failure into immediate financial success. + +It was too much to expect. At many points the Government owned all the +elevators in sight. In some places there was too much elevator +accommodation for the district's volume of business. In certain cases +the elevators which had been sold to the Government were practically +discards to begin with. However, the need for improvement in the +service which the farmers were getting at country points was so very +great that finally, in 1912, the farmers assumed control of the +government system in Manitoba. + +It was late in August when this came about. With only three or four +weeks in which to prepare for the season's crop, make repairs, secure +competent managers, travelling superintendents and office staff the +results of the first season scarcely could offer a fair test. Even so, +prices for street grain went up at competing points. Line elevator +companies began asking the farmer for his grain instead of merely +permitting him to place it in their elevators. + +The farmers were quick to note this and asked that the elevator service +be continued by their company. With better organization the following +season brought still greater improvement in service. Prices rose. The +special binning service from their own elevators the farmers found +genuine, not just a last-minute privilege granted to secure their +grain. In spite of bad crop conditions in 1914-15, the elevators +continued to succeed under the farmers' own management and, the year +following, letters of highest praise from farmers everywhere marked the +complete success of the undertaking. So excellent was the service now +being rendered by the Company that independent Farmers' Elevators in +several instances approached the Grain Growers and sought their +management. + +The handling of co-operative supplies at elevator points began in +1913-14. Flour houses were erected where prices were out of proportion +and at other places the elevator agents began to arrange for carload +shipments and proper distribution of coal among the farmers at a saving +of from two to three dollars per ton. + +These co-operative lines at elevator points soon were enlarged with +much success. In addition to the elevators leased from the Manitoba +Government the Grain Growers' Grain Company bought outright, erected or +leased sixty elevators of its own. + +Those who were watching all this steadily grew more restive. The +Farmers' Movement in the West was fast becoming a subject of bitter +debate. + +"When farmers advance to the last furrow of plowed land on the farm +they breast the fence which skirts the Public Highway," argued many Men +of Business. "They are climbing over the fence!" + +But the organized farmers were not inclined to recognize fences in +restriction of honest competition. They believed they were on the Open +Range and held unswervingly on their way. + + + + +CHAPTER XVIII + +A FINAL TEST + +We sometimes had those little rubs which Providence sends to enhance +the value of its favors.--_Vicar of Wakefield_. + + +While developing co-operative purchasing of farm supplies the pioneer +business organization of the farmers had continued its policy of +expansion in the grain business. The ideal of the farmers had been to +reduce to the lowest possible point the cost between the producer in +Western Canada and the Old Country consumer who bought most of the +Western grain. By engaging in the export business they hoped to become +an influence in keeping export values--the price at Port William, in +other words--at a truer level. + +Prior to 1912 the export activities of the Grain Growers had been +restricted necessarily to an experimental basis; but on January 1st, +1912, the "Grain Growers' Export Company," as it was called, was +organized for business on a larger scale. + +It now becomes necessary to record a final test of the Grain Growers' +Grain Company inasmuch as it demonstrated the mettle of the farmers in +a significant manner--the test of serious internal disagreement. Of +all the threatening situations through which this organization had +passed none was more critical than this later development. + +The trouble was a brew which simmered for some time before the steam of +it permeated beyond directors' meetings. It began early in 1912 as an +aftermath of the unfortunate deal in oats, bubbled along to a boil with +the fat finally in the fire at the annual meeting of the shareholders. +The consequences were ladled out during 1913 and the bill was settled +in full at the annual meeting that year with a cheque for nearly a +quarter of a million dollars. + +Like most internal troubles in business organizations the personal +equation entered into it. Certain of the directors were inclined to +criticise other directors and to be somewhat dictatory as to how the +farmers' business should be conducted. With the idea of improving the +system of management, the directors at this stage abolished the Board +of Control and the President was made Managing-Director with +supervisory and disciplinary powers. + +Not long after this, at a special meeting of the directors to consider +future management, four of the nine directors introduced a resolution +to declare the position of Managing-Director vacant. They failed to +carry it--and promptly resigned. + +This occurred in March. In the June columns of the _Guide_ these four +directors addressed an open letter to the shareholders, urging full +representation at the forthcoming annual meeting in order that their +criticisms might be threshed out. President Crerar joined in the +request for a full meeting of shareholders. If the loyalty or ability +of any director was to be questioned because he refused to surrender +his judgment to other directors who might disagree with him on certain +matters, it was time to have an understanding. So far as he was +concerned, he could not agree to become a mere speaking-tube for others +who might want their own way against his own convictions of what was in +the best interests of the farmers. + +When the annual meeting opened, on July 16th, there was a record +attendance of shareholders and during the routine preliminaries it was +evident that expectancy was on tip-toe among the farmers. The split in +the directorate was a vital matter. + +In delivering his annual address the President detailed the business of +the organization for the past year, referring but briefly to the facts +which had led up to the resignation of the four directors. The +Shareholders' Auditor followed with the balance sheet, giving detailed +accounts of receipts, expenditures, assets and liabilities; he answered +all questions asked. Then came a resolution, expressing the thanks of +the shareholders to the President--and this moment was chosen by the +leader of the revolt to spin his pin-wheels. + +The debate began at three o'clock in the afternoon. It did not end +until ten at night. The President retired from the chair and the +Auditor was called on for detailed information, covering a period of +several years past. In the long speech which was then made by the +leader of the critics the President was declared responsible for all +the alleged mismanagement and his retention in office undesirable. + +To the surprise of everyone a fifth director now took the floor and +joined the attack. Not having been one of the four directors who +resigned, this new criticism was unexpected and the tension of the +meeting grew. After amusing himself and the audience for awhile with a +humorous speech, No. 5 ended by suggesting that the President was not +sufficiently wicked to be driven from office. + +Arose the remaining three members of the resigning quartette and, one +after another, had their say. Finally, when words failed them and they +rested their case, the President spoke briefly. + +In the annual address, which he had delivered that morning, no attempt +had been made to deny the inadequacy of the Company's office +organization to cope with the exceptional crop conditions of 1911 and +1912. The latter season particularly had been very trying owing to the +lateness of the crop and the wet harvesting conditions. Twenty-five +per cent. of the grain, which started for market a month late, was +tough, damp or wet. The arrival of snow had prevented hundreds of +thousands of acres from being threshed and, on top of it all, railway +traffic had become congested so that cars of grain got lost for weeks +and even months and there were long delays in getting the outturns of +cars after they were unloaded. Money was scarce and farmers who were +being pressed for liabilities to merchants, banks and machinery +companies found it hard to get cars; naturally, once they had shipped, +they were in no mood for further delays. + +Owing to the condition of the grain, too, the grading was so uncertain +that exceptional care had been necessary in accepting bank drafts on +carloads of grain for amounts nearly double their possible value under +the unusual current crop conditions. Even with the greatest care the +Company found that in many instances they had given greater advances +than were realized when the cars were sold. The refusal of drafts, +passed by some local banks for amounts the managers should have known +could not be met, led to many hard things being said against the +farmers' agency. + +Under these conditions it was only to be expected that the work in the +office would become congested badly for weeks at a stretch. Double the +amount of work was entailed in handling a given quantity of grain, +compared to the season before. The Company was handicapped for office +space also and errors were bound to occur in a business involving so +much detail that a simple mistake might lead to infinite trouble. +Correspondence had not been answered as promptly as it should have +been, the necessary information regarding shipments being unavailable. + +All of these things had been met frankly in the President's annual +address and now when he brought the day's animated debate to a close he +added merely a word or two regarding the strong financial position to +which the farmers' pioneer trading organization had won its way in the +commercial world. He pointed out the future that lay before it. Upon +personal attacks he did not comment at all. + +Immediately a unanimous vote of thanks for his untiring work and +loyalty was tendered Mr. Crerar. The debate was over. The following +morning the officers for the ensuing year were chosen and only one of +the four directors who had resigned from the old Board was re-elected. +He withdrew and the whole incident was closed. + +But the real test was yet to come. The withdrawal of the four +directors had left but five to cope with the difficult situation of the +Export Company. It had found itself with a large amount of ocean +freight on its hands--freight which had been secured on favorable terms +from shipping agents for use later in transporting grain which the +farmers' agency expected to sell in the Old Country. It was decided to +cut off the export business entirely for the time being and to re-let +the ocean shipping space to other exporters. The price of ocean +freight fluctuated to such an extent, however, that rather than accept +an immediate loss it was thought better to use the freight, after all, +making shipment to fill. + +At the time of the sixth annual meeting the Export Company had stood +about level on the books; but during the two succeeding months the +grain shipped from Fort William went out of condition while crossing +the ocean and when it arrived in port the Old Country buyers refused to +look at it. Heavy charges had to be met in treating to bring it to +sale condition and very heavy losses were incurred. Before the matter +was cleaned up finally these losses totalled more than $230,000. + +When a quarter of a million dollars has been expended in a direction +where tangible results have not been in evidence--when it has been +sacrificed apparently for the sake of a principle--then does the manner +in which such a loss is accepted become significant. The exporting of +grain had begun to receive particular attention from the shareholders +of the Grain Growers' Grain Company following the season of 1907-8 when +they discovered the apparent margin of profit in the export business +during much of the season to be from eight to twelve cents per bushel. +This had been due, no doubt, to the fact that it was a time of +financial stringency and only a few exporting firms could get the money +necessary to carry on the business. The export value of grain, the +farmers had figured, should be its value in the world's markets, less +the cost of delivering it. By engaging in the export business, +obtaining their cable offers regularly from the Old Country, they felt +that their competition would be a factor in governing the prices paid +the farmer, thereby benefiting every farmer in the West. + +That this had been accomplished the shareholders of the trading company +were convinced. Therefore, instead of losing their heads as well as +this large sum of money, they examined the situation coolly and sanely, +making up their minds that the loss was due to the grain going out of +condition because of the unusual weather which had characterized the +season. No doubt the executive and directors had been handicapped by +their lack of knowledge as to the methods and manner in which the +export business was done; but that was to be expected and only by +experience could they learn. + +"Can the export part of our business be developed successfully with a +little more time?" asked the farmers. + +"Yes, we believe so," replied their officers. + +"That's all we want to know. Write a cheque to cover this loss, +reorganize the Export Company and stick to it." + +This faith in their officers, in themselves and in the cause they had +at heart was justified within the next two seasons when success was +achieved with the subsidiary concern and the farmers were able to +congratulate themselves that they had been sufficiently level-headed +not to allow themselves to be stampeded from the exporting field +altogether to the great weakening of their influence. + +The accomplishments of the Grain Growers in marketing their own grain +cannot be dismissed with careless gesture. Their severest critic must +admit that the manner in which the farmers conducted themselves in the +face of the situation that threatened entitles them to respect. + + + + +CHAPTER XIX + +MEANWHILE, IN SASKATCHEWAN-- + +An old man on the point of death summoned his sons around him to give +them some parting advice. He ordered his servants to bring in a faggot +of sticks, and said to his eldest son: Break it. The son strained and +strained, but with all his efforts was unable to break the bundle. The +other sons also tried, but none of them was successful. Untie the +faggots, said the father, and each of you take a stick. When they had +done so, he called out to them: Now break; and each stick was easily +broken. You see my meaning, said their father. Let affection bind you +to one another. Together you are strong; separated you are +weak.--_Aesop_. + + +Eventful years, these through which the Grain Growers of Western Canada +were passing. While the Grain Growers' Grain Company was undertaking +the initial experiments in co-operative purchasing of farm supplies, +showing the Manitoba Government that farmers could run elevators +satisfactorily and fighting its way forward to success in the exporting +field, how were things getting along in Saskatchewan? With $52,000 and +another four or five hundred in loose change tucked away in its hip +pocket as the net profit of its first season's operations the new +system of co-operative elevators had struck out "on a bee line" for +Success and was swinging along at a steady gait, full of confidence. +The volume of business handled through these elevators the first year +had been affected by the failure of the contractors to finish +construction of all the elevators by the dates specified. Even so, the +new company had handled 3,261,000 bushels of grain, more than half of +it being special binned. + +In planning to build eighty-eight new elevators in 1912 and to purchase +six, thereby bringing the total to 140 co-operative elevators, the +directors thought it wise to form a construction department of their +own instead of relying upon outside contractors. Also it was decided +to open a commission department of their own at Winnipeg, the volume of +business in sight being very encouraging. This move was not made, +however, because of any dissatisfaction with the Grain Growers' Grain +Company's services as selling agent; on the other hand, although crop +conditions had been perhaps the most unfavorable in the history of +Saskatchewan and the grain with its diversity of grades therefore very +difficult to market satisfactorily, the Board of Directors acknowledged +in their annual report that the wisdom of the arrangement with the +Grain Growers' Grain Company had been proved by the satisfactory +working of it. + +The volume of business handled by the 137 elevators in operation the +second year jumped to 12,900,000 bushels with a net profit of +approximately $168,000, and it was apparent that the general acceptance +of the co-operative scheme throughout the province would mean +organization upon a large scale. This was emphasized during the 1913 +grain season when 192 elevators were in operation and about 19,500,000 +bushels of grain were hauled in to the co-operative elevators by +farmers. + +This rapid expansion of the Saskatchewan Co-Operative Elevator Company +was entailing such an increase in staff organization that it became +necessary to provide special office accommodation. Accordingly a site +for a permanent building of their own was purchased in 1914 at Regina +and the following year a modern, fireproof building was erected. It +stands two storeys on a high basement, with provision for additional +storeys, occupies a space of 9,375 square feet, has interior finish of +oak and architecturally it is a matter of pride to the farmers who own +it. This building has become the headquarters of the Saskatchewan +Co-Operative Elevator Company and likewise the Saskatchewan Grain +Growers' Association, the offices of the latter occupying the entire +top floor. + +While the erection of this building afforded visible proof of financial +progress the Saskatchewan farmers were warned by the directors and the +general manager of the "Co-Op" that co-operation which was allowed to +degenerate into mere production of dividends would but reproduce in +another form the evil it was intended to destroy. The ideal of service +was the vital force which must be kept in mind and the work of the +Grain Growers' Association in fostering this ideal must be encouraged. + +"The Association has its great work of organization, education and +agitation," stated Charles A. Dunning, the elevator company's manager, +"and the company the equally great work of giving practical effect to +the commercial and co-operative ideals of the Association, both +institutions being branches of one united Farmers' Movement having for +its object the social and economic uplift of the farming industry." + +Not a little of the early success of the Saskatchewan Co-Operative +Elevator Company was due to the energy and business ability which +Dunning brought to bear upon its organization and development. The +story of this young homesteader's rise from the ranks of the Grain +Growers is worth noting. It was back in 1902 that he first reached the +West--a seventeen-year-old Englishman, "green" as the grass that grew +over there in Leicester. He did not know anything then about the +historic meeting of pioneer grain growers which Motherwell and Dayman +had assembled not long before at Indian Head. He was concerned chiefly +with finding work on a farm somewhere and hired out near Yorkton, +Saskatchewan, for ten dollars a month. After awhile he secured one of +the Government's 160-acre slices of homestead land and proceeded to +demonstrate that oxen could haul wheat twenty-five miles to a railway +if their driver sat long enough on the load. + +There came a day when Dunning, filled with a new feeling of +independence, started for Yorkton with a load of wheat and oats. It +was along towards spring when the snow was just starting to go and at a +narrow place in the trail, as luck would have it, he met a farmer +returning from town with an empty sleigh. In trying to pass the other +fellow Dunning's sleigh upset. While helping to reload the farmer +imparted the information that oats were selling for eight cents and all +he had been able to get for his wheat was something like thirteen cents +in Yorkton the day before! The young Englishman's new feeling of +"independence" slid into his shoe-packs as he stared speechless at his +neighbor. Right-about went his oxen and back home he hauled his load, +angry and dismayed and realizing that something was wrong with Western +conditions that could bring about such treatment. + +When a branch of the Grain Growers' Association was formed at +Beaverdale, not far from his homestead, it is scarcely necessary to say +that young Dunning joined and took an active part in the debates. +Finally he was chosen as delegate for the district at the annual Grain +Growers' convention at Prince Albert on condition that he could finance +the trip on $17.50. The story is told that Dunning figured by making +friends with the furnace man of one of the hotels he might be allowed +to sleep in the cellar for the week he would be in Prince Albert and +manage to get through on this meagre expense fund! At any rate he did +find a place to lay his head and, if reports be true, actually came +back with money in his pocket. + +It was at this convention that the young man first attracted attention. +The delegates had deadlocked over a discussion in regard to a scheme +for insuring crops against hailstorms in Saskatchewan, half of them +favoring it and half opposing it. The young homesteader from +Beaverdale got up, ran his fingers through his pompadour and outlined +the possibilities of co-operative insurance which would apply only to +municipalities where a majority of the farmers favored the idea. He +talked so convincingly and sanely that the convention elected him as a +director of the Association and later when the co-operative elevator +scheme was broached he was elected vice-president of the Association +and the suggestion was made that he undertake the work of organizing +the new elevator concern. Incidentally, the man who suggested this was +E. A. Partridge, of Sintaluta--the same Partridge who had fathered the +Grain Growers' Grain Company and who already had located T. A. Crerar, +of Russell, Manitoba. + +Out of Dunning's suggestion at Prince Albert grew the Saskatchewan Hail +Insurance Commission which was recommended to the Provincial Government +by the Association in 1911 and brought into operation the following +year. The legislation provided for municipal co-operative hail +insurance on the principle of a provincial tax made operative by local +option. Twenty-five or more rural municipalities having agreed to join +to insure against hail the crops within the municipalities, authority +would be granted to collect a special tax--not to exceed four cents per +acre--on all land in the municipalities concerned. Administration +would be in the hands of the Hail Insurance Commission, which would set +the rate of the special tax. All claims and expenses would be paid +from the pooled fund and all crops in the respective municipalities +would be insured automatically. If damage by hail occurred insurance +would be paid at the rate of five dollars per acre when crop was +destroyed completely and _pro rata_ if only partially destroyed. This +co-operative insurance scheme was instituted successfully in the fall +of 1912, soon spread throughout Saskatchewan and was destined +eventually to carry more than twenty-five million dollars of hail +insurance. + +Shortly after the launching of co-operative hail insurance the +discussions among the Saskatchewan farmers in regard to the +co-operative purchasing of farm commodities for their own use came to a +head in a request to the Provincial Government for the widening of +charter powers in order that the Association might organize a +co-operative trading department. In 1913 authorization to act as a +marketing and purchasing agent for registered co-operative associations +was granted and next year the privilege was extended to include local +grain growers' associations. + +Thus the Trading Department of the Saskatchewan Grain Growers' +Association takes the form of a Central Office, or wholesale body, +through which all the Locals can act collectively in dealing with +miners, millers, manufacturers, etc. The Central sells to organized +Locals only, they in turn selling to their members. The surplus +earnings of the Central are distributed to the Locals which have +invested capital in their Central, such distribution being made in +proportion to the amount of business done with the Central by the +respective Locals. + +During its first season of co-operative purchasing the Association +handled 25,000 tons of coal and in a year or two there was turned over +in a season enough binder twine to bind fifty million bushels of +grain--about 4,500,000 pounds of twine. When the Western potato crop +failed in 1915 the Association imported four and one-half million +bushels of potatoes for its members, cutting the market price in some +cases a dollar per bushel. Flour, apples, cord-wood, building +supplies, vegetables and groceries likewise were purchased and +distributed co-operatively. The savings effected by the farmers cannot +be tallied alone from actual quantities of goods thus purchased through +their own organization but must include a large aggregate saving due to +reduction of prices by outside dealers. + +Such commodities as coal and flour being best distributed through local +warehouses, it is likely that eventually the Saskatchewan Co-Operative +Elevator Company will take a hand in helping the Association and the +Locals with the handling of co-operative supplies by furnishing the +large capital investment needed to establish these warehouses. + +The necessary financial strength to accomplish this is readily +conceived to be available after a glance at later developments in +Saskatchewan. The co-operative elevators now exceed 300. The figures +for the season of 1915-16 show a total of more than 39,000,000 bushels +of grain handled with an additional 4,109,000 bushels shipped over the +loading platforms. Without deducting war-tax the total profit earned +by the Saskatchewan company within the year was in the neighborhood of +three-quarters of a million dollars. The Saskatchewan Co-Operative +Elevator Company in 1916 began building its own terminal elevator at +Port Arthur with a capacity of 2,500,000 bushels. By this time there +were 18,000 shareholders with a subscribed capital of $3,358,900, of +which $876,000 was paid up. + +In these later years a remarkable development is recorded also by the +Saskatchewan Grain Growers' Association until it is by far the largest +and best organized secular body in the province with over 1,300 Locals +and a membership exceeding 28,000. + +The Secretary of the Association--J. B. Musselman, himself a +farmer--has done much hard work in office and looks forward to the time +when the Locals will own their own breeding stock, assemble and fatten +their own poultry, handle and ship their eggs, operate their own +co-operative laundries and bakeries, kill and cure meat in co-operative +butcher-shops for their own use--have meeting places, rest rooms, town +offices, libraries, moving-pictures and phonographs with which to +entertain and inform themselves. To stand with a hand on the hilt of +such a dream is to visualize a revolution in farm and community +life--such a revolution as would switch much attraction from city to +country. + +Whatever the future may hold in store, the fact remains that already +much valuable legislation has been secured from the Government of +Saskatchewan by the farmers. Perhaps in no other province are the +Grain Growers in as close touch with the Government, due to the nature +of the co-operative enterprises which have been launched with +Government support financially. Three members of the cabinet are men +who have been identified closely with the Grain Growers' Movement. +Hon. W. R. Motherwell has held portfolio as Minister of Agriculture for +many years. Hon. George Langley, Minister of Municipal Affairs, helped +to organize the farmers of Northern Saskatchewan in the early days. +Finally in 1916 C. A. Dunning[1] resigned as general manager of the +Saskatchewan Co-Operative Elevator Company to become the youngest +Provincial Treasurer in Canada; for already the Saskatchewan Government +had called upon him for service on two official commissions to +investigate agriculture and finance in most of the European countries +and his services were valuable. + +Langley has been a prominent figure in Saskatchewan affairs ever since +his arrival in the country in 1903. He was forty-one years old when he +came and he brought with him long training as a public speaker, a +knowledge of human nature and a ready twinkle in his eye for everything +humorous. According to himself, his first job was chasing sparrows +from the crops. After leaving the English rural life in which he was +reared, he had worked on the London docks and as a London business man. +In politics he became a disciple of the Cobden-Bright school and was +one of the first members of the Fabian Society under the leadership of +the redoubtable Bernard Shaw. It was Langley's habit, it is said, to +talk to London crowds on side thoroughfares, standing on a soap-box and +ringing a hand-bell to attract attention. + +In becoming a Western Canadian farmer it did not take him long to slip +around behind the problems of the farming class; for there was no +greater adept at poking a cantankerous problem about with a sharp stick +than the Honorable George. It was natural for this short, stout, +bearded Englishman to gravitate into the first Legislature of the +newly-formed Province of Saskatchewan and just as naturally he moved up +to a place in the cabinet. + +As one of the sponsors of the co-operative elevator scheme, by virtue +of his place on the commission which recommended it, Langley has taken +much interest in the co-operative activities of the farmers and on many +occasions has acted as their spokesman. + +With the relationships outlined it was to be expected that now and then +opponents would hint that the Saskatchewan authorities had played +politics with the farmers. Such charges, of course, are refuted +indignantly. Knowing the widespread desire among the farmers +themselves to keep free from political alliances, it would be a foolish +government indeed which would fail to recognize that not to play +politics was the best kind of politics that could be played. + +Other leaders of sterling worth have contributed to the acknowledged +success of co-operation in Saskatchewan, not forgetting John A. Maharg +who came from Western Ontario in 1890 to settle near Moose Jaw. From +the very beginning J. A. Maharg has worked for the cause of the +farmers. A pioneer himself, he has a deep understanding of the Western +Canadian farmers' problems and his devotion to their solution has +earned him universal appreciation among the Grain Growers of +Saskatchewan. Year after year he has been elected to the highest +office in the gift of the Association. He has been President many +times of both the Saskatchewan Grain Growers' Association and the +Saskatchewan Co-Operative Elevator Company. + +The Grain Growers' Movement, then, in this Province of Saskatchewan +where it had its beginning, has grown to wonderful proportions with the +passing of the years. Co-operation has been a pronounced success. The +old conditions have passed far back down the trail. The new order of +things has been fought for by men who have known the taste of smoky +tea, the sour sweat of toil upon the land, the smell of the smudge +fires on a still evening and the drive of the wind on the open plain. +Out of the pioneer past they have stepped forward to the larger +opportunities of the times--times which call for clear heads and wise +vision. + +For as they build for the future so will the Sons of the Movement watch +and learn. + + + +[1] The Union Government at Ottawa decided in February, 1918, to +replace the office of Food Controller by the Canada Food Board, +organized as a branch of the Dominion Department of Agriculture under +Hon. T. A. Crerar. Hon. Charles A. Dunning was selected as Director of +Production. The other members of the Canada Food Board were: H. B. +Thomson, Chairman and Director of Conservation; J. D. McGregor, +Director of Agricultural Labor. (Mr. McGregor resigned after a year in +office.) + + + + +CHAPTER XX + +WHAT HAPPENED IN ALBERTA + + Beyond the fields we plough are others waiting, + The fallows of the ages all unknown. + Beyond the little harvests we are reaping + Are wider, grander harvests to be grown. + --_Gerald J. Lively._ + + +Out in the great Range Country all this time the United Farmers were +lickety-loping along the trail of difficulties that carried their own +special brand. The round-up revealed increasing opportunities for +service and one by one their problems were cut out from the general +herd, roped, tied and duly attended to for the improvement of +conditions in Alberta. Here and there a difficulty persisted in +breaking away and running about bawling; but even these finally were +coralled. + +Along with the Grain Growers of Manitoba and Saskatchewan the United +Farmers of Alberta had campaigned consistently for government ownership +of elevators, both provincial and terminal. They had received +assurance from Premier Rutherford that if a satisfactory scheme could +be evolved, the Provincial Government was prepared to carry out the +establishment of a line of internal elevators in Alberta. It looked as +if all that remained to be done was to follow the lead of Manitoba or +Saskatchewan. + +But on careful consideration neither of the plans followed in the other +two provinces appeared to fit the special needs of the Alberta farmers. +The province at the western end of the grain fields accordingly +experienced quite a delay in obtaining elevator action. + +In the meantime the discussion of terminal storage facilities was going +on at Ottawa. The need for such facilities at Calgary and Vancouver +was pressed by the Alberta representatives on various farmer +delegations and finally the Dominion Government declared its intention +of establishing internal elevators with full modern equipment at Moose +Jaw and Saskatoon in Saskatchewan and at Calgary in Alberta; a Dominion +Government terminal elevator at the Pacific Coast likewise was on the +programme. + +By this time the government operation of the Manitoba elevators had +proved a complete failure and they had been leased by the Grain +Growers' Grain Company. In Saskatchewan, however, the co-operative +elevators were proving successful. + +A close study of the co-operative scheme adopted in the province just +east of them enabled the United Farmers of Alberta to work out a plan +along similar lines. This was presented to the Premier, whose name +meanwhile had changed from Rutherford to Sifton. The Act incorporating +the Alberta Farmers' Co-Operative Elevator Company, Limited, was +drafted in the spring of 1913 and passed unanimously by the +Legislature. The new company held its first meeting in August, elected +its officers[1] and went to work enthusiastically. + +It had been decided by the United Farmers that full control and +responsibility must rest in their own hands. They proposed to provide +the means for raising at each point where an elevator was built +sufficient funds to finance the purchase of grain at that point from +their own resources, at the same time providing for the handling of +other business than grain. + +Under the Act the Provincial Government made cash advance of +eighty-five per cent. of the cost of each elevator built or bought by +the Company, but had no say whatever as to whether any particular +elevator should be bought or built at any particular place, what it +should cost or what its capacity or equipment should be. In security +for the loan the Government took a first mortgage on the elevator and +other property of the Company at the given point. The loans on +elevators were repayable in twenty equal annual instalments. + +The Company started off with the organization of forty-six Locals +instead of the twenty which the Act called for and the construction of +forty-two elevators was rushed. Ten additional elevators were bought. +Although construction was not completed in time to catch the full +season's business the number of bushels handled was 3,775,000, the +Grain Growers' Grain Company acting as selling agent. By the end of +the second year twenty-six more elevators had been built and the volume +of grain handled had expanded to 5,040,000 bushels. + +Now, this progress had been achieved in the face of continuous +difficulties of one kind and another. Chief of these was the attempt +to finance such a large amount of grain upon a small paid-up capital. +The Company found that after finishing construction of the elevators +they had no money with which to buy grain nor any assets available for +bank borrowings. It was impossible to obtain credit upon the unpaid +capital stock. The Provincial Government was approached for a +guarantee of the account along the lines followed in Saskatchewan; but +the Government refused to assume the responsibility. + +It was at this juncture that the enemies of co-operation were afforded +a practical demonstration of the fact that they had to deal not with +any one farmers' organization but with them all. For the Grain +Growers' Grain Company stepped into the breach with its powerful +financial assistance. + +The Alberta farmers were clamoring for the handling of farm supplies as +well as grain; so that the young trading company in Alberta had its +hands more than full to organize a full stride in usefulness from the +start. The organization of the United Farmers of Alberta was growing +very rapidly and the co-operative spirit was tremendously strong +throughout the province. There was a demand for the handling of +livestock shipments and soon it was necessary to establish a special +Livestock Department. + +It will be recalled that one of the subjects in which the Alberta +farmers were interested from the first was the possibility of +persuading the Provincial Government to undertake a co-operative +pork-packing plant. Following the report of the Pork Commission upon +the matter, however, official action on the part of the authorities had +languished. The various committees appointed from year to year by the +United Farmers gradually had acquired much valuable data and at last +were forced to the conclusion that the development of a packing +industry along co-operative lines was not so simple as it had appeared +at first. Even in much older settled countries than Alberta the +question, they found, had its complications. The first thing to +discover was whether the farmers of a community were able and willing +to adjust themselves to the requirements of an association for shipping +stock together in carload lots to be sold at the large markets. Until +such demonstration had been made it seemed advisable to defer the +organization of a co-operative packing business. + +After the formation of the Co-Operative Elevator Company, therefore, +the Alberta farmers proceeded to encourage the co-operative shipment of +livestock on consignment by their local unions. The Livestock +Department entered the field first as buyers of hogs, handling 16,000 +hogs in the first four months. The experiment bettered prices by +half-a-cent per pound and the expansion of the Department began in +earnest the following season when nearly 800 cars of hogs, cattle and +sheep were handled. + +On top of all the other troubles of the first year the farmers lost a +valuable leader in the death of the president of the Co-Operative +Elevator Company, W. J. Tregillus. Complete re-organization of the +Executive was made and the question of his successor was considered +from every angle. It was vital that no mistake be made in this +connection and two of the directors were sent to study the business +methods and policies of the Grain Growers' Grain Company and the +Saskatchewan Co-Operative Elevator Company and to secure a General +Manager. They failed to get in touch with anyone to fill the +requirements and the management of both the other farmers' concerns +expressed grave doubts as to the wisdom of a farmers' company looking +for a manager whose training had been received with line elevator +companies and who had not seen things from the farmer's side. + +One of the remarkable features of the advance of the Farmers' Movement +has been the manner in which strong leaders have stepped from their own +ranks to meet every need. It has been a policy of the organized +farmers to encourage the younger men to apply themselves actively in +the work in order that they might be qualified to take up the +responsibilities of office when called upon. There are many +outstanding examples of the wisdom of this in the various farmers' +executives to-day; so that with the on-coming of the years there is +little danger that sane, level-headed management will pass. Several of +the men occupying prominent places to-day in the Farmers' Movement have +grown up entirely under its tutelage. + +So it turned out that in Alberta the man the farmers were seeking was +one of themselves--one of the two directors sent out to locate a +manager, in fact. His name was C. Rice-Jones. His father was an +English Church clergyman whose work lay in the slum districts of +London. This may have had something to do with the interest which the +young man had in social problems. When at the age of sixteen he became +a Canadian and went to work on various farms, finally homesteading in +Alberta, that interest he carried with him. Out of his own experiences +he began to apply it in practical ways and the Farmers' Movement drew +him as a magnet draws steel. He became identified with the Veteran +district eventually and there organized a local union. It was not long +before he was in evidence in the wider field of the United Farmers' +activities. + +Fortunately the new President and General Manager of the Alberta +Farmers' Co-Operative Elevator Company was not a man to lose his sense +of direction in a muddle of affairs. Into the situation which awaited +him he waded with consummate tact, discernment and push; so that it was +not long before his associates were pulling with him for the fullest +weight of intelligent effort. The difficulties were sorted and sifted +and classified, the machinery oiled and running true, and with a +valuable directorate at his back Rice-Jones "made good." + +The third season of the Alberta Farmers' Co-operative Elevator Company +brought the final proof that the farmers knew how to support their own +institutions. For through the 87 elevators that the farmers operated +in Alberta flowed a total of nearly twenty million bushels of grain, +with well over ten and one-quarter million bushels handled on +commission. The Livestock Department in the face of severe competition +achieved a permanent place in the livestock business of the province +with offices of its own in the stock yards at Calgary and Edmonton. By +this time livestock shipments had amounted to a value in excess of two +million dollars. The Co-Operative Department had handled farm supplies +to a total turnover of approximately $750,000. + +As in the case of the Grain Growers' Grain Company and the Saskatchewan +Grain Growers' Association's trading department the list of articles +purchased co-operatively by the Alberta farmers grew very rapidly to +include flour, feed, binder twine, coal, lumber and fence posts, wire +fencing, fruit and vegetables, hay, salt, etc. In 1915-16 a thousand +cars of these goods were purchased and distributed co-operatively, +besides which a considerable volume of business was done in +less-than-carload lots. Coal sheds were built in connection with many +elevators, the staff increased and the entire Co-Operative Department +thoroughly organized for prompt and satisfactory service. + + + +[1] See Appendix--Par. 13. + + + + +CHAPTER XXI + +IN THE DRAG OF THE HARROWS + + "I see the villain in your face!" + "May it plaze yer worship, that must be a + personal reflection, sure." + --_Irish Wit and Humor (Howe)._ + + +The "good old days" when the Farmer was a poor sheep without a +shepherd, shorn to the pink hide with one tuft of wool left over his +eyes--those "good old days" are gone forever. It is some time now +since he became convinced that if a lion and a lamb ever did lie down +together the lamb would not get a wink of sleep. As a matter of +survival he has been making use of the interval to become a lion +himself and the process has been productive of a great roaring in the +Jungle. + +All this co-operative purchasing of commodities in the three Prairie +Provinces has not been developed to its present great volume without +arousing antagonism in the business world. The co-operative idea in +merchandizing is not confined to the West by any means. From the +Atlantic to the Pacific various organizations have been formed to carry +on business along co-operative lines. A Co-Operative Union has been +formed to propagate the movement and the subject is vast. + +But the establishment of an extending network of elevators under the +control of the Western farmers has brought about possibilities which +threaten to revolutionize the whole established commercial system. +Farmers' Elevators in Dakota, Minnesota and Alberta have proved that it +is practical to utilize the same staff at each point to manage the +distribution of farm supplies as well as looking after elevator +operation during the grain season. This being so, it is not difficult +to visualize a great distributing system under centralized management +with tremendous purchasing power. + +There are those whose imaginations stretch readily to the extreme view +that the Grain Growers are a menace. Such are filled with foreboding. +They see the country merchant out of business and the whole business +fabric destroyed. + +"The farmers are talking everlastingly about 'a square deal,'" it is +argued. "Why don't they practice what they preach and give the country +merchant a square deal? What about the times of poor crops and money +scarcity? Where would the farmer have been if the country merchant had +not carried him on the books for the necessities of life?" + +"It didn't cost the merchant anything to carry me," denies the farmer. +"He just raised his prices to me and got credit from the wholesaler." + +"Then what about the wholesaler?" + +"Raised his prices and got credit from the manufacturer and the bank." + +"Then the banks----" + +"Refused to give me the credit in the first place!" interrupts the +farmer resentfully. "Do you dare to blame me, Mister, for cutting out +all these unnecessary middle charges when by proper organization I am +able to finance myself and take advantage of cash discounts on the cost +of living?" + +That is the Farmer's motive for taking action. He wants to improve his +scale of living for the sake of his family. By making the farm home a +place of comfort his sons and daughters will be more content to remain +on the land. He does not seek to hoard money; he intends to spend it. +If middlemen are crowded out of his community it will be because there +are too many of them. Instead of having to support parasites the +community will be just that much more prosperous, the farms just that +much better equipped, the land just that much more productive and +thereby the country's wealth just that much greater. + +That is how it appears to the Farmer. + +"If the Farmer is to be a merchant, a wholesaler, a banker and all the +rest of it he is no longer a farmer. Is nobody else to have a right to +live?" enquires the Cynic. "Did these Grain Growers fight the elevator +combine of the early days in order that they could establish a Farmers' +Combine? Is one any better than the other?" + +The inference is that the Grain Growers are bluffing deliberately and +aiming at all the abuses conjured by the word, "combine." The slander +is self-evident to anyone who examines the constitution of the Farmers' +Movement, so framed from the first that any possibility of clique +control was removed for all time. It is impossible to have a "combine" +of fifty thousand units and maintain the necessary appeal to the +cupidity of the individual. It is not possible for designing leaders, +if such there were, to take even the first step in manipulation without +discovery. It simply cannot be done. Woe betide the man who even +exhibited such tendencies among his fellow Grain Growers! These +organized farmers have learned how to do their own thinking and every +rugged ounce of them is assertive. They are not to be fooled easily +nor stampeded from their objective. And what is that objective? + +"To play politics!" explodes the hidebound Party Politician knowingly. + +"To get a share in the Divvy and eventually hog it!" suggests the +Financial Adventurer. + +"Equal opportunities to all; special privileges to none," the Grain +Grower patiently reiterates. + +He believes in doing away with "the Divvy" altogether. He believes +that "the spoils system" is bad government and that no stone should be +left unturned to elevate the living conditions of the Average Citizen +to the highest possible plane. He believes that the status of a nation +depends upon the status of its Average Citizen and in that he does not +consider himself to be preaching Socialism but Common Sense. + +Come back to the country store--to the Country Retailer who is pulling +on the other end of the whiffle-tree with the Farmer for community +progress. Each is necessary to the other and it is a vital matter if +the co-operation of the Farmer is going to kill off a teammate, +especially when tandeming right behind them are the Clydesdales of +Commerce, the Wholesaler and the Manufacturer. With the Farmer kicking +over the traces, the Retailer biting and squealing at the Wholesaler +every little while and the Manufacturer with his ears laid back flat +this distribution of merchandize in Western Canada is no easy problem. +It is bringing the Bankers to their aristocratic portals all along the +route and about the only onlooker who is calm and serene is the +Mail-Order Man as he passes overhead post-haste in the Government +flying machine. + +"I'd get along alright if the Farmer would pay up his debts to me," +cries the Retailer. "I've been giving him too long a line of credit +and now he's running rings around me and tying me up in a knot. When +he gets some money he goes and buys from my competitors for cash or he +buys more land and machinery. If I shorten the rope he busts it and +runs away!" + +"I'd be alright if everybody else would mind their own business," +grumbles the Wholesaler. "Just trot along there now! Pay your bills, +Farmer. Improve your service, Retailer. Don't ask me about high or +low tariff. I've got my hands full with established lines and it's my +business to supply them as cheaply as is consistent with quality. I +want to see everybody succeed and it isn't fair to include me in any +mix-up. Only the humming of that confounded flying-machine up +there--Can't somebody bring down that Mail-Order bird? He isn't paying +his share of the taxes while I've helped to finance this country." + +"We shall come rejoicing, bringing in the sheaves," sings the +Manufacturer. "Giddap, Dobbin!" + +"'Money makes the mare go,'" quotes the Finance Minister, taking +another look out of the window at the War Cloud. "'Money comes from +the Soil,'" and he push-buttons a buzz-bell over in the Department of +Agriculture. + +"Send out the choir and let's have that 'Patriotism and Production' +song again," is the order issued by some deputy sub-chief's assistant +in response to the P. M.'s signal. "We must encourage our farmers to +even nobler efforts." + +And all the while the Unearned Increment loafs around, studying the +Interest Charges which are ticking away like a taxicab meter, and the +"Common Pee-pul" gaze in frozen fascination at the High Cost of Living +flying its kite and climbing the string! + +Seriously, though, the situation demands the earnest thought of all +classes. The argument has so many facets that it is impossible within +the limits of a few pages to present an adequate conception of all the +vital problems that surround the Farmers' Movement. Each interest has +its own data--packages of it--and it is difficult to know what to +select and what to leave out and at the same time remain entirely fair +to all concerned. There is some truth in many of the accusations which +are bandied about. No new country can do without credit facilities. +What about the homesteader or the poorer farmer who is starting on +meagre resources? They will win through if given a chance. Who is to +give it to them if business is put on a cash basis? On the other hand, +is the man who has the cash to receive no consideration? + +The trouble with our banks is that their system falls down when the +retailer or the farmer need them most--in times of stringency. It is +true that the wholesaler has done much for the country, that the +retailer is often at the mercy of careless or selfish customers who +abuse credit privileges. It is true that the mail-order houses also +have performed good services in the general task of making a new +country. The solution can be arrived at only by co-operation in its +true sense--getting together--everybody. Also, while one may joke +about "Patriotism and Production," the fact remains that much has been +accomplished by these campaigns. + +Asked if the organization of the farmers meant that the retailer would +be forced out of business, the well posted Credit Manager of a large +Winnipeg wholesale establishment admitted that it would not mean that +necessarily. + +The same question put to C. Rice-Jones, President and Manager of the +Alberta Farmers' Co-Operative Elevator Company, brought the same denial. + +"The only men who would be weeded out," said he, "are those who have +gone into the local store business without knowing anything about it +and who can remain in it only because the present system allows them to +charge any price they like. The men who know their business will +remain. Those who are objecting to us are objecting to the very thing +they have been doing themselves for fifty years--organizing." + +"We want to farm, not to go into business," remarked H. W. Wood, +President of the United Farmers of Alberta. "The local merchant gives +us a local distribution service, a service which has to be given. We +cannot destroy one single legitimate interest. But if there are four +or five men living by giving a service that one man should give in a +community and get just a living--that is what we are going to correct +and we are absolutely entitled to do so. The selfishness we are +accused of the accusers have practiced right along and these very +things make it necessary for us to organize for self-protection. If +they will co-operate with us to put their business on a legitimate +basis we are willing to quit trying to do this business ourselves." + +That is straight talk, surely. It is a challenge to the business men +to meet the farmers half way for a better understanding. No problem +ever was solved by extremists on either side. Enmity and suspicion +must be submerged by sane discussion and mutual concessions bring about +the beginnings of closer unity. + + + + +CHAPTER XXII + +THE WIDTH OF THE FIELD + + Our times are in His hand + Who saith, "A whole I planned, + Youth shows but half; trust + God; see all, nor be afraid." + --_Robert Browning._ + + +The Grain Growers' Movement in Western Canada now had attained +potential proportions. In Saskatchewan, Manitoba and Alberta the +Provincial Associations with their many Locals were in a flourishing +condition. Each province was headquarters for a powerful farmers' +trading organization to market grain and provide co-operative supplies. +Unlike the Saskatchewan Co-Operative Elevator Company and the Alberta +Farmers' Co-Operative Elevator Company, however, the pioneer business +organization of the Grain Growers--the Grain Growers' Grain +Company--was not provincial in scope but had a large number of +shareholders in each of the three Prairie Provinces, in British +Columbia and Ontario. Altogether, in 1916 the farmers owned and +operated over 500 country elevators as well as terminal elevators to a +capacity of three million bushels. The farmer shareholders in the +three business concerns numbered more than 45,000. During 1916 the +farmers handled over ninety million bushels of their own grain. + +With this remarkable growth the danger of rivalries and jealousies +developing between their business organizations was a possibility upon +which the farmers were keeping an eye. A certain amount of friendly +competition was unavoidable. For some time, therefore, the necessity +of closer union of their various organizations had been a serious topic +among the leaders of the Grain Growers in all three provinces. It was +the logical preparation for future achievements. + +At its regular meetings in 1915 the Canadian Council of +Agriculture--comprising officials representing the whole Grain Growers' +Movement--had agreed that definite action would be desirable. A +meeting of representatives from the respective Associations and +companies interested accordingly was held in the offices of the +Saskatchewan Co-Operative Elevator Company at Regina. The plan +discussed was the formation of one large business concern, similar in a +general way to the Wholesale Co-Operative Societies in the Old Country. + +The idea was that this wholesale company should market and export +grain, control terminal elevators and any manufacturing that might be +done later on as well as importing supplies when necessary. This would +leave each provincial company with its own organization to look after +collection and distribution of supplies and to operate along the lines +already existing in Saskatchewan and Alberta. The provincial companies +would be in absolute control of the central or wholesale company. + +A difference of opinion arose in regard to the method of selling grain. +The representatives from the United Farmers of Alberta, the Alberta +Farmers' Co-Operative Elevator Company, the Manitoba Grain Growers' +Association and the Grain Growers' Grain Company were unanimous in +agreeing that it would be unwise to divide the marketing strength of +the farmers into three parts instead of concentrating for fullest +buying and selling power in the interest of the farmers in all three +provinces. With the individual organizations each having a voice in +the control of the central company there did not seem to them to be +justification for carrying provincial divisions into the marketing +machinery, thereby weakening it. With this view the Saskatchewan +representatives could not agree, holding out for a separate selling +channel for Saskatchewan grain. + +A committee was appointed to try to work out some other solution to the +problem of federating all three farmers' companies and a new proposal +was submitted at a meeting of the Canadian Council of Agriculture, held +in Winnipeg in July, 1916. This second attempt to get together was +along the line of joint ownership of subsidiary concerns which would +look after certain phases of the work--an export company, a terminal +elevator company, the Public Press, Limited, and so on. However, the +plan did not work out satisfactorily. + +The feeling of the Alberta officials after the Regina meeting was that +even if Saskatchewan were not ready at the present time to consider +federation on a basis acceptable to the other provinces, this should +not overthrow all idea of federation. In short, the Alberta directors +were strongly of the opinion that, failing complete affiliation of the +farmers' business organizations at this time, the organization in +Alberta and the Grain Growers' Grain Company should get together +nevertheless, and this suggestion they presented at the meeting of the +Canadian Council of Agriculture in Winnipeg. + +As this was approved by the Grain Growers' Grain Company and the +Manitoba Association officials steps were taken to go into the matter +in detail, the Saskatchewan organization having signified its intention +of withdrawing from present action. President C. Rice-Jones, of the +Alberta Farmers' Co-Operative Elevator Company, and President T. A. +Crerar, of the Grain Growers' Grain Company, were asked to give the +matter careful thought and make their recommendations to their +respective boards of directors. + +There followed a joint meeting of all those interested. It was held at +Winnipeg and the result was a recommendation that the Alberta Farmers' +Co-Operative Elevator Company and the Grain Growers' Grain Company be +amalgamated under the name "United Grain Growers, Limited." [1] When +the matter finally came before the farmers concerned--at their annual +meetings in 1916--it was decided unanimously to go ahead with the +amalgamation of these two farmers' business organizations. + +Accordingly application was made for necessary changes in the charter +of the Grain Growers' Grain Company and these changes were granted by +Act of the Dominion Parliament in June, 1917. The authorized capital +stock of United Grain Growers is five million dollars. Its annual +meetings are to be held in the different provinces alternately. The +shareholders are formed into local groups, each represented by +delegates at annual meetings, these delegates alone doing the voting. +Proxy voting is not allowed. The charter is designed, in brief, to +introduce the system of internal government that has been in practice +by the Alberta Farmers' Co-Operative Elevator Company and the +Saskatchewan Co-Operative Elevator Company and has proved so +satisfactory in every way. + +This "merger" is unique in that the objections to a monopoly cannot be +urged against it. There is no watered stock. With proxy voting +eliminated no group of men can gain control of the company's affairs. +Stock holdings by individuals is limited to $2,000 on a capitalization +of five million and no man can grow rich by speculation with assets. +Instead of exploiting the public the aim is service--reduction of +prices instead of inflation. + +United Grain Growers, Limited, have begun their first year's business +as an amalgamated farmers' concern, all the final details having been +settled to the entire satisfaction of the farmers interested. + +The fact that the Saskatchewan Grain Growers' executives did not decide +to amalgamate their co-operative marketing machinery with that of the +others just now must not be misconstrued as a lack of harmony among the +leaders of these powerful institutions. For they are meeting +constantly in their inter-provincial relations, for mutual business +advantages and in the broader educational aspects of the entire +Movement. + +It will be seen that with such complete and solid business resources +established in the three Prairie Provinces the organized farmers have +been in a position to widen their field of influence and to carry on +much propaganda work. The Movement has spread steadily until it +embraces organization in other than prairie provinces. There seems to +be a tendency among the entire agricultural population of Canada to +organize and co-operate; so that it is not impossible for Canadian +farmers in time to have a unity of organization in every province of +the Dominion. + +In Ontario for many years there have been various farmers clubs, +associations or granges. Until 1914 these were merely disorganized +units. At the annual meeting of the Dominion Grange, however--December +17th and 18th, 1913--the advisability of consolidating for greater +co-operation was discussed at some length. Representatives from the +Western Grain Growers were present and told the story of what the +Western farmer had accomplished. A committee[2] was appointed and, +after investigating rural conditions in Ontario, this committee called +a convention for March 19th and 20th, 1914, at Toronto. Farmers and +fruit growers turned out in strength, old-time organization was cast +aside and there came into being the "United Farmers of Ontario," [2] +and the "United Farmers' Co-Operative Company, Limited," [3] with aims +and organization similar to those of the Grain Growers. + +Although practically born during the war--although conditions have been +far from normal, the United Farmers of Ontario have progressed steadily +and naturally, with the co-operative activities setting the pace and +with efficient service as the watchword. By 1915 there were 126 local +associations with a total membership of 5,000. In the face of bad +climatic conditions and war disturbances 1916 found the young +organization being looked upon by the Ontario agriculturists with +interest instead of suspicion. It continued to grow of its own accord. +By that is meant that no advertising or other energetic campaign was +undertaken; yet the membership increased during the year to 8,000 with +200 Locals organized throughout the province. To-day there is a total +membership in excess of twenty thousand throughout the Province. Local +conventions, addressed by Western leaders and other qualified speakers, +have become a feature of the development. + +The first month in business for the United Farmers' Co-Operative +Company was September, 1914, when $827 was taken in. The next month +the sales increased to $6,250, and in November to $8,214. The December +sales jumped to $17,970. The sales for 1915 approximated $226,000. In +1916 this amount was nearly doubled and during the first five months of +1917 the business done reached a total of $513,000. All this on +paid-up capital of only $5,000. The Ontario Company has secured a new +charter, increasing its authorized capital from $10,000 to $250,000. + +This expansion has been very satisfactory in view of the special +conditions which necessarily make the progress of the Movement in the +East slower than in the West. Ontario crops varying widely in +different districts, the same unity of interest which has made possible +the large grain companies of the West does not obtain. The Ontario +farmers have had to confine their efforts to commercial lines. +Co-operative sale of livestock, cheese, etc., may develop in time. +Also the farm population in Ontario is in the minority and there are +few electoral divisions where the urban vote does not control, +resulting in mixed issues unknown on the prairies. Powerful influences +have been brought to bear to handicap the Farmers' Movement in Ontario; +but nevertheless it is spreading so rapidly that with the proper +educational campaign great possibilities lie ahead of the Ontario +farmers. + +The United Farmers of Ontario now have become affiliated with the +Canadian Council of Agriculture,[4] the inter-provincial body of the +organized farmers of Canada. The farmers of Nova Scotia, Prince Edward +Island and Quebec are showing much interest and have sought to have the +Movement extended. Meetings have been held and no doubt in due course +the Eastern farmers will be prepared for unity of action in every +province. + +What about British Columbia? On February 16th, 1917, the "United +Farmers of British Columbia" was a development in the Pacific Coast +Province. Prior to this there had been quite a number of individual +farmers' organizations scattered throughout the agricultural sections +of British Columbia. The initiative for closer unity was taken by the +Cowichan Creamery Association, which called a meeting of the farmers in +the Cowichan district to discuss the cost of production and serious +labor conditions which were threatening complete failure of agriculture +in British Columbia. At this meeting what was called temporarily the +"Vancouver Island Farmers' Union" was formed with over one hundred +members. Representatives from other districts were on hand to assure +the expansion of the movement and a provisional organization +committee[5] was appointed to carry on the missionary work. + +This Provisional Committee--called into existence by a mass meeting of +farmers held at Duncan, B.C., on November 4th, 1916--at once prepared a +strong circular, setting forth the case of the farmers and the need for +organization. This was sent out to the secretaries of all Farmers' +Institutes and suggested that a special meeting of delegates should be +held at Victoria when the usual farmers' conventions were in session a +few months later. Thus came about the final large organization meeting +of February 16th, 1917, which resulted in the "United Farmers of +British Columbia," with strong membership under the guidance of +enthusiastic officers.[6] + +Representatives of the Grain Growers, from Alberta and Manitoba, were +present to lend the encouragement of their experience. Among them was +Roderick McKenzie, then Secretary[7] of the Canadian Council of +Agriculture. When the farmers commenced organization in Manitoba, he +said, it was possible to find many old-fashioned farmers who could see +no reason for organization. Had not their fathers been successful +farmers? Had they not raised a family of eight or ten or a dozen or +more without belonging to any organization?--educated them, too? These +old-time farmers forgot that the world was making progress as the years +went by and they were not living in the same age as their fathers +before them. + +"Fifty years ago, when I was a boy," Mr. McKenzie continued, "there was +no such thing as a joint stock company. We would not hear a word about +combines or trusts or transportation organizations or financial +institutions. At that time the business was carried on by individuals. +Then it grew into partnerships. From partnerships it developed into +joint stock corporations and now we have these forming into trusts and +combines and holding companies. It is simply co-operation of the few +in the interests of the few. It created a force in public affairs and +this must be met by another force--the organization of the common +people, led by the farmers. + +"Where would the British Army be as a disorganized army confronting the +Germans? Nowhere! Place a body of disorganized farmers in front of +organized industrial interests and you see where you are at! There is +no form of industry, no form of labor, no form of finance, banking +associations, loan associations, insurance compensation associations, +transportation associations, that are not organized. In Winnipeg we +have a Bootblack's Association and each of the little fellows +contributes five dollars a year to the support of their organization +and five dollars represents fifty pairs of boots to blacken at a dime +the pair. + +"In our Grain Growers' associations the organization is simple and +coherent. There is no pass-word. There is no grip. There is no +riding of the goat. We don't ask a farmer whether he is a Grit or a +Tory; we don't ask him anything about his nationality or his relations +or where he comes from or anything else. One of the main aims of the +organization is to make good Canadians of the different nationalities +we have in this Western country. We are getting the Galicians and +other nationalities gradually brought in--getting them together for the +development of Canadianism and the community spirit. + +"The one thing we have steered clear of is letting party politics enter +into our organization. The thing we are trying to do is to co-operate +with our legislators by helping them to find out the things that need +enacting into law and that have not been enacted into law or to find +what laws already on the statute books are weak and ask that these +weaknesses be corrected--not in a dominating spirit but in a spirit of +equity." + +Public opinion is rallying to the leadership of the farmers. Their +policy is progressive. Probably the first body in Canada to give Woman +her proper place in its activities and councils was the Saskatchewan +Grain Growers' Association. To-day the farm women of the West are +organized with the Grain Growers in all three Prairie Provinces, +working side by side. Their aims are to solve the many problems +directly bearing upon home life, educational facilities, health and all +things which affect the farm woman's life and they have been of great +assistance in many ways, particularly in Red Cross and other patriotic +endeavors. To do justice to the noble efforts of Western Canada's farm +women would require a separate volume. + +Still another development with far-reaching possibilities is the +tendency of the Grain Growers and the Church to get together. It first +revealed itself in Alberta under the conscientious encouragement of +President H. W. Wood, of the United Farmers of Alberta, when in 1916 he +inaugurated "U.F.A. Sunday"--one Sunday in each year to be set aside as +the Farmers' own particular day, with special sermons and services. It +was born of a realization that something is fundamentally wrong with +our social institutions and that "the Church will have to take broader +responsibilities than it is now doing." + +"Is Christ to develop the individuals and Carl Marx mobilize and lead +them?" asked Mr. Wood. "Is Christ to hew the stones and Henry George +build them into the finished edifice? If Christ cannot mobilize His +forces and build true civilization His name will be forgotten in the +earth. The solution of the economic problems must be spiritual rather +than intellectual. This is the work of the Church and the Church must +take the responsibility for it." + +Not only did the idea of a special Sunday meet with hearty response +from the churches and farmers in Alberta, but it was taken up in +Manitoba and Saskatchewan. In 1917 "Grain Growers' Sunday" was +observed all over the West and led to many inspiring addresses. One of +the most significant of these was delivered by President J. A. Maharg, +of the Saskatchewan Grain Growers' Association, at a mass meeting in +Moose Jaw on Sunday, May 27th. + +"There has been a strong agitation against church union," said Mr. +Maharg. "We hope to bring the churches together. The establishment of +community churches is not altogether an impossibility. That groups of +churches will be brought together for the holding of community services +is not altogether impossible, and a farmers' organization is not an +organization that is farthest away from doing this." + +In these days of revolutionary thought who shall set the length and +width of the Farmers' field of influence, therefore? A string of +co-related provincial organizations of farmers, stretching right across +the Dominion, working harmoniously through the Canadian Council of +Agriculture, will create a national force which in itself will +represent Public Opinion--which cannot be denied the upward trend to +wider and better citizenship for all classes in Canada. + +For Public Opinion governs legislation as legislation governs the +country. + + + +[1] See Appendix--Par. 17. + +[2] See Appendix--Par. 14. + +[3] See Appendix--Par. 15. + +[4] See Appendix--Par. 11. + +[5] See Appendix--Par. 16. + +[6] See Appendix--Par. 16. + +[7] See Appendix--Par. 18. + + + + +CHAPTER XXIII + +THE DEPTH OF THE FURROWS + + Men at some time are masters of their fates: + The fault, dear Brutus, is not in our stars, + But in ourselves, that we are underlings. + --_Julius Caesar._ + + +Because it was the logical and primary source of redress for the abuses +which led the Western farmers to organize, the Grain Growers from the +first have concerned themselves seriously with legislation. It took +them a little while to discover that instead of being an all-sufficient +panacea, mere legislation may become at times as flat and useless as a +cold pancake. But by the time the farmers had come to close quarters +with their difficulties their vision had widened so that they were able +to look ahead, clearing the path for the next step forward. So +frequently have they besought the Governments, both Federal and +Provincial, that occasionally they have been accused by harassed +politicians of "playing politics and nothing else." + +As their organizations grew and acquired knowledge it is true that +these "petitioners" who "did humbly pray" began to straighten their +backs a little, the while they wrestled with the kinks that were +bothering them from too much stooping. It was a sort of chiropractic +process for the alleviation of growing pains--the discovery of the +proper nerve to ask and receive, to seek and find. As the People grew +more accustomed to the sound of their own Voice it was only natural +that the quaver of timidity began to disappear from the tones of it and +that their speech grew stronger in the Legislative Halls dedicated to +government "of, by and for" them. The "Backbone of His Country" set +out to prove that he was not spineless, merely disjointed. And as he +gained confidence in his vertebrae the Farmer began to sit up and take +notice--began even to entertain the bold idea of getting eventually +upon his feet. + +The intention was laudable. To make it audible he assembled a +platform, stood up on it, and argued. His protests could be heard +clean to the back of the Hall. Like the young elephant whose trunk was +being stretched by the crocodile, he said: "You are hurting me!" In +the nose-pulling game of Party Politics as it too often has been +played, it sometimes takes a lusty holler to make itself heard above +all the other hollering that is going on; if getting a hearing is +"playing politics," then the Grain Growers have run up a pretty good +score. + +They began with various amendments to the Grain Act. These included +the famous "car distribution" clause, the farmer's right to a car and +his procedure to obtain it and additional cars as he needed them, the +provision of penalties for the purchase or sale of car rights, etc. +Opposition to some of these amendments was keen and the farmers had to +fight constantly; when they were not fighting for necessary amendments +they were fighting to retain those already secured. Constant vigilance +was required. Many delegations of Grain Growers visited Ottawa from +time to time to plead for improvement of conditions in handling grain, +more equitable inspection methods, government ownership and operation +of terminal facilities and so on. + +Each year the annual conventions of the various associations in +Saskatchewan, Manitoba and Alberta grew in size and importance; each +year the Grain Growers' knowledge expanded, much of it gained by +marketing experience. From these "Farmers' Parliaments" and the pages +of the _Grain Growers' Guide_ they drew inspiration for many radical +ideas and threshed them out into well defined policies. By the time +Sir Wilfrid Laurier, then Premier of Canada, ventured West in 1910 the +farmers were pretty well posted on national topics. Everywhere he went +he faced thousands of ruddy, big-fisted men who read addresses to him +and did a lot of extemporaneous talking which was no less forceful and +complete than the prepared briefs. + +Six or eight hundred of them followed him back to Ottawa in December of +that same year and laid siege to the Government on its own +stamping-ground. It was the most remarkable red-seal record of the +Voice from the Soil that hitherto had been known thereabouts. In order +that there might be no doubt as to the planks on which they stood, the +Grain Growers assembled a platform in full view of the audience. + +"We want reciprocal Free Trade between Canada and the United States in +all horticultural, agricultural and animal products," declared the +farmers; "also in spraying materials and fertilizers; illuminating, +fuel and lubricating oils; cement, fish and lumber. + +"We want reciprocal Free Trade between the two countries in all +agricultural implements, machinery, vehicles and parts of each of +these. We want it carried into effect through the independent action +of the respective Governments rather than by the hard and fast +requirements of a treaty. + +"We want the duties on all British goods lowered to one-half the rates +charged under the general tariff schedule, whatever that may be. Also, +we want any trade advantages given to the United States in reciprocal +trade relations to be extended to Great Britain. + +"We want such further gradual reduction of the remaining preferential +tariff as will ensure the establishment of complete free trade between +Canada and the Mother Land within ten years. We're willing to face +direct taxation, in such form as may be advisable, to make up the +revenue required under new tariff conditions." + +"This bunch wants the whole earth!" cried the Canadian Manufacturers +indignantly. + +"Sub-soil and all!" nodded the Railways. + +"Certainly they're plowing deep," commented the Banks. + +"To eradicate weeds," admitted the Farmers. + +"Damn it all, anyway!" worried the Politicians. + +To show that they were talking neither Tory nor Grit, the Western +farmers proceeded to waylay the Leader of the Opposition, Hon. R. L. +Borden, the following year when he in turn decided to "Go West." He, +too, came face to face with thousands of ruddy, big-fisted men and +listened to their equally plain-spoken addresses, prepared and +extemporaneous. + +And what came of it all? Did these farmers get what they wanted? + +Not yet! + +But while all this agitation of the Grain Growers one time and another +seldom has resulted in assent to their full requests, certain +compliances have been made on different occasions with beneficial +results. For instance--to mention three--the Royal Grain Commission of +1906, the permanent Grain Commission, and the Government Terminal +Elevators are an outcome of various requests and delegations of the +Grain Growers. + +Certainly the organized farmers of Western Canada have attained a +measure of self-confidence which enables them to declare themselves in +definite language. While seeking wider markets and the real value of +their products, they have been opposed always to any scheme which +accomplishes higher prices at the expense of the consumer or of the +British workman. They do not believe in import duties on food stuffs, +clothing, fuel or building material. Rather do they favor bringing +closer together the producer and consumer to the advantage of both. +They believe in cheaper money for the development of agriculture and +other industries and in such utilization of natural resources that the +homes of the people may be improved. + +They have stood consistently behind woman suffrage and the abolition of +the liquor traffic. They would adopt direct legislation through the +Initiative and Referendum. They believe in the principles of +Co-Operation in buying and selling. They have urged extension of the +parcel post system, the reduction of traffic charges to a reasonable +basis, Government control of waterways and all natural resources that +they may be developed only in the public interest. + +Does a creed like this spell class legislation? Does it indicate that +in his eagerness to improve the conditions surrounding his own life the +Grain Grower is forgetting the general welfare of the Dominion of +Canada? Listen to the doctrine which the leaders have inculcated on +every occasion--to President T. A. Crerar before the War: + +"You have a very clear-cut and distinct responsibility in supporting +the whole movement of the organized farmers in Western Canada; for this +means that you are improving not alone your own environment and +condition, but also creating the conditions and influences that will +develop a higher and purer ideal of public service upon the part of our +people than we have in Canada to-day. It should be a source of great +satisfaction that upon all important matters the policies adopted and +supported by the organized farmers in the past have been formed upon +what in their judgment would benefit the country as a whole and not +from the narrow view of selfish interest. + +"During the past ten years the people of Canada have mortgaged the +prosperity of the future to far too great an extent. Our total +borrowings as a nation, for public and private purposes, have run into +such a colossal sum that it requires about $160,000,000 annually to pay +interest on the amounts borrowed. This constitutes a very heavy task +on a country with about eight millions of a population. Manufacturing +industries have been built up with a view of developing home industry +and furnishing home markets, but often at a very heavy cost to our +agricultural development, with the result that we have been travelling +in a circle, reaching nowhere, rather than along the road that leads to +Progress. + +"We hear considerable nowadays of the necessity of a 'Back to the Land' +movement. It is necessary, however, to do a little more than get +people located on the land with a view of increasing agricultural +production. It is necessary to free agriculture from the burdens now +resting upon it and make it the first business of the country. + +"Much of our natural resources has been recklessly handled, and as a +people we are faced with the necessity of overcoming the evil effects +of our unbusinesslike methods as a nation in administering resources. +If we are to surmount our shortcomings in this respect and pay our +obligations as a nation to the outside world, we must place agriculture +throughout Canada upon a thoroughly sound and profitable basis. The +creation of wealth from our wonderfully rich natural resources, in +which agriculture stands in the forefront, is the essential thing and +should receive most consideration from our Governments--both Dominion +and Provincial. + +"We must learn to respect each other's differences and, if we do, with +the development of that democratic spirit which is now day by day +becoming more manifest in Western Canada, we need have no fear of our +usefulness as an agency in bringing about the ultimate triumph of the +principles of justice between man and man." + +Listen to President J. A. Maharg, addressing the Saskatchewan Grain +Growers' Association in 1914: + +"What is wanted is the general recognition by all classes of the +importance of Agriculture and an honest desire by them to assist in +placing it on a basis equal to that of any other industry--making it an +occupation that will draw people to it instead of driving them away. +In soliciting the aid of other classes I am not asking them to assist +us in gaining any special favors whatever; all we ask is that they +assist us to have Agriculture placed in the position its importance +entitles it to." + +Hear the President of the United Farmers of Alberta, H. W. Wood: + +"This is the day of class co-operation. That means inter-class +competition. In this competition of class against class ours is the +losing class at every turn because we have been the least organized, +the least co-operative; consequently the weakest. Before we can hope +to hold our own in this struggle we will have to bring our full +strength, thoroughly organized, to bear in protection of our rights. + +"I have an abiding faith that the organized farmers will receive that +strength, not selfishly but unselfishly in the defence of the rights of +all and for the spoliation of none. The highest ambition I have for +our organization is that it may develop along the lines of safety and +sanity, that we may hold to a steady determination to go forward +unwaveringly in our efforts till the door of hope and opportunity is as +wide open to the farmers as to any class in the world, that we may +zealously cultivate unselfish co-operation and learn to treat fairly +and justly every man and every class that is giving a useful service to +society." + +And this from the Presidential address of R. C. Henders at the last +Manitoba Grain Growers' convention: + +"In order to have legislation that will be equitable to the different +interests concerned, all of these interests should be somewhat equally +represented in the passing of such legislation. We do not desire to +minimize in any way the great commercial interests of our people, yet +we feel that the work of our associations is educational and +legislative in its character. Democratic rule requires that the +average citizen be an active, instructed and intelligent ruler of his +country and therefore the success of democracy depends upon the +education of the people along two principal lines--first, political +knowledge; second, and what is of far more importance, political +morality. Ideal government is found when we have righteous rulers +governing a people of character and intelligence. Right education is +right thinking and right thinking can only come through accurate +information." + +Now, is all this preaching of the men who are leading the farmers just +so much talk?--chaff?--prairie wind? + +If not, what lies back of it? The farmers have an organization which +meets every so-often to harmonize and crystallize the thought among +their various associations and business units. It is that same +Canadian Council of Agriculture which has been mentioned already. It +consists of the executive committees of eight farmers' co-operative, +business and educational institutions, to wit: The United Farmers of +Ontario, The United Farmers' Co-Operative Company of Ontario, The Grain +Growers' Association of Manitoba, United Grain Growers (of the entire +West), The Grain Growers' Association of Saskatchewan, The Saskatchewan +Co-Operative Elevator Company, The United Farmers of Alberta, and the +_Grain Growers' Guide_, the official organ of the whole movement. + +At a meeting of this influential body in Winnipeg in December, +1916--representing an affiliation of 60,000 farmers--a "National +Political Platform" was adopted to embrace economic, political and +social reforms not alone in the interests of the farmers but of +Canada's citizens generally. The farmers are looking for the support +of all who live in cities and towns as well as the rural districts; of +organized Labor as well as organized farmers. + +This platform was referred to the provincial organizations which stand +behind the Canadian Council of Agriculture. It was considered by each +of the provincial boards and by them referred in turn to the three +thousand local community associations into which the members are +organized. Each Local was asked to call a meeting to consider the +platform and vote upon its adoption. The next step was for the members +to give their votes and financial support only to such candidates for +the House of Commons as would pledge support of this National Platform +in its entirety and who could be relied upon as Members of Parliament +to live up to their pledges. + +And here is the National Political Platform on which the farmers stand +without equivocation: + + +THE CUSTOMS TARIFF + +WHEREAS the war has revealed the amazing financial strength of Great +Britain, which has enabled her to finance not only her own part in the +struggle, but also to assist in financing her Allies to the extent of +hundreds of millions of pounds, this enviable position being due to the +free trade policy which has enabled her to draw her supplies freely +from every quarter of the globe and consequently to undersell her +competitors on the world's markets, and because this policy has not +only been profitable to Great Britain but has greatly strengthened the +bonds of Empire by facilitating trade between the Motherland and her +overseas Dominions--we believe that the best interests of the Empire +and of Canada would be served by reciprocal action on the part of +Canada through gradual reductions of the tariff on British imports, +having for its object a closer union and a better understanding between +Canada and the Motherland, and by so doing not only strengthen the +hands of Great Britain in the life and death struggle in which she is +now engaged, but at the same time bring about a great reduction in the +cost of living to our Canadian people; + +AND WHEREAS the protective tariff has fostered combines, trusts and +"gentlemen's agreements" in almost every line of Canadian industrial +enterprise, by means of which the people of Canada--both urban and +rural--have been shamefully exploited through the elimination of +competition, the ruination of many of our smaller industries and the +advancement of prices on practically all manufactured goods to the full +extent permitted by the tariff; + +AND WHEREAS agriculture--the basic industry upon which the success of +all other industries primarily depends--is almost stagnant throughout +Canada as shown by the declining rural population in both Eastern and +Western Canada, due largely to the greatly increased cost of +agricultural implements and machinery, clothing, boots and shoes, +building material and practically everything the farmer has to buy, +caused by the protective tariff, so that it is becoming impossible for +farmers generally to carry on farming operations profitably; + +AND WHEREAS the protective tariff is the most wasteful and costly +method ever designed for raising national revenue, because for every +dollar obtained thereby for the public treasury at least three dollars +pass into the pockets of the protected interests, thereby building up a +privileged class at the expense of the masses, thus making the rich +richer and the poor poorer; + +AND WHEREAS the protective tariff has been and is a chief corrupting +influence in our national life because the protected interests, in +order to maintain their unjust privileges, have contributed lavishly to +political and campaign funds, thus encouraging both political parties +to look to them for support, thereby lowering the standard of public +morality; + +THEREFORE BE IT RESOLVED that the Canadian Council of Agriculture, +representing the organized farmers of Canada, urges that as a means of +bringing about these much needed reforms and at the same time reducing +the high cost of living, now proving such a burden on the people of +Canada, our tariff laws should be amended as follows: + +(1) By reducing the customs duty on goods imported from Great Britain +to one half the rates charged under the general tariff and that further +gradual, uniform reductions be made in the remaining tariff on British +imports that will ensure complete free trade between Great Britain and +Canada in five years. + +(2) That the Reciprocity Agreement of 1911, which still remains on the +United States statute books, be accepted by the Parliament of Canada. + +(3) That all food stuffs not included in the Reciprocity Agreement be +placed on the free list. + +(4) That agricultural implements, farm machinery, vehicles, fertilizer, +coal, lumber, cement, illuminating fuel and lubricating oils be placed +on the free list. + +(5) That the customs tariff on all the necessaries of life be +materially reduced. + +(6) That all tariff concessions granted to other countries be +immediately extended to Great Britain. + + +TAXATION FOR REVENUE + +As these tariff reductions will very considerably reduce the national +revenue derived from that source, the Canadian Council of Agriculture +would recommend that in order to provide the necessary additional +revenue for carrying on the government of the country and for the +prosecution of the war to a successful conclusion, direct taxation be +imposed in the following manner: + +(1) By a direct tax on unimproved land values, including all natural +resources. + +(2) By a sharply graduated personal income tax. + +(3) By a heavy graduated inheritance tax on large estates. + +(4) By a graduated income tax on the profits of corporations. + + +OTHER NECESSARY REFORMS + +The Canadian Council of Agriculture desires to endorse also the +following policies as in the best interests of the people of Canada: + +(1) The nationalization of all railway, telegraph and express companies. + +(2) That no more natural resources be alienated from the Crown but +brought into use only under short term leases, in which the interests +of the public shall be properly safeguarded, such leases to be granted +only by public auction. + +(3) Direct legislation, including the initiative and referendum and the +right of recall. + +(4) Publicity of political campaign fund contributions and expenditures +both before and after elections. + +(5) The abolition of the patronage system. + +(6) Full provincial autonomy in liquor legislation, including +manufacture, export and import. + +(7) That the extension of the franchise to women in any province shall +automatically admit them to the federal franchise. + + +That is the official stand of the farmers and they point out that their +political platform[1] is constructive, not destructive. The farmers +are not trying to sidestep their fair share of the expenses in +connection with government and public institutions; where they have +torn down they have rebuilt. + +Admitting that the prosperity of Western Canada is essential to our +national prosperity, it is not necessary to look far in order to +understand why the farmers have taken this definite action. Western +farmers and citizens generally are carrying extra burdens which offset +the advantages of cheap and fertile land. Interest on mortgages and +bank loans have been higher than in Eastern Canada. It is more +expensive to distribute commodities West than East. On account of the +lavish donations of Western lands to railway promoters the cost of +railway construction has borne heavily on the West. Freight rates are +about sixty per cent. higher and express rates about sixty-six per +cent. higher than in Eastern Canada. Thanks to the protective tariff, +Western people are paying high for everything they get without any +return compensation. + +"Something has to be done to lift some of these unjust burdens," say +the farmers, "if a prosperous country is to be developed West of the +Great Lakes." + +Hence this platform. The Western farmers believe in it earnestly. It +is their politics. They believe that the results which would follow +its support in the House of Commons would be of untold benefit to the +Canadian people as a whole. They will continue to believe it. + +When the crisis arose which brought about the last election, in which +Union Government swept the West, the farmers saw the gravity of the +situation and were prepared to forego immediate discussion of tariff +amendments to concentrate on winning the war. Some of the farmers' +candidates even withdrew in favor of Union candidates. All those who +remained in the field were elected. + +After the war is won--what? Reforms of breathtaking sweep are taking +place as the natural outcome of current conditions. The liquor traffic +has been tossed aside like a useless boot. Woman has stepped forth to +a sphere of active worth without upheaval. Just where lie the +boundaries of the impossible and who shall define them? + +It is a far-seeing, clear-thinking New Farmer who has come forward in +the last decade. Through his associations, his marketing experiences, +his contact with railways and banks and manufacturers and governments +he has become a student of economics. At the same time he has +strengthened his thews and sinews for whatever may face him on the path +ahead. + +And his eyes are wide open to the fact that there are "lions in the +path!" + +Wait a minute, Mr. Business Man! Before condemning this Western farmer +out of hand, put yourself in his place and try for a moment in all +fairness to forget your own viewpoint. It may be that you have not +even seen the prairies. Have you ever been at sea with not a thing in +sight but water, sky, horizon? Imagine the water to be land, and +yourself living in a one-room shack or a little low sod hut bewhiskered +with growing grass. The nearest railway was fifty miles away and you +got so lonesome that the howl of a coyote or the cry of owls in the +night nearly drove you crazy. Neighbors so scarce your social +pleasures were cut off by distance and you reared your family on that +homestead twenty-five miles from a doctor, a church or a school. + +When you made the long trip in for supplies in those early days you +found you had to pay anywhere up to twice as much as their market value +while for what you had to sell you had to take from twenty-five to +fifty per cent. less than the market value. The implements you simply +had to have for your work you bought on the instalment plan with +interest at ten and twelve per cent. for the privilege. + +When you had survived three years of this and with high hopes took your +patent to the mortgage company to raise a loan at ten per cent. you +found you couldn't get accommodation. Thereupon in marched your +implement and other creditors with a chattel mortgage on everything you +had--except the missus and the kids and the baby's bottley-by! + +Then in the beautiful hot month of August it blew up black one day and +the chickens scurried for shelter and you and the wife stood with your +noses flattened against the window-pane--unless it was only oiled +paper--and watched the big ice-marbles bouncing and heard the hail +drumming flat in a few minutes the acres of wheat you had worked so +hard to produce. + +Or perhaps you escaped that time only to have your wheat frozen later +on and when you took three days on purpose to haul in a wagonload to +the elevator you couldn't get a decent offer for it. So that you +pulled off your mitts and clenched your frost-cracked hands as you +prepared to turn homeward with but a pitiful portion of the food and +clothing you had promised the family you would bring. As you spread +across your chest, inside your sheepskin coat, the old newspaper +somebody had given you would your soul expand with the joy of living +while you headed out into the snowy waste at forty degrees below zero? + +And if after you got home and the crying young ones had been put to bed +in the corner behind the canvas curtain and your wife came and sat +beside you, her own tears bravely dried--if then you read in the paper +that the Government had decided you farmers were so prosperous you +should contribute from your easily gained wealth a free gift to +manufacturers, financiers, railway magnates or others--then would you +say with a great booming, hearty enthusiasm and shining eyes: "I tell +you, Wife, this is the life!"--would you? + +Or would you just proceed to swear--naturally, successfully, in what is +known as "flowing" language? + +By just such pioneer hardships were the farmers of Western Canada +driven to organize in self-defence. It has ever been the history of +revolt that its wellspring was the suffering of the people. Pioneer +hardships it was that caused the various movements which agitated the +farmers of the Western States in earlier days. When fingers become +hardened and crooked from unceasing toil that achieves nothing but +premature old age; when hope withers in a treadmill that grinds to the +very soul--then comes rebellion. + + + +[1] Since the formation of the organized farmers' National Political +Platform several of its planks have been adopted as legislation at +Ottawa, notably the abolition of the patronage system, extension of the +franchise to women, total prohibition, and personal income taxation. + + + + +CHAPTER XXIV + +AND THE END IS NOT YET. + +The principle of co-operation draws the whole community together. It +breaks down barriers. It unites the State. It gives hope to the +humblest toiler. And it strengthens the great moral ideal of duty, +without which no State can endure.--_Earl Grey_. + + +What is to be the final outcome of the Western farmers' revolt and its +spread to rural communities in Eastern provinces? Is there to be greater +harmony among opposing interests or is Canada on the threshold of +internal strife which will plow deep furrows of dissension between class +and class to an extent hitherto unknown in this country? If there is to +be a pitched fight between capitalistic groups and the people at large, +led by the farmers, what are the chances of victory for the latter? If +they win, what will be the national effect? + +These were a few of the questions which first turned the writer's serious +attention to the Grain Growers. It seems scarcely credible that this +great economic movement has attained present momentum practically +unheralded; yet such is the case. The writer had watched its early +struggles to success from Government windows and as preparation for a +brief historical sketch it seemed desirable to get out among the farmers +themselves and study the situation from their angle. + +Frankly, the task was not approached without some skepticism as to the +motives which might be uncovered. Almost the only occasions on which the +Grain Growers revealed themselves to the public were when they waited +upon politicians for this, that or the other. So often did this happen +and so insistent were they that there seemed some grounds for the belief +that to satisfy a Grain Grower was humanly impossible. From Legislative +casements it even looked at times as if they were a new species of +Indian, collecting political scalps! All manner of people accused them +of all manner of things. In the East they were called "blacksmith-shop +politicians, nail-keg economists, grousers and soreheads"; in the West +they were dubbed "corner-grocer statesmen and political football players." + +When the caravans of the Eastern political chieftains, Liberal and +Conservative, came West they knew they were going to be held up by the +outlaws. Long before these respective expeditions started across the +plains infested with wild and dangerous Grain Growers, their scouts--the +Western M.P.'s--were ranging far and wide in preparation. + +And when those Grain Growers in turn rode East to take possession of +Ottawa there was a popular expectation that they were about to whoop in +and shoot up the town in the real old wild and woolly way. They were +referred to cleverly as "Sod-Busters." It was rather startling to find +them merely a new type of Business Farmer, trained to think on his feet, +a student of economics. + +To gather and verify the facts here recorded has required two years. +During that time the writer has listened to earnest farmers in prairie +shacks, pioneers and newcomers, leaders and followers, and has watched +these farmers at work in their "Farmers' Parliaments" where they assemble +annually by the thousands. It is impossible thus to meet and know these +men while examining the facts of their accomplishments without being +impressed by the tremendous potentialities that underlie their efforts. + +Almost the first discovery is that the organized farmers have ideals +beyond material advantage and that these ideals are national in scope, +therefore involving responsibilities. Undeterred by these, the farmers +are eager to push on to further achievements. Their hope for these +ideals lies in the success of their business undertakings and it is +because that success is the spinal column of the whole movement that it +occupies such a prominent place in this historical outline. + +Not all the Grain Growers are men of vision, it must be admitted. Many +have joined the movement for what they can get out of it. In all great +aggregations of human beings it is quite possible to discover the full +gamut of human failings. But loose threads sticking to a piece of cloth +are no part of its warp and woof. It is the thinking Grain Grower who +must be reckoned with and he is in the majority; the others are being +educated. + +If there is doubt as to the sincerity of the organized farmers, why did +their pioneer business agency spend its substance in educational +directions instead of solely along the straight commercial lines of the +concerns with which it was in competition? The very mould into which it +poured its energies shaped special difficulties, generated special +antagonisms and every possible obstruction to its progress. Its cash +grants to the Associations in the West, to the official organ of the +movement, even to the Ontario farmers, run over the +hundred-thousand-dollar mark. + +Or, take the case of the Grain Growers at Virden, Manitoba, who proposed +to bring into the district a large shipment of binder twine to supply +their members. When the local merchant who had been handling this +necessity learned of the plan he raised his voice, thus: + +"If you fellows are going to do that then I go out of binder twine this +season. I won't handle a pound of it." + +"Not even to supply the farmers who don't belong to our Association?" + +"That's what I said. You're going to make a convenience of me when you +rob me of all my cash business. The only business I could do would be +with farmers who wanted credit." + +Did the Grain Growers say: "That's their lookout, then. Let them join us +or go twineless"? No. They decided to bring in their co-operative +shipment as planned, but to allow the merchant to handle it on commission +in order to prevent any injustice to the other farmers. + +Incidents like that can be recorded from all over the country. It does +not take very many of them to compel the honest conviction that equity of +citizenship for all the people in every walk of life means more to these +farmers than a high-sounding shibboleth. That being so, it becomes +difficult to accept the slur of utter selfishness--the idea that the +farmers are auto-intoxicated, a pig-headed lot who cause trouble for +nothing. It is very hard to believe that Everybody Else is good and kind +and sincere and true, affectionate one to another with brotherly love, +not slothful in business; for one knows that the best of us need the +prayers of our mothers! + +When these Grain Growers started out they did not know very much about +what was going on. They had their suspicions; but that was all. To-day +they know. Their business activities have taught them many things while +providing the resources for the fight that is shaping unless the whole +monopolistic system lets go its stranglehold. + +Yes, the farmers do talk about freedom in buying and selling; also about +tariff reform. They point out that there are criminal laws to jail +bankers who dared to charge from twenty-five per cent. to forty-two per +cent. for the use of money; that food and clothing and the necessaries of +life are the same as money and that high tariff protection which fosters +combines and monopolies is official discrimination against the many in +favor of the few; that there are other and more just forms of taxation +and that all old systems of patronage and campaign funds have got to go +if the grave problems of these grave times are to be met successfully. + +It is no old-time "Hayseed" who is discussing these things. It is a New +Farmer altogether. The Farmers' Movement is no fancy of the moment +either, but the product of Time itself. It is a condition which has +developed in our rural life as the corolla of increased opportunities for +education. The Farmer to-day is a different man to what he was ten years +ago--indeed, five years ago. + +It has taken fifteen years of bitter struggle for the Western farmers to +win to their present position and now that they are far enough along +their Trail to Better Things to command respect they are going to say +what they think without fear or favor. They believe the principles for +which they stand to be fundamental to national progress. + +If there is to be any attempt to cram the old order of things down the +people's throats; if, under cloak of all this present talk of winning the +war, of new eras and of patriotism, profiteers should scheme and plan +fresh campaigns--then will there be such a wrathful rising of the people +as will sweep everything before it. In the forefront of that battle will +stand the rugged legions of the organized farmers. + +Make no miscalculation of their ability to fight. This year, 1918, will +see them sawing their own lumber in their own saw-mills in British +Columbia. If necessary, they can grind their own flour in their own +flour mills, dig their own coal from their own mines, run their own +packing-plants, provide their own fidelity and fire-insurance, finance +their own undertakings. They grow the grain. They produce the new +wealth from the soil. They are the men who create our greatest asset, +everything else revolving upon the axis of Agriculture in Canada. + +If, then, the farming population has learned to co-operate and stand +solid; if in addition they have acquired the necessary capital to educate +the masses and are prepared to spend it in advancing their ideals; if the +working classes of the cities and the soldier citizens of Coming Days +join their ranks--what chance will Special Privilege have against the +public desire for Equal Rights? + +Is it to be co-operation in all sincerity or class warfare? If the other +great interests in our national life will meet the Farmer in a fair +spirit, approaching our national problems in an honest attempt to +co-operate in their solution for the common good, they will find the +Farmer meeting them eagerly. They will find that these farmer leaders +are reasonable men, broad-minded, square-principled and just--no less so +because the class they represent is organized to stand up for its rights. + +The situation is not hopeless. Most of these pages we have been turning +are Back Pages. Old conditions and much of the bitterness which they +generated have passed. The story of those old conditions has been told +from the viewpoint of the Farmer in order that his attitude may be +understood. But it must be remembered that the grain trade to-day is a +very different proposition to what it was and that many of the men who +have devoted their lives to it in the cities have played a big and honest +part in its development. The Winnipeg Grain Exchange as an Exchange has +done a great deal for Western Canada, a point that undoubtedly has been +overlooked by many farmers. Gradually, however, the Farmer has learned +that all is not evil in "Babylon"; for out of revolution has come +evolution.[1] + +The key to that better future which is desired so earnestly and wisely is +Education. The problems of the day are commanding the mental focus of +the nation. The Banks, the Railways, the Manufacturers are considering +them. The Joint Committee of Commerce and Agriculture has great +opportunities for removing much old-time hostility on both sides. And +now that true co-operation of all classes has become a national duty, +surely out of the testing must come better understanding and a greater +future. + +Just now, of course, there is only the War. It has brought the Canadian +people to their feet. For the angry glare of the gun flashes has thrown +in silhouette many fallacies, many foibles and rubbish heaps, and these +must be swept out in preparation for the new nationhood which Canada is +called upon to assume. With a third of the entire British Empire +entrusted to her management and the hopeful gaze of homemakers the world +over turning upon her Canada's responsibilities are great. But she will +rise to her opportunities. + +Just now there is only the War. The history of mankind has no previous +record of such chaos, such a solemn time. Thrones toppling, maps +changing, whole peoples dying of starvation and misery while the fate of +Democracy is balanced on the issue. Men are slaying each other on land, +in the air, on the water and below it while the forces of Destruction are +gnawing holes in the World's resources with the rapacity of swarming +rats. It is costing Great Britain alone over thirty-five million dollars +every day--a million and a half every hour! + +As for Canada--much figuring is being done by experts and others in +attempts to estimate the total debt which the Canadian people will have +to carry after the war. But the people themselves are too far immersed +in war efforts to pause for futile reckonings. There will be time enough +for that when the war is won, and won it shall be, no matter what the +cost. It requires no great perspicacity to realize that our total +national debt will be a sum which rolls so easily on its ciphers that it +eludes the grasp of the average mind. It is going to cost a lot even to +keep the wheels greased at five and one-half per cent. from year to year. +Everybody knows it. _Win the War!_ + +When the lamp went out and the old world we had known blew up--away back +in 1914--we spagged about anxiously, calling to each other: "Business as +Usual!" Since then factory production has gone up fifty per cent.; +export trade a hundred; profits on capital all the way up to the +billion-and-a-quarter mark. We have got so used to things in four years +that there is danger of forgetting that War has driven a sap beneath +these ironical gifts of Mars and it is full time Business looked around +for a place to light and got ready to dig itself in. + +Mobilization, co-operation of every interest, the full grapple of every +individual--national effort, in short--these the State demands. The +coverlet has been thrown back upon the realization that the State has +claims upon each citizen which transcend his individual fortunes--that +individual prosperity, in fact, is entirely dependent upon the prosperity +of the national whole. + +Not all by himself can the Man Behind The Gun win a war like this. At +his heels must stand the munition workers, the Man Back of The Desk, the +people themselves, each guarding against waste and each contributing his +or her part, great or small, for that national economy which alone can +hope to sustain the terrific pace that victory demands. Finally, out in +the great open spaces, faithful and unassuming and backing his country to +the limit, must plod the Man Behind The Plow, working silently and +steadily from dawn till dark to enlist and re-enlist the horizoned acres. + +Canada has reason for pride in her farmers. No class is more loyal to +British traditions. No class is more determined to win this war. +Thousands of their sons are at the front. Many a lonely mother has stood +on a prairie knoll, straining her eyes for the last glimpse of the buggy +and bravely waving "God-speed." In many a windswept prairie farm home +reigns the sad pride of sacrifice. + +Out of the sanctifying fires is arising a national tendency to new +viewpoints. The hope of Canada lies in a more active participation in +affairs by the Average Citizen. In opposition to an awakened national +interest what chance is there going to be for the silent partnerships of +"invisible government"? 'Twill be a sorry partizan who allows his +thoughts at this crisis to patter away at that old practice line, so full +of past mistakes: "Now is the time for all good men to come to the aid of +the Party." + +Win-the-War unity is the leaven at work in Canada to-day and regeneration +is coming. + +What does it matter except that our country's leaders shall rise to their +opportunities for true statesmanship with a deep sense of their +responsibilities to the millions who turn to them for guidance in this +time of national stress? What does it matter except that the people +shall grant to their leaders their sympathy and co-operation in the cares +of crisis? + +As this book goes to the publisher Union Government in Canada has become +a fact. Not since Confederation has such a thing happened in this +country. The vampire methods with which our political system has been +cursed have been thrown under foot and thinking Canadians everywhere have +drawn a breath of relief. The energies which have been wasted in +jockeying for party position are now concentrating upon effective unity +of action. Let us hope so indeed. There must be no want of confidence +in the cheers which echo from Canadian trenches. + +For over there where Canada's first line of defence runs from the North +Sea through Belgium into France your boy, Mr. Business Man, and your boy, +Mr. Farmer, stand shoulder to shoulder. Think you that in the crucible +which bares the very souls of men those boys have any thought of class +criticism or of selfish grabbings? In those trenches you will find more +practical Christianity, more unselfishness, more true brotherhood than +can be realized at this distance. The spirit of sacrifice, the +help-one-another idea, the equal share and charity of thought--these +revitalizing principles will be brought back by our khaki citizens when +they march home from victory. It is past belief that there should be +anything but complete unity of purpose as they look back for their +country's supports. + +A coat of arms on the red field of a British flag, a maple leaf on khaki +cap or collar-band, a single name on every shoulder-strap--CANADA. All +the nations of the earth salute that name. For it is emblazoned on the +shell-churned fields of Ypres where, sweltering and bleeding, Canada +"saved the day" for all humanity. It is inscribed for all time to come +on the Somme--on Vimy Ridge--on the difficult slopes of Passchendaele. + +Just now, only the War. + +But when in the Years To Be we find ourselves in some far land or in some +international circle which Chance, mayhap, has thrown together; when the +talk turns upon the Great War and the wonderful victory of Civilization; +when we are questioned as to who and what we are and we reply simply: +"Gentlemen, I am a Canadian"---- + +Then may the light of pride in our eyes be undimmed by any sense of shame +for duty shunned. May it be that out of it all has arisen a higher +conception of individual and national life. So that in place of deep +furrows of dissension there will be the level seed-bed of greater unity +and justice among men. + + + + +THE END. + + + +[1] Abnormal conditions in the grain trade at present, due to the war, +have led to government control of the crop by means of a Board of Grain +Supervisors, aside altogether from the permanent Board of Grain +Commissioners. This government commission has very wide powers, +superseding the Grain Act for the time being, and can fix the price at +which grain stored in any elevator may be purchased, ascertain available +supplies, fix conditions of removal from storage and determine the +destination of grain, receive purchase offers and fix sale prices, take +possession of grain in elevators and sell it, provide transportation, etc. + +The Board of Grain Supervisors consists of two representatives of the +organized farmers--Hon. T. A. Crerar, Minister of Agriculture, and H. W. +Wood, President of United Farmers of Alberta; one representative of +unorganised farmers--S. K. Rathwell; three representatives of the +Winnipeg Grain Exchange--J. C. Gage, W. E. Bawlf and Dr. Magill +(Chairman); a representative of the British Food Commission--Jas. +Stewart; two representatives of Labor--Controller Ainey (Montreal) and W. +B. Best, of Locomotive Firemen; W. A. Matheson, of Lake of the Woods +Milling Company, and Lionel H. Clarke, head of the Canada Malting Company +and a member of the Toronto Harbor Commission. Dr. Robert Magill, the +Chairman, is Secretary of the Winnipeg Grain Exchange and was formerly +Chief Commissioner of the permanent Board of Grain Commissioners. + + + + +APPENDIX + + +FIRST OFFICERS, DIRECTORS, COMMITTEES, ETC., OF THE FARMERS' + MOVEMENT IN WESTERN CANADA, ETC. + + +1. _Territorial_ (Saskatchewan) _Grain Growers' Association--1902_. + +President, W. R. Motherwell (Abernethy); Secretary, John Millar (Indian +Head). Among those who acted on the first Board of Directors were: +Messrs. Walter Govan and M. M. Warden (Indian Head); John Gillespie, +Elmer Shaw and Peter Dayman (Abernethy); Matthew Snow (Wolseley). + + +2. _Virden_ (Manitoba) _Grain Growers' Association--1903_. + +President, J. W. Scallion; Vice-president, George Carefoot; +Secretary-Treasurer, H. W. Dayton; Directors: J. A. Blakeman, Isaac +Bennett, Peter McDonald and C. E. Ivens. + + +3. _Manitoba Grain Growers' Association--1903_. + +President, J. W. Scallion (Virden); Vice-President, R. C. Henders +(Culross); Secretary-Treasurer, R. McKenzie (Brandon); Directors: +Donald McEwan, Brandon; William Ryan (Boissevain), W. A. Robinson +(Elva), D. W. McCuaig (Portage la Prairie), John Wilson (Lenore), and +H. A. Fraser, Hamiota. + + +4. _Committee to Investigate Possibilities of Farmers Trading in +Grain--1905_. + +The first step towards co-operative trading in grain by the farmers of +Western Canada was a scheme, fathered by E. A. Partridge, of Sintaluta, +Sask., the first official action being taken by the Manitoba Grain +Growers' Association at their annual convention in 1905, when the +following committee was ordered to investigate and report: + +Chairman, E. A. Partridge (Sintaluta, Sask.); J. A. Taylor (Cartwright, +Man.); A. S. Barton (Boissevain, Man.). + + +5. _Local Committee to Organise Meeting of Sintaluta Farmers--1906_. + +The following committee of Sintaluta farmers made arrangements for a +meeting of the farmers in the Sintaluta district to discuss +co-operative trading in grain and to pledge support of the trading +company proposed by E. A. Partridge: + +E. A. Partridge, Al Quigley, Dave Railton, W. J. Bonner, T. McLeod, +James Ewart. + + +6. _Preliminary Organisation Committee of Sintaluta Farmers--1906_. + +E. A. Partridge (Chairman), A. J. Quigley (Secretary), William Hall +(Treasurer), James Halford, James Ewart, D. Railton, Sr., J. O. +Partridge, William J. Bonner, Thomas S. McLeod, W. Malhiot, H. O. +Partridge, G. K. Grass, Harold Bird, H. T. Smith, George Hill--all of +Sintaluta, Sask. + +Subsequently this committee was enlarged to include a number of +Manitoba canvassers. + + +7. _Provisional Officers of Grain Growers' Grain Company--1906_. + +Provisional organization of the Western farmers' pioneer trading +company finally took place at Winnipeg, July 26th, 1906, when the +following officers were chosen: + +President, E. A. Partridge; Vice-President, John Kennedy; +Secretary-Treasurer, John Spencer; Directors: W. A. Robinson (Elva, +Man.), and Francis Graham (Melita, Man.). + +At a general meeting of the shareholders these same officers were +elected subsequently and the directorate increased by two--Robert +Cruise (Dauphin) and T. W. Knowles (Emerson). + + +8. _Sintaluta_ (Sask.) _Farmers Who Pledged Personal Securities--1906_. + +Finding themselves $1,500 short of the necessary $2,500 for the +purchase of a seat on the Winnipeg Grain Exchange, the young trading +company of farmers had recourse to personal securities in order to +finance their start in business. The friends to whom E. A. Partridge +appealed and who immediately gave the bank their personal notes were +the following Sintaluta men: + +Dave Railton, Al Quigley, Tom McLeod, Jim Ewart, William E. Hall. + + +9. _Inter-Provincial Council of Grain Growers' and Farmers' +Associations--1907_. + +It was under this name that the executive officers of the various +farmers' organizations in the three Prairie Provinces first came +together to discuss problems affecting the Movement as a whole. The +first officers of the Inter-Provincial Council were: + +President, E. N. Hopkins (Moose Jaw, Sask.); Secretary, M. D. Geddes +(Calgary, Alberta). + + +10. _United Farmers of Alberta--1909_. + +Until January 14th, 1909, the farmers of Alberta had two provincial +organizations--the "Canadian Society of Equity" and the "Alberta +Farmers' Association." On this date amalgamation took place at +Edmonton under the name, "United Farmers of Alberta" with officers and +directors as follows: + +President, James Bower (Red Deer); Vice-President, Rice Sheppard +(Strathcona); Secretary, Edward J. Fream (Calgary); Directors: G. A. +Dixon (Fishburn), A. Von Mielecki (Calgary), George McDonald (Olds), +George Long (Edmonton), Thomas Balaam (Vegreville), L. H. Jelliffe +(Spring Coulee), E. Carswell (Penhold), H. Jamieson (Red Deer). + + +11. _Canadian Council of Agriculture--1910_. + +The name of the Inter-Provincial Council (Par. 9) was changed to the +"Canadian Council of Agriculture" in 1909 when relations were +established with The Grange, the early organization of Ontario farmers. +The first officers of the new inter-provincial body were: + +President, D. W. McCuaig (Portage la Prairie, Man.); Vice-president, +James Bower (Red Deer, Alberta); Secretary, E. C. Drury (Barrie, Ont.). + + +12. _Saskatchewan Co-Operative Elevator Company--1911_. + +_Provisional Officers_: President, J. A. Maharg (Moose Jaw); +Vice-president, F. W. Green (Moose Jaw); Secretary-Treasurer, Charles +A. Dunning (Beaverdale); Directors: A. G. Hawkes (Percival), James +Robinson (Walpole), Dr. T. Hill (Kinley). + +Upon early withdrawal of F. W. Green for personal reasons, George +Langley (Maymont) was called by the Board in an advisory capacity. + +_First Election_: President, J. A. Maharg (Moose Jaw); Vice-President, +George Langley (Maymont); Secretary-Treasurer, Charles A. Dunning +(Beaverdale); Directors: James Robinson (Walpole), W. C. Sutherland +(Saskatoon), N. E. Baumunk (Dundurn), A. G. Hawkes (Percival), J. E. +Paynter (Tantallon), Dr. E. J. Barrick. + + +13. _Alberta Farmers' Co-Operative Elevator Company--1913_. + +_Provisional Officers_: President, W. J. Tregillus (Calgary); +Vice-President, E. Carswell (Red Deer); Secretary-Treasurer, E. J. +Fream (Calgary); Directors: Joseph Quinsey (Noble), William S. Henry +(Bow Island), Rice Sheppard (Edmonton), P. P. Woodbridge (Calgary). + +_First Election_: President, W. J. Tregillus; Vice-president, J. +Quinsey (Noble); Secretary-Treasurer, E. J. Fream (Calgary); Directors: +E. Carswell (Red Deer), Rice Sheppard (Edmonton), P. S. Austin +(Ranfurly), J. G. McKay (Provost), R. A. Parker (Winnifred), C. +Rice-Jones (Veteran). + + +14. _United Farmers of Ontario--1914_. + +_Organisation Committee--1913_: E. C. Drury (Barrie), J. J. Morrison +(Arthur), Henry Glendinning (Manilla), Elmer Lick (Oshawa), H. B. Cowan +(Peterboro), W. C. Good (Paris), Col. J. Z. Frazer (Burford). + +_First Election of Officers--1914_: President, E. C. Drury (Barrie); +Secretary-Treasurer, J. J. Morrison (Arthur). + + +15. _United Farmers' Co-Operative Company, Limited--1914_. + +President, W. C. Good (Paris); Secretary-Treasurer, J. J. Morrison +(Arthur); Executive: Anson Groh (Preston), C. W. Gurney (Paris), Col. +J. Z. Fraser (Burford), E. C. Drury (Barrie). + +16. _United Farmers of British Columbia--1917_. + +_Provisional Committee_ (Vancouver Island Farmers' Union)--_1916_: +Chairman, R. M. Palmer (Cowichan Bay); Secretary-Treasurer, W. Paterson +(Duncan); H. G. Helgesen (Metchosin), G. A. Cheeke (Shawnigan Lake), A. +E. Brooke Wilkinson (Cobble Hill), E. H. Forrest (Hillbank), F. J. +Bishop (Cowichan Station), G. H. Hadwen (Comiaken), C. G. Palmer, +C.I.E. (Quamichan), F. Maris Hale (Deerholme), A. A. Mutter (Somenos), +L. F. Solly (Westholme), R. U. Hurford (Courtenay), A. C. Aiken +(Duncan). + +_First Election_ (United Farmers of British Columbia)--_1917_: +President, C. G. Palmer (Quamichan); Vice-Presidents: J. W. Berry +(Langley), R. A. Copeland (Kelowna), P. H. Moore (Saanich); Secretary, +H. J. Ruscombe Poole (Duncan); Directors: J. Johnson (Nelson), R. U. +Hurford (Comox), L. Dilworth (Kelowna), R. H. Helmer (Summerland), W. +E. Smith (Revelstoke), W. Paterson (Koksiloh). + + +17. _United Grain Growers, Limited--1917_. + +By Act of Dominion Parliament, June, 1917, the necessary changes in the +charter of the Grain Growers' Grain Company, Limited, were granted to +enable amalgamation with the Alberta Farmers' Co-Operative Elevator +Company under the name, "United Grain Growers, Limited"; authorized +capital, $5,000,000. The first election of officers was as follows: + +President, T. A. Crerar; 1st Vice-president, C. Rice-Jones (Veteran, +Alta.); 2nd Vice-president, John Kennedy; Secretary, E. J. Fream +(Calgary, Alta.); Directors: C. F. Brown (Calgary), R. A. Parker +(Winnifred, Alta.), J. J. McLellan (Purple Springs, Alta.), P. S. +Austin (Banfurly, Alta.), H. C. Wingate (Cayley, Alta.), Roderick +McKenzie (Brandon, Man.), F. J. Collyer (Welwyn, Sask.), John Morrison +(Yellow Grass, Sask.), J. F. Reid (Orcadia, Sask.). + + +18. At the meeting of the Canadian Council of Agriculture in Winnipeg +on July 5th, 1918, Norman P. Lambert was appointed Secretary-Treasurer +to succeed Roderick McKenzie, who now occupies the position of +Vice-president. + + +19. R. A. Bonnar, K.C. (Bonnar, Trueman, Hollands & Robinson), has +been solicitor and counsel for the Grain Growers since 1906 and has +been identified closely with them on many dramatic occasions. + + + + + +End of the Project Gutenberg EBook of Deep Furrows, by Hopkins Moorhouse + +*** END OF THIS PROJECT GUTENBERG EBOOK DEEP FURROWS *** + +***** This file should be named 21657-8.txt or 21657-8.zip ***** +This and all associated files of various formats will be found in: + http://www.gutenberg.org/2/1/6/5/21657/ + +Produced by Al Haines + +Updated editions will replace the previous one--the old editions +will be renamed. + +Creating the works from public domain print editions means that no +one owns a United States copyright in these works, so the Foundation +(and you!) can copy and distribute it in the United States without +permission and without paying copyright royalties. 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Donations are accepted in a number of other +ways including checks, online payments and credit card donations. +To donate, please visit: http://pglaf.org/donate + + +Section 5. General Information About Project Gutenberg-tm electronic +works. + +Professor Michael S. Hart is the originator of the Project Gutenberg-tm +concept of a library of electronic works that could be freely shared +with anyone. For thirty years, he produced and distributed Project +Gutenberg-tm eBooks with only a loose network of volunteer support. + + +Project Gutenberg-tm eBooks are often created from several printed +editions, all of which are confirmed as Public Domain in the U.S. +unless a copyright notice is included. Thus, we do not necessarily +keep eBooks in compliance with any particular paper edition. + + +Most people start at our Web site which has the main PG search facility: + + http://www.gutenberg.org + +This Web site includes information about Project Gutenberg-tm, +including how to make donations to the Project Gutenberg Literary +Archive Foundation, how to help produce our new eBooks, and how to +subscribe to our email newsletter to hear about new eBooks. diff --git a/21657-8.zip b/21657-8.zip Binary files differnew file mode 100644 index 0000000..7ef7fa1 --- /dev/null +++ b/21657-8.zip diff --git a/21657.txt b/21657.txt new file mode 100644 index 0000000..45cab5c --- /dev/null +++ b/21657.txt @@ -0,0 +1,8639 @@ +The Project Gutenberg EBook of Deep Furrows, by Hopkins Moorhouse + +This eBook is for the use of anyone anywhere at no cost and with +almost no restrictions whatsoever. You may copy it, give it away or +re-use it under the terms of the Project Gutenberg License included +with this eBook or online at www.gutenberg.org + + +Title: Deep Furrows + +Author: Hopkins Moorhouse + +Release Date: June 1, 2007 [EBook #21657] + +Language: English + +Character set encoding: ASCII + +*** START OF THIS PROJECT GUTENBERG EBOOK DEEP FURROWS *** + + + + +Produced by Al Haines + + + + + +DEEP FURROWS + + + Which Tells of Pioneer Trails Along Which + the Farmers of Western Canada Fought + Their Way to Great Achievements + in Co-Operation + + + +By + +HOPKINS MOORHOUSE + + + + +TORONTO AND WINNIPEG + +GEORGE J. McLEOD, LIMITED + +PUBLISHERS + + + + +COPYRIGHT, CANADA, 1918 + +BY GEORGE J. McLEOD, LIMITED + + + + +TO THE + +MEN AND WOMEN OF THE SOIL + + + + +CONTENTS + +CHAPTER + + Foreword + I The Man on the Qu'Appelle Trail + II A Call to Arms + III The First Shot is Fired + IV "That Man Partridge!" + V "The House With the Closed Shutters" + VI On a Card in the Window of Wilson's Old Store + VII A Fight for Life + VIII A Knock on the Door + IX The Grain Exchange Again + X Printers' Ink + XI From the Red River Valley to the Foothills + XII The Showdown + XIII The Mysterious "Mr. Observer" + XIV The Internal Elevator Campaign + XV Concerning the Terminals + XVI The Grip of the Pit + XVII New Furrows + XVIII A Final Test + XIX Meanwhile, in Saskatchewan + XX What Happened in Alberta + XXI In the Drag of the Harrows + XXII The Width of the Field + XXIII The Depth of the Furrows + XXIV And the End is Not Yet + Appendix + + + + +FOREWORD + +Once in awhile, maybe, twenty-five or thirty years ago, they used to +pack you off during the holidays for a visit on Somebody's Farm. Have +you forgotten? You went with your little round head close clipped till +all the scar places showed white and you came back with a mat of +sunbleached hair, your face and hands and legs brown as a nut. + +Probably you treasure recollections of those boyhood days when a raw +field turnip, peeled with a "toad-stabber," was mighty good eatin'. +You remember the cows and chickens, the horses, pigs and sheep, the old +corn-crib where generally you could scare up a chipmunk, the gnarled +old orchard--the Eastern rail-fenced farm of a hundred-acres-or-so. +You remember Wilson's Emporium at the Corners where you went for the +mail--the place where the overalled legs of the whole community drummed +idly against the cracker boxes and where dried prunes, acquired with +due caution, furnished the juvenile substitute for a chew of tobacco! + +Or perhaps you did not know even this much about country life--you of +the Big Cities. To you, it may be, the Farmer has been little more +than the caricatures of the theatres. You have seen him wearing blue +jeans or a long linen duster in "The Old Homestead," wiping his eyes +with a big red bandana from his hip pocket. You have seen him dance +eccentric steps in wrinkled cowhide boots, his hands beneath flapping +coat-tails, his chewing jaws constantly moving "the little bunch of +spinach on his chin!" You have heard him fiddle away like two-sixty at +"Pop Goes the Weasel!" You have grinned while he sang through his nose +about the great big hat with the great big brim, "All Ba-ound Ra-ound +With a Woolen String!" + +Yes, and you used to read about the Farmer, too--Will Carleton's farm +ballads and legends; Riley's fine verses about the frost on the pumpkin +and "Little Orphant Annie" and "Over the Hill to the Poorhouse!" And +when Cousin Letty took you to the Harvest Home Supper and Grand +Entertainment in the Town Hall you may have heard the village choir +wail: "Oh, _Shall_ We Mortgage the Farm?" + +Perhaps even yet, now that you are man grown--business or professional +man of the great cities--perhaps even yet, although you long have +studied the market reports and faithfully have read the papers every +day--perhaps that first impression of what a farmer was like still +lingers in a more or less modified way. So that to you pretty much of +an "Old Hayseed" he remains. Thus, while you have been busy with other +things, the New Farmer has come striding along until he has "arrived in +our midst" and to you he is a stranger. + +Remember the old shiny black mohair sofa and the wheezy, yellow-keyed +melodeon or the little roller hand-organ that used to play "Old +Hundred"? They have given place to new styles of furniture, upright +pianos and cabinet gramophones. Coffin-handles and wax flowers are not +framed in walnut and hung in the Farmer's front parlor any more; you +will find the grotesque crayon portrait superseded by photo +enlargements and the up-to-date kodak. The automobile has widened the +circle of the Farmer's neighbors and friends, while the telephone has +wiped distance from the map. + +In the modern farm kitchen hot and cold water gushes from bright nickel +taps into a clean white enamel sink, thanks to the pneumatic water +supply system. The house and other farm buildings are lighted by +electricity and perhaps the little farm power plant manages to operate +some machinery--to drive the washing machine, the cream separator, the +churn and the fodder-cutter or tanning-mill. There is also a little +blacksmith shop and a carpenter shop where repairs can be attended to +without delay. True, all these desirable conveniences may not be +possessed generally as yet; but the Farmer has seen them working on the +model farmstead exhibited by the Government at the Big Fair or in the +Farm Mechanics car of the Better Farming Special Trains that have +toured the country, and he dreams about them. + +More scientific methods of agriculture have been adopted. The Farmer +has learned what may be accomplished by crop rotations and new methods +of cultivation. He has learned to analyze the soil and grow upon his +land those crops for which it is best suited. If he keeps a dairy herd +he tests each cow and knows exactly how her yield is progressing so +that it is impossible for her to "beat her board bill." No longer is +it even considered good form to chop the head off the old rooster; the +Farmer sticks him scientifically, painlessly, instantaneously dressing +him for market in the manner that commands the highest price. So with +the butter, the eggs and all the rest of the farm products. + +Do you wonder that the great evolution of farming methods should lead +to advanced thought upon the issues of the day? In the living room the +Family Bible remains in its old place of honor, perhaps with the +crocheted mat still doing duty; but it is not now almost the only book +in the house. There is likely to be a sectional bookcase, filled with +solid volumes on all manner of practical and economic subjects--these +as well as the best literature, the latest magazines and two or three +current newspapers. + +Yes, a whole flock of tin roosters have rusted away on top of the barn +since the Farmer first began to consider himself the Rag Doll of +Commerce and to seek adjustments. It is the privilege of rag dolls to +survive a lot of abuse; long after wax has melted and sawdust run the +faithful things are still on hand. And along about crop time the +Farmer finds himself attracting a little attention. + +That is because this business of backbone farming is the backbone of +Business In General. As long as money is circulating freely Business +In General, being merely an exchange in values, wears a clean shirt and +the latest cravat. But let some foreign substance clog the trade +channels and at once everything tightens up and squeezes everybody. + +Day by day the great mass of the toilers in the cities go to work +without attempting to understand the fluctuations of supply and demand. +They are but cogs on the rim, dependent for their little revolutions +upon the power which drives the machinery. That power being Money +Value, any wastage must be replaced by the creation of new wealth. So +men turn to the soil for salvation--to the greatest manufacturing +concern in the world, Nature Unlimited. This is the plant of which the +Farmer is General Manager. + +On state occasions, therefore, it has been the custom in the past to +call him "the backbone of his country"--its "bone and sinew." Without +him, as it were, the Commercial Fabric could not sit up in its High +Chair and eat its bread and milk. Such fine speeches have been +applauded loudly in the cities, too frequently without due +thought--without it occurring to anyone, apparently, that perhaps the +Farmer might prefer to be looked upon rather as an ordinary +hard-working human being, entitled as such to "a square deal." + +But all these years times have been changing. Gradually Agriculture +has been assuming its proper place in the scheme of things. It is +recognized now that successful farming is a business--a profession, if +you like--requiring lifelong study, foresight, common sense, close +application; that it carries with it all the satisfaction of honest +work well done, all the dignity of practical learning, all the comforts +of modern invention, all the wider benefits of clean living and right +thinking in God's sunny places. + +And with his increasing self-respect the New Farmer is learning to +command his rights, not merely to ask and accept what crumbs may fall. +He is learning that these are the days of Organization, of Co-Operation +among units for the benefit of the Whole; that by pooling his resources +he is able to reach the Common Objective with the least waste of effort. + +He has become a power in the land. + + +These pages record a story of the Western Canadian farmer's upward +struggle with market conditions--a story of the organized Grain +Growers. No attempt is made to set forth the full details of the whole +Farmer's Movement in Western Canada in all its ramifications; for the +space limits of a single volume do not permit a task so ambitious. + +The writer has endeavored merely to gather an authentic record of the +earlier activities of the Grain Growers' Associations in the three +Prairie Provinces--why and how they came to be organized, with what the +farmers had to contend and something of their remarkable achievements +in co-operative marketing during the past decade. It is a tale of +strife, limned by high lights and some shadows. It is a record worthy +of preservation and one which otherwise would pass in some of its +details with the fading memories of the pathfinders. + +If from these pages the reader is able to glean something of interest, +something to broaden--be it ever so slightly--his understanding of the +Western Canadian farmers' past viewpoint and present outlook, the +undertaking will have found its justification and the long journeys and +many interviews their reward. + +For, under the alchemy of the Great War, many things are changing and +in the wonderful days of reconstruction that lie ahead the Farmer is +destined to play an upstanding part in the new greatness of our +country. Because of this it behooves the humblest citizen of us to +seek better understanding, to meet half way the hand of fellowship +which he extends for a new conception of national life. + +The writer is grateful to those farmers, grain men, government +officials and others who have assisted him so kindly in gathering and +verifying his material. Indebtedness is acknowledged also to sundry +Dominion Government records, to the researches of Herbert N. Casson and +to the press and various Provincial Departments of Agriculture for the +use of their files. + +H.M. + +WINNIPEG, March 1st, 1918. + + + + +DEEP FURROWS + + +CHAPTER I + +THE MAN ON THE QU'APPELLE TRAIL + + Among the lonely lakes I go no more, + For she who made their beauty is not there; + The paleface rears his tepee on the shore + And says the vale is fairest of the fair. + Full many years have vanished since, but still + The voyageurs beside the camp-fire tell + How, when the moon-rise tips the distant hill, + They hear strange voices through the silence swell. + --_E. Pauline Johnson._ + _The Legend of Qu'Appelle._ + + +To the rimming skyline, and beyond, the wheatlands of Assiniboia[1] +spread endlessly in the sunshine. It was early October in the year +1901--one of those clear bright days which contribute enchantment to +that season of spun gold when harvest bounties are garnered on the +Canadian prairies. Everywhere was the gleam of new yellow stubble. In +serried ranks the wheat stocks stretched, dwindling to mere specks, +merging as they lost identity in distance. Here and there stripes of +plowed land elongated, the rich black freshly turned earth in sharp +contrast to the prevailing gold, while in a tremendous deep blue arch +overhead an unclouded sky swept to cup the circumference of vision. +Many miles away, yet amazingly distinct in the rarefied air, the smoke +of threshers hung in funnelled smudges above the horizon--like the +black smoke of steamers, hull down, at sea. + +On this particular autumn afternoon a certain black dot might have been +observed, so lost in the immensity of landscape that it appeared to be +stationary. It was well out upon the trail that wound northward from +Indian Head into the country of the Fishing Lakes--the trail that +forked also eastward to dip through the valley of the Qu'Appelle at +Blackwood before striking north and east across the Kenlis plain +towards the Pheasant Hills. In reality the well kept team which drew +the big grain wagon was swinging steadily ahead at a smart pace; for +their load of supplies, the heaviest item of which was a new plow, was +comparatively light, they were homeward bound and the going in the +earlier stages of the long journey was smooth. + +The driver sat hunched in his seat, reins sagging. He was a man of +powerful physique, his skin deep coppered by long exposure to prairie +winds and sun. In repose the face that was shadowed by the wide felt +hat would have appeared somewhat deceptive in its placidity owing to +the fact that the strong jaw and firm mouth were partly hidden by a +heavy moustache and a thick, black beard, trimmed short. + +Just now it was evident that the big farmer's mood was far from +pleasant. Forearm on knee, he had surrendered completely to his +thoughts. His fists clenched spasmodically and there was an angry +glint in his eyes. Occasionally he shook his head as if the matter in +mind were almost too hopeless for consideration. A sudden surge of +resentment made him lash his booted leg with the ends of the lines. + +"Confound them!" he muttered aloud. + +He had just delivered his first load of the season's new wheat. Three +nights before, by lantern light, he had backed his horses to the wagon +and hauled it twenty-five miles to the railway at Indian Head. His +stay there had not been conducive to peace of mind. + +To reach the rails with a heavy load in favorable weather was simple +enough; it merely required time. But many such trips would be +necessary before his crop was marketed. Some of the farmers from +beyond the Qu'Appelle would be hauling all winter; it was in winter +that the haul was long and cruel. Starting at one, two or three +o'clock in the morning, it would be impossible to forecast the weather +with any degree of accuracy, so that often they would be overtaken by +blizzards. At such times the lack of stopping-places and shelter in +the sparsely settled reaches of the trail encompassed the journey with +risks every whit as real as pioneer perils of marauding Indians or +trailing wolf-packs. + +Snow and wind, however, had no place in the thoughts of the lonely +farmer at the moment. Such things he had been used to ever since he +first homesteaded; this long haul with the products of his toil he had +been making for many years. What immediately concerned him was the +discouraging prospect of another wheat blockade instead of any +improvement in conditions which had become unbearable. With the +country as full of wheat as it was this year it required no great gift +of prophecy to foretell what would happen. + +It was happening already. The railway people were ignoring completely +the car-distribution clauses of the Grain Act and thereby playing in +with the elevator interests, so that the farmers were going to be just +where they were before--at the mercy of the buyers, their legitimate +profits filched by excessive dockage, low grades, depressed prices, +exorbitant storage charges, even short weights in some cases. All this +in spite of the strong agitation which had led to Government action, in +spite of the Royal Commission which had investigated the farmers' +claims and had recommended the Grain Act, in spite of the legislation +on the statutes! Law or no law, the farmer was still to be preyed +upon, apparently, without a single weapon left with which---- + +The eyes of the man in the broad-brimmed hat grew grave. Scoff as he +might among the men of the district when the serious ones voiced their +fears to him, his own thoughts always came back to those fears. From +the Red River Valley to the foothills long-smouldering indignation was +glowing like a streak of fire in the prairie grass; a spark or two more +and nothing could stop the conflagration that would sweep the plains +country. If the law were to fail these red-blooded and long-suffering +homesteaders there would be final weapons alright--real weapons! It +was no use shutting one's eyes to the danger. Some fool would do +something rash, and with the farmers already inflamed and embittered, +there was no telling what desperate things might be attempted. + +That was the fear which stirred and perplexed the solitary traveller; +for he had heard things that afternoon--seen things that he did not +like but could not ignore. He recognized an undercurrent of feeling, a +silence more ominous than all the heated talk, and that was where the +danger lay. Something would have to be done, and that soon. But what? +What? + +So engrossed was he that beyond an occasional flip of the reins or a +word to the horses he paid no heed to his surroundings. A huge +jack-rabbit sprang up, almost from beneath the noses of the team, and +went flying off in great leaps over the stubble. A covey of prairie +chicken, fat and fit, whirred into the air and rocketed away. But he +scarcely saw them. Had he looked up he might have noticed a horseman +loping down a cross trail with the evident intention of heading off the +wagon. But the rider had pounded almost within hailing distance before +the other was aware of his approach. + +It was Bob McNair of the "Two-Bar Ranch," as he insisted upon calling +his wheat farm. He waved an oil-spattered Stetson and came into the +trail with a rush, pulling up the wiry broncho with a suddenness that +would have unseated one less accustomed than McNair, former corporal, +Royal North-West Mounted Police. + +"Howdy, W. R. Thought 'twas your outfit. Good job I aint a Blackfoot +on the warpath," he laughed. "I'd sure 'a' had your scalp sneaked +before you could draw a bead!" He swung alongside, stepped into the +wagon, looped the bridle-rein over the handle of the new plow and, +climbing forward, shook hands heartily and sat down. + +"You're looking fit, Bob," welcomed the other with evident pleasure. +"What brings you over this way? Everything going alright?" + +"So-so," nodded McNair. "Been over Sintaluta to see about gettin' a +car, among other things." + +"Of course you got it?" + +"Sure! Oh, sure I got it--got it still to get!" and McNair burst into +a flow of language that did even him justice. More or less vehement at +all times, the one-time corporal exhibited so much vigor in his remarks +that his good-natured auditor had to laugh. "I ain't tryin' to be +funny!" finished McNair. "I mean every dashed word of it, Motherwell. +If I don't get some of it out o' my system I'll bust to bits, that's +what. Say, I met Sibbold. He told me some of you fellows was meetin' +over at the Head to-day. What about it?" + +"Why, yes, Johnny Millar got a few of us together to talk things over. +Lot of talk alright. Some of the boys were feeling pretty hot, I can +tell you! But I can't see that anything came of it except some +resolutions--the usual sort, you know." + +"Pshaw! I was hopin' it meant action of some kind." The ex-rancher +was silent for a moment. Then his right fist went into his left palm +with a smack. "The only kind o' resolution that'll get anythin' is +made o' lead and fits in a rifle breech! And I want to tell you, old +man, if there ain't some pretty quick right-about-facin' in certain +quarters, I'll be dashed if I ain't for it! An' I won't be standin' +alone, either!" he added grimly. + +W. R. Motherwell[2] glanced sharply at the tense face. + +"Don't talk nonsense!" he reproved quietly. + +"I ain't talkin' nonsense. Not on your life! If I am, then I reckon I +know a hundred or so hard-headed farmers who're doin' the identical +same. An' if I know that many in my territory, W. R., how many d'you +suppose there are if we take in Manitoba and clean through to the +mountains?" + +"Then all I've got to say is: there are more and bigger fools in the +country than I had any idea of." + +"What d'you mean, talkin' like that?" + +"That's just what I've got to say to you, McNair," retorted the big +farmer with heat. "What do _you_ mean, talking like that? If you're +serious in what you say----" + +"I said I was, didn't I?" snapped the other. + +"Then you ought to be tied up on the Two-Bar and muzzled, for you're +plumb mad, McNair! It's just that kind of firebrand talk that's +hurting our cause. The farmers have got enough enemies now, God knows, +without making a lot of new ones. Doggone your hide, Mac, what're you +trying to do?--Stir up another rebellion like that of '85?" + +"If it's necessary--you bet I am!" he brazened. + +"You, of all men!" + +"An' why not me? Just because I've worn the Queen's uniform, eh? +Well, let me tell you, sir, I belonged to a body of men who stood for +British justice an' a square deal to even the meanest Injun in the +Territories." The ex-mounted policeman spoke with pride. "We'd never +have handled the beggars if it hadn't been for that. Even the Injuns +were men enough to recognize justice, an' that's more'n these +commercial blood-suckers to-day can do! If our case was in the hands +of the Force it'd rest on its merits an' us grain growers'd get +justice. Instead, where is it?--in the hands of a pussy-footed, +hifalutin' bunch o' political windbags in the East who don't care a +damn about us hayseeds out West! An' what's more----" + +"The Royal Mounted stood for law and order, Bob; but you'd class +yourself with the half-breeds, would you? Have another little +rebellion like that of '85 with all the----" + +"Not like '85," interrupted the rancher. "No, sir, this one'll be +bloodless; but it'll knock the spots off the 'breeds' little shindig +all the samee!" + +"You spoke of rifles, McNair. Guns go off," interpolated the other +sententiously. "What'n the mischief do you expect to gain by that sort +of thing?" + +"A hearing, by Jingo! That's more'n all your letters to the papers an' +your meetin's an' resolutions have got us. We'll show 'em we mean +business----" + +"Rot! How did we get the Royal Commission except by those letters and +meetings? That put the Manitoba Grain Act on the statutes, didn't it? +Mean to say we're no farther ahead? We've got the whole grain trade +under control and supervision----" + +"Like ducks you have!" The former rancher threw back his head and +laughed. + +"We've got the privilege of loading our wheat direct on cars through +the flat warehouses or any other way we like----" + +"What's the good o' that if a man can't get a car when he wants it?" +demanded McNair impatiently. "The elevator gang 've organized to grab +everything in sight. I know it. You know it. Everybody knows it, by +heaven! So what's the use o' talkin'?" + +"We've got to be fair, though. The elevator people have put a lot of +money--Say, why can't we organize, too?" suggested Motherwell with a +flash of inspiration. "We haven't tried that yet. That's +constitutional. That's what the livestock breeders have done," he said +eagerly. + +McNair shook his head. + +"I tell you, Bill, it's too late for that sort o' thing," he objected. +"Unless you mean organizin' to fight--" + +"Exactly." + +"With guns, if necessary?" + +"It won't be necessary." + +"Possibly not to shoot anybody. The showin' mebbe'll turn the trick. +Now, look here. My idea is that if a bunch of us fellows got together +on the quiet some night an' seized a few elevators--Say, wouldn't it +bring things to a head so quick we'd get action? The law's there, but +these fellows are deliberately breakin' it an' we got to show 'em----" + +"The action you'd get would be the wrong kind, Mac," protested W. R. +Motherwell emphatically. "You'd land in jail!" + +"Don't see it that way," persisted McNair. "Wouldn't give a +continental if I did so long's it woke a few people up." + +"I tell you you're on the wrong trail unless you want to get it where +the chicken got the axe!" + +"Doggone it, man! Ain't that where we're gettin' it _now_?" + +"Whereas with the right kind of organization----" + +"Don't believe it," grunted McNair, starting to climb back to his +horse. "The time for any more o' these here granny tea-parties is past +to my way o' thinkin' an' if we can't agree on it, we'd better shut up +before we get mad." He vaulted easily into the saddle. "But I'll tell +you one thing, W. R.--there's the sweetest little flare-up you ever saw +on its way. I was talkin' the other day to Ed. Partridge, the Railton +boys, Al. Quigley, Billy Bonner and some more----" + +"And I'll bet they gave you a lot of sound advice, Mac!" laughed +Motherwell confidently. + +"That's alright," resented McNair, the tan of his cheek deepening a +trifle. "They're a pretty sore bunch an' a fellow from down Turtle +Mountain way in Manitoba told me----" + +"That the mud-turtle and the jack-rabbit finally agreed that slow and +steady----" + +"Bah! You're sure hopeless," grinned the owner of the Two-Bar, giving +his horse the rein. + +"Hope_ful_," corrected W. R. Motherwell with a laugh. "Tell Wilson, if +you see him, that Peter Dayman and I are expecting him over next week, +will you? And I say, Mac, don't kill too many before you get home!" he +called in final jocularity. + +The flying horseman waved his hat and his "S'long" came back faintly. +The other watched till horse and rider lost themselves among the +distant wheat stocks. The twinkle died out of his eyes as he watched. + +So McNair was another of them, eh? After all, that was only to be +expected of an old Indian fighter and cow-puncher like him. Poor Bob! +He had his reputation to sustain among the newcomers--hard rider, hard +fighter, hard drinker; to do it under the changed conditions naturally +required some hard talking on occasion. While Mac had become civilized +enough to keep one foot in a cowhide boot planted in the practical +present, the other foot was still moccasined and loath to forget the +days of war-paint and whiskey-traders, feathers and fears. Over the +crudities and hardships, the dirt and poverty, the years between had +hung a kindly curtain of glamor; so that McNair with his big soft +kerchiefs, his ranger's hat, his cow-puncher's saddle and trappings and +his "Two-Bar" brand was a figure to crane an Eastern neck. + +Likeable enough chap--too much of a man to be treated as a joke to his +face, but by no means to be taken seriously--not on most occasions. In +the present instance, with feeling running as high as it was in some +quarters, that crazy idea of seizing a few elevators at the point of a +gun--! What in heaven's name would they do with them after they got +them? Nevertheless, McNair might find rattle-brained listeners enough +to cause a heap of trouble. There were always a few fellows ready for +excitement; they might go in for the fun of it, then before they knew +it the thing would curdle over night like a pan of milk in a +thunder-storm. + +"He's just darn fool enough to try some funny work," muttered the +anxious driver of the grain wagon. "Jailing him only makes a hero of +him and that's the kind of thing the beggar glories in. The +son-of-a-gun!" + +One by one throughout the afternoon the miles crept tediously beneath +the wagon. The sun which had steeped the stubble in gold all day had +turned the sky and was poising for its nightly dip below the horizon by +the time the long misty blue line of the Qu'Appelle hills began to +creep from the prairie. When the lone traveller at last could count +the deep shadowy coulees the sun had disappeared, but the riot of +after-fires still burned brightly in the west. He had passed his own +place hours before, but had stopped there only for a change of horses +and a brief rest; a parcel and an important message which he wished to +deliver in person at Fort Qu'Appelle without delay was extending his +day's journey. + +Six hundred feet below the level of the plain the grassy slopes of the +Qu'Appelle Valley bowled to the blue lakes. Hugging the water's edge, +the buildings of the romantic old fort scattered in the twilight. The +winding trail stood out like a white thread that reached down the +valley towards the Catholic Mission of Lebret. + +Before heading into the steep descent the farmer from over Abernethy +way slipped on his heavy cardigan jacket; for behind the rim of the +hills the sunset fires were dying and already the coolness of the +October night was making itself felt. At the mouth of a coulee he +spoke to a solitary Indian, standing motionless before a camp fire. +The appetizing odor of roasting wild fowl reminded him that he was more +than ready for the "bite to eat" which he would enjoy with the good +Father Hugonard at the Indian Mission--he of the dark, gentle eyes, the +quick understanding, the quiet tones. There would be much to talk +about. + +So it proved. The hour was growing late when finally he bade good-bye +to his pleasant host and resumed his journey in the starlight, +refreshed and encouraged. For here in the seclusion of this peaceful +valley, since the days of the great buffalo herds, Father Hugonard had +ministered to the Indians, starved with them, worked patiently with +them through many seasons of flowers and snows. Nevertheless, out of +many discouragements and privations had this sterling man retained an +abiding faith in the triumph of righteousness in all things. + +In the quiet beauty of the wonderful October night was little place for +the anxious thoughts of the day. Bitterness of spirit, the bickerings +of men, commercial Oppression and injustice--these were things far +removed from the planets of the Ages that sparkled like jewels in the +vault of Night. A vagrant breeze whispered in the valley sedges to the +placid lake. High in the air, invisible, migrating _wavies_ winged +into the south, the distant gabble of their passing falling weirdly +earthward. + +The trail began to ascend sharply. Off to the right the sky was +growing rapidly lighter behind a distant hill and presently a lop of +yellow moon crept slowly over the edge and rose into the air like a +broken chalice, chasing the shadows to their retreats. + +As he watched it the driver of the grain wagon recalled again the old +Indian legend that haunted this valley and had given it its name--how, +long ago, a young Indian chieftain was paddling his canoe through these +waters on his way to win a bride when suddenly above "the night wind's +melancholy song" he heard a voice calling him through the twilight. +"Qu'appelle? Qu'appelle?" he answered in French. "Who calls?" But +only his own voice came back in echoes while the gloom of night +deepened and a wan moon rose silently behind the distant hill. Then +when he reached the Indian encampment it was only to see the death +fires lighted on the shore, to hear the wail of women and to learn that +just before her lips had closed forever, his beloved had called for +him--just at the moon-rise. Thus, ever since, the Indians claimed, +strange spirit voices spoke through the lone valley at every rising of +the moon. + +Thrilled by the beauty of the valley scene, misty in the moonlight, the +big farmer half unconsciously drew rein and listened. All he could +hear at first was the impatient stamp of his horses' feet, the mouthing +of the bits as the animals tossed their heads restlessly, the clink of +the trace-chains; but presently he sensed a subdued undertone of night +noises that wafted mysteriously over the silver water. It was nothing +that could be recognized definitely; rather was it an impression of +strangely merged minor sounds that grew upon him as imagination was +given play under the influence of time and place. It was easy to +supply interpretations of that faint medley, even while one knew that +it was merely the murmur of night airs in the dry grasses, the whisper +of the water-edges, the stirring of restless water-fowl in the dying +reeds. + +The man who had ridden all day with his thoughts began unconsciously to +apply other meanings to the sound, to people the night with dim faces +and shapes that came trooping over the edge of the tablelands +above--toil-bent figures of old pioneer farmers, care-worn faces of +women and bright eager faces of little children who were holding out +their hands trustfully to the future. There seemed to be a +never-ending procession--faces that were apathetic from repeated +disappointments, faces that scowled threateningly, brave faces tense +with determination and sad faces on which was written the story of +struggle hidden within many a lonely wind-buffeted shack on the great +bosom of the prairie. + +Was it, then, that all the years of toil and hardship were to come to +naught for this great company of honest workers, these brave pioneer +men and women of the soil? Was all their striving forward to find them +merely marking time, shouldered into the backwater while the currents +of organized commercialism swept away their opportunities? Were not +these producers of the world's bread themselves to partake of the +fruits of their labor? + +Yes! Surely the answer was _Yes_! It was their Right. Wrong could +not endure forever in the face of Right; else were the world a poor +place, Life itself a failure, the mystic beauty of God's calm night a +mockery. + +The man from Abernethy roused himself. It would be nearly dawn before +his team would reach their home stalls. He whistled to the horses and +they plunged into the black shadows of the coulee up which the trail +rose in steep ascent from the valley. When they emerged into the +moonlight he drew rein for a moment. + +Somewhere back in a forgotten arroyo a coyote yapped lonesomely. +Around through the night were flung the distant glow-dots of the +burning straw piles, and as he filled his lungs with the fresh sweet +air the hope of better days warmed the heart of the belated traveller. +The Hand which set the orbits of the universe created the laws of Truth +and Justice and these never could be gainsaid. Everything would come +out aright if only men were steadfast in faith and duty. + +He gave the horses their heads and they were off once more through the +cool night upon the wheatland sea that was bounded only by far purple +shadows. + + + +[1] The provinces of Saskatchewan and Alberta, Western Canada, were not +created until 1906. Prior to that the entire country west of the +Province of Manitoba was known as the North-West Territories, of which +the District of Assiniboia was a part, the part which subsequently +formed the southern portion of the Province of Saskatchewan. + +[2] Hon. W. R. Motherwell, Minister of Agriculture, Province of +Saskatchewan. + + + + +CHAPTER II + +A CALL TO ARMS + +And my hand hath found as a nest the riches of the people: and as one +gathereth eggs that are left, have I gathered all the earth.--_Isaiah_ +10:14. + + +For five thousand years Man has grown wheat for food. Archaeologists +have found it buried with the mummies of Egypt; the pictured stones of +the Pyramids record it. But it was the food of princes, not of +peasants--of the aristocracy, not of the people; for no man could +harvest enough of it with his sickle to create a supply which would +place it within the reach of the poor. While century after century[1] +has passed since wheat was first recognized as the premier nourishment +for the human body, it is only of recent times that it has become the +food of the nations. + +The swift development of grain growing into the world's greatest +industry goes back for a small beginning to 1831. It was in that year +that a young American-born farm boy of Irish-Scotch extraction was +jeered and laughed at as he attempted to cut wheat with the first crude +reaper; but out of Cyrus Hall McCormick's invention soon grew the +wonderful harvesting machinery which made possible the production of +wheat for export. Close on heel the railways and water-carriers began +competing for the transportation of the grain, the railways pushing +eagerly in every direction where new wheat lands could be tapped. In +1856 wheat was leaving Chicago for Europe and four years later grain +vessels from California were rounding Cape Horn. The nine years that +followed saw the conquest of the vast prairies of the American West +which were crossed by the hissing, iron monsters that stampeded the +frightened bison, out-ran the wild horses and out-stayed the lurking +Indian. + +No sooner had the railways pushed back the frontier than wheat began to +trickle steadily upon the market, to flow with increased volume, then +to pour in by train-loads. Sacks were discarded for quicker shipment +in bulk; barns and warehouses filled and spilled till adequate storage +facilities became the vital problem and, the need mothering invention, +F. H. Peavey came forward with an idea--an endless chain of metal cups +for elevating grain. From this the huge modern elevator evolved to +take its place as the grain's own particular storehouse. With the +establishment of exchanges for conducting international buying and +selling the universalizing of wheat was complete. + +These things had come to pass while that great region which is now +Western Canada was still known as a Great Lone Land. Pioneer settlers, +however, were beginning to venture westward to the newly organized +Province of Manitoba and beyond. The nearest railroad was at St. Paul, +Minnesota, from which point a "prairie schooner" trail led north for +450 miles to Winnipeg at the junction of the Red and Assiniboine +rivers; the alternative to this overland tented-wagon route was a +tedious trip by Red River steamer. It was not until 1878 that a +railway was built north into Manitoba from St. Paul; but it was +followed shortly after by the projection of the Canadian Pacific +Railway, which reached Vancouver in 1886. + +Then began what has been called the greatest wheat-rush ever known. +Land, land without end, to be had for the asking--rich land that would +grow wheat, forty bushels to the acre, millions of acres of it! +Fabulous tales, winging east and south, brought settlers pouring into +the new country. They came to grow wheat and they grew it, the finest +wheat in the world. They grew it in ever increasing volume. + +Successful operation of new railroads--even ordinary railroads--is not +all glistening varnish and bright new signal flags. The Canadian +Pacific was no ordinary railway. It was a young giant, reaching for +the western skyline with temerity, and it knew Trouble as it knew sun +and wind and snow. The very grain which was its life-blood gorged the +embryo system till it choked. The few elevators and other facilities +provided could not begin to handle the crop, even of 1887, the heavy +yield upsetting all calculations. The season for harvesting and +marketing being necessarily short, the railroad became the focus of a +sudden belch of wheat; it required to be rushed to the head of the +lakes in a race with the advancing cold which threatened to congeal the +harbor waters about the anxiously waiting grain boats before they could +clear. With every wheel turning night and day no ordinary rolling +stock could cope with the demands; for the grain was coming in over the +trails to the shipping points faster than it could be hauled out and +the railroad was in a fix for storage accommodation. + +It was easy to see that such seasonal rushes would be a permanent +condition in Western Canada, vital but unavoidable; so the Canadian +Pacific Railway Company cast about for alleviations. They hit upon the +plan of increasing storage facilities rapidly by announcing that the +Company would make special concessions to anyone who would build +elevators along the line with a capacity of not less than 26,000 +bushels and equipped with cleaning machinery, steam or gasoline +power--in short, "standard" elevators. The special inducement offered +was nothing more nor less than an agreement that at points where such +elevators were erected the railway company would not allow cars to be +loaded with grain through flat warehouses, direct from farmers' +vehicles or in any other way than through such elevators; the only +"condition" was that the elevator owners would furnish storage and +shipping facilities, of course, for those wishing to store or ship +grain. + +At once the noise of hammer and saw resounded along the right-of-way. +Persons and corporations whose business it was to mill grain, to buy +and export it, were quick to take advantage of the opportunity; for the +protection offered by the railway meant that here was shipping control +of the grain handed out on a silver platter, garnished with all the +delectable prospects of satisfying the keenest money hunger. + +On all sides protests arose from the few owners of ordinary warehouses +who found their buildings useless, once the overtopping elevator went +up alongside--from small buyers who found themselves being driven out +of the market with the flat warehouses. But these voices were drowned +in the swish of grain in the chutes and the staccato of the elevator +engines--lost in the larger exigencies of the wheat. The railway +company held to their promises and the tall grain boxes reared their +castor tops against the sky in increasing clusters. + +To operate a standard elevator at a country point with profit it was +considered necessary in the early days to fill it three times in a +season unless the owner proposed to deal in grain himself and make a +buyer's profit in addition to handling grain for others. The cost of +building and operating the class of elevator demanded by the railway +company was partly responsible for this. Before long the number of +elevators in Manitoba and the North-West Territories increased till it +was impossible for all of them to obtain the three fillings per season +even had their owners been inclined to perform merely a handling +service. + +But those who had taken up the railway's offer with such avidity and +had invested large sums of shareholders' capital in building the +elevator accommodation were mostly shrewd grain dealers whose primary +object was to buy and sell. These interested corporations were not +constructing elevators in order to admire their silhouettes against the +beautiful prairie sunsets! In every corner of the earth the Dollar +Almighty, or its equivalent, was being stalked by all sorts and +conditions of men, some of whom chased it noisily and openly while +others hunted with their boots in one hand. Properly enough, the grain +men were out for all that their investment could earn and for all the +wheat which they could buy at one price and sell at another. That was +their business, just as it was the business of the railway company to +transport the grain at a freight rate which would net a profit, just as +it was the farmer's business-- + +But to the farmer it seemed that he had no business! He merely grew +the grain. Apparently a farmer was a pair of pants, a shirt and a +slouch hat that sat on a wagon-load of wheat, drove it up the incline +into the elevator and rattled away again for another load! To farm was +an occupation easily parsed--subjunctive mood, past tense, passive +voice! The farmer was third person, singular! He came and went in +single file like an Indian or a Chinaman--John Doe, Yon Yonson and +Johann X (his mark)--every kind of Johnny on no spot but his own! As +soon as his grain was dumped each of him went back to the land among +the dumb animals where the pomp and vanity of this wicked world would +not interfere with preparations for next year's crop! + +Wheat was bought upon the grading system--so much per bushel for this +grade, so much for that, according to the fluctuations of supply and +demand upon the world's markets. But the average farmer at that time +knew little or nothing about what went on in the great exchanges of the +cities; there was no means of learning the intricacies of the grain +business and many farmers even did not know what a grain exchange was. +All such a man knew was that his wheat was graded and he received a +certain price for it. + +The railway company's refusal to furnish cars for loading direct from +the farmer's wagon compelled the shipper to sell to the elevator +operator for whatever price he could get, accepting whatever weights +the operator allowed and whatever "dockage" he chose to decree. The +latter represented that portion of the farmer's delivery which was +supposed to come through the cleaning sieves as waste material such as +dirt, weed seeds, broken wheat kernels, etc. To determine the +percentage of dockage in any given load of wheat the ordinary human +being would require to weigh and clean a pound of it at least; but so +expert were many of the elevator operators of those days that they had +no trouble at all in arriving at the dockage by a single glance. Nor +were they disconcerted by the fact that the country was new and grain +frequently came from the thresher in a remarkably clean condition. + +With everything thus fallow for seeds of discord the Big Trouble was +not long in making itself manifest. All over the country the Bumping +of the Bumpkins apparently became the favorite pastime of elevator men. +Certain persons with most of their calluses on the inside cracked the +whip and the three-ring circus began. Excessive dockage, short +weights, depressed prices! The farmers grew more and more bitter as +time passed. To begin with, they resented being compelled by the +railway to deal with the elevators; it was a violation of that liberty +which they had a right to enjoy as British citizens. The grain was +theirs to sell where they liked, and when on top of the refusal to let +them do it came this bleeding of their crops, their indignation was +fanned to white heat. + +It was useless for the farmers to build elevators of their own; for +these had to conform to the requirements of the railway and, as already +stated, it was impossible to run them profitably without making a +buyer's profit in addition to the commission for handling and storage. +The farmers were not buyers but sellers of grain and with very few +exceptions, where conditions were specially favorable, the farmers' +elevators that were attempted were soon in difficulties. + +Leading farmers began to write strong letters to the newspapers and it +was not long before the agitation became so widespread that it reached +the floor of Parliament. Mr. James M. Douglas, member for East +Assiniboia, during two successive sessions introduced Bills to regulate +the shipping and transportation of grain in Manitoba and the North-West +Territories and these were discussed in the House of Commons. A +Special Committee of the House was appointed finally to investigate the +merits of the case and as considerable difference of opinion was +expressed as to the actual facts, the appointment of a Royal Commission +to make a full and impartial investigation of the whole subject in the +public interest was recommended. + +This Royal Commission accordingly was appointed on October 7th, 1899, +and consisted of three Manitoba farmers--W. F. Sirett, of Glendale; +William Lothian, of Pipestone, and Charles C. Castle, of Foxton--with +His Honor E. J. Senkler, of St. Catharines, Ontario, as Chairman; +Charles N. Bell, of Winnipeg, acted as Secretary. Owing to the illness +and death of Judge Senkler, Albert Elswood Richards (afterwards the +late Hon. Mr. Justice Richards, of Winnipeg), succeeded as Chairman in +February, 1900. + +Sittings were held at many places throughout Manitoba and the +North-West Territories and much evidence was taken as to the grievances +complained of, these being mainly: (1) That vendors of grain were being +subjected to unfair and excessive dockage at the time of sale; (2) That +doubt existed as to the fairness of the weights allowed or used by +owners of elevators; (3) That the owners of elevators enjoyed a +monopoly in the purchase of grain by refusing to permit the erection of +flat warehouses where standard elevators were situated and were thus +able to keep prices of grain below true value to their own benefit and +the disadvantage of the public generally as well as others who were +specially interested in the grain trade. + +Meanwhile the railway companies had hastened to announce that they +would furnish cars to farmers who wished to ship direct and do their +own loading. This concession, made in 1898-9, resulted in somewhat +better prices and better treatment from the elevator operators. But +farmers who lived more than four or five miles from the shipping points +could not draw in their grain fast enough to load a car within the time +allowed by the railway; so that the situation, so far as these farmers +were concerned, remained practically unchanged. + +In March, 1900, the Royal Commission made a complete report. They had +done their work thoroughly. They found that so long as any farmer was +hampered in shipping to terminal markets himself he would be more or +less at the mercy of elevator operators and that the only proper relief +from the possibility of undue dockage and price depression was to be +found in the utmost freedom of shipping and selling. To this end they +considered that the railroads should be compelled by law to furnish +farmers with cars for shipping their own grain and that flat warehouses +should be allowed so that the farmer could have a bin in which to +accumulate a carload of grain, if he so wished. This, the +commissioners thought, should be the farmer's legal right rather than +his privilege. Loading platforms for the free use of shippers were +also recommended. + +It was the further opinion of the Commission that the law should compel +elevator and warehouse owners to guarantee the grades and weights of a +farmer's grain and to do this the adoption of a uniform grain ticket +system was suggested. At the same time, the commissioners pointed out, +these guarantees might lead to such careful grading and docking by the +elevator operator as might appear to the farmer to be undergrading or +overdocking; so that the farmer's right to load direct on cars was a +necessary supplementary protection. + +The annual shortage of cars during the rush season following harvest +was found to be a direct cause of depression in prices. When cars were +not available for immediate shipments the grain soon piled up on the +elevator companies who were thereby forced to miss the cheaper +transportation by boat from the head of the lakes or assume the risk of +carrying over the grain until the following spring; in buying, +therefore, they naturally allowed a wide margin to cover all possible +contingencies. Increase of transportation facilities during October +and November accordingly was imperative. + +With no rules to regulate the grain trade except those laid down by the +railways and the elevator owners, the need was great for definite +legislation similar to that which obtained in the State of Minnesota +and, as a result of the Royal Commission's recommendations, the +Manitoba Grain Act was placed upon the statutes and became operative in +1900. To supervise the carrying out of the law in connection with the +grain trade a Warehouse Commissioner was appointed, Mr. C. C. Castle +who acted on the Royal Commission being selected for this responsible +office. + +A sigh of relief went up from many intelligent farmers who had begun to +worry over the conditions developing; for they looked upon the Manitoba +Grain Act as a sort of Magna Charta. With the grain trade under +official control and supervision along the lines laid down by the Royal +Commission, they felt that everything would be alright now. It was +like calling in a policeman to investigate suspicious noises in the +house; like welcoming the doctor's arrival upon an occasion of sudden +and severe illness. Unfortunately, the patient's alarming symptoms +sometimes continue; sometimes the thief makes a clean get-away; King +John had no sooner left Runnymede than he proceeded to ignore the Great +Charter and plan new and heavier scutages upon the people! + +Up till now the elevator owners had been operating with nothing more +definite than a fellowship of interests to hold them together; but upon +appearance of the Grain Act they proceeded to organize the North West +Elevator Association, afterwards called the North West Grain Dealers' +Association. By agreeing on the prices which they would pay for wheat +out in the country and by pooling receipts the members of such an +organization, the farmers suspected, would be in a position to strangle +competition in buying. + +The new Act was aiming point blank at these very things by affording +the farmer an opportunity of loading his grain direct into cars through +flat warehouses, if he chose, and shipping where he liked. But because +many farmers did not know with just what the new weapon was loaded or +how to pull the trigger, the railways and elevators merely stepped up +and smilingly brushed the whole thing aside as something which were +better hanging on a high peg out of harm's way. + +The crop of 1900 being comparatively light, the ignoring of the +car-distribution clauses of the Act did not obtrude as brazenly as it +did the year following. But when grain began to pour in to the +shipping points in 1901 and the farmers found the railway unheeding +their requests for cars their disgust and disappointment were as +complete as their anger was swift. It was the rankling disappointment +of men whose rights have been officially decreed only to be +unofficially annulled; it was the hot anger of a slap in the face--the +anger that makes men fight with every ounce of their strength. + +The quick welling of it planted anxiety in the minds of such +level-headed farmers as W. R. Motherwell and Peter Dayman, of +Abernethy; Williams, of Balcarres; Snow, of Wolseley; Sibbold and +Millar, of Indian Head. While the two latter were riding into town +with wheat one day John Sibbold suggested to John Millar that, as +secretary of the local Agricultural Society, it might be a good thing +if he called a meeting to talk things over. It was the high state of +feeling manifested at this meeting which furnished W. R. Motherwell +with food for thought on the lonely Qu'Appelle trail. And it was the +idea that it might be advisable to hold similar mass meetings +throughout the country that brought Peter Dayman driving over to the +Motherwell place, not long after, to discuss it. + +These two men had been friends and neighbors since 1883. Each of them +felt that the time had come for definite action of some kind and they +spent the greater part of the day in talking over the situation in +search of the most practical plan of campaign. There was little use in +the farmers attempting to organize in defence of their own interests +unless the effort were absolutely united and along broader lines than +those of any previous farmers' organization. Politics, they both +agreed, would have to be kept out of the movement at all costs or it +would land on the rocks of defeat in the same way that the Farmers' +Union and Patrons of Industry had been wrecked. + +It was in the middle eighties when the West was settled but sparsely +that the farmers had attempted to improve their lot by the formation of +"Farmers' Unions." The movement had had a brief and not very brilliant +career and as the offspring of this attempt at organization some +progressives with headquarters at Brandon, Manitoba, had tried to enter +the grain trade as an open company. When one of the chief officers of +this concern defected in an attempt to get rich the failure dragged +down the earnest promoters to deep financial losses. + +Again in the early nineties the farmers had rebelled at their pioneer +hardships by organizing the "Patrons of Industry," a movement which had +gained strength and for a while looked healthy. It had got strong +enough to elect friends to the Legislature and was sowing good seed +when again temptation appeared, centred in the lure of commercial +success and politics. Some of the chief officers began to misuse the +organization for selfish ends and away went the whole thing. + +There was no use in repeating these defeats. Couldn't some way be +devised of sidestepping such pitfalls? The great weakness of the +farmers was their individual independence; if they could be taught to +stand together for their common interests there was hope that something +might be accomplished. + +The sitting-room clock ticked away the hours unheeded as these two +far-sighted and conscientious farmers lost themselves in earnest +discussion. The lamps were lighted, but still they planned. + +Finally W. R. Motherwell reached across the table for a pad of +note-paper and drafted the call to arms--a letter which summoned the +men of Wolseley, Sintaluta and Indian Head, of Qu'Appelle, Wideawake +and other places to gather for _action_. There and then copies were +written out for every leading farmer within reach, and in order that no +political significance might be attached to the call, both men signed +the letters. + +When Peter Dayman drove away from the Motherwell place that night +perhaps he scarcely realized that he carried in his pocket the fate of +the farmers of Western Canada. Neither he, W. R. Motherwell, nor any +other man could have foretold the bitter struggles which those letters +were destined to unleash--the stirring events that were impending. + + + +[1] Wheat was first grown in Canada in 1606 at Port Royal (now +Annapolis) in Nova Scotia, where Champlain and Pourtincourt built a +fort and established a small colony. A plot of ground was made ready +and wheat planted. "It grew under the snow," said Pourtincourt, "and +in the following midsummer it was harvested." + + + + + +CHAPTER III + +THE FIRST SHOT IS FIRED + +Let us have faith that Right makes Might, and in that faith let us dare +to do our duty as we understand it.--_Abraham Lincoln_. + + +The eighteenth of December, 1901, was a memorable day in the little +prairie town of Indian Head. Strangers from East and West had begun to +arrive the night before and early in the day the accommodations were +taxed to the limit while the livery stables were overflowing with the +teams of farmers from every direction. All forenoon the trails were +dotted with incoming sleighs and the groups which began to congregate +on Main Street grew rapidly in size and number. The shop-keepers had +stayed up half the night to put the final touches to their holiday +decorations and make their final preparations for the promised rush of +Christmas buying. + +Many prominent men would grace the town with their presence before +nightfall. The Premier of the North-West Territories, Hon. F. W. G. +Haultain, would be on hand, as well as Hon. G. H. V. Bulyea and Senator +William D. Perley; coming to meet them here would be Premier R. P. +Roblin and other gentlemen of Manitoba. Certain boundary matters, +involving the addition of a part of Assiniboia to the Province of +Manitoba, were to be discussed at a public meeting in the Town Hall at +night. + +Messrs. Motherwell and Dayman had chosen their date well, many farmers +having planned already to be at Indian Head on the 18th. The grain +growers' meeting was announced for the afternoon and so keen was the +interest that when order was called the chairman faced between sixty +and seventy-five farmers, as well as a number of public men, instead of +the dozen-or-so whom W. R. Motherwell had ventured to expect. + +Although it was December out of doors, the temperature of that meeting +was about one hundred in the shade! As the discussion expanded feeling +ran high. Farmer after farmer got to his feet and told the facts as he +knew them, his own personal experiences and those of his neighbors. +There was no denying the evidence that it was full time the farmers +bestirred themselves. + +W. R. Motherwell and Peter Dayman spoke earnestly in favor of immediate +organization along strong, sane lines. The farmer was always referred +to as the most independent man on earth, and so he was; but it was +individual independence only. He had come lumbering into the country +behind his own oxen with his family and all his worldly goods in his +own wagon; had built a roof over their heads with his own hands. Alone +on the prairie, he had sweated and wrestled with the problem of getting +enough to eat. One of the very first things the pioneer learned was to +stand on his own two feet--to do things by himself. His isolation, the +obstacles he had overcome by his own planning, the hardships he had +endured and survived--these were the excuses for his assertiveness, his +individualism, his hostility to the restrictions of organization. He +was a horse for work; but it was an effort for him to do team work +because he was not used to it. + +This was the big barrier which would have to be surmounted in the +beginning if battle were to be waged successfully against present +oppressive conditions. The right kind of organization was the key that +would unlock a happier future. The farmer was as much a producer as +any manufacturer who made finished articles out of raw material; but +his was the only business in which full energies were expended upon +production of goods to sell while the marketing end was left for the +"other fellow" to organize. That was why he was obliged to do as he +was told, take what was given him or haul his wheat home and eat it +himself. + +Like all such meetings, it was not without its few pails of cold water. +These were emptied by some who hinted dark things about "political +reasons," and it was easy to make the trite statement that history +repeats itself and to predict that the formation of such a farmers' +association as was proposed would be riding only for the same fall +which had overtaken former attempts. The enthusiasm refused to be +dampened and it broke out in unmistakable accents when without waste of +words Angus McKay nominated W. R. Motherwell as provisional President +of the "Territorial Grain Growers' Association." John Millar as +provisional Secretary and a board of directors[1] were quickly chosen. + +When it was all over and Senator William D. Perley rose slowly to his +feet, it was to deliver a parting message of confidence that the +farmers were taking the right step in the right manner. There were few +men who could be listened to with greater respect than the elderly +Senator and as the silence of his audience deepened it was almost as if +the white-haired gentleman's dignified words were prophetic. He had +been familiar with a somewhat similar movement in New Brunswick, he +said, and back there by the Atlantic this movement was still very much +alive and doing good work. Long after those who were present at this +meeting had passed away, it was his prediction that this newborn +organization of prairie farmers would be living still, still expanding +and still performing a useful service to the farmers generally. + +The meeting adjourned with the general feeling that at last matters +were advancing beyond mere talk. The sixth of January was set as the +date for a second meeting to draft a constitution and prepare a +definite plan of campaign. Emphasis was laid upon the importance of a +good attendance; but when the date arrived the leaders of the new +movement were disappointed to find that, including themselves, there +were just eleven farmers present. While this did not look very +promising, they proceeded with their plans and it is a tribute to the +careful thought expended at that time that the constitution then framed +has stood the test of many years, even much of the exact phraseology +remaining to-day. The idea of having local associations scattered +throughout the country, each with its own officers, governed by a +central organization with its special officers, was adopted from the +first. + +Among those present was C. W. Peterson, Deputy Commissioner of +Agriculture for the North-West Territories. He freely offered his +services in the capacity of secretary; but the offer was turned down so +flat and so quickly that it was breath-taking. The incident reflected +very vividly the jealousy with which the farmers were guarding the new +movement rather than any depreciation of the Deputy Commissioner's +ability; every man of them was on the alert to deflect the thinnest +political wedge, imagined or otherwise, that might come along. They +would trust nobody with an official connection and the appointment of +John Millar, who was one of themselves, was confirmed without loss of +time. There was no salary attached to any office, of course; nobody +thought of salaries. The farmers who knew the feel of spare cash in +those days were seventh sons of seventh sons. + +Winter and all as it was, the leaders of the young organization did not +let the snow pack under their feet. No sooner were the preliminaries +over than they set about preparing for the first convention of the +Association by hitching up and travelling the country, organizing local +associations. W. R. Motherwell, John Millar and Matt. Snow, of +Wolseley, tucked the robes around them and jingled away in different +directions. Wherever they went they were listened to eagerly and the +resulting action was instantaneous. The movement took hold of the +farmers like wildfire; so that by February thirty-eight local grain +growers' associations had been formed, each sending enthusiastic +delegates to the first Annual Convention, which was held at Indian Head +in February, 1902. + +All that summer, pacing the rapidly growing wheat, the Territorial +Grain Growers' Association spread and took root till by harvest time it +was standing everywhere in the field, a thrifty and full-headed +champion of farmers' rights, lacking only the ripening of experience. +There had been as yet no particular opportunity to demonstrate its +usefulness in dollars and cents; but with the approach of the fall and +market season the whole organization grew tense with expectancy. There +seemed little reason to believe that the railway people would do other +than attempt to continue their old methods of distributing cars where +and when they chose and to disregard, as before, those provisions of +the Grain Act which aimed to protect the farmer in getting his fair +share of cars in which to load direct. + +Thus it soon turned out. The officers of the Association at once +warned the Canadian Pacific Railway Company that if they persisted in +such practice the farmers would be compelled to take legal action +against them. It looked so much like the attack of a toddling child +against a man full grown that the big fellow laughed good-naturedly. +Who, pray, were the "Territorial Grain Growers' Association"? + +"We represent the farmers of Western Canada," retorted the unabashed +officers of the little organization "and we want what the law allows us +as our right. What's more, we propose to get it!" + +That was about the message which W. R. Motherwell and Peter Dayman went +down to Winnipeg to deliver in person to the Canadian Pacific Railway +Company. The official whom they interviewed manipulated the necessary +levers to start the matter on its way through the "proper channels" +towards that "serious consideration" into which all good politicians +and corporation officials take everything that comes unexpectedly +before them. W. R. Motherwell could not wait for the unfolding of this +hardy perennial and left Peter Dayman at Winnipeg to follow up +developments. + +When the latter got back home he brought with him a bagful of promises. +The practical improvement in the situation which was to support these +promises, however, evidently got wrapped up in somebody else's order +and delivered to another address. As soon as the Association were +satisfied that relief was not to be forthcoming they promptly filled +out a standard form of information and complaint and notified the +railway that they were going to take legal action at Sintaluta against +the Company's station agent; if no results were forthcoming there, they +assured the Company, they would take action against every railway agent +in the Territories who was guilty of distributing cars contrary to the +provisions of the Grain Act. The complaint went before Mr. C. C. +Castle, the official Warehouse Commissioner; the information was laid +before Magistrate H. O. Partridge at Sintaluta. + +All over the country the newspapers began to devote valuable space to +the impending trial. It was talked about in bar-rooms and +barber-shops. Some anti-railroaders declared at once that the farmers +hadn't a minute's chance to win against the C. P. R. The news +percolated eastward, its significance getting lighter till it became +merely: "a bunch of fool hayseeds out West in some kind of trouble with +the C. P. R.--cows run over, or something." At Ottawa, however, were +those who saw handwriting on the wall and they awaited the outcome with +considerable interest. Several public men, especially from Regina, +made ready to be in actual attendance at the preliminary trial. + +The farmers were out in force, for they realized the importance of this +test case. It was not the agent at Sintaluta they were fighting, but +the railway itself; it was not this specific instance of unjust car +distribution that would be settled, but all other like infringements +along the line. The very efficacy of the Grain Act itself was +challenged. + +Two hours before the Magistrate's Court sat to consider the case, J. A. +M. Aikins (now Sir James Aikins, Lieutenant-Governor of Manitoba), who +was there as the legal representative of the C. P. R., tapped the +President of the farmers' Association on the elbow. + +"Let's make a real case of it while we're at it," he smiled, and +proceeded to suggest that instead of laying information against the +railway company on two charges, the Association should charge them also +with violating some five or six other sections of the Act. "Then we'll +have a decision on them, too, you see. For the purpose of this case +the Company will plead guilty to the offences. What do you say?" + +"Don't you do it, W. R.! Not on your life, Mister!" + +The farmers within earshot crowded about the two. They suspected +trickery in such a last-minute suggestion; either the railway people +were very sure they had the case in their pocket or they were up to +some smooth dodge, you bet! + +President Motherwell shook his head dubiously. + +"How can we change the information on such short notice?" he objected. +"It would mean risking an adjournment of the court." + +"That's what they're after! Stick to him, Motherwell!" + +But it did seem very advisable to have the meaning of those other +doubtful sections of the Act cleared up, and as C. P. R. counsel went +more fully into the matter the desirability of it for both sides became +even more apparent. + +"Tell you what we'll do, Mr. Aikins," said W. R. Motherwell, finally +turning to him after consulting the others, "if you'll give your +pledged word before this assembled crowd of farmers that you won't take +any technical advantage of the change you've suggested us making in the +information--by raising objections when court opens, I mean--why, we'll +make the change." + +"Certainly," agreed Mr. Aikins without hesitation, and in solemn +silence he and the President of the Association shook hands. + +This alteration in the information made the issue even more +far-reaching and it was a tense moment for the farmers who packed the +little court room when the Magistrate opened proceedings and on behalf +of the Warehouse Commissioner, Mr. T. Q. Mathers (now Chief Justice +Mathers, of Winnipeg), rose to his feet for argument. After the +evidence was complete and the Magistrate at last handed down his +decision--fifty dollars fine and costs, to be paid by the +defendant--the victorious grain growers were jubilant and especially +were the officers of the young Association proud of the outcome. + +The case was carried to the Supreme Court by the Railway Company, which +made every effort to have the decision of the lower court reversed. +When the appeal case came to trial, much to the disgust and chagrin of +the railway authorities and the corresponding elation of the farmers, +the Magistrate's decision was sustained. At once the newspapers all +over the country were full of it. Oracles of bar-room and barber-shop +nodded their heads wisely; hadn't they said that even the C. P. R. +couldn't win against organized farmers, backed up by the law of the +land? Away East the news was magnified till it became: "The farmers +out West have licked the C. P. R. in court and are threatening to tear +up the tracks!" At Ottawa Members of Parliament dug into Hansard to +see if they had said anything when the Manitoba Grain Act was passed. + +Empty cars began to roll into Western sidings and they were not all +spotted to suit the elevators but were for farmers who had signified a +desire to load direct. It was unnecessary to carry out the threat of +proceeding against every delinquent railway agent in the Territories; +for the delinquencies were no longer deliberate. The book in which by +turn the orders for cars were listed began to be a more honest record +of precedence in distribution, as all good car-order books should be. + +For the railway authorities were men of wide experience and ability, +who knew when they were defeated and how to accept such defeat +gracefully. It meant merely that the time had come to recognize the +fact that there was a man inside the soil-grimed shirt. The farmer had +won his spurs. While the railway people did not like the action of the +Association in hauling them into court, in all fairness they were ready +to admit that they had received full warning before such drastic action +was taken. + +If the railway officials began to regard the farmer in a new light, the +latter on his part began to appreciate somewhat more fully the task +which faced these energetic men in successfully handling the giant +organization for which they assumed responsibility. After the tilt, +therefore, instead of the leaders of the grain growers and the railway +looking at each other with less friendly eyes, their relations became +more kindly as each began to entertain for the other a greater respect. + +Best of all, applications were beginning to pour in upon the Secretary +of the Territorial Grain Growers' Association--applications from +farmers everywhere for admission to the organization. Skeptics who had +been holding out now enrolled with their local association and, as fast +as they could be handled, new locals were being formed. + +And at this very time, over in the hotel at Sintaluta, a grain grower +of great ability and discernment was warning an interested group of +farmers against the dangers of over-confidence. + +"At present we are but pygmies attacking giants," declared E. A. +Partridge. "Giants may compete with giants, pygmies with pygmies, but +pygmies with giants, never. We are not denizens of a hamlet but +citizens of a world and we are facing the interlocking financial, +commercial and industrial interests of a thousand million people. If +we are to create a fighting force by co-operation of the workers to +meet the giants created by the commercial co-operation of the owners, +we have scarcely started. If we seek permanent improvement in our +financial position and thereby an increase of comfort, opportunity and +sense of security in our lives and the lives of our families, the fight +will be long and hard. + +"And we are going to need every man we can muster." + + + +[1] See Appendix--Par. 1. + + + + +CHAPTER IV + +"THAT MAN PARTRIDGE!" + +Any man can work when every stroke of his hand brings down the fruit +rattling from the tree to the ground; but to labor in season and out of +season, under every discouragement, by the power of faith . . . that +requires a heroism which is transcendent. And no man, I think, ever +puts the plow into the furrow and does not look back, and sows good +seed therein, that a harvest does not follow.--_Henry Ward Beecher_. + + +It was a handy place to live, that little tar-paper shanty around which +the prairie wind whooed and whiffed with such disdain. So small was it +that it was possible to wash oneself, dress oneself and get breakfast +without getting out of bed. On the wall was a shelf which did duty as +a table. There were also a little box stove and some odds and ends. +When the roof leaked, which was every time it rained, it was necessary +to put pans on the bed to catch the drip. + +But it was better than the tent in which E. A. Partridge and his +brother slept through their first star-strewn winter nights on the open +prairie--more pretentious than the tent and assuredly not so cold. The +two boys were proud of it, even though they were fresh from +civilization--from Simcoe County, Ontario, where holly-hocks topped the +fences of old-fashioned flower gardens in summer and the houses had +shingles on top to keep out the weather, and where there were no +coyotes to howl lonesomely at night, where--Well, never mind. Those +houses belonged to other people; the shanty was theirs. All around +stretched acres and acres of snow; but there was land under that +snow--rich, new land--and that was theirs, too, by right of +homesteading. + +It was about Christmas time in 1883 when E. A. Partridge was +twenty-one. The place was near Sintaluta, District of Assiniboia, +North-West Territories, and homesteading there in the days before the +Rebellion was no feather bed for those who tackled it. A piece of +actual money was a thing to take out and look at every little while, to +show to one's friends and talk about. + +Season after season the half starved agricultural pathfinders lost +their hard-earned crops by drouth and what was not burned out by the +sun was eaten by ubiquitous gophers. The drouth was due, no doubt, to +the frequent prairie fires which swept the country; these found birth +in the camp-fire coals left by ignorant or careless settlers on their +way in. Under the rays of the summer sun the blackened ground became +so hot that from it ascended a column of scorching air which interfered +with the condensation of vapor preceding the falling of rain. Clouds +would bank up above the prairie horizon, eagerly watched by anxious +homesteaders; but over the burned area the clouds seemed to thin out +without a drop falling upon the parching crops. + +Forty-three acres, sown to wheat, was the first crop which the +Partridge brothers put in. The total yield was seven bushels, obtained +from around the edges of a slough! + +One by one discouraged settlers gathered together their few belongings +and sought fresh trails. Lone men trudged by, pack on back, silent and +grim. Swearing at his horses, wheels squealing for axle-grease, tin +pans rattling and flashing in the hot morning sun, a settler with a +family stopped one day to ask questions of the two young men. He was +on his way--somewhere--no place in particular. + +"I tell ye, boys, this country ain't no place fer a white man," he +volunteered. "When y'ain't freezin' ye're burnin' up, an' that's what +happens in hell!" He spat a stream of tobacco juice over the wagon +wheel and clawed his beard, his brown face twisted quizzically. "God +A'mighty ain't nowheres near here! He didn't come this fur +West--stopped down to Rat Portage![1] Well, anyways, good luck to ye +both; but ef ye don't git it, young fellers, don't ye go blamin' me, by +Jupiter!" He cracked his whip. "Come up out o' that, ye God-forsaken +old skates!" And, mud-caked wheels screeching, tin pans banging and +glaring, he jolted back to the trail that led away in distance to No +Place In Particular. + +But along with some others who confessed to being poor walkers, the +Partridge boys stuck right where they were. They set about the +building of a more permanent and comfortable shack--a sod house this +time. It took more than seven thousand sods, one foot by three, three +inches thick; but when it was finished it was a precocious raindrop or +a mendacious wind that could find its way in. + +About thirteen miles distant was a little mud schoolhouse, and one day +E. A. Partridge was asked to go over and teach in it. It was known +that back East, besides working on his father's farm, he had taught +school for awhile. Learning was a truant for the younger generation on +the prairies at that time, there being only a few private schools +scattered here and there. Though it was not much of an opportunity for +anything but something to do, the offer was accepted, and every +morning, after sucking a couple of eggs for a breakfast, E. A. +Partridge took to loping across the prairie on a "Shag" pony. + +But the little school put an idea into his head. He wondered if it +might be worth while starting a private school of his own, and in 1885 +he thought the Broadview locality offered profitable prospects. He +decided to go down there and look over the situation. + +By this time the occupants of the sod house numbered four--three +Partridge brothers and a friend. The problem of fitting out the +school-teacher for his Broadview trip so that he would create the +necessary impression among strangers was one which called for +corrugated brows. The solution of it was not to be found in any of the +teacher's few text-books; it quite upset Euclid's idea that things +which were equal to the same thing were equal to one another--when it +came to finding enough parts to make a respectable whole! For among +the four bachelors was not one whole suit of clothes sufficiently +presentable for social events. Everything was rough and ready in those +days and in spite of the hardships the friendly pioneer settlers had +some good times together; but the sod house quartette had never been +seen at any of these gatherings--not all four at one time! Three of +them were always so busy with this or that work that they had to stay +home, you know; it would have been embarrassing to admit that it was +only by pooling their clothes they could take turns in exhibiting a +neighborly spirit. As it was, there was often a secret fear of +exhibiting even more--an anxiety which led the visitor to keep the wall +at his back like a man expecting general excitement to break loose at +any moment! + +On reaching Broadview the prospects for the new school looked bright, +so the hopeful pedagogue sent back word to the sod house to this effect. + +"And don't you fellows forget to send my linen," he wrote jokingly. +"Make the trunk heavy, too. I don't know how long it will have to +represent my credit!" + +When the trunk arrived it was so heavy that it took two men to carry it +into the hotel. When in the secrecy of his own room E. A. Partridge +ventured to look inside he found his few books, a pair of "jumper" +socks--and a lot of stones! Also there was an old duster with a piece +of paper pinned to it, advising: "Here's your linen!" + +The Broadview school did not last long for the reason that the second +North-West Rebellion broke out that year and the teacher joined the +Yorkton Rangers. Fifty cents a day and grub was an alluring prospect; +many a poor homesteader would have joined the ranks on active service +for the grub alone, especially when the time of his absence was being +allowed by the Government to apply on the term set for homestead duties +before he could come into full possession of his land. Many farmers +earned money, also, teaming supplies from the railway north to +Battleford and Prince Albert. + +In common with his fellow grain growers, the five years that followed +were years of continuous struggle for E. A. Partridge. The railway +came and the country commenced to settle quickly. The days of prairie +fires that ran amuck gave way to thriving crops; but at thirty and +forty cents per bushel the thriving of those who sowed them was another +matter. + +This man with the snappy blue eyes and caustic tongue was among the +first to foresee "the rising colossus," the shadow of which was +creeping slowly across the farmer's path, and he watched the "brewing +menace" with growing concern. With every ounce of his tremendous +energy he resented the encroachment of Capital upon the liberties of +Labor. Being of the people and temperamentally a democrat, he had a +great yearning for the reorganization of society in the general +interest. His championship in this direction earned him the reputation +in some quarters of being full of "fads," a visionary. But his +neighbors, who had toiled and suffered beside him through the years, +knew "Ed." Partridge, man to man, and held him in high regard; they +admired him for his human qualities, respected him for his abilities, +and wondered at his theories. On occasion they, too, shook their heads +doubtfully. They could not know the big part in their emancipation +which this friend and neighbor of theirs was destined to play through +many days of crisis. Not yet had the talley begun. + +But events even now slowly were shaping. With the winning of their +first clash the farmers' movement was achieving momentum. In the +latter part of December, 1902, down in the town of Virden, Manitoba, a +committee was appointed at a meeting of the Virden Agricultural +Society, to arrange a district meeting for the purpose of organizing +the first Grain Growers' Association in Manitoba. As soon as the date +was set J. W. Scallion wrote to W. R. Motherwell, urgently asking him +to assist in the organization. Although roads and weather were rough, +the President of the Territorial Grain Growers' Association at +considerable inconvenience went down to Virden, taking with him Matt. +Snow and copies of the constitution and by-laws upon which the +Territorial Association was founded, With this assistance a strong +local association was formed at Virden on January 9th, 1903, with +capable officers[2] and a first-year membership of one hundred and +twenty-five. + +The same difficulties that faced the farmers farther West were being +experienced in Manitoba and the newspapers were full of protesting +letters from country points. As President of the Virden Grain Growers' +Association, J. W. Scallion wrote letters to every place where +complaints were being voiced and urged organization. At every +opportunity it was advocated through the press that from the eastern +boundary of Manitoba to the Rocky Mountains the farmers should organize +themselves for self-defence against oppression, present or possible, by +"the interests." In about six weeks over fifteen local associations +had been formed in Manitoba and Virden began calling for a Provincial +association. Accordingly, on March 3rd and 4th, 1903, the Manitoba +grain growers held their first convention at Brandon with one hundred +delegates present, representing twenty-six local associations. Great +enthusiasm marked the event and the officers[3] chosen were all men of +initiative. + +The members of the parent organization watched the rapid expansion on +all sides with sparkling eyes. Their own second annual convention at +Indian Head revealed considerable progress and the promise of greater +things to come. On the invitation of the delegates from the Regina +district it was decided to hold the third annual convention at the +capital and the rousing gathering which met there in due course was +productive of such stimulus and publicity that its effect was felt long +afterward. + +At every convention the farmers found some additional weak spot in the +Grain Act and suggested remedial legislation. Records are lacking to +show in what order the various changes came; but step by step the +farmers were gaining their rights. It all seemed so wonderful--to get +together thus and frame requests of the Government at Ottawa, to find +their very wording incorporated in the Act. The farmers scarcely had +dared to think of such a thing before. To them the ear of a government +was a delicate organism beyond reach, attuned to the acoustics of High +Places only; that it was an ear to hear, an ear to the ground to catch +the voice of the people was a discovery. At any rate when W. R. +Motherwell and J. B. Gillespie, of the Territories, D. W. McCuaig and +R. C. Henders, of Manitoba, went to Ottawa for the first time they were +received with every consideration and many of their requests on behalf +of the farmers granted. + +With such recognition and the recurring evidence of advantageous +results the jeering grins of a certain section of the onlooking public +began to sober down to a less disrespectful mien. Those who talked +glibly at first of the other farmers' organizations which they had seen +go to pieces became less free with their forebodings. + +In 1904 the farmers began to press for something more than the proper +distribution of cars and the freedom of shipment. They were +dissatisfied with the grading system and the re-inspection machinery. +Some of them claimed that the grading system did not classify wheat +according to its milling value. Some wanted a change in the +Government's staff at the office of the Chief Grain Inspector where the +official grading was done. Some wanted a sample market; some didn't. +The farmers were about evenly divided. + +The Department of Agriculture for the Territories commissioned +Professor Robert Harcourt, Chemist of the Ontario Agricultural College, +to conduct tests as to the comparative values of the different grades +of wheat. E. A. Partridge, of Sintaluta, and A. A. Perley, of +Wolseley, undertook to secure eight-bushel samples of the various +grades from their districts. These were carefully sacked and shipped +to the Chief Grain Inspector at Winnipeg, where he graded them and +forwarded them to Professor Harcourt, sealed in such a way that any +tampering with the shipment would be detected readily. + +These samples were all of 1903 crop. There had been a bad snowstorm in +September of that year and much wheat had been standing in stook. The +farmers believed that the grain was not frozen or injured in any way +and that they were defrauded to some extent in the grading of their +wheat. The samples represented all grades from "No. 1 Hard" to "Feed." +They were milled with exceptional care to prevent mixing of the various +lots and the flours obtained were put through three different baking +tests. + +The conclusion reached was that there did not appear to be much +difference in the value of the different grades of wheat. Even the +"Feed" sample proved by no means useless for bread-making purposes, +either in yield or quality; the only thing that rendered it less +available for bakers' use was its darker color. All who saw the loaves +were surprised at the quality of this bread. + +The tests on these 1903 samples confirmed the farmers in their opinion +that on 1903 wheat the spread in price between No. 1 Hard and No. 4 was +not in harmony with the milling quality. From No. 1 Hard the amount of +flour obtained was 70.8 per cent. as against 68 per cent. from the No. +4 grade. The large percentage of stook-frozen grain that went into the +lower grades because it was technically debarred from the higher ones +no doubt raised the milling value, it was thought, of all the grades +that year. + +The Department of Agriculture for the Territories therefore decided to +repeat the tests with 1904 wheat. The samples with which Professor +Harcourt was furnished represented the grain just as it was sold by the +farmer and graded either at the elevator or by the Chief Grain +Inspector; it was not a composite sample of the commercial grades. The +second tests practically confirmed the work done the previous year. +The milling, chemical and baking tests failed to show very wide +differences in the composition and milling value of the grades +submitted. The conclusion reached was that the difference in +composition and milling value was nearly as great between samples of +any one grade as between the various grades. + +The farmers began to feel that it would be a good thing to have a +representative at Winnipeg to watch the grading of their cars and to +look after their interests generally. The Department of Agriculture +for the Territories was asked by the Sintaluta grain growers to appoint +a man and W. H. Gaddes was commissioned to act for two weeks. Then the +farmers began to wonder if they could not send down a man of their own; +at one of their meetings the question was put and those present +subscribed five dollars apiece for the purpose. + +Thus it came about that on the 7th of January, 1905, there stepped from +the train at the C. P. R. depot in Winnipeg a man who looked no +different from any one of a dozen other farmers who daily reached the +city, tanned of cheek and bright of eye. But his business in town was +of a very special nature. In his pocket was a hundred dollars and the +grip in his hand was packed for a month's stay. + +It was a month of "cold shoulders" and patronizing manners for E. A. +Partridge. No band music was played in his honor, no festive board was +spread, nor was he taken around and shown the sights of the city. On +the contrary, he was made to feel like a spy in the camp of an enemy; +for he found himself entirely without status, the grain dealers +recognizing him merely as a farmers' representative, whatever that was. +Even at the office of the Chief Grain Inspector he was looked upon as a +man who was meddling with something which he wasn't supposed to know +anything about. + +Nevertheless, the Chief Inspector himself gave him information at times +and there were one or two others who took the trouble to explain some +things about which he asked questions. Among the latter was a grain +man by the name of Tom Coulter. For the most part, however, the +presence of the "farmers' representative" at Winnipeg was looked upon +as a joke; so that information as to the grain business became for him +largely a still hunt. He visited offices, listened to how interviews +were conducted over the telephone and picked up whatever loose ends he +could find to follow up. + +"Who is that fellow, anyway?" asked a grain man who had just got back +to the city. He jerked his thumb over his shoulder. + +"Oh, him!" laughed his partner as he saw who was indicated. "Only that +gazabo from Sintaluta who's been nosing around lately. Some hayseeds +out the line sent him down here to learn the grain business. They +believe that all wheat's No. 1 Hard, all grain buyers are thieves, and +that hell's to be divided equally between the railways and the milling +companies!" + +"So that's the guy, eh?--that's that man Partridge!" + + + +[1] The new name of Rat Portage is Kenora (Ontario). + +[2] See Appendix--Par. 2. + +[3] See Appendix--Par. 8. + + + + +CHAPTER V + +"THE HOUSE WITH THE CLOSED SHUTTERS" + +Knock, knock, knock! Who's there, i' the name of Beelzebub? Here's a +farmer . . .--_Macbeth_. + + +When wheat ceased to be grown for local needs and overflowed upon the +markets of the world, becoming a factor in finance, arenas where its +destiny was decided were established in the large centres of trade. In +these basins of commerce the never-ending flow concentrated and wheeled +for a short space before in re-directed currents it rolled on its way +to ocean ports. Here, according to the novelists, frantic men were +sucked into the golden eddies, their cries strangled and their fate +forgotten even as they were engulfed by the Leviathan with which they +adventured; or they emerged with eyes bloodshot, voices gone and +clothes torn, successful speculators of a day. Perhaps the general +reader is more familiar with these mad scenes of "The Pit," as the +trading floor is called, than with the steadily turning marketing +machinery of which they are but a penumbra. + +The modern grain exchange is much more than a mere roulette wheel for +the speculator. Its real purpose is to provide a centre for the +legitimate trader. It is a great information bureau of world +happenings where every item of news concerning the wheat in any way is +gathered and classified--drouth, rain, frost, rust, locusts, hail, +Hessian fly, monsoon or chinch bug. In every corner of the earth where +the wheat streams take their rise, from green blade to brown head the +progress of the crop is recorded and the prospects forecasted--on the +steppes of Russia, the pampas of the Argentine, the valley of the San +Joaquin, the prairies of Western Canada and the Dakotas, the fields of +India, Iowa, Illinois and Kansas. Good news, bad news, the movements +of ships, the prices on the corn exchanges of London and Liverpool, at +Chicago, on the bourses of Paris, Antwerp and Amsterdam--all are +listed. With such a Timepiece of International Exchange ticking out +the doings of nations, both buyer and seller can know what prices will +govern their dealings. In office or farmhouse an ear to a telephone is +all that is necessary. + +A grain exchange, then, is the market-place where grain dealers meet to +secure information and maintain regulations for the prompt performance +of contracts. The exchange organization does not deal in grain, but +has for its sole purpose the protection of those who do and the +facilitating of transactions; in other words, it is on the ground to +see that the grain trade is carried on in an honest and capable manner +and to punish offenders against proper business ethics and established +rules. + +Its membership is composed of grain dealers doing business in the +exchange's territory--milling companies, exporting companies, line +elevator companies as well as independent dealers and "commission men." +Besides seeking a supply of wheat to keep their mills busy for the +season, the milling companies sell wheat. It is the business of the +exporters to make shipment to other countries. Wheat is sold to +exporters and millers by the elevator companies, who are interested in +running as much grain as possible through their elevators at country +points. The chief business of independent dealers is to handle wheat +that stands "on track," ready for shipment, either buying outright from +the farmer or handling it for him on a commission basis. + +The "commission man" is in an especially good position to do a +clean-cut business. He assumes no burden of large capital investment +and operating expense, as do the elevator companies. His chief need is +a line of credit at a bank and from this he pays advances to his +clients, his security being the bills of lading of wheat consigned to +him. He does not need to buy or sell on his own account and, unlike +the exporter, he does not have to risk changes in freight rates or in +prices or make deliveries by given dates. As for the satisfactory +milling quality of the crop--that is something for the miller to worry +over. In order to do business it is necessary only for the commission +man to be a member of the exchange and to obey its rules. + +For a long time Winnipeg has been known as the greatest primary wheat +market in the world. That means that a greater volume of new wheat, +direct from the producer, passes through the Winnipeg market than +anywhere else, not even excepting Chicago where the first grain +exchange to reach international development was established in 1848. +The Winnipeg market is fed by the vast wheat area of Western Canada and +frequently between two and three million bushels of wheat go through +Winnipeg in a single day. During the rush season sixty or seventy cars +of wheat leave Winnipeg for the East every twenty minutes of every +twenty-four hours. The freight boats on the lakes load 460,000 bushels +in three-and-a-half hours.[1] + +It is interesting to note that nowhere else in the world is a great +public grain market like the Winnipeg market found located four hundred +miles away from the storage point where grain dealt in is kept for sale +delivery. Geographically Fort William and Port Arthur at the head of +the great lakes water route would provide the natural delivery point +for Western grain which has been routed eastward[2] and there the +location of the exchange might be looked for logically. It so happens, +however, that the eastern edge of the vast grain fields lies four +hundred miles west of the twin harbors, the country between not being +adapted for farming, and to avoid the delay of mail transit and to +operate the trading effectively it was necessary to locate the exchange +at Winnipeg, the great metropolitan railway centre where the incoming +grain concentrated. + +In Western Canada the grain is stored in bulk by grades, thereby +cheapening handling cost. Unlike most countries--which sell grain on +sample--Western Canadian grain has been sold by grade. The inspection +and grading of wheat, therefore, is a very important factor in the +grain trade of Canada and is in full charge of Dominion Government +officials. Upon their verdict depends the price per bushel which will +be paid for any shipment of grain, market quotations varying for +different grades; whether stored, sold at home or sold abroad their +certificate of grade brands that particular wheat throughout. The huge +river of grain flows in upon them unceasingly; at times the inspectors +have to work at top speed to avoid being engulfed. The variety of +Nature's response to the growing conditions in changing seasons must +not confuse them from year to year; but with sharpened senses and sound +judgment they must steer a sure course through the multiplicity of +grades and grade subdivisions. + +The thoroughness of the system adopted by the Grain Inspection +Department is shown by description of the work done at Winnipeg. +Offices and staffs in charge of deputy inspectors are maintained in the +different railway yards. They work in shifts night and day; for during +the mad seventy-or-so days in which the Western crop stampedes for the +lakefront there is no let-up to the in-rolling wheat-bins which come +swaying and grinding in over the rails like beads on a string--the +endless rosary of harvest thanksgiving. Wheat samples must be obtained +from each car and no train can be moved until a placard has been placed +at the end of it, reading: "Grain Inspectors have finished this train." +A fifty-car train can be sampled in about an hour and a half, which is +comfortable time for a change of engines and crews. + +The sampling gangs work with all the precision of gun crews--each man +with a particular thing to do. One goes down the train, opening car +doors and leaving an empty sample bag in each car. Running up a short +ladder, the sampler climbs over the top of the inner door, which +extends above the "load line"; the standard sampler which he uses is a +cylindrical brass rod, so constructed that when it is "stabbed" to the +bottom of the car the grain which fills it is a correct sample of wheat +at every depth. Seven such samples are procured from different +sections of the car, and the track foreman, standing on a ladder, +watches these poured onto a cloth with an eye to detecting evidence of +"plugging" with an inferior quality of grain; these seven samples +having been mixed thoroughly, a canvas bag is filled from the result +and the two-and-one-half pounds which it will hold become the official +sample. The rest of the mixture is dumped back and the car resealed. + +The foreman has filled out a sample ticket with car number, date, load +line, initials of sampler and any other notations necessary--such as +leakages, etc. His own name is stamped on the back of the ticket, +which goes into the sample sack. Copies of the way bills with full +information as to all cars, shipping points, consignees or advisees and +destinations are obtained from the railway yard office and these, +together with the samples, are sent twice a day to the Chief Grain +Inspector's office at the Grain Exchange. + +Here the samples are inspected and graded in a room with special +lighting facilities. The grading is done only in broad daylight. The +quality of the grain, its condition and the admixtures are determined +respectively by judgment of hand and eye, by elaborate mechanical +moisture tests and by a sieving and weighing process. The whole sample +is examined closely for color, plumpness, weight, etc., in order to fix +its grade as No. 1 Hard, No. 1 Northern, 2 Northern, 3 Northern; 1 Hard +and 1 Northern must weigh at least sixty pounds, 2 Northern fifty-eight +pounds, and so on. Grades below these are set by the Grain Standards +Board. Damp or wet grain is marked "No Grade," which means that it is +considered unfit for storing and therefore has a lower market value. +Grain which is heated or bin-burnt is "condemned." If it is unsound, +musty, dirty, smutty, sprouted or badly mixed with other grain, etc., +it is "rejected." Grain which, because of weather or other conditions, +cannot be included in the grades provided by statute is given a +"commercial grade." + +It will be seen at once that here is work requiring great nicety of +judgment and that long experience is necessary to enable the grader to +reach his decisions quickly and accurately. When the grading is +completed the sample is placed in a small tin box and filed +systematically; it is supposed to remain thus stored until there is no +longer the possibility of a demand for re-inspection and finally the +samples are sacked and sold to the miller with the highest bid, the +money being paid to the Dominion Government. + +Grade certificates, bearing the Chief Grain Inspector's signature, are +issued for each shipment and sent at once to the elevator company, +miller or commission agent to whom the car is consigned. These grade +certificates, together with the weight certificate and the bill of +lading, make the grain negotiable on the market; the dealer does not +see the actual grain, merely handling these papers. + +If dissatisfaction with grade or dockage arises, the owner of the grain +or his agent can obtain re-inspection at the office of the Chief Grain +Inspector free of charge, and, if still dissatisfied, appeal can be +made to the Survey Board. This is a board of twelve men; the governing +rules and regulations are established by the Grain Commission. Six +members are recommended by the Winnipeg Board of Trade and two each by +the Minister of Agriculture in each of the three prairie provinces.[3] +The verdict of the Survey Board is final. + +Now, back in 1905 the machinery for moving the crop upon its way was +little understood by the average Western Canadian farmer. The wheels +went around, gave a click and away went his wheat; but in approaching +it all with the idea of understanding everything he was in the position +of the small boy examining the works of a watch to see how it told the +time. He felt that he ought to understand what went on down at +Winnipeg; for of course where there were so many rules and regulations +to be broken there must be "funny work." It was the natural suspicion +of the man who lived much to himself in the quiet spaces, who could not +believe that grain dealers could be honest and build palatial +residences in Winnipeg while his own toil in producing the grain was +rewarded with a living only. It looked as if the roost was being +robbed and with his newborn initiative he wanted to find out how it was +done and who was doing it. + +The satisfactory manner in which things are conducted in the grain +trade to-day is the result of long experience and gradual improvement +of conditions. It must be remembered that in the earlier days the +trade was not so well organized for efficiency and in 1905 when E. A. +Partridge began to probe for "plugging" he had a big job on his hands, +especially in view of the fact that he was treated for the most part as +a meddler who was not entitled to reliable information. + +There are two ways of reaching a conclusion--one by approaching it +logically on facts laid down; the other by jumping to it across a +yawning lack of detail. At the end of his month of investigation the +farmer's scout had a regular rag-bag of material out of which to +fashion a patchwork report. A grain man might have condemned it as a +"crazy quilt" because bits of high color obtruded inharmoniously. But +if here and there an end was short or a bit of information on the bias, +it was because the "Farmers' Representative" had not been treated with +sufficient frankness. He had to make the best of the materials allowed +him and his natural tendency to bright-colored metaphor may have been +quickened. He hit out straight from the shoulder in all sincerity at +conditions as they appeared to him. + +He thought he saw five companies controlling the exporting business, +and also their margin of profit, so that they were able to keep out +smaller dealers who might have the temerity and the necessary capital +to try exporting on their own account. He saw the smaller dealers in +turn stem-winding their prices by those of the exporters, controlling +the prices paid for street and track wheat throughout the country; +thereby, he reasoned, it became possible to set special prices at any +given point by the simple expedient of wiring the necessary +instructions to the operator at that point to pinch independent +competition. He saw elevator companies cutting their charges at +certain points to kill off competition from "farmers' elevators" which +sold to independent dealers. All this he was sure he saw. + +The sampling appeared to be carried on in a systematic and satisfactory +manner. The grading, too, appeared to be uniform enough as regarded +the standard grades; but in the item of color there seemed just cause +for complaint. Lack of color, a trifling number of imperfectly formed +kernels or the suspicion of a wrinkle on the bran apparently doomed a +sample to low grade no matter how heavy and flinty the wheat might be. + +This seemed scarcely fair to Partridge, who bore in mind that the sunny +seasons of past years had been succeeded by cloudier ones, the dry +autumns by wet ones and that with stacking discontinued and much of the +farmers' wheat left long in stock, bleaching was bound to follow. So +that if the Chief Grain Inspector were a "crank on color," he should +remember that beauty was only skin deep. + +The fracture and microscopic and weighing tests seemed to be the only +reasonable tests which could be applied quickly; the milling test was +the only one which was absolutely correct. Any rapid eye test which +pretended to determine whether there was sixty-one per cent. or +fifty-nine per cent. of Red Fife wheat in a given sample struck the +Farmers' Representative as farcical; yet this was sufficient to make +the difference of a grade and sometimes a difference of seven cents per +bushel in the price obtained. + +The whim of the Inspector likewise decided how many lean berries in a +plump sample would disqualify it for "plump" classification and how +many mature or defective berries among sound wheat, would disqualify it +from being classed as "sound." With a single concocted sample as a +basis of judgment Partridge considered that the grading of the lower +grades often was very unjust to the producer, especially to the owners +of plump frosted wheat; the process of concocting the basic sample was +very interesting; but the result was "a nightmare." + +W. H. Gaddes, who had preceded him to Winnipeg, agreed with him in +this. Also, Mr. Gaddes denounced the Survey Board at that time as +unsatisfactory in its composition, open to suspicion in its findings +and in practice--so far as outsiders' wheat was concerned--simply a +machine to register confirmation of the Inspector's previous grading. + +It was Partridge's belief that "many a fraud perpetrated in a line +elevator" was added to the "iniquities" of the Inspector, in whose +personal integrity he had every confidence. For this reason he was +inclined to be lenient with the hard-working and conscientious +officials of the Government. Nevertheless, it appeared wise that a +farmers' special agent be maintained permanently at Winnipeg to +safeguard the interests of the farmers, especially if certain powers +were allotted to him under the Inspection Act. + +In making his report to the Territorial Grain Growers' Association +Partridge went into the whole situation as he saw it and particularly +was he outspoken in regard to "that House with the Closed Shutters," as +he called the Winnipeg Grain and Produce Exchange. In fact, his gas +attack upon the Exchange was ablaze with the fires of hostility. + +And for the use of his reckless language Partridge was to be called to +account in due course. + + + +[1] Although only about ten per cent. of the arable area in Western +Canada is under cultivation there are already 3,500 country elevators. +Terminal elevators at the head of the lakes with a storage capacity of +forty-four million bushels and interior Government terminals with ten +and one-half million bushels capacity are overflowing already. Wheat +exports of Canada have increased from 2,284,702 bushels in 1867 to +157,745,469 bushels in 1916. Per capita Canada has more railway +mileage than any country in the world. + +[2] In early days nearly all grain was routed eastward via Winnipeg; +but with the development of the grain trade and the opening of the +Panama Canal some Western Canadian grain travels west and south. +Facilities for inspection and grading have been established at Calgary, +Superior, Duluth, Saskatoon, Moose Jaw, Medicine Hat and Vancouver. + +[3] In 1905 three members of the Survey Board were recommended by the +Winnipeg Board of Trade and three each by the respective Departments of +Agriculture in the three Prairie Provinces. + + + + +CHAPTER VI + +ON A CARD IN THE WINDOW OF WILSON'S OLD STORE + + . . . Is it vain to hope + The sons of such a land will climb and grope + Along the undiscovered ways of life, + And neither seek nor be found shunning strife, + But ever, beckoned by a high ideal, + Press onward, upward, till they make it real; + With feet sure planted on their native sod, + And will and aspirations linked with God? + --Robert J. C. Stead. + + +Ideas grow. The particular idea which now began to occupy the thoughts +of E. A. Partridge to the exclusion of everything else was a big idea +to begin with; but it kept on growing so rapidly that it soon became an +obsession. + +Why couldn't the farmers themselves form a company to undertake the +marketing of their own wheat? That was the idea. If a thousand +farmers got together in control of ten million bushels of wheat and +sold through a single accredited agency, they would be in the same +position exactly as a single person who owned ten million bushels. If +the owner of ten thousand bushels was able to make a better bargain +than the owner of one thousand, what about the owner of ten million +bushels? + +"Would the owner of ten million bushels peddle his wheat by the +wagonload at the local shipping point or by the carload in Winnipeg?" +mused Partridge. "Would he pay one hundred thousand dollars to a +commission man to sell his wheat, with perhaps a nice rake-off to an +exporter, who turns it over at a profit by selling it to a British +dealer, who blends it and makes a good living by selling the blend to a +British miller?" + +His pencil travelled swiftly on the back of an envelope. + +"Would he pay one hundred and seventy-five thousand dollars to the line +elevator and stand a dockage of one hundred thousand bushels in +addition? Would he pay the terminal elevator seventy-five thousand +dollars' worth of screenings? Would he pay two and one-half million +dollars for transportation when 'by a little method known to large +exporters' he could save one and a quarter million dollars out of this +item? + +"You just bet he wouldn't!" concluded this man Partridge. "And +supposing we had ten thousand farmers in one company and each farmer +produced, on an average, five thousand bushels of wheat--that would put +the company in control of the sale of _fifty_ million bushels, not ten! +Why, there's the answer to the whole blame thing--so simple we've been +stepping right over it!" + +Pools, mergers, combines, trusts and monopolies were but various forms +of the same co-operative principle acting within narrow limits to the +benefit of the co-operatives and the prejudices of the outsiders. The +remedy lay not in legislative penalties against co-operation but in the +practice of co-operation on a large scale by the people. That would +provide the most powerful weapon of defence against financial +buccaneering. Universally employed, it would bring about an industrial +millennium! + +But this was dreaming, of course. None knew better than E. A. +Partridge that if even a small part of it was to come true, there lay +immediately ahead a great educational campaign. Ignorance and +suspicion would require to be routed. It would be difficult to +convince some farmers that his motives were unselfish. Others would be +opposed to the idea of a farmers' trading company in the belief that it +would wreck the Association. "We must keep our organization +non-partizan, non-political and non-trading" had been the slogan from +the first. + +Nothing daunted by the difficulties which loomed in the foreground, +Partridge obtained permission from his Territorial associates to tell +the central Manitoba Grain Growers' Association the result of his +investigations at Winnipeg. The Manitoba convention was about to be +held at Brandon and on his way back home he remained over to address +the delegates. They listened carefully to what he had to say; but when +he began to urge the necessity of the farmers themselves going into +trading in grain his fire and enthusiasm caused more excitement where +he was standing on the platform than in the audience. The best he +could do by his earnestness was to create sufficient interest for a +committee[1] to be appointed with instructions to investigate the +possibilities of the scheme and report at the next annual convention of +the Manitoba Grain Growers' Association. + +On arrival at Sintaluta, however, he succeeded in stirring up his +neighbors to the proper pitch of enthusiasm. They knew him at +Sintaluta, listened to him seriously, and the leaders of the little +community shook hands on the idea of organizing, in the form of a joint +stock company, "a scheme for the co-operative marketing of grain by +farmers." + +When he made his report of the Winnipeg investigations at the annual +convention of the Territorial Grain Growers' Association at Moose Jaw +he found that while the principle which he advocated was favorably +received--just as it had been in Manitoba--many farmers drew back +distrustfully from the idea of "going into business." Their experience +with business in the past had not been of a nature to instill +confidence in such a venture and if the enterprise failed, they feared +it would discredit the Association. There was a strong prejudice +against any Association director or officer being closely identified +with such a propaganda. + +Back to Sintaluta went E. A. Partridge. A public meeting was called to +discuss the situation. It was to be held in the Town Hall on January +27th (1906) and in preparation for it a preliminary meeting was held in +the sitting-room of the hotel and a committee[2] appointed to prepare a +synopsis of what was to be done. + +This synopsis was presented to the thirty farmers who gathered in the +Town Hall and a lengthy resolution was passed unanimously, setting +forth the aims and objects of the prospective trading company. +Everybody present undertook to subscribe for shares. + +Justification for what they were attempting was found in "the +widespread discontent existing among the grain growers of the West with +conditions governing the marketing of their grain." It was pointed out +also that the isolation of farmers from each other, their distance from +the secondary and ultimate markets and their ignorance of the details +of the grain business--that these things rendered them individually +liable to suffer grave injustices, even without their knowledge and +certainly without hope of remedy by individual efforts. The scientific +selling of wheat was just as important to the farmer as the scientific +growing of it and this scientific knowledge could be obtained only by +actually engaging in the business at some important commercial centre +where the methods of successful operators could be studied. + +There was every reason to believe that a scheme which limited its +activities at first to acquiring a seat on the Grain Exchange and doing +a straight commission business, or at most a commission and +track-buying business--that such a co-operative scheme stood an +excellent chance of success. Without much financial risk, it should +prove immediately profitable, afford protection from crooked practices +and at the same time the shareholders could gain an insight into the +whole grain business and thereby equip themselves for greater +enterprises; it would not be long before they would be in a position to +deal intelligently with their problems and pertaining legislation. +Besides all this there was the possible piling up of a surplus revenue, +over and above dividends, which could be turned to good account in +uncovering conditions in Eastern Canadian and European markets and +learning the best ways to meet those conditions. + +For these reasons the grain growers of Sintaluta, Saskatchewan, went on +record at this meeting in the little Town Hall as heartily recommending +the formation of a joint stock company which was to be composed wholly +of farmers and to be known as "The Grain Growers' Grain Company, +Limited," with shares at twenty-five dollars each. It was stipulated +that no one person could hold more than four shares, that even these +were not to be transferable except by vote at annual meeting, and that +no man could have more than one vote at annual meetings. With this +single far-sighted stroke the possibility of control passing into the +hands of any clique was removed. + +In furtherance of the plans set forth a committee[3] was named to take +charge of the preliminary organization work until relieved by the +election of a provisional directorate at an organization meeting which +it was hoped to hold at Brandon the following March. This committee +was authorized to conduct a campaign for subscriptions in the meantime, +printed receipts to be issued for the same. + +Such was the scheme to which the farmers of Sintaluta subscribed to a +man. Two hundred shares at Sintaluta to begin with and Sintaluta only +one point in the West! The Committee went to work with enthusiasm. +Ten dollars was spent in printing a prospectus. E. A. Partridge got a +card and blocked out on it: GRAIN GROWERS' GRAIN COMPANY. This he hung +in the window of Wilson's old store at Sintaluta, where a dollar was +paid for the use of a desk. Here in the evenings would assemble +William Hall, Al Quigley, William Bonner and E. A. Partridge to send +out circulars and keep the pot boiling till enough funds were on hand +to let Quigley out canvassing on board wages. + +On February 28th the Manitoba Grain Growers' Association held their +1906 convention and as chairman of the committee appointed the year +before to report upon the matter, E. A. Partridge again urged the +advisability of establishing a company to handle the farmers' grain. +By this time the plan had taken more definite shape and he pressed the +claims of the proposed commission company with such logic and eloquence +that besides having the committee's report adopted by the Association +unanimously, he secured the interest of quite a few delegates. There +was, nevertheless, much adverse criticism, not a little apathy and some +levity. + +"Let's hold a meeting of our own," suggested someone. The word was +passed for all who were interested to meet in the council chamber of +the Brandon Town Hall. Between twenty and thirty farmers attended this +meeting and the plans of the Sintaluta men for a co-operative trading +company were approved. It was decided to meet at the Leland Hotel in +Winnipeg some time in March or April to formulate plans for an active +campaign. + +For two days those in attendance at this second meeting discussed the +details of the undertaking. A great many different views were +expressed, not all of them favorable. There were those who objected to +the chosen name of the prospective company as being a handicap upon the +Association movement in case the venture failed. The Sintaluta +provisional directorate was allowed to stand and the canvassing +committee was enlarged to include a number of Manitoba men who were to +take the field for a stock canvass. + +That stock-selling campaign will dodder through to the Final Memory of +those who took part in it. The man who stood on the street-corner and +offered ten-dollar gold-pieces for a dollar had no harder task. Blood +from stones! Milk from dry cows! Although ten per cent. on each share +was all the cash that was asked apparently some farmers were so hard up +that if yarn were selling at five cents per mile, they couldn't buy +enough of it to make a pair of mitts for a doodlebug! + +"If you take four shares," admitted Al Quigley at his meetings, "I +can't guarantee that you're not losing four times $2.50, which is ten +dollars. But you lose that much when you draw a load of wheat up to +the elevator anyway," he argued. "You might just as well let another +ten go to see what's become of the first ten!" + +"Huh!" grunted a skeptical farmer after one of E. A. Partridge's +meetings. "This here thing's just a scheme for Partridge to feather +his nest! You bet he didn't get any o' my money," he bragged. "Did he +get you, Pete?" + +"He did, Ben, an' I'll tell you why. This thing'll probably go bust; +but I put a hundred into it. Supposin' I put a hundred in a horse an' +he dies on me. Same thing, ain't it? I got to have horses to do +farmin' an' I just go an' buy another one. I figure it's worth takin' +a hundred-dollar chance on this thing to try her out." + +Up in the northern part of Manitoba was one man who was meeting with +pretty fair success. His name was Kennedy and his friends who knew him +best called him "Honest John." His plan was simple--to start talking, +talk for awhile, then keep right on talking. + +"For God's sake, Kennedy, if $2.50 will stop you talking, here it is! +We're sleepy!" + +Then he would stop talking. + +One by one the original canvassers dropped out of the field till almost +the only one left besides E. A. Partridge was this hard-talking +enthusiast up in the Swan River country who wound himself up for the +night and tired them out--but got the money! + + + +[1] See Appendix--Par. 4. + +[2] See Appendix--Par. 5. + +[3] See Appendix--Par. 6. + + + + +CHAPTER VII + +A FIGHT FOR LIFE! + + My dear little Demus! you'll find it is true, + He behaves like a wretch and a villain to you . . . + --Aristophanes. + + +It was characteristic of John Kennedy to keep everlastingly at it. He +was used to hard things to do. In this life some men seem to get +rather more than their share of tacks in the boots and crumbs in bed! +But every time Fate knocked him down he just picked himself up again. +Always he got up and went at it once more--patiently, conscientiously, +smiling. Even Fate cannot beat a man like that and John Kennedy was a +hard fighter in a quiet way who did not know how to quit. + +With four younger brothers and an equal number of younger sisters to +crowd up to the home table down there on the farm near Beaverton, +Ontario County, Ontario, it was advisable for the eldest son to work +out as a farm boy. He was thirteen years old when he first hired out +to a farmer for the summer and he was to receive twenty-four dollars +for the season. But the farmer had a hard time that year and at the +end of the summer-- + +"John," said the poor fellow with ill-concealed embarrassment, "I--I'm +afraid I can't pay you that money. But you know that big flock of +sheep down in the back pasture? Well, tell you what we'll do. Over at +Beaverton I've got an uncle who's a tailor. I can give you a suit of +full cloth of homespun and call it square," and though the boy wanted +the money for fifty things he had to take the homespun suit. + +Three or four hobble-de-hoy years of it on the farms of the +neighborhood and young Kennedy literally took to the woods and drove +the rivers in Muskoka and Michigan as a lumberjack till he was a chunk +of whalebone in a red flannel shirt and corked boots and could pull the +whiskers out of a wild-cat! With varying success he fought the battle +of life and learned that many things glitter besides gold and that the +four-leafed clover in this life after all is a square deal between men. + +The appeal of E. A. Partridge at the convention of the Manitoba Grain +Growers in 1906 therefore found John Kennedy feeling responsive. He +knew the unjust position in which the farmers were placed; for he was a +farmer himself--up in the Swan River Valley--and he was a delegate from +the Swan River Grain Growers' Association. The idea of forming a +farmers' commission company for handling the farmers' grain sounded +like a very satisfactory solution of a very unsatisfactory state of +affairs and he threw himself whole-heartedly into the campaign to sell +enough stock to obtain a charter. + +Up in the newer part of the country, which was his own particular +territory, he found the farmers ready enough to listen; for they had +suffered up there from the evils at which the new movement was aiming. +He found also that the most interested members of his audiences were +men who could least afford to lose any money. + +An effort was made to discredit the whole proposition as a political +move of the Conservative Party. Throughout the Swan River district, +the Dauphin district and all the way down to Neepawa the rumor spread +ahead of the meetings; so that the speakers were asked many pertinent +and impertinent questions, J. W. Robson, a Swan River farmer who was at +that time a Conservative Member of the Manitoba Legislature, was giving +his services free as a speaker on behalf of the proposed company; John +Kennedy was known to be a political supporter of J. W. Robson. One and +one make two; two and two sometimes make a fairly large-sized political +rumor. But Mr. Robson was a ready and convincing speaker who was known +to be a farmer first and last and Mr. Kennedy attributes the practical +results obtained as due largely to Mr. Robson's logic and sincerity. + +Along in June Kennedy received a telegram from Winnipeg that startled +him. It contained the first intimation that difficulties were arising +at Ottawa to prevent the proposed farmers' company from getting their +charter. Taking the first train, he found on his arrival at Winnipeg +that Francis Graham and W. A. Robinson, the two committeemen who met +him, had not yet notified E. A. Partridge. A wire was despatched at +once to Sintaluta and the Chairman joined them by first train. For two +days the Board wrestled with this unexpected difficulty which +threatened to annihilate the company before it got started. + +The application of the Organization Committee for a charter was refused +on the ground that the shares of a company with a capital of $250,000 +could not be less than $100 each. Their solicitor tried in vain to +induce the Department to change its views, all canvassing to sell stock +being discontinued by the Committee in the meantime. + +"Well, let 'em keep their charter if they want to," said Kennedy +finally. "This discussion's not getting us anywhere and if we can't +get a Dominion charter, why we can't get it." + +"Guess you're right, John. We might as well quit and go on home." + +"Who said anything about quitting?" Kennedy brought down his big fist +on the table with a thump. "We'll get a Manitoba charter. That's what +I mean." + +The others shook their heads. A Provincial charter would be useless +for what they were proposing to do, they contended. Kennedy disagreed +so emphatically that he refused to stop arguing about it till at last +he and John Spencer were delegated to see the Manitoba authorities. In +the course of a few days the arrangements for a Provincial charter were +complete, and the Committee turned its attention to selling enough +stock to be ready for business by the middle of the following month. + +By this time the harvest season was so near at hand that prompt action +was necessary if they were to do any business that fall. Under the +Manitoba charter the company could open for business with a provisional +directorate and as five members of the original committee were in +Winnipeg and available for quick action, it was decided to go ahead as +it would be impossible to hold a representative general meeting of the +shareholders before harvest and it was advisable in the interests of +the subscribers to take advantage of the opportunity to do business in +the meantime. + +Provisional organization therefore was undertaken during the week of +the Winnipeg Industrial Exhibition, in a tent on the Fair grounds, and +July 26th was set as the date. When space was sought for the erection +of their sixteen-foot tent, however, they found themselves classed with +the "Sunflower Belles" and "Katzenjammer Castle" and it was only after +the payment of fifty dollars that permission was granted for the +erection of the tent. Here to the accompaniment of a raucous medley of +sounds--the beating of tom-toms, the ballyhooing of the sideshows, the +racket of the machinery exhibits and the cries of the peanut and +lemonade vendors--the farmers' trading company was organized with +provisional officers[1] and directorate in legal shape to start the +wheels in motion as a joint stock company. + +But before actual business could begin a manager must be located who +knew all the ins and outs and ups and downs of the grain business; also +a seat upon the Winnipeg Grain Exchange must be purchased before the +farmers could enter the arena as dealers in grain. None of the +officers of the young company which was about to try its wings +overlooked the fact that nothing could be more foolhardy than for +farmers like themselves, direct from the green pastures, to attempt the +plunge they were about to take without proper guidance as to the depth +of the water and the set of the currents. They knew they were +embarking in a most intricate and difficult business and with so much +at stake on behalf of the whole farming population of Western Canada it +was necessary to place the helm in the hands of somebody who could +pilot them through the shoals. At best it promised to be a stormy +passage. + +About the only man in sight for the position was Thomas Coulter, of the +Independent Grain Company. He had treated E. A. Partridge with more +consideration as the "Farmers' Representative" than most of the other +grain men and there was a possibility that he might be persuaded to +take the offer seriously. But on approaching him, Mr. Coulter did not +become excited over the prospect of managing a farmers' company in the +grain business; even he was not inclined to take too seriously the +effort of the farmers to do their own trading. How long would the +farmers stand behind the company in the face of the competition that +would be brought to bear? That was the question that bulged right out +in front; for, as everybody knew, farmers never had been able to hang +together very long when it came down to a matter of dollars and cents +in their individual pockets. Finally, however, he agreed that there +might be a fighting chance and accepted the management. + +So far so good. But what about the seat on the Grain Exchange? The +price of it was $2,500. One thousand shares of the company's stock had +been disposed of with ten per cent. paid up and from the $2,500 thus +realized the expenses of organization had to be met, the charter paid +for, the legal fee and expenses at Ottawa in connection with the effort +to secure a Dominion charter, office rent, printing bills and what not. + +"Which leaves us about $1,000 to buy a $2,500 seat and finance our +first business operations," said John Spencer with the look of a +worried Secretary-Treasurer. + +"We'll have to issue a twenty per cent. call on subscribed stock," +admitted the President reluctantly. "In the meantime I'll have to see +if some of the boys out at Sintaluta will go security for the fifteen +hundred. Thank heaven, these fellows down here think we're a hilarious +joke! The only chance we've got to get through the fence with this +thing is for them to keep right on laughing at us till we get our toes +in the sand!" + +He wrote to Sintaluta, explaining the situation, and five of E. A. +Partridge's friends[2] at once responded by going to the bank with +their personal notes for the amount needed. + +"With support like that we're going to win, boys," cried the President +proudly when the bank notified them that the money was available. + +Financial arrangements were established with the Bank of British North +America and when a room had been rented on the top floor of the old +Tribune building and circulars sent broadcast among the farmers, +soliciting grain, the wheels began to turn. + +The little office was opened for business on September 5th (1906). It +was so small that even two or three people got in each other's way, +though all they were doing was to watch the mails anxiously for the +first indications as to whether the farmers would stand behind the big +idea that was now put to the test. Then came the bill of lading for +the first carload of grain consigned to the new company, followed +quickly by the second, the third, fourth, fifth, sixth--two at a time, +three, ten, fifteen per day! Every foot of space in the little office +was a busy spot and the lone typewriter clickety-clacked on the +second-hand table with cheerful disregard of lunch hours. By the end +of the month the weekly receipts had risen to one hundred cars of grain. + +It became necessary to move to a larger office and accommodation was +obtained in the Henderson Block. At the present rate, a whole floor +would be needed soon. + +Over at the Grain Exchange some men were talking seriously. They were +talking about E. A. Partridge and they were not laughing. The +Secretary of the Exchange was instructed to write a letter. + +Partridge hit the desk so hard that the paper-knife with which he had +sliced open that letter hopped to the floor. + +"They're after us already!" he exploded. + +It looked that way. The Company's seat on the Grain Exchange was held +in the name of the President and the letter summoned him to appear +before the Council of the Exchange to answer to a charge of having +sinned against the honor and "diginity" of that institution and of +violating its rules. A short time before the young company had issued +a circular setting forth their intention of dividing co-operatively +whatever profits were earned; in other words, the man sending the +larger amount of grain would receive the larger profits. This, the +Exchange claimed, was a violation of the strict rules of the Grain +Exchange and would have to be abandoned. + +"You are virtually splitting the commission with the shipper," claimed +the Exchange, "and we can't allow that for a minute." + +"It's up to you to prove I'm guilty, not up to me to come here and +commit myself," argued Partridge. "If you can find any profits that +have been distributed co-operatively by the Grain Growers' Grain +Company, go ahead. Nor have I sinned against your 'diginity'!" he +added, sarcastically taking advantage of the stenographer's error in +spelling. "For that matter, you've been digging into me ever since I +came on here!" + +"You can't do any more business with our members till you change your +ways," declared the Exchange and forthwith, on October 25th, notice was +posted to all Exchange members that any of them found dealing with the +farmers' company would be penalized themselves. + +Expelled from trading privileges! Practically boycotted! It was a +straight punch on the nose that threatened to put the young +organization out of business for the final count. Membership in the +Exchange was absolutely imperative if the farmers were to be in a +position to sell grain to exporters; they were not strong enough yet to +export direct to Old Country markets and all the exporters through whom +they were compelled to deal were members of the Exchange. + +"The whole thing's just a pretext!" cried Partridge vehemently. "We +haven't got any by-law regarding distribution of profits +co-operatively; the only thing they've got to go on is that circular. +They're beginning to get scared of us and they see a chance to put us +out of business." + +If this were the object, it looked as if it might be achieved in short +order. The grain was pouring in steadily by the carload and with no +buyer daring to deal with them in face of the mandate from the +Exchange, of which they were all members, the new company was in a +quandary to dispose of the incoming grain on a falling market. The +only thing they could do was to wait until they had sufficient of any +grade to make a shipment of from 8,000 to 10,000 bushels of that grade +and try to place it somewhere in the East. The Manager was sent east +hurriedly to see what connections he could establish while his office +assistant mailed letter after letter to eastern points in an endeavor +to work several contracts. + +The farmers who shipped their grain to the new company were expecting +to receive seventy-five per cent. of an advance from the bank on their +bills of lading and a prompt remittance of the balance when the +Inspection Certificate and Outturn were in the hands of the Company. +With the grain piling up on their company day by day, it was not long +before the overdraft at the bank began to assume alarming proportions. + +Luckily the Assistant Manager succeeded in making several sales in the +East, which eased away from the crisis which was shaping. It was quite +patent that it would have been suicide for the young trading +organization to notify the farmers to stop sending in business. They +dare not do that. + +In desperation the President and Vice-President went to the Manitoba +Government and laid their case in full before the cabinet. Premier R. +P. Roblin (now Sir Rodmond Roblin) was very much surprised to learn the +facts. + +"The Government certainly cannot countenance any such action on the +part of the grain dealers," he declared emphatically. "We cannot allow +them to boycott a company composed of farmers who have as much right to +sell grain as any other body of men." + +Accordingly the Government set a time limit within which the Exchange +had the option of removing the ban against the farmers' company or of +losing their Provincial charter. In the meantime, however, this did +not obtain restoration of trading privileges, without which the +farmers' company could not do business with Exchange members except by +paying them the full commission of one cent per bushel. + +The situation, therefore, was approaching a crisis rapidly. The +company was fortunate in having the friendship of their local bank +manager; but even he could not go on forever making advances on +consigned grain and there was some suspicion that letters were reaching +the head office of the bank in Montreal, advising that the quicker this +particular account was closed out the better off the bank would be. + +Then one morning the local manager called on the Executive and his face +was grave. + +"This is not the first time I've heard from the Head Office about this +account, as you know," he began at once, "but I'm afraid it's the last +call, gentlemen." He handed a letter to the President. "As you see, I +am instructed to close out your account at once unless further security +is forthcoming. I'm sorry; for I believe you've merely run into hard +luck in getting squared away. But--I'm not the bank, you understand." + +"What do you want us to do? What can we do?" asked Partridge +anxiously. "This thing will straighten out, Mr. Machaffie. We're +getting the business. You know that. We're going to get back our +trading privileges and everything will be alright." + +The banker shook his head slowly. + +"I'm sorry, gentlemen. But do you know what your overdraft amounts to +now?" + +"Three hundred and fifty-six thousand dollars," murmured the +Secretary-Treasurer. + +"Exactly." + +"What are we to do?" + +"Before coming here I've been to see the Scottish Co-Operative +Wholesale Society about taking some of your wheat. Fisher is ready to +help you out if he finds he's not overstepping the rules of the +Exchange. I may be able to carry you along for a short time if you +three gentlemen, the Executive of your company, will give the bank your +personal bond without limit as to the amount. I have even gone so far +as to draw up the document for signature, if it meets with your +approval." + +"What about that, Kennedy? Spencer?" + +"Guess we've got to do it," nodded Kennedy. + +"Looks like it," agreed Spencer. + +"Then--down she goes!" decided Partridge, dipping his pen in the ink. +The others signed after him. + +"That means we three go down with the ship," he remarked quietly after +the door had closed upon the bank manager. "I appreciate you two +fellows signing that thing." He got up and shook hands with each of +them in turn. "If bad gets worse and we go to smash----" + +"It can't get worse and we're not going to smash," reassured the others. + +But that remained to be seen. Although placing grain in the East was +robbing them of profits, it was the best that could be done to tide +things over. The three active officials were on the anxious seat from +morning till night. It had got down now to a question of meeting each +day's events as they came and frequently the lights blazed in the +little office till two and three in the morning while the provisional +officers raked the situation from every angle in an endeavor to +forecast the next day's difficulties and to prepare for them. + +For three months the overdraft at the bank had averaged $275,000, due +almost entirely to the conditions resulting from the action of the +Exchange. It was useless to worry over the amount of interest which +this accommodation was costing and the profits which might have been +rolled up had things been different; the real worry was to keep going +at any cost. For, as the bank manager had intimated, the whole thing +was just hard luck rather than any unsoundness in the business. It was +a fine paradox that the more pronounced the success of the idea itself +became, the greater grew the danger of complete failure because of the +predicament! Death by wheat! An ironical fate indeed for a grain +company! + +Upon investigation, the farmers' company discovered that their original +idea of distributing their profits co-operatively--as embodied in the +circular to which the Exchange had objected--was contrary to the +provisions of the Manitoba Joint Stock Companies' Act under which they +held their charter. Therefore the co-operative idea in connection with +profits was formally dropped by the Grain Growers' Grain Company. This +had been done at a directors' meeting on December 22nd (1906), when a +resolution had been passed, cancelling the proposal contained in the +objectionable circular.[3] But although the Exchange had been notified +immediately and repeated applications for reinstatement had been made, +the farmers' company was still struggling along in the throes of their +dilemma--proof positive, concluded the farmers, that the Grain Exchange +had used the co-operative suggestion as a mere pretext to oust the +Company from the field altogether. + +In piled the wheat, car after car of it! A considerable portion of it +had been bought on track and farmers who had consigned their grain were +anxious, naturally, to have it disposed of without delay. With prices +going down and navigation on the point of closing, the best hopes of +the management became centred in getting a big shipment away to Buffalo +by boat. That would enable them to escape a big item in storage +charges and to place the grain in line for export at rates considerably +below the all-rail figures. + +"With those bills of lading in the bank, we've no control of them and +the bank can do just about as it likes," reviewed the President one +night. "If they should come down on us to sell our wheat inside of +forty-eight hours--we're goners, boys! All that those fellows over at +the Exchange have got to do is to shove down the market thirty points +and our name is _mud_! The loss to the farmers who've shipped us their +grain will kill this movement and every one like it in the West for all +time to come. This company will be as dead as a doornail and so will +we financially as its bonded backers." + +Kennedy was running a finger tentatively down the window-pane. It left +a streak in the forming frost. + +"What I want to know is, how long ought it to take to load up this +whole boatload we're trying to move?" + +"Oh, about seventeen hours or so." + +"And how long have they been at it already? Five days, ain't it? And +she's not away yet! What d'you suppose that means?" he snapped. He +began to throw things into a grip. He made for the door. + +"Where'n the mischief are you going, John?" + +"Fort William--can just make the train if I hustle. The _J. P. Walsh_ +gets out of that harbor with that wheat of ours, by Hickory!--if she +has to be chopped out with an axe!" + +Two days later a telegram reached the little office: + +_S.S. J. P. Walsh_ cleared to-day for Buffalo. Three hundred and ten +thousand bushels. Last boat out. KENNEDY. + + + +[1] See Appendix--Par. 7. + +[2] See Appendix--Par. 8. + +[3] This resolution was confirmed at a meeting of the shareholders, +February 5th, 1907. + + + + +CHAPTER VIII + +A KNOCK ON THE DOOR + +Every man is worth just as much as the things are worth about which he +is concerned.--_Marcus Aurelius_. + + +That big shipment to Buffalo, along with several others which were +placed in the East with the market recovering, relieved the situation +greatly. Also, the Scottish Co-Operative Wholesale Society's Winnipeg +office decided to stand by the farmers' co-operative marketing venture +and risked disapproval to buy some of the young company's wheat; not +only that, but the farmers' company was allowed the regular commission +of one cent per bushel on the purchase and the cheque paid in to the +bank amounted to $58,298. This friendly co-operation the farmers were +not quick to forget and they still speak of it with gratitude. + +It began to look as if the struggling farmers' agency might worry +through the winter after all. The strain of the past few months had +told upon the men at the head of the young organization and especially +upon the provisional President, who felt keenly the responsibilities of +his office. Of a sensitive, high-strung temperament, E. A. Partridge +suffered reaction to such a degree that at times he became almost +despondent. + +He began to talk of resigning. He felt that he had done quite a lot in +getting things under way and that the hard fight which the farmers +would have to wage before the trading company was established +permanently would be carried on more successfully by a younger man. So +frequently had his motives been questioned by suspicious farmers at +organization meetings that he thought it would be better for the +company if he occupied a less prominent place in the conduct of its +affairs. The idea seemed to be prevalent that the organizers were +enthusiastic for direct financial reasons. "Those fellows are talking +for what they are going to get out of it," was an open accusation at +times--a misconception so unjust that on several occasions Partridge +had refuted it by pledging to resign from the presidency as soon as the +company was on its feet. + +"You men keep saying how much I've got out of this," he reproved in +disheartened tones. "Gentlemen, I'll admit that I've got a little +silver out of this. But it isn't in my pocket; it's in my hair!" + +Partridge had no respect for a "quitter," however. He did not propose +to take it easy until the farmers' agency did get into proper running +order. Although his associates tried to dissuade him altogether from +the course he had planned, the best he would promise was to remain at +his post until the first annual meeting. + +Immediately preceding the annual convention of the Manitoba Grain +Growers' Association at Brandon in February a general meeting of Grain +Growers' Grain Company shareholders was held with about two hundred +represented. Until now the company had been operating under a +provisional directorate only and it was the purpose of the meeting to +complete organization. Since opening for business the shareholders had +practically doubled in number and over 1,500,000 bushels of farmers' +grain had been handled by their own agency, its ability to dispose of +wheat at good figures being demonstrated in spite of deprivation of +trading privileges on the Exchange. Putting a conservative estimate +upon the holdings of the farmers' venture into co-operative marketing, +its paid-up capital remained intact, its organization expenses +paid--including the membership on the Grain Exchange--and there still +was left a respectable margin of profit. To this showing the +shareholders responded by electing the provisional directorate as +directors for the balance of the year, adding two[1] to their number, +while the same officers were left in charge. + +In connection with the directorate it was pointed out that it might be +better to have the trading company's directorate independent of the +Association's directorate. The suggestion came from a tall young man +who had a habit of thinking before he spoke and it was but one of many +practical ideas which he had thrown out at the meeting. + +"That young chap, Crerar, of Russell--makings of an able man there, +Ed," commented the re-elected Vice-president later. "Know anything +about him?" + +"I know his father better than I do him," nodded the President +thoughtfully. "I met his father in the old Patron movement years ago. +I've got a great respect for his attitude of mind towards moral and +economic questions. I like that young man's views, Kennedy; he seems +to have a grasp of what this movement could accomplish--of the aims +that might be served beyond the commercial side of it. In short, he +seems to be somewhat of a student of economics and he has the +education--used to be a school-teacher, I believe." + +"Remember when I went up to Russell, during their Fair in October, to +tell them what the Exchange was trying to do to us? Well, he was at +the meeting and came over to my room at the hotel afterward," remarked +Kennedy. "That's how interested he was. We had quite a talk over the +whole situation. Told me he had an arrangement to buy grain for Graves +& Reilly, besides running the Farmers' Elevator at Russell, and he +offered to ship us all the grain that wasn't consigned to his firm. +We've got quite a few carloads from him during the season." + +"If there were only a few more elevator operators like him!" sighed +Partridge. "When I was up there last July, selling stock, only eight +men turned out," he recalled. "Crerar was one of them. I sold four +shares. Crerar bought one. Say, he'd be a good man to have on the +next directorate. How would it be if I wrote him a letter about it?" + +But "Alex." Crerar laid that letter aside and promptly forgot it; he +did not take it seriously enough to answer it. If there was anything +he could do to help along a thing in which he believed as thoroughly as +he believed in the grain growers' movement and the farmers' agency he +was more than willing to do it; but executive offices, he felt, were +for older and more experienced men than he. + +As manager of an elevator in his home town, as buyer for a grain firm +and as a farmer himself he had had opportunities for studying the +situation from many angles. From the first he had followed the +organization of the farmers with much interest and sympathy. He could +not forget his own early experiences in marketing grain when the +elevators offered him fifty-nine cents per bushel, nineteen cents under +the price at the terminal at the time. The freight rate on his No. 1 +Northern wheat he knew to be only nine cents per bushel and when he was +docked a bushel and a half to a load of fifty bushels on top of it all +he had been aroused to protest. + +A protest from young Crerar was no mild and bashful affair, either. It +was big-fisted with vigor. But when, with characteristic spirit, he +had pointed out the injustice of the price offered and the dockage +taken--the elevator man, quite calmly, had told him to go to the devil! + +"There's no use going to the other elevators, for you're all alike," +said young Crerar hotly. + +"Then take your damned grain home again!" grinned the elevator operator +insolently. + +So the young farmer was compelled to sell his first wheat for what he +could get. He was prepared to pay three cents per bushel on the +spread, that being a reasonable charge; but although plenty of cars +were available at the time, the spread cost him ten cents, a direct +loss of seven cents per bushel. Besides this he was forced to see +between twenty-five and thirty bushels out of every thousand +appropriated for dockage, no matter how clean the wheat might be. That +was in 1902. + +It was hard to forget that kind of treatment. And when, later on, +young Crerar accepted an offer of $75 per month to manage a Farmers' +Elevator at Russell he bore his own experience in mind and extended +every possible consideration to the farmers who came to him. The +elevator company, as a company, did not buy grain; but as +representative of Graves & Reilly, a Winnipeg firm, he bought odd lots +and for this service received an extra fifty dollars per month. + +Financially, it was better than teaching school. He had made ten +dollars the first summer he taught school and to earn it he had walked +three miles and a half each morning after milking the cows at home, +arriving at the school soaking wet with dew from wading in the long +prairie grass. And even at that, the trustees had wanted a "cheaper" +teacher! A woman, they thought, might do it cheaper. + +The young schoolmaster objected so earnestly, however, that the +argument was dropped. He needed this money to assist in a plan for +attending the Collegiate at Portage la Prairie. He taught the school +so well that after studying Latin at Manitoba College in 1899, the +trustees were glad to get him back the following year at a salary of +$35 per month. + +But milking cows at home night and morning and teaching school in +between was not an exciting life at best for a young fellow ambitious +to go farming. So at last he acquired a quarter-section of Hudson Bay +Company land near Russell and took to "baching it" in a little frame +shack. + +In the fall some lumber was required for buildings and it so happened +that along came an old chap with a proposition to put in a portable +sawmill on a timber limit up in the Riding Mountains nearby. The old +man meant business alright; he had the engine within ten miles of its +destination before he was overtaken and the whole machine seized for +debt. It looked as if the thousands of logs which the residents of the +district had taken out for the expected mill had been piled up to no +purpose. Crerar, however, succeeded in making a deal for the engine +and, with a couple of partners, began sawing up logs. The little +sawmill proved so useful that he ran it for four winters. When finally +it was burned down no attempt was made to rebuild. Its owner was +entering wider fields of activity. + +After meeting Partridge and Kennedy his interest in the affairs of the +farmers' little trading concern was quickened. He was much impressed +with the fact that here were men so devoted to an idea--so profound in +their belief that it was the right idea--that its advancement was their +first and only thought at all times. Alex. Crerar liked that. If a +thing were worth attempting at all, it was worth every concentration of +effort. What these men were trying to accomplish appealed to him as a +big thing, a bigger thing than most of the farmers yet realized, and it +deserved all the help he could give it. The little agency was in the +thick of a fight against tremendous odds and that, too, had its appeal; +for to a natural born fighter the odds meant merely a bigger fight, a +bigger triumph. + +Accordingly, the young man lost no opportunity to boost things along. +He was able to consign many carloads of grain in a season. If an idea +occurred to him that he thought might be of service he sat down and +wrote a letter, offering the suggestion on the chance that it might +prove useful to the Executive. He did everything he could to build up +the Company's business in the Russell district and when he returned +home from the shareholders' organization meeting he kept right on +sending in business, offering helpful suggestions and saying a good +word when possible. + +As the weeks went by and it became more apparent that they would wind +up their first year's business satisfactorily, E. A. Partridge decided +definitely that he would not accept another term as President. There +were several good men available to succeed him; but he could not get it +out of his head that the one man for the tasks ahead was the young +fellow up at Russell. When he went there in June to speak at a Grain +Growers' picnic he drew Crerar aside for an hour's chat, found out why +he had not answered the letter suggesting that he play a more active +part, and liked him all the better for his modesty. + +Without saying anything of what he had in mind he returned to Winnipeg +and sent the Vice-President to Russell to size up the situation +quietly. When Kennedy got back he agreed with the President's choice +of a successor. + +The Company was holding its first annual meeting on July 16th and care +was taken that the unsuspecting Crerar was on hand. The Vice-president +button-holed him, explaining that he was wanted on the Board of +Directors and in spite of his protest the President himself nominated +him and he was elected promptly. + +But when at the directors' meeting that night the President told the +Board that he had been looking around for a young man to take charge +and that T. A. Crerar was the man--when everybody present nodded +approval, the man from Russell was speechless. If they had asked him +to pack his grip and leave at once for Japan to interview the Mikado, +he could not have been more completely surprised. + +"Why, gentlemen" he objected, "I don't know anything about managing +this company! I could not undertake it." + +"What is the next order of business?" asked E. A. Partridge. + +The shareholders were almost as much surprised as the newcomer himself +when the name of the new president was announced. Many of them had +never heard of T. A. Crerar. Had the young president-elect been able +to see what lay ahead of him-- + +But, fortunately or unfortunately, that is one thing which is denied to +every human being. + + + +[1] See Appendix--Par. 7. + + + + +CHAPTER IX + +THE GRAIN EXCHANGE AGAIN + +"How many tables, Janet, are there in the Law?" + +"Indeed, sir, I canna just be certain; but I think there's ane in the +foreroom, ane in the back room an' anither upstairs." + --_Scotch Wit and Humor (Howe)_. + + +The efforts of the elevator faction of the Winnipeg Grain and Produce +Exchange, apparently to choke to death the Grain Growers' Grain +Company, had awakened the farmers of the West to a fuller realization +of the trading company's importance to the whole farmers' movement. +The Grain Growers of the three prairie provinces had been watching +things closely and they did not propose to let matters take their +course unchallenged. A second Royal Commission had been appointed by +the Dominion Government in 1906, under the chairmanship of John Millar, +Indian Head, Saskatchewan, to probe conditions in the grain trade and +the farmers felt that certain evidence which had been taken by this +Commission at Winnipeg justified their claims that they were the +victims of a combine. + +In the latter part of November (1906) the President of the Manitoba +Grain Growers' Association, D. W. McCuaig, laid formal charges against +three members of the Winnipeg Grain and Produce Exchange--charges of +conspiring in restraint of trade--and when these gentlemen appeared in +the Police Court it was evident that the Exchange intended to fight the +case every inch of the way. The farmers discovered that the legal +talent of Winnipeg had been cornered; for of the twenty lawyers to whom +their solicitor, R. A. Bonnar, K.C., could turn for assistance in the +prosecution every one appeared to have been retained by the defendants. +The case involved such wide investigation that such assistance was +imperative and finally the Grain Growers secured the services of +ex-Premier F. W. G. Haultain,[1] of Saskatchewan. + +The preliminary hearing in the Police Court proved to be most +interesting and at times developed considerable heat among the battling +legal lights. The defendants and their friends were so confident that +commitment for trial would not be forthcoming at all that when the +Magistrate decided that he was justified in so ordering, the grain men +were shocked somewhat rudely out of their complacency. + +Following up this preliminary victory, the Manitoba Grain Growers +turned to the Manitoba Government and demanded that the charter under +which the Grain Exchange operated be amended in certain particulars. +The deputation from the Grain Growers met the Committee on Agriculture, +the House being in session, and asked that the powers of the charter be +limited so that business would be conducted on an equitable basis +between buyer and producer. They asked that the Exchange be allowed to +set no limit as to the number of persons who might enjoy its +privileges, the question of the reputability of such persons to be +decided by a majority of the members and that a seat purchased for the +use of any firm or corporation should entitle that firm to the +privileges of the Exchange even though registration of membership was +under the name of an individual; also that the right to membership +should include the right to delegate the trading powers to anyone in +the employ of the firm or corporation. + +The Grain Growers also asked that arbitrary interference with the +business methods employed by individual firms or corporations and +inquisitional inquiry into such be prohibited; also that the penalties +and disabilities against those breaking the common rules and the +maximum-price rule be abolished; that the right to define the +eligibility of a person as an employee or fix a limit to salary in any +way be denied; also that the expulsion of no member should be +considered final until assented to by the Minister of Agriculture and +that all by-laws should receive the assent of the Lieutenant-Governor +in Council before becoming legal and binding. + +The farmers asked that the Government have full access to the minute +books, papers and accounts of the Grain Exchange and that provision be +made for the public to have free access to a gallery overlooking the +trading room during the sessions of the Exchange so that the +transactions occurring might be observed and the prices disseminated +through the public press. They further wished to see gambling in +futures made a criminal offence. + +Roderick McKenzie, Secretary of the Manitoba Association, told how the +existing Grain Exchange had about three hundred members, of whom one +hundred were active and fifty-seven of these active members represented +the elevator interests. He said that the interests of the fifty-seven +were looked after by twelve elevator men in the Exchange and that these +twelve men agreed so well that they allowed one of their number to send +out the price which should be paid for wheat for the day. + +The Committee on Agriculture promised to consider the requests and +later, when they met to do so, members of the Grain Exchange attended +in force to present their side of the case. They claimed that a great +deal of the trouble existing between the producer and the Grain +Exchange was due to misconception of the Exchange's methods of action. +The Exchange was only a factor in the grain business and under their +charter they were allowed to make by-laws and regulations, these being +necessary in such an intricate business as handling grain. + +The wiring of prices to country points was done by the North-West Grain +Dealers' Association, which had nothing to do with the Exchange but was +a distinct and separate organization for the purpose of running +elevators at country points as cheaply as possible. The highest +possible prices were quoted and the plan was merely to avoid duplicate +wiring. + +The grain men claimed that it was impossible to handle the wheat of the +country unless futures were allowed while to carry on its business +properly the Exchange must have the power to say who should be members +and otherwise to regulate its business. If the producer was getting +full value for his wheat why should the Grain Exchange be interfered +with? + +The Exchange was willing that its membership should be extended. Their +books always would be open to Government inspection in future and they +would also repeal the rule regarding track-buyers' salaries. The press +was already admitted and it would be found that when the new building +which the Exchange was erecting was completed there would be a gallery +for the use of the public during trading hours. + +If the Legislature were to amend the charter, declared the Exchange's +spokesman, the Exchange would demand that the charter be cancelled _in +toto_ and a receiver appointed to distribute the assets. The Exchange +was tired of being branded thieves and robbers and they should be let +alone to do their business. If this were not satisfactory, then they +wished to be put out of business altogether. + +The Grain Growers protested that it was not their desire to have the +charter cancelled. They were not blind to the usefulness of the +Exchange if it were properly managed and all they asked was that this +organization be compelled to do what was right. The reason the +Exchange had admitted the Grain Growers' Grain Company, the farmers +claimed, was so that they could have it under discipline, being afraid +of a combination of farmers in the interests of the producer. The +farmers had lost confidence in the manipulations of the Exchange and +wanted official protection. + +The question of declaring deals in futures to be a criminal offence was +outside provincial jurisdiction and the farmers withdrew that part of +the request. They wished everything else to stand, however. + +At this juncture a recommendation was made that a conference be held +between the Government, the Grain Growers, the Exchange, reeves of +municipalities, bankers, railroads, etc., for discussion of everything +pertaining to the handling of wheat, including amendments to the Grain +Exchange charter. The idea appealed to the Premier and before the +Committee he pledged that the resolutions passed at the proposed +conference would be converted into legislation. + +After adopting the Agricultural Committee's report the Government did +not act independently regarding the suggested charter amendments, as +the farmers had hoped they would; instead, the whole thing was shelved, +pending the suggested conference. When this conference was held in the +latter part of February, however, the Government was duly impressed by +the earnestness of the Grain Growers. Many strong speeches were made, +including one powerful arraignment by J. W. Scallion, of Virden, whose +energetic leadership had earned him the title: "Father of all the Grain +Growers." The Government promised to amend the Exchange charter at the +next session of the Legislature. + +The activity of the Manitoba Grain Growers' Association was putting a +new face upon the struggle of the Grain Growers' Grain Company for the +restoration of their trading privileges on the floor of the Exchange. +It demonstrated that the farmers could act in concert if occasion arose +and that the Grain Growers' Associations were in accord with the +principles for which the farmers' trading company was fighting. When, +therefore, the Manitoba Association took a hand in the matter by +officially urging the Manitoba Government to assist in restoring the +Company to its former position on the Exchange in order that it could +enjoy the rights of the seat for which it had paid, the Government was +forced to take action. + +It is doubtful if a Minister of the Crown in Manitoba ever had been +called upon to make a more remarkable official statement than that +which now appeared in print in connection with this matter. In the +absence of Hon. R. P. Roblin it became the duty of the Acting-Premier +to make it. Hon. Robert Rogers, then Minister of Public Works in the +Manitoba Government, was the official head of the Government in the +Premier's absence and in the _Winnipeg Telegram_ of April 4th, 1907, +the statement appeared as follows: + + +"The action of the Council of the Winnipeg Grain Exchange in refusing +trading privileges to the Grain Growers' Grain Company is regarded by +the Government as an arbitrary exercise of the powers conferred upon +them (the Exchange) through their charter from the Legislative Assembly +of Manitoba, and unless remedied by the Exchange, the Government will +call the Legislature together during the present month for the purpose +of remedying the conditions by Legislative amendments." + + +On April 15th the farmers' trading company was admitted once more to +the full privileges of their seat on the Exchange. + +The case against the three members of the Grain Exchange, who had been +indicted under Section 498 of the Criminal Code, came to trial in the +Assize Court a week later, on April 22nd, before Judge Phippen. It was +now a matter for Crown prosecution and under direction of the +Attorney-General, R. A. Bonnar, K.C., proceeded vigorously. The Grain +Growers claimed that the Exchange had rules and regulations which had +been carried out in restraint of trade and that in combination with the +North-West Grain Dealers' Association there had been a practice of +restricting the price to be paid for grain to certain daily figures, +sent out by the parties conspiring. + +Also, they expected to show that there had been a combine in existence +between the elevator companies so that there was no competition in the +buying of grain at certain points while there was an agreement that +only a certain amount of street wheat would be received at the various +elevators, the whole thing amounting to the restriction of wheat buying +within certain limits fixed by the combination of the buyers who +belonged to the combine--this to the consequent barring out of the +small buyer from the trade. The latter, the Grain Growers argued, was +prevented from buying by the rule which called for the payment of a +salary to track buyers and prohibited the hiring of men on commission; +there were points where the quantity of grain offered for sale was too +limited to justify the payment of a fifty-dollar salary to the buyer. + +Another point of complaint was that the Grain Exchange membership was +restricted to three hundred, the members having agreed among themselves +that no more seats be added although all present seats were sold and +many more might be sold to eligible citizens. + +Also, claimed the prosecution, there was a practical boycott of +expelled members in that the members of the Exchange were forbidden to +deal with expelled members; it was practically impossible to do +business in grain in Western Canada unless connected with the Grain +Exchange, one firm having experienced this difficulty. + +The rule which barred the purchasing of grain on track during the hours +of trading on the Exchange was, they would endeavor to show, an act in +restraint of trade and the three men under indictment, the prosecution +hoped to prove, had been active in the enactment of the alleged illegal +by-laws of the Grain Exchange. + +Prior to the enactment of these obnoxious laws of the Exchange the +farmers had been sought by the buyers, whereas since the rules had been +established the farmer must seek the purchaser. While the prices given +out were fixed by the Grain Exchange in what was claimed to be open +competition, the prosecution intended to show that it was a gambling +transaction pure and simple, the price-fixing being nothing more than +the guess of the men who acted for their own gain. + +The trial lasted for a month, during which time a great many witnesses +were examined--grain men and farmers--and the whole grain trade +reviewed. The array of legal talent for the defence was very imposing +and the case attracted much attention because, aside from its interest +to the grain trade and the farming population, it promised to test the +particular and somewhat obscure section of the Criminal Code under +which the indictment was laid. At one stage of the proceedings the +tension in court became so high and witnesses so unwilling that upon +reproval by the court regarding his examination, leading counsel for +the Grain Growers picked up his bag and walked out in protest, willing +to risk punishment for the breach of etiquette rather than remain. +After the Grain Growers' executive and counsel had conferred with the +Government, however, the Grain Growers' counsel was prevailed upon to +resume the case. + +The finding of the court did not come as much of a surprise; for it was +apparent before the trial ended that the section of the Code was +considered ambiguous by the presiding Judge. The latter held that all +restraints suggested by the evidence were agreed to, whether +justifiably or not, as business regulations and before finding the +defendants guilty these restraints must appear to be "undue," according +to his reading of the section. It was necessary to respect the right +of a particular trade or business or of a particular class of traders +to protect their property by regulations and agreements so long as the +public interests were not thereby "unduly" impaired; to the Judge's +mind there was no question that the public had not been _unduly_ +affected. + +After reviewing the case the Judge held that the gravamen of the whole +charge hung upon the Commission Rule of the Exchange--that one cent +commission per bushel should be made in handling grain; so that the +price paid would be the price at the terminal (Fort William) less the +freight and one cent per bushel commission, neither more nor less. +Witnesses agreed that this was the lowest profit on which the business +could live. Fort William prices were the highest the world's markets +could justify. Owing to the presence in the statute of the word, +"unduly," therefore, the Judge could not find the defendants guilty. + +The Grain Growers were much dissatisfied with the decision; for they +believed that they had adduced evidence to support their case and did +not relish losing it on a technicality. Appeal was made, therefore; +but the appeal court upheld the judgment of the assize court. + +Apparently, deduced the farmers, this meant that men could conspire to +create monopolies by driving all competitors out of business so long as +they did not do it out of pure malice--so long as they justified it on +the grounds of "personal interest"--so long as the things they did were +not "malicious restraints, unconnected with any business relations of +the accused!" In other words, if men merely conspired to advance their +own business interests they committed no offence under the then +existing law; to be liable to punishment they must be actuated by +malice. + +So that all the turmoil and talk, court proceedings and conferences, +deputations and denunciations, evidence and evasions--all the +excitement of the past few months practically left conditions just +where they were. For the amendments to the Grain Exchange charter +would not materialize till the Legislature met again next year. + +But there was one spot where the clouds had rifted and the light shone +through. The Grain Growers' Grain Company had won back its place on +the Exchange. More and more the farmers began to pin their faith to +their little fighting trading company "at the front." It appeared to +be the concentration point for the fire of enemy guns. In all +probability hostilities would break out anew, but the men in charge +were good men--loyal and determined; they could be relied upon to take +a full-sized whack at every difficulty which raised its head. + +The first of these to threaten was on the way. + + + +[1] Now Chief Justice Haultain. + + + + +CHAPTER X + +PRINTERS' INK + +The fewer the voices on the side of truth, the more distinct and strong +must be your own.--_Channing_. + + +As the farmers saw it, there was no reason in the world why the bank +should do what it did. The Company had closed its first year with net +profits sufficient to declare a seven per cent. cash dividend and the +profits would have been augmented greatly had it not been for the heavy +interest payments which accrued on the unusual overdrafts imposed by +special conditions. In spite of their extremely limited resources and +the handicaps forced upon them, the volume of business transacted had +exceeded $1,700,000 during the first ten months that the farmers had +been in business; their paid-up capital had been approximately eleven +thousand dollars of which over seven thousand had been required for +organization outlay. The number of shareholders had nearly doubled +during the ten months and everything was pointing to rapid advancement. +The Company had been a good customer of the bank, which had received +about $10,000 in interest. The security offered for their line of +credit was unquestioned. + +Yet the new directors had scarcely settled into place for the +approaching busy season before, without warning, the bank notified them +that they wished to close out the account. + +When men set themselves up in business they expect to have to compete +for their share of trade. The farmers did not expect to find their +path lined with other grain dealers cheering them forward and waving +their hats. They expected competition of the keenest. What they could +not anticipate, however, was the lengths to which the fight might go or +the methods that might be adopted to put their Agency out of business +altogether. + +Hitherto the grain grower had been in the background when it came to +marketing and handling grain. He was away out in the country +somewhere--busy plowing, busy seeding, busy harvesting, busy +something-or-other. He was a Farm Hand who so "tuckered himself out" +during daylight that he was glad to pry off his wrinkled boots and lie +down when it got dark in order to yank them on again, when the rooster +crowed at dawn, for the purpose of "tuckering himself out" all over +again. It was true that without him there would have been no grain to +handle; equally true that without the grain dealers the farmer would +have been in difficulty if he tried to hunt up individual consumers to +buy his wheat. The farmer interfering in the established grain trade +was something new and it was not to be supposed that when the surprise +of it wore off things were not liable to happen. + +The farmer was quick to infer that the action of the bank in cutting +off the trading company's credit without apparent cause was another +move of the opposing forces. It was so palpably a vital spot at which +to strike. + +This time, however, the threatening cloud evaporated almost as soon as +it appeared. The manager, W. H. Machaffie, resigned and assumed the +management of another bank. He was a far-sighted financier, Mr. +Machaffie, and almost the first account he sought for the Home Bank was +that of the Grain Growers' Grain Company. The Home Bank was new in the +West and in the East it had been an old loan company without big +capitalistic interests, its funds being derived mostly from small +depositors; but while at that time it was not among the wealthiest +banking institutions of the country, it was quite able to supply full +credit facilities. + +The opportunity for the farmers' company and the young bank to get +together to mutual advantage was too good to be overlooked. Under the +banking laws of Canada valuable special privileges are granted in view +of the important part which the banks play in the country's +development. Government returns indicate that the greater part of the +business done by banks is carried on upon their deposits. If the +working people and the farmers, as is generally accepted, form the +majority of these depositors of money in banks, then were not many +loans which went to monopolistic interests being used against the very +people who furnished the money? If the farmers could acquire stock in +a bank of their own, would they not be in a position to finance their +own requirements rather than those of corporations which might be +obtaining unreasonable profits from the people at large? Such an +investment would be safe and productive at the same time that it +strengthened the farmers' hands in their effort to do their own trading. + +With all this in view the directors of the Grain Growers' Grain Company +made a heavy investment in Home Bank stock and were appointed sole +brokers to sell a large block of the bank's stock to Western farmers, +working men and merchants. On the sale of this they were to receive a +commission which would, they expected, be enough to cover the expense +of placing the stock. As the business expanded the Company would be +assured of an extended line of credit as it was needed. + +And the business certainly was expanding. Although the prospects for +the new crop were not as bright as they had been the year before, a +substantial increase in the amount of grain they would handle--owing to +the increase in the number of shareholders--was anticipated by the +management. They were not prepared, however, for the heavy volume that +poured in upon them when the crop began to move; it was double that of +their first season and the office staff was hard pressed to keep pace +with the rising work. There now seemed no reason to believe that the +success of the farmers' venture was any longer in doubt so far as the +commercial side of it was concerned. + +But the President and directors had in mind a much broader objective. +It was not enough that the farmer should receive a few more cents per +bushel for his grain. + +"We must bear clearly in mind," warned T. A. Crerar, "that there are +still those interests who would delight in nothing more than in our +failure and destruction. A great many improvements require yet to be +made in our system of handling grain. The struggle for the bringing +about of those reforms is not by any means accomplished. As a great +class of farmers, composing the most important factor in the progress +and development of our country, we must learn the lesson that we must +organize and work together to secure those legislative and economic +reforms necessary to well-being. In the day of our prosperity we must +not forget that there are yet many wrongs to be righted and that true +happiness and success in life cannot be measured by the wealth we +acquire. In the mad, debasing struggle for material riches and +pleasure, which is so characteristic of our age, we often neglect and +let go to decay the finer and higher side of our nature and lose +thereby that power of sympathy with our fellows which finds expression +in lending them a helping hand and in helping in every good work which +tends to increase human happiness and lessen human misery. In keeping +this in view we keep in mind that high ideal which will make our +organization not alone a material success but also a factor in changing +those conditions which now tend to stifle the best that is in humanity." + +An important step towards the upholding of these ideals was now taken +by the directors. The President and the Vice-President happened to be +in a little printshop one day, looking over the proof of a pamphlet +which the Company was about to issue, when the former picked up a +little school journal which was just off the press for the Teachers' +Association. + +"Why can't we get out a little journal like that?" he wondered. "It +would be a great help to our whole movement." + +About this time the Company was approached by a Winnipeg farm paper +which devoted a page to the doings of the grain growers. + +"If you'll help us to get subscriptions amongst the farmers," said the +publisher, "we'll devote more space still to the doings of the grain +growers." + +"But why should we build up another man's paper for him?" argued the +President. "Why can't we get out a journal for ourselves?" + +The idea grew more insistent the longer it was entertained, and +although at first E. A. Partridge, who was on the directorate, was +opposed to such a venture, he finally agreed that it would be of untold +assistance to the farmers if they had a paper of their own to voice +their ideals. The logical editor for the new undertaking was E. A. +Partridge, of course, and accordingly he began to gather material for +the first issue of a paper, to be called the _Grain Growers' Guide_. + +Partridge had a few ideas of his own that had lived with him for a long +time. On occasion he had introduced some of them to his friends with +characteristic eloquence and the eloquence of E. A. Partridge on a +favorite theme was something worth listening to; also, he gave his +auditors much to think about and sometimes got completely beyond their +depth. It was then that some of them were forced to shake their heads +at theories which appeared to them to be so idealistic that their +practical consummation belonged to a future generation. + +In connection with this new paper it was Partridge's idea to issue it +as a weekly and as the official organ of the grain growers' trading +company instead of the grain growers' movement as a whole. He thought, +too, that it would be advisable to join hands with _The Voice_, which +was the organ of the Labor unions. The President and the other +officers could not agree that any of these was wise at the start; it +would be better, they thought, to creep before trying to walk, to issue +the paper as a monthly at first and to have it the official organ of +the Grain Growers' Associations rather than the trading company alone. + +This failure of his associates to see the wisdom of his plan to +amalgamate with the organ of the Labor unions was a great +disappointment to Partridge; for he had been working towards this +consummation for some time, devoutly wished it and considered the time +opportune for such a move. He believed it to be of vital importance to +"the Cause" and its future. In October he had met with an unfortunate +accident, having fallen from his binder and so injured his foot in the +machinery that amputation was necessary; he was in no condition to +undertake new and arduous duties in organizing a publishing proposition +as he was still suffering greatly from his injury. On the verge of a +nervous breakdown, it required only the upsetting of the plans he had +cherished to make him give up altogether and he resigned the editorship +of the new magazine after getting out the first number. + +"I'm too irritable to get along with anybody in an office," he +declared. "I know I'm impatient and all that, boys. You'd better send +for McKenzie to come in from Brandon and edit the paper." + +This suggestion of his editorial successor seemed to the others to be a +good one; for Roderick McKenzie had been Secretary of the Manitoba +Grain Growers' Association from the first and had been a prime mover in +its activities as well as wielding considerable influence in the other +two prairie provinces where he was well known and appreciated. He was +well posted, McKenzie. + +So the Vice-President wired him to come down to Winnipeg at once. + +Yes, he was well posted in the farming business, Rod. McKenzie. He had +learned it in the timber country before he took to it in the land of +long grass. At eleven years of age he was plowing with a yoke of oxen +on the stump lands of Huron, helping his father to scratch a living out +of the bush farm for a family of nine and between whiles attending a +little log schoolhouse, going on cedar-gum expeditions, getting lost in +the bush and indulging in other pioneer pastimes. + +Along in 1877, when people were talking a lot about Dakota as a farming +country, McKenzie took a notion to go West; but he preferred to stay +under the British flag and Winnipeg was his objective. A friend of his +was running a flour-mill at Gladstone (then called Palestine), +Manitoba, and young McKenzie decided to take a little walk out that way +to visit him. It was a wade, rather than a walk! It was the year the +country was flooded and during the first thirty days after his arrival +he could count only three consecutive days without rain. In places the +water was up to his hips and when he reached the flour-mill there was +four feet of water inside of it. + +Such conditions were abnormal, of course, and due to lack of settlement +and drainage. After helping to build the first railway through the +country Roderick McKenzie eventually located his farm near Brandon and +so far as the rich land and the climate were concerned he was entirely +satisfied. + +Not so with the early marketing of his grain, though. He disposed of +two loads of wheat at one of the elevators in Brandon one day and was +given a grade and price which he considered fair enough. When he came +in with two more loads of the same kind of wheat next day, however, the +elevator man told him that he had sent a sample to Winnipeg and found +out that it was not grading the grade he had given him the day before. + +"The train service wouldn't allow of such fast work, sir," said +Roderick McKenzie. "I suppose you sent it by wire!" He picked up the +reins. "That five cents a bushel you want me to give you looks just as +good in my pocket as in yours." + +So he drove up town where the other buyers were and three of them +looked at the wheat but refused to give a price for it. One of them +was a son of the first elevator man to whom he had gone and, said he: + +"The Old Man gave you a knockdown for it, didn't he?" + +"Yes, but----" + +"Well, we're not going to bid against him and if you want to sell it at +all, haul it back to him." + +As there was nothing else he could do under the conditions that +prevailed, McKenzie was forced to pocket his loss without recourse. + +With such experiences it is scarcely necessary to say that when the +grain growers' movement started in Manitoba Roderick McKenzie occupied +a front seat. He was singled out at once for a place on the platform +and was elected Secretary of the Brandon branch of the Association. At +the annual convention of the Manitoba locals he was made Secretary of +the Provincial Association, a position which he filled until 1916, when +he became Secretary of the Canadian Council of Agriculture. + +His activities in the interests of the Association have made him a +well-known figure in many circles. From the first he had been very +much in favor of the farmers' trading company and only the restrictions +of his official position with the Association had prevented him from +taking a more prominent part in its affairs. As it was, the benefit of +his experience was frequently sought. + +McKenzie was plowing in the field when the boy from the telegraph +office reached him with John Kennedy's message. + +"They don't say what they want me for; but I guess I'm wanted or they +wouldn't send a telegram--Haw! Back you!" And like Cincinnatus at the +call of the State in the "brave days of old," McKenzie unhitched the +horses and leaving the plow where it stood, made for the house, packed +his grip and caught the next train for Winnipeg. + +John Kennedy met him at the station. + +"What's wrong?" demanded the Secretary of the Manitoba Grain Growers' +Association at once. "I came right along as soon as I got your wire, +Kennedy. What's up now?" + +"The editor of the _Grain Growers' Guide_. Partridge wants you to take +his place." + +"ME? Why, I never edited anything in my life!" cried McKenzie, +standing stock still on the platform. + +"Pshaw! Come along," laughed Kennedy reassuringly. "You'll be +alright. It ain't hard to do." + + + + +CHAPTER XI + +FROM THE RED RIVER VALLEY TO THE FOOTHILLS + + It ain't the guns or armament nor the funds that they can pay, + But the close co-operation that makes them win the day; + It ain't the individual, nor the army as a whole, + But the everlastin' team-work of every bloomin' soul! + --_Kipling_. + + +At one of the early grain growers' conventions it had been voiced as an +ideal that there were three things which the farmers' movement +needed--first, a trading company to sell their products (with +ultimately, it might be, the cheaper distribution of farm supplies); +second, a bank in which they could own stock; third, a paper that would +publish the farmers' views. So that if the new Executive of the +Company had done little else than break ground for better financial +arrangements and a farmers' own paper, their record for the year would +have shown progress. + +But when the second annual meeting of the Company was held they were +able to show that the volume of farmers' grain handled was almost five +million bushels, double that of the first year, while the net profits +amounted to over thirty thousand dollars. The number of farmer +shareholders had increased to nearly three thousand with applications +on file for another twelve hundred and a steady awakening of interest +among the farmers was to be noticed all over the West. All this in +spite of the general shortage of money, a reduced total crop yield and +the keenest competition from rival grain interests. + +It had been apparent to the directors that if the business grew as +conditions seemed to warrant it doing, it would require to be highly +organized. Bit by bit the service to the farmer was being widened. +For instance, the nucleus of a Claims Department had been established +during the year; for under the laws governing the Canadian railway +companies the latter were required to deliver to terminal elevators the +amount of grain a farmer loaded into a car and to leave the car in a +suitable condition to receive grain. The official weights at the +terminal were unquestioned and if a farmer could furnish reasonable +evidence of the quantity of grain he had loaded, any leakage in transit +would furnish a claim case against the railway. During six months the +farmers' company had collected for its shippers nearly two thousand +dollars in such claims, a beginning sufficient to illustrate that the +Company was destined to serve the farmers in many practical ways if +they would only stand behind it. + +IF the farmers would stand behind it! But would they? It was a +question which was forever popping up to obscure the future. Many +tongues were busy with inuendo to belittle what the farmers had +accomplished already and to befog their efforts to advance still +farther. At every shipping point in the West industrious little +mallets were knocking away on the Xylophone of Doubt, all playing the +same tune: "Just Kiss Yourself Good-Bye!" No farmers' business +organization ever had been a success in the past and none ever could +be. This new trading venture was going to go off with a loud bang one +of these fine days and every farmer who had shipped grain to it would +stand a first-class chance of losing it. You betcha! The Grain +Growers' Associations mightn't be so bad; yes, they'd done some good. +But this concern in the grain business--run by a few men, wasn't it? +Well, say, does a cat go by a saucer of cream without taking a lick? +"Farmers' company" they called it, eh? Go and tell it to your +grandmother! + +The worst of it was that in many localities were farmers who believed +this very suggestion already--that the Company belonged to the men at +the head of its affairs. Discouraged by past failures and without much +respect for the dignity of their occupation, their attitude towards the +Company was almost automatic. That it was a great co-operative +movement of their class, designed to improve economic and social +conditions, was something quite out of their grasp. And upon these +strings, already out of tune, elevator men strummed diligently in an +effort to create discord. + +From the first it had been like that. Friends who would speak a good +word for the struggling venture at the time it was most needed were +about as scarce as horns on a horse. On the other hand the organizers +ran across "the knockers" at every turn. A traveller for one of the +milling companies, for instance, happened to get into conversation on +the train with E. A. Partridge one day. The latter was a stranger to +him and he naturally supposed he was talking to "just a farmer." The +subject of conversation was the grain trade and this traveller began to +make a few remarks about the "little grain company" that had started up. + +"What about that company?" asked Partridge with visible interest. +"I've heard a lot about it." + +"Oh, it's just a little dinky affair," laughed the traveller. "They've +got a little office about ten feet square and they actually have a +typewriter! They get a car or two a month. Don't amount to anything." + +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," assured 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. Salesmanship 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 amusement at all. + +As the "little dinky affair" became a competitor 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 +shipping point they had agents whose business it was to secure +shipments 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 shipment, 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 ownership 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 shipments, 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 shipment of Alberta grain +to the Pacific Coast and thence via the new Panama Canal 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' +Association. 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' Association 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' Association got +their heads together on a proposal to amalgamate into one farmers' +organization under the name, Alberta Farmers' Association. + +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' association as planned. + +Owing to the mixed nature of Alberta's agricultural population and to +the general distrust of farmers' organizations the new Alberta Farmers' +Association 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 Association 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 Association 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 Association 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 ownership 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' Association and the Canadian Society of Equity. +The constitution 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' +Association 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' Association, 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 ownership 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 publishing 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 attitude 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 assistance 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 shipment +of Alberta grain via the Panama Canal 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 ownership 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' Associations are +the one thing above everything else that stands between the farmer and +the power of merciless corporations. They have undoubtedly been the +greatest shield 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 +ownership. 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 competition 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. + +"Just so," nodded the commission men among themselves. "The logical +and certain result will be the weeding out of the commission men and +track buyers, who give practically the only element of competition that +exists in the trade! One of the curses of our Canadian commercialism +is the strong tendency to monopoly and this looks like an effort to +create an absolute elevator monopoly of the grain trade, which is the +staple industry of the country." + +But if the small dealers on the Exchange were aroused, what about the +farmers' trading company? They did business on a commission basis only +and with the elevators offering to handle the farmers' grain for +nothing, or next door to it, what would happen? Would the farmer be +"unable to see past his nose," as was predicted? Would he forget the +conditions of the early days and grab for a present saving of five or +ten dollars per car? If the farmers did not stand together now, they +were licked! It was a showdown. + +There was only one thing to do--take a referendum of the shareholders +as to the basis on which they wished the year's business handled. The +Board of Control of the Grain Growers' Grain Company therefore issued +the following circular letter, which was mailed to every farmer +shareholder: + + +"This matter we now bring to your notice is the most important yet. + +"At a meeting of the Grain Exchange, held a few days ago, the +Commission Rule was suspended for a year. This means that there is no +fixed charge for handling grain, and any company or firm can, if they +wish, handle car lots for nothing. How did this come about? The +Elevator Companies did it with the aid of Bank Managers and other +Winnipeg men outside of the Grain Trade, who hold seats on the +Exchange, and voted with them. The intention of these Elevator +Companies is to handle all grain for 1/2c. per bushel or for nothing in +order to take it away from the Commission Men, who have no elevators, +and especially to keep it away from the Grain Growers' Grain Company. + +"The Elevator Companies can handle farmers' cars for nothing and still +not lose anything. How? In four ways-- + +"1st. They all buy street grain and the immense profits they make on +this will make up for any loss they have in handling cars for nothing. + +"2nd. The dockage they get on street grain and on car lots passed +through their elevators helps them. + +"3rd. The charges on the cars loaded through their elevators helps +them. + +"4th. When they get your car it is sent to their own terminal +elevator, and they earn the storage on it there which is very +profitable. + +"The commission man, such as ourselves, has none of these things to +fall back on. His profit is what is left out of the cent a bushel +commission after all expenses such as rent, taxes, insurance, wages for +office help, telegrams, telephone, etc., are paid. + +"The Elevator Combine know this. They know the weakness of the +commission dealers' position and the strength of their own, and knowing +it, deliberately cut out the commission and will offer to handle the +farmers' grain for nothing in order to put the only opposition they +have out of business. And mark you! this is aimed at our company more +than any other, though we believe they are after all commission +dealers. Some of them have said so. They want to kill us and they +think they have at last found a way. Their dodge is simple. By +handling cars for half a cent or nothing, they are going to bribe the +farmers and our own shareholders to send cars away from us, and by +keeping grain from us help to kill us and plant us that deep we shall +never come up again. + +"In this way they hope to 'rule the roost' and get back the good old +days they had ten or twelve years ago. + +"Can they succeed? It depends on the men who ship the grain. If they +support the combine by giving the elevators (or the commission houses +that work for the elevators under a different name) their cars, they +may soon expect to find themselves in a worse position than they have +ever been before. + +"As a prominent commission man said the other day, 'The elevator +companies are asking the farmers to help at their own funeral.' It is +an anxious time for our own company. We have shown that with anything +like fair play it may succeed. We have been growing stronger and, we +believe, doing some good. Are our shareholders and friends going to +take the bribe that is meant to put us out of business? We hope and +believe not. For this reason we are taking a referendum vote of our +shareholders." + + +It was at this crisis that the _Grain Growers' Guide_ had an +opportunity of demonstrating its value to the farmers as a fighting +weapon. It seized the cudgels and waded right into the thick of the +controversy without fear or favor. It came out flat-footed in its +charges against the elevator interests and emphasized the warning of +the Company in language that carried no double meaning. + +"We have no quarrel with the Winnipeg Grain Exchange as an Exchange," +said the _Guide_. "It is a convenience for gathering reports from +other parts of the world, market conditions, and for drafting rules +that facilitate and simplify business dealings. + +"As we have often pointed out, however, the Exchange is being used by +the Elevator Interests that seem to dominate it, to further their own +particular ends with the result that the nefarious methods of the +Elevator Trust bring suspicion and condemnation upon the Exchange and +its members. + +"The demand for the Royal Grain Commission arose from the methods +pursued by the Elevator Companies in dealing with the farmers at +country points. The pooling of receipts at country points is not +forgotten by the farmers; heavy dockage and unfair grading and low +prices paid when the farmers were compelled to sell and could not help +themselves, are also not forgotten. + +"Every injustice and disturbance in the trade that has taken place +since grain commenced to be marketed in Manitoba, can be traced to the +Elevator Monopoly. + +"The farmers of this country owe nothing to the Elevator Trust and we +have confidence enough in them to believe that they will not be bought +over by them now. The Commission Men and Track Buyers certainly owe +nothing to this trust either. They have helped in the past to carry +the suspicion and sin arising from its methods and it commences to look +as if they were getting tired of carrying the load." + +Column after column of such plain talk was given place in the _Guide_ +week after week, together with reports of Grain Exchange proceedings, +interviews with commission men and elevator men, pronouncements of +Grain Exchange officials and comment upon pamphlets circulated amongst +the farmers by the North-West Grain Dealers' Association, etc. +Everything having a bearing upon the situation was brought to light and +analyzed. Letters from farmers throughout the country were published +as fast as they reached the editor's desk, and they were coming pretty +fast, about as fast as the mail could bring them. + +They were reaching the office of the farmers' trading company by the +bagful. The Company had asked three definite questions of the farmers +in connection with the commission to be charged on grain shipped to the +Company--whether or not the old rate should be maintained in spite of +the action of the Exchange; whether the commission should be reduced; +whether the whole matter should be left to the discretion of the +directors. The letters poured in by the thousand and only two per +cent. of the farmers recommended any reduction in the rates; of the +remainder, seventy per cent. were in favor of the Company maintaining +the one cent commission and the other twenty-eight per cent. were +willing to abide by the decision of the directors. + +The comments contained in some of these letters revealed strong +feeling. Many farmers were ready to pay two cents commission per +bushel if necessary, rather than sell to "the monopolies." + +"I will pledge myself to ship every bushel of grain I grow to the +Farmers' Company," wrote one, "even though the directors found it +necessary to charge me five cents per bushel, coin." + +"No, they cauna draw the blinds ower the daylights o' a Scotchman," +assured one old son of the heather. "I am verra pleased to leave the +hale concern in your hands as I do believe you are thoroughly plumb and +always square." + +With this encouragement the directors announced that they would +continue to charge a commission of one cent per bushel on wheat shipped +to them, just as if the Commission Rule had not been suspended by the +Exchange. Other commission merchants, they knew, intended to reduce +their charges to half a cent per bushel; the elevator men, they +expected, would handle the grain for the same and in many cases for +nothing in order to persuade the farmers to ship their way. It would +be a great temptation to many farmers who had been sitting on the +fence, shouting "Sic 'em!" but never lifting a little finger to help, +and it was to be expected that those with limited vision would ship +their grain where they could make the biggest saving at the time. + +Notwithstanding, the directors believed that the majority of the +farmers would not prove one cent wise and many dollars foolish by +failing to realize what the future might hold in store if the elevators +succeeded in killing off competition. Finding that it was possible to +handle oats on a smaller margin, they made the farmers a gift reduction +of half a cent per bushel on oat shipments; otherwise the former rate +was sustained. + +The wheat ripened. Harvesting began. The long grain trains commenced +to drag into Winnipeg across the miles of prairie. By the middle of +September the weekly receipts of the farmers' company were running to +744 cars. In 1907 they had handled about five per cent. of the crop +and seven and one-half per cent. of the 1908 crop; of the total number +of cars so far inspected in this year of "free for all" methods, the +Grain Growers' Grain Company handled about fifteen per cent. + +When the end of the season brought the figures to a final total it was +found that the farmers' organization had handled well over sixteen +million bushels of farmers' grain. This was an increase over the +preceding year of nearly nine million bushels, or 114 per cent. It was +nearly one and one-half million bushels greater than all the previous +years of operation and represented one-eighth of all the grain +inspected during the year in Western Canada. + + + + +CHAPTER XIII + +THE MYSTERIOUS MR. "OBSERVER" + +Observation tells me that you have a little reddish mold adhering to +your instep. . . . So much is observation. The rest is deduction. + --_Sherlock Holmes_. + _Sign of Four (Doyle)_. + + +In Prehistoric Days, when one man hied himself from his cave to impress +his ideas upon another the persuasion used took the form of a wallop on +the head with a stone axe. It was the age of Individual Opinion. But +as Man hewed his way upward along Time's tangled trails personal +opinions began to jog along together in groups, creating Force. With +the growth of populations and the invention of printing this power was +called Public Opinion and experience soon taught the folly of ignoring +it. + +In the course of human aspiration Somebody who had a Bright Mind got +the notion that in order to get his own way without fighting the crowd +all he had to do was to educate the "Great Common Pee-pul" to his way +of thinking and by sowing enough seed in public places up would come +whatever kind of crop he wanted. Thus, by making Public Opinion +himself he would avoid the hazard of opposing it. The name of this +Sagacious Pioneer of Special Privilege who manufactured the first +carload of Public Opinion is lost to posterity; all that is known about +him is that he was a close student of the Art of concealing Artifice by +Artlessness and therefore wore gum rubbers on his feet and carried +around a lot of Presents to give away. + +It is quite possible to direct the thought of Tom-Dick-and-Harry. A +skillful orator can swing a crowd from laughter to anger and back +again. The politician who prepares a speech for a set occasion builds +his periods for applause with every confidence. But it was to the +public prints that they who sought the manufacture of Public Opinion +were in the habit of turning. + +There has always been something very convincing about "cold print." +The little boy believes that the cow really did jump over the moon; for +isn't it right there in the nursery book with a picture of her doing +it? And despite the disillusionments of an accelerated age many +readers still cherish an old-time faith in their favorite newspaper--a +faith which is a relic of the days when the freedom of the press was a +new and sacred heritage and the public bought the paper to learn what +Joseph Howe, George Brown, Franklin, Greeley or Dana thought about +things. This period gave place gradually to the great modern +newspaper, the product in some cases of a publishing company so +"limited" that it thought mostly in terms of dollars and cents and +political preferments. + +When the cub reporter rushed in to his city editor with eyes sparkling +he cried out enthusiastically: + +"Gee, I've got a peach of a story! Old John Smith's daughter's eloped +with the chauffeur. She's a movie fan and----" + +But it did not get into the paper for the very good reason that "Old +John" was the proprietor of the big departmental store which took a +full-page advertisement in every issue the year around. The editor +would have used it soon enough, but--the business office--! + +Then there was the theatrical press-agent, a regular caller with his +advance notices and free electros of coming attractions, his press +passes. + +"Give us a chance, old man," he pleaded, perhaps laying down a good +cigar. "Say, that was a rotten roast you handed us last week." + +"Yes, and it was a rotten show!" the editor would retort. "I saw it +myself." + +The telephone rings, maybe--the business office again. + +"The Blank Theatre have doubled their space with us, Charlie. Go easy +on 'em for awhile, will you?" + +The floor around the editor's desk was scuffed by the timid boots of +the man who wanted his name kept out of the paper and the sure tread of +the corporation representative who wanted his company's name mentioned +on every possible occasion. Business interests, railway corporations, +financial institutions--many of these had a regular department for the +purpose of supplying "news" to the press. Some American railroads +finally took to owning a string of papers outright, directly or +indirectly, and one big Trust went so far as to control a telegraphic +news service. + +In fact, to such a pass did things come in the United States that the +exploitation of the press became a menace to public interest and a law +was passed, requiring every publication to register the name of its +proprietor; in the case of corporate ownerships the names of the +shareholders had to be filed and the actual owners of stock held in +trust had to be named also. This information had to be printed in +every issue and the penalties for suppression or falsification were +drastic. + +No such law was passed in Canada, although the reflection of the +situation in the United States cast high lights and shadows across the +northern boundary. Partizan politics were rife in Canada and too often +have party "organs" and "subsidies" dampered down the fires of +independence in the past. A few journals, however, even in the days +before the great changes of the War, placed a jealous guard upon their +absolute freedom from trammelling influences and to-day they reap the +reward of public confidence. + +While not a newspaper, the _Grain Growers' Guide_ was a highly +specialized journal for the Western farmer, aiming frankly at educating +him to be the owner of his land, his produce, his self-respect and his +franchise; to make him self-thinking and self-reliant and to defend him +from unjust slurs. + +The editorial responsibility of carrying out such a programme in the +face of existing conditions required a well chosen staff. In Roderick +McKenzie, then Secretary of the Manitoba Grain Growers' Association, +the farmers had an editor upon whose viewpoint they could depend; for +he was one of themselves. But lacking practical experience in +newspaper work, it was necessary to secure an Associate Editor who +would figure largely in the practical management of the publication. +McKenzie was finding that his duties as Secretary of the Association +were becoming too heavy for him to attempt editorial services as well; +so that not long after the appointment of an Associate Editor he +decided to devote his whole time to his official duties. + +In its selection of a young man to take hold the _Guide_ was fortunate. +George Fisher Chipman was not only a very practical newspaper man to +meet the immediate needs of the young journal, but he was capable of +expanding rapidly with his opportunities. Well versed in the economic +problems of the day, he was known already in many magazine offices as a +reliable contributor upon current topics. He was well poised and, as +legislative reporter for the _Manitoba Free Press_, Chipman had made +something of a reputation for himself on both sides of the political +fence as a man who endeavored to be fair and who upheld at all times +the traditional honor of the press. + +By training and inclination Chipman was in complete sympathy with the +Farmers' Movement in Western Canada. Away east, in the Valley of +Evangeline, near Grand Pre, Nova Scotia, he was brought up on a farm, +learning the farmers' viewpoint as afterwards he came to know that of +the big men in the cities. He believed in co-operation, his father +having been a leader in every farmers' organization in Nova Scotia for +more than twenty years. + +It was not long before the young editor's influence made itself +manifest in the official paper of the Western farmers. He saw many +ways of improving it and organizing it for the widest possible service +in its field. Editorially he believed in calling a spade a spade and, +being free from political restrictions, Chipman did not hesitate to +"get after" politicians of all stripes whenever their actions seemed to +provide fit subject for criticism. + +By the time the Commission Rule difficulty arose the _Guide_ had +increased its weekly circulation by many thousands. The new editor +seized the opportunity for "active service" and waged an effective +campaign. The Grain Exchange finally restored the One-Cent Commission +Rule and never since has it been dropped. + +Meanwhile, however, hostilities broke out anew in an unexpected +direction. They took the form of "letters" to the press and they began +to appear in five papers which were published in Winnipeg--two +newspapers and three farm journals. Concealing his identity under the +_nom-de-plume_, "Observer," the writer attacked the Grain Growers' +Grain Company and the men at the head of it. Declaring himself to be a +farmer, Mr. "Observer" endeavored to discredit the farmers' trading +organization by casting suspicion upon its motives and methods of +business. As letter followed letter it became evident that the object +in view was to stir up discontent among the farmers with the way their +own agency was being conducted. + +After issuing a single, dignified and convincing refutation of these +attacks, the Company ignored the anonymous enemy. But the gauntlet was +picked up by the _Grain Growers' Guide_. It lay right at the editor's +feet. Chipman recognized a direct challenge and did not propose to +drop the matter with a denial in the columns of his paper--even with a +dozen denials. His old reportorial instinct was aroused. Who was this +mysterious "Observer"? Why was he going to so much trouble as to +launch a systematic campaign? One thing was certain--he was NOT a +farmer! + +All good newspaper reporters have two qualifications well developed; +they are able to recognize news values--having "a nose for news," it is +called--and they are able to run down a "story" with the instinct of a +detective. G. P. Chipman had been a good reporter--a good police +reporter particularly. He had the detective's instinct and it did not +take him long to recognize that he was facing a situation which could +be uncovered only by detective work. + +In the first place, he reasoned, the letters were too cleverly +written--so cleverly, in fact, that they could be the product of a +professional writer only, most likely a Winnipeg man. This narrowed +the search at once. By process of elimination the list of possible +"Observers" was soon reduced to a few names. It was an easy matter to +verify the suspicion that the "letters" were paid for at advertising +rates and the question uppermost became: "Who are the greatest +beneficiaries of these attacks?" + +"The elevator interests, of course!" was Chipman's answer to his own +question. He began to make progress in his investigations and before +long he became very much interested in an office which happened to be +located in the Merchant's Bank Building, Winnipeg. Here a certain +bright newspaper man with some farming experience had taken to business +as a "Financial Agent"--telephone, stenographer and all the rest of the +equipment. + +So sure was Chipman that he was on the right track in following this +clue that finally he shut the door of his private office and wrote up +the whole story of the "deal" which he expected to have been made +between certain elevator men and this clever editorial writer who knew +so much about money that he had opened up a Financial Agency. With the +whole "exposure" ready for publication and the photograph of the +"suspect" handy in a drawer of the desk, Chipman asked the "Financial +Agent" to call at the _Guide_ office. + +"Thought you might like to look over that copy before we use it," +explained the editor casually when his visitor's pipe was going well. +He handed the write-up across his desk. "I want to be fair and there +might be something----" + +There decidedly was!--a number of things, in fact! Not the least of +them was the utter surprise of the pseudo Financial Agent. He did not +attempt to deny the truth of the statements made for publication. + +According to the story which he told the editor of the _Guide_, it had +been the original intention to have these "letters to the press" signed +by leading elevator men themselves; but when it was decided to hire an +expert press agent to mould public opinion in such a way as to offset +the "onesidedness" of the farmers' movement, none of the elevator men +cared to assume the publicity. The name, "Observer," would do just as +well. A committee was organized to direct and supervise the work of +the press agent and the chairman of this committee conducted the +negotiations with the newspaper man who was to undertake the +preparation of the "letters" and other material. + +By the terms of his contract the press agent was to be paid in equal +monthly instalments at the rate of $4,000 per year, with a contract for +two years. For this he was to write letters which would turn public +opinion against this Grain Growers' Grain Company, which was getting so +much of the farmers' grain, and minimize the growth of sentiment in +favor of government ownership of internal and terminal elevators. +These communications he was to have published in the various papers of +Winnipeg and the West. Such was the story. + +The better to conceal the wires beneath this publicity campaign and the +identity of the writer, Mr. "Observer" opened his office as a Financial +Agency and became a subscriber to the _Grain Growers' Guide_--one +paper, of course, which could not be approached for the purpose in +view. It was necessary, nevertheless, to clip and file the _Guide_ +very carefully for reference; hence the subscription. + +The space used by the "correspondence" was paid for at regular +advertising rates. The advertising bill each week amounted to about +$150. But one factor in the success of the plan had been +overlooked--the influence of the _Guide_. No sooner had the official +paper of the Grain Growers pointed out the situation to its readers and +suggested that papers which accepted material antagonistic to the +farmers' cause were no friends of the farmers--no sooner was this +pointed out than letters began to arrive in batches at the offices of +all the papers which were publishing the "Observer" attacks. Most of +these letters cancelled subscriptions and so fast did they begin to +come that one after another the papers refused to publish any more +"Observations," paid for or not. + +For unknown reasons it was decided to call off the attempt to create +public opinion against government ownership of elevators and with the +letters aimed at the farmers' trading activities being refused +publication, the employers of "Observer" had no further work for him to +do. + +As they were still paying his interesting salary each month, they +offered him $1,500 to tear up his contract, he said. But with more +than a year and a half still to run--over $6,000 coming to him--Mr. +"Observer" had a certain affection for that contract. Fifteen hundred +dollars? Pooh, pooh! He would settle for--well, say So-Much. + +"You're talking through your hat!" scoffed his employers in effect. + +"It's a six-thousand-dollar hat!" smiled "Observer" pleasantly. + +"Well, we won't pay any such lump sum as you say," virtually declared +his employers, not so pleasantly. + +"Just as you wish, gentlemen. I'll wait, then, and draw my +salary--$333.33 1/3 every month, according to contract. I know you +don't want me to sue for it; because we'd have to air the whole thing +in the courts and there would be a lot of publicity. So we'll just let +her toddle along and no hard feelings." + +He got his money. + +The alleged attempt of these elevator men, whether with or without the +sanction of their associates, to make public opinion by means of the +"Observer" letters began in the fall of 1909. It lasted but a few +weeks. + + + + +CHAPTER XIV + +THE INTERNAL ELEVATOR CAMPAIGN + + What constitutes a state? . . . + Men who their duties know, + But know their rights, and knowing, dare maintain. + --_Sir William Jones._ + _Ode after Alcaeus._ + + +Now, about this Government Ownership of Elevators. The Grain Growers +had had it in mind right along. The elevators were the contact points +between the farmer and the marketing machinery; therefore if his +fingers got pinched it was here that he bled. Complaints of injustice +in the matter of weights, dockage, grades and prices colored the +conversation of farmers in many parts of the country and, rightly or +wrongly, many farmers were profoundly dissatisfied with existing +conditions at initial elevators. These elevators provided the only +avenue by which grain could be disposed of quickly if transportation +facilities were not fully adequate. It seemed to the farmers, +therefore, that the only way to avoid monopolistic abuses was for the +provincial governments to own and operate a system of internal storage +elevators and for the Dominion authorities to own and operate the +terminals. The elevators, declared the farmers, should be a public +utility and not in private hands. + +This feeling first found definite expression in a request by the +Manitoba Grain Growers prior to the Manitoba elections in 1907. The +Manitoba Government declined to act on the request of the Grain Growers +alone, but called a conference of municipal reeves and others +interested. This conference was held in June and urgently requested +the Manitoba Government to acquire and operate a complete system of +storage elevators throughout the province, as asked for by the Grain +Growers. Nothing was done at the first session of the renewed +government, however. + +Meanwhile the Grain Growers were circularizing the three Prairie +Provinces on the need for a government system of elevators and at the +annual conventions of the organized farmers in Manitoba, Saskatchewan +and Alberta in 1908 strong endorsement of the idea was made. An +"Inter-Provincial Council of Grain Growers' and Farmers' Associations" +[1] had been created, and this body urged the several executives to +wait upon their respective governments and try to obtain definite +action. + +At the suggestion of Premier Roblin, of Manitoba, a conference of the +three premiers was arranged through the Secretary of the +Inter-Provincial Council. It was the hope of the farmers that this +might lead to uniform legislation, introducing government ownership of +the elevators, and that the three provincial governments would join in +an appeal to the Dominion Government for co-operation. In each +province the whole subject had been dealt with exhaustively in the text +prepared by the Grain Growers--the conditions making a government +system of elevators necessary, how it could be created and the +practicability of its operation, the question of financing and the +beneficial results that would follow. It was the idea of the farmers +that the provinces would purchase existing storage houses at a fair +valuation, issuing government bonds to finance the undertaking and +build new elevators where needed. + +The provincial Premiers met at Regina on May 4th, 1908, talked over the +matter, then sent for George Langley, M.P.P., one of the directors of +the Saskatchewan Grain Growers' Association who occupied a seat in the +Saskatchewan Legislature. They appointed Mr. Langley as a sort of +ambassador in their negotiations with the Grain Growers' +representatives, sending him to the Inter-Provincial Council to present +verbally a couple of alternative propositions--that the Railways should +be asked to build loading elevators with storage bins or that the +management of the elevators should be taken away from the present +owners and profits limited while the farmers' organizations became +responsible for grades, weights, etc. + +Back came the Grain Growers with a document which repeated their former +demands and amplified their argument. They claimed that they were +entitled to what they were asking if only because the farmers formed +the major part of the population and their demands could be granted +without placing any tax upon the remainder of the people. They +requested a conference with the three Premiers to go into the matter in +detail. + +Not until November 4th, 1908, did this conference take place in Regina. +When they did get together the Premiers were not posted well enough on +details to promise anything more definite than that they would consult +their colleagues and make reply in due course. + +It was the end of January, 1909, before the Inter-Provincial Council +had an official reply. The Premiers pointed to grave and complicated +questions which stood in the way of granting what the farmers were +asking. Constitutional difficulties, financial difficulties, +legislative difficulties--all were set forth in a lengthy and well +written memorandum. The British North America Act would have to be +amended to grant the provinces authority to create an absolute monopoly +without which success would not be assured. In short, there was such a +tangle of overlapping jurisdictions, public interest in trade and +commerce, federal rights, railway rights and so on that the Premiers +could not see their way clear at all in spite of their great desire to +help the farmers at all times. + +The Grain Growers passed the document to their legal adviser and R. A. +Bonnar, K.C., gave them his opinion in writing. That opinion was very +complete, very authoritative, and poked so many holes in the +"constitutional difficulties" that the farmers could see their way much +more clearly than the Premiers, to whom they made dignified rejoinder. +They handed on the holes while they were at it in the hope that the +heads of the three Provincial Governments could take a peek through the +"difficulties" for themselves and see just how clear the way really was +after all. + +The Provincial Premiers, however, took the step which logically +followed their reply to the farmers. Resolutions were introduced in +the Alberta and Manitoba Legislatures that His Excellency the +Governor-in-Council be memorialized in regard to the elevator question +and asked to provide government ownership and operation or to have the +necessary powers to deal with the matter conferred upon the provinces. + +Thus things rode until December 14th, 1909, when the Committee on +Agriculture in the Saskatchewan Legislative Assembly recommended the +appointment of a commission to make searching enquiry into the subject +of government control and operation of the internal elevators as asked +for by the Saskatchewan Grain Growers' Association. + +Two days later, at the annual convention of the Manitoba Grain Growers, +Hon. George Coldwell announced for the Manitoba Government that they +had accepted the principle of establishing a line of internal elevators +as a public utility, owned by the public and operated for the public. +So unexpectedly did this good news come that the farmers were amazed at +their own success. They had fought for it long and earnestly and +victory meant a very great deal; but it had seemed still beyond reach. + +In the case of Manitoba it only remained now to get together and thresh +out the details. A strong committee was appointed to conduct +negotiations with the Government and there was prepared a memorandum of +the plan which the farmers recommended the Government to follow. This +was presented on January 5th, 1910. + +The Government and the Grain Growers then each got ready a bill for +consideration by the Legislature. Many conferences took place. The +Government refused the farmers' bill and the farmers did not approve of +the Government's proposals. While leaving full financial control in +the hands of the Government, the Grain Growers demanded that the +operation of the elevators be undertaken by an absolutely independent +commission without any political affiliations whatsoever; it was +provided also that no officer of the Grain Growers could act on this +commission. The Government did not deem it wise to let control of the +managing commission out of its hands. So negotiations were broken off. + +The Manitoba Government now prepared a new bill, but did not remove the +features to which the farmers were objecting. This bill was passed and +the Government voted $50,000 for initial expenses and $2,000,000 for +acquiring elevators. Beyond a weak protest from the North-West Grain +Dealers' Association the elevator owners had not shown much excitement +over the situation. While the Manitoba Grain Growers were not +satisfied that the Government plan would work out successfully and +therefore refused to assume responsibility in connection with it, they +were ready nevertheless to lend their best co-operation to the Manitoba +Elevator Commission when it got into action. + +In the Province of Saskatchewan an altogether different plan was +evolved in due course. The investigating commission, appointed +February 28th, 1910, consisted of three well qualified men--George +Langley, M.P.P.; F. W. Green, Secretary of the Saskatchewan Grain +Growers' Association; Professor Robert Magill, of Dalhousie University, +Nova Scotia, the latter acting as chairman. The commission held +sittings at many points in Saskatchewan, taking evidence from a large +number of farmers, went to Winnipeg to meet representatives of elevator +companies, the Exchange and Government officials, and also visited +several American cities. Their final report, consisting of 188 +typewritten pages, was handed to the Saskatchewan Government on October +31st, 1910. + +In addition to the comprehensive scheme outlined by the Saskatchewan +Grain Growers many different suggestions were considered by the +commission, such as government ownership and operation, state aided +Farmers' Elevators, municipal elevators and various modifications of +these plans. All, however, were discarded by the commission in favor +of an experiment in co-operative ownership and management by the +farmers themselves, assisted financially by the Provincial Government. + +The scheme presented by the executive of the Saskatchewan Grain +Growers' Association appeared to be unworkable because it overstepped +mere public ownership and operation of initial elevators to include +methods of sampling, grading before shipment, bank and government +loans, features outside the power of a provincial legislature. The +schemes of municipal and district elevators, while appealing to local +loyalty for patronage, did not secure the farmers' direct pecuniary +interest to make the elevators successful in the face of competition. +As to the Manitoba plan, the commission were unanimous in advising +against it in view of the financial risk and the disadvantages of +political influences which would tend to make themselves felt. + +Instead, therefore, of a plan aiming at ownership of initial elevators +by the State and management by the Government of the day, the +commission recommended ownership and management by the growers of +grain. Such a co-operative scheme would aim equally well at removing +initial storage from the ownership of companies interested in grain +trading--would recognize as promptly the feeling of injustice in the +minds of many farmers--would seek just as fully to create marketing +conditions which would give the farmer satisfaction and confidence. +While both the Manitoba scheme and the proposed co-operative scheme +involved financial aid by the State, the commission saw reason to +believe that with control and management in the hands of the farmers +themselves many of the risks and limitations of other plans would be +avoided. + +It is to be noted that in reporting upon general conditions in the +grain trade of Canada in 1910 the Saskatchewan Elevator Commission +pointed out the great change which had taken place since 1900. One +factor in this had been the construction of new transcontinental lines +and thousands of miles of branch railway lines together with a great +increase in car supply and a more efficient and cheaper system of +transportation. Again, the use of loading-platforms had introduced +real competition with the elevators, almost fifteen million bushels of +the 1908-09 crop in Western Canada having been shipped direct by the +farmers. The development of co-operation among the farmers through the +Grain Growers' Associations had led to much advantageous legislation, +while Farmers' Elevators and Public Weigh Scales had had a salutary +effect at many shipping points. The organization of the Grain Growers' +Grain Company as a farmers' own selling agency likewise had exerted a +wide influence for good all over the West, enabling the farmers to +obtain first-hand information about existing methods of dealing in +grain. Finally, the protection afforded by the Manitoba Grain Act was +not to be questioned; for while it was impossible to draft any Act +which would prevent all the abuses alleged, it had been the means of +providing many weapons of defence for the farmer and unfamiliarity with +these provisions by individual farmers was scarcely to be blamed upon +the Act itself. + +The improvement in conditions, compared with earlier years, was +recognized by most of the farmers appearing before the commission and +many of them had no personal complaint to make in regard to weights, +grades or prices. They were advocates of provincial ownership not so +much on their own behalf as upon behalf of settlers in newer districts. +The commission, therefore, while not saying that there were no cases of +sharp practice or no grounds for dissatisfaction, were impressed by the +fact that however powerless farmers had been in earlier days they were +now in a very different position. The strong feeling which many +farmers had against the line elevator companies was based upon +experiences of rank injustice and bitter recollections of the past; for +this the elevator people could blame nobody but themselves. But the +factors enumerated undoubtedly had improved the situation from the +farmers' standpoint and it only remained to strengthen these factors to +give the farmer complete control in the matter of initial storage. + +The commission were unanimous in recommending co-operative organization +of the farmers as the probable solution of the situation in +Saskatchewan. They suggested the enactment of special legislation to +provide for the financing of the undertaking by the farmers themselves, +assisted by a government loan. That is, the farmers surrounding a +point where an elevator was needed would subscribe the total amount of +capital necessary to build it, paying fifteen per cent. in cash, the +crop acreage of the shareholders at that point to total not less than +2,000 acres for each 10,000 bushels capacity of the proposed elevator; +these conditions fulfilled, the government would advance the remaining +eighty-five per cent. of the subscribed capital in the form of a loan, +repayable in twenty equal annual instalments of principal and interest, +first mortgage security. The commission also suggested that the +responsibility of preliminary organization be thrown upon the farmers +themselves by appointing the executive of the Saskatchewan Grain +Growers' Association as provisional directors of the new grain handling +organization. + +When the matter came before the Saskatchewan Legislature the annual +convention of the Saskatchewan Association was being held at Regina and +the farmers declared themselves ready to assume responsibility and go +ahead. A bill was introduced by the Government, embodying the +recommendations of the Commission, and the Act incorporating The +Saskatchewan Co-Operative Elevator Company, Limited, was assented to on +March 14th, 1911. + +Because of the unusual financial arrangements with the Provincial +Government the capital stock was not set at a fixed amount but left +subject to change from time to time by the Government. In order to +protect the credit of the Province the Government thus was able to +control the amount of stock the company could issue and thereby the +amount of money the Government might be called upon to advance for the +construction or purchase of elevators. Shares were placed at $50 each, +available for farmers only, and a limit was set upon individual +holdings. + +It was provided that each local unit would have a local board of +management and appoint delegates to an annual meeting where a Central +Board of Management would be elected. The company was empowered not +only to own and operate elevators and buy and sell grain, but to own +and operate lumber yards, deal in coal and other commodities and "do +all things incidental to the production, storing and marketing of +grain." + +By June 16th, 1911, the Provisional Directors[1] were able to call the +first annual meeting of the new organization, having fulfilled the +requirement of the Act that twenty-five "locals" be first organized, +and by July 6th--the date of the general meeting at Moose Jaw--an +additional twenty-one "locals" were ready. Thus they were able to +start with forty-six units, representing $405,050 capitalization with +8,101 shares held by 2,580 shareholders. + +The newly-elected directors[2] proceeded forthwith to let contracts for +forty new elevators, standard type of thirty and forty thousand bushels +capacity with cleaning machinery and special bins. Six existing +elevators were purchased. + +The Grain Growers' Grain Company agreed to act as selling agents for +this new baby sister and wide-spread interest became manifest as the +Grain Growers took another step into commercial circles. + + + +[1] See Appendix--Par. 8. + +[2] See Appendix--Par. 12. + +[3] See Appendix--Par. 12. + + + + +CHAPTER XV + +CONCERNING THE TERMINALS + +I have but one lamp by which my feet are guided; and that is the lamp +of experience. I know no way of judging the future but by the +past.--_Patrick Henry_. + + +With the establishment of co-operative elevators for the storing of +grain at interior points the farmers of Western Canada launched out +upon the greatest experiment in co-operation this continent has seen. +The success of these elevators, owned and controlled by the farmers +themselves, in all probability would evolve the final phase of internal +storage in connection with the Canadian grain fields. + +Co-incident with their agitation for government ownership of elevators +at country points, the farmers were urging upon the federal authorities +the desirability of government control and operation of terminal +storage facilities. It was not enough that the Provincial Governments +of the Prairie Provinces should protect the farmers within their +boundaries; for the terminal storage of grain was a part of the system +and the farmers contended that corporation control of the terminals by +grain dealers was leading to abuses and manipulations of the grain that +were not in the best interests of the country. + +Grateful as they were, therefore, for the efforts to improve early +conditions by legislation, it was the opinion of the Grain Growers that +these contraventions of the Grain Act would be prevented only by +acquisition of the terminals by the Dominion Government. Mere +legislation and supervision by the Government would not provide an +effective remedy. + +At the head of the lakes the grain passed out of the control of the +transportation companies into the hands of the grain dealers; it was +the only point in transit where it became subject to manipulation. +With the exception of those owned by the C. P. R., the terminal +elevators were operated by dealers, largely controlled by United States +concerns and managed by experts from across the line. It was +frequently charged that terminal operators forgot that they ought to be +warehousemen solely and sought profits outside those of legitimate +elevation and storage charges, although these authorized charges paid +ample return on capital investment. The farmers wanted this temptation +of handling and mixing grain at the terminals removed so that terminal +operators could not tamper with the grain while it was in their +custody. The claims of the Grain Growers that mixing was going on at +Fort William and Port Arthur were based upon the report of the Royal +Grain Commission which had investigated the grain trade in 1906-7. + +The first definite step taken to lay these matters before the Dominion +Government was in the winter of 1908 after the formation of the +Inter-Provincial Council of Grain Growers' and Farmers' Associations. +At a meeting of these representatives of all the organized farmers it +was decided to send delegates to Ottawa. When these gentlemen reached +their destination in May, 1909, they found themselves face to face with +a large and active group of grain men, railway officials and bankers +who had gathered to take a hand in the interview with Sir Richard +Cartwright, then Minister of Trade and Commerce. Beyond some +concessions regarding special binning of grain, nothing came of this +trip apparently, although the Western farmers were supported strongly +by the Dominion Millers' Association. + +A second memorandum was presented early in 1910 and the Grain Growers +were granted a very respectful hearing by the Government; for, while +the organized farmers represented but part of the farming constituency +in the West, they had the sympathy of the entire farming community +behind them in these requests. They went home, however, feeling the +need of concentrating their energies on organization if they were to +get actual action from politicians. + +They had not much more than got home safely before something happened +which proved their assertions that all was not as it should be down on +the lake-front. Mr. C. C. Castle, Warehouse Commissioner, one day held +in his hand some official reports from the Inspection Department +concerning certain elevator concerns and compared the figures with the +returns made to the authorities by these concerns themselves. He shook +his head at the discrepancies and started an investigation. There were +three companies involved and after full evidence was taken legally +these three companies were prosecuted for returning untrue statements +and in the Police Court at Winnipeg they were fined a total of $5,550 +by the Magistrate. + +The next thing was the drafting of a Grain Bill which aimed to improve +certain matters. It was considered by the Senate and passed. It +reached the House of Commons and Hon. Frank Oliver took it by the +halter and led it about. Before anything could happen to it, however, +and the judges get a chance to study its good and bad points, July +(1911) came along and Parliament dissolved like a lump of sugar dropped +into a cup of tea and in the hub-bubbles of a general election +everything was _in statu quo_, as they say. And when the race was over +and the Party Nags back in their stalls, lo! new tenants were taking +their turn at sliding around on the polished Treasury Benches and +having a sun bath! + +The new Minister of Trade and Commerce was Hon. George E. Foster. He +looked over the Grain Bill, passed his hand along its withers and +patted it on the rump. Then he sat down and made a copy of it, +idealizing it by injecting a few "betterments," then trotted it out for +inspection with tail and mane plaited and bells on its patent-leather +surcingle. He did not claim to be its real father--only its +foster-father. He introduced it to the House with a very lucid review +of the whole agitation for improvement in the Grain and Inspection Acts +since "Johnny" Millar, of Indian Head, Saskatchewan, handed in the +Royal Grain Commission report in 1907. + +The new Government proposed to grant government control of terminal +elevators only on a limited and experimental scale. They wanted to +test out the principle by lease or construction of two or three +terminals at the head of the lakes before undertaking the financial +responsibility of handling the entire terminal system. Heretofore +there had been government supervision merely; but now for an experiment +there would be government operation as well while the management of the +remaining terminals would have to be satisfactory to the Government. + +"The demand of the West is that the grain should not be manipulated at +the terminals," declared Mr. Foster. "It does not matter a pin as to +how that is brought about so that the thing itself is accomplished." + +The new bill provided for sample markets and the farmers did not like +this unless the Government acquired the terminals as had been +requested. Owing to the grain blockade, due to car shortage, feeling +was running high in the West and the farmers eyed the new legislation +closely. They came upon a clause which startled them and in the row +that followed it looked at one time as if the new Bill would be led to +the boneyard and killed. + +One of the proposals of the Government was the formation of a Board of +Grain Commissioners with wide discretionary powers. They would be made +responsible for the proper conduct of the entire grain trade and deal +with all matters pertaining thereto. They were to have the absolute +say-so in regard to car distribution and there was one clause that +threatened this protection for which the Western farmers had fought so +hard in earlier days. + +At once consternation spread among the Grain Growers, their +apprehensions based upon bitter experience. They protested vehemently. +Letters, petitions and resolutions slid all over the official +Government desks and delegations followed to Ottawa. Not the organized +grain growers alone, but the whole Western farming element was up in +arms. + +Nevertheless, the new Grain Bill passed the House of Commons and +browsed over to the Senate. + +It was the farmers' last chance to stop it. R. McKenzie and J. S. +Wood, of the Manitoba Grain Growers; J. A. Maharg and F. W. Green, of +the Saskatchewan Grain Growers, and E. J. Fream, of the United Farmers +of Alberta--these practical men figuratively took off their coats and +waded in when they got in conference with Senate members. They +preferred to see the whole bill killed unless the objectionable clause +regarding car distribution were struck out; they saw the old-time +elevator abuses again becoming possible and quite nullifying the many +good features which the new legislation possessed. + +The final upshot was that somewhat unexpectedly Hon. Senator Lougheed, +leader in the Upper House, withdrew the offending clause on behalf of +the Government, although the Government felt that the farmers were +unduly excited. + +The new Board of Grain Commissioners was appointed without delay and +consisted of three men who understood Western conditions--W. D. +Staples, of Treherne, Manitoba; Frank E. Gibbs, of Fort William, and +Dr. Robert Magill, now Secretary of the Winnipeg Grain Exchange. Dr. +Magill was made Chief Grain Commissioner, for he had rendered excellent +services in the past and commanded the respect of the entire West. + +The Board was not long in reaching the conclusion that if grain dealing +companies were to be eliminated from the business of owning and +operating terminal elevators, outright purchase and breaking of leases +would be necessary. The companies refused to lease to the Government +voluntarily on any terms which the Board could recommend. Some would +not lease on any terms whatever, claiming that to lease their terminals +would dislocate their whole system of interior elevators, involving a +loss of capital which had been invested legitimately. Apart from this, +the Board had its hands so full with other important things that +expropriation and all that it involved would claim their whole time and +energy to the neglect of other urgent matters. + +Accordingly, the Grain Commissioners recommended that the Government +meet the immediate need of increased terminal facilities at the head of +the lakes by building a three-million-bushel elevator, thoroughly +equipped for storing, cleaning, drying and handling grain and with +provision for future extensions to a capacity of thirty million +bushels. They also approved of the Grain Growers' Grain Company +leasing one of the C. P. R. elevators. In this way both the Board and +the Grain Growers would gain first-hand knowledge of terminal elevator +conditions. + +While formulating a policy for terminal elevators the Grain +Commissioners considered the need for terminal storage in the interior +as well as at the lakefront. The increase in the area of the grain +fields, particularly in Alberta, was straining the transportation +facilities to the limit and the construction of the Grand Trunk Pacific +promised to open up still more acreage. Railway rolling stock, railway +yard accommodations at Winnipeg and Fort William and elevator storage +were not keeping pace with the annual volume of new grain. The +Government Inspection Department was up to its eyes in grain, working +night and day during the rush season, while lake and ocean tonnage +likewise were inadequate. Even the eleven million bushels of extra +storage capacity being built at the lake at the time the Board was +considering the situation would soon fill and overflow. Congestion at +eastern transfer houses or terminal points was threatening, water +freight rates were up and the export market disturbed and there was no +reserve of storage capacity in Western Canada to meet emergencies. In +a wet season the drying plants at Fort William and Port Arthur were far +from adequate. Delayed inspection returns and terminal outturns, due +to the recurring car shortage, prevented the farmers from financing and +widened the spread between street and track prices as the close of +navigation approached. + +Reviewing all this, the Grain Commissioners came to the conclusion that +it was time to consider seriously the erection of Government terminal +facilities nearer the grain fields. Especially in Alberta was the need +great for inspection and terminal storage to be nearer the producer. +It would relieve congestion, benefit the whole grain trade and provide +for the future possibility of alternate shipping routes via Hudson Bay +or the Panama Canal. + +It was true that the Royal Grain Commission of 1906-7 had raised +objections to interior terminals and inspection, such as the extra +expense of handling, the extra loss to the grain in handling and +re-handling, the possibility of the railways solving the car shortage +problem, the difficulty of getting shippers to send their grain to such +elevators and so forth. But the Board considered that, in view of +other possible routes than the Eastern, these objections were not +strong enough to balance the benefits. Accordingly they recommended +the Government to take action, the elevators to be regarded as public +terminals in which mixing of grades would be forbidden. + +While the farmers in all three Prairie Provinces were busy with these +vital matters, the Grain Growers' Grain Company meanwhile was wading +along through all the difficult seasons of car shortage, expanding its +usefulness and trying its best to give the maximum of service the while +it was reaching out into the export field in an experimental way. + +Then, in 1911, a situation arose unexpectedly that caused turmoil among +the officers of the pioneer company and led to considerable anxiety +among the Grain Growers all over the West. For, through an excess of +zeal upon the part of an employee, the Grain Growers' Grain Company +suddenly found itself dragged into the maelstrom of "The Pit." It was +accused of trying to corner the oat market and was forced to fight for +very life. + +So that at last it looked indeed as if Chance had delivered the farmers +into the hands of those who preferred to see them eliminated altogether +from the market. + + + + +CHAPTER XVI + +THE GRIP OF THE PIT + +Now, infidel, I have thee on the hip! + --_Merchant of Venice._ + + +The visitors' gallery is an excellent vantage point from which to view +the trading floor of the Exchange. It runs the full width of the south +wall. The chairs entrenched behind the rail have acquired a slippery +polish from the shiftings of countless occupants just as the wall +behind has known the restless backs of onlookers who have stood for +hours at a stretch. + +It is here that the curious foregather--good people from every walk of +life except the grain business. The tourist who is "just passing +through your beautiful city" and has heard that Winnipeg has the +largest primary wheat market in the world--the tourist drops in to see +the sights. Friend Husband is there, pretending to be very bored by +these things while fulfilling his promise to take Friend Wife "some day +when there's something doing." Young girls who only know that bulls +hate anything red and that bears hug people to death--they are there, +thrilled by the prospect of what they are about to witness with but a +very vague idea of what it will be. A dear old lady from the quiet +eddies of some sheltered spot has been brought in by the rest of her +party to see "goin's on" of which she does not approve because gambling +is a well-known sin. She is somewhat reassured by noting a few seats +away a man who wears the garb of a clergyman; presently he will take +notes for his forthcoming sermon on "The Propinquity of Temptation and +Its Relation to the Christian Life." The two young women who whisper +together in the corner have been reading stockmarket stories in the +magazines and they are wondering which of the traders, assembling on +the floor below, will have his coat and collar torn off and which will +break down and give vent to those "big, dry man-sobs" when his fortune +is wrecked! + +Not the least of the sights at the Grain Exchange is the Visitors' +Gallery! + +Two tanned farmers are discussing quotations and general conditions in +a matter-of-fact way. War demands, the unfavorable United States +Government report and rumors of black rust are making for a bullish +condition. Cables are up and the market promises to be wild this +morning. The gong will go in five minutes. + +"The Pit" is out in the middle of the floor. There is an octagonal +platform, raised a couple of feet from the floor level. In the centre +of this platform three wide steps descend to floor level again; so that +the traders standing on the different steps are able to see over one +another's heads and note each other's bids. On the west side of the +Pit is an elevated, built-in desk like those seen in court-rooms, +somewhat resembling an old-fashioned pulpit; here three men sit +throughout the session. One keeps his fingers on the switch-box which +operates the big clock on the north wall where the fluctuations of the +trading are flashed on a frosted dial in red-light figures. At his +left sits a second man whose duty it is to record the bidding on an +official form for the purpose. At the right is a telegraph operator +who sends the record of the trading as it occurs to other big +Exchanges--Minneapolis, Chicago, New York, etc. + +The telegraphic report registers in several instruments attached to the +big blackboard that occupies the entire north wall. Operators with +chalk and chalk-brush in hand move about the platform at the base of +this blackboard, catching the quotations from the clicking instruments +and altering the figures on the board to keep pace with the changing +information. A glance at this great blackboard will furnish the latest +quotations on wheat, oats, barley, flax, corn, etc., the world over. + +Ranged along the entire east wall are the clacking instruments of the +various telegraph companies for the use of the brokers and firms +trading on the Winnipeg Exchange. Telephone booths at the north, seats +for friends of members on the west side, weather maps, etc., beneath +the gallery--these complete the equipment of the big chamber. + +The group about the Pit, waiting for the market to open, grows rapidly +as 9.30 approaches. Members of the Exchange saunter in from the +smoking-room, swap good-natured banter or confer earnestly with their +representatives on the floor. In response to the megaphoned bellow of +a call boy, individuals hurry to the telephone booths. Messengers +shove about, looking for certain brokers. The market is very unsteady; +it may go up or down. The men are clustering about the Pit now; most +of them are in their shirt-sleeves and they are on tip-toe like +sprinters who wait for the starter's pistol. Some of them have +instructions to dump wheat on the market; some have been told to buy. +Hundreds of thousands of bushels will change hands in the first few +minutes. The market may go up or it may go-- + +Bang goes the gong! They're off! Above the red abbreviation, OCT., at +the bottom of the big clock the blood-red figure 5 indicates the +opening of the market at $1.45 even. With a mad swirl the trading +begins in a roar of voices. A small forest of arms waves wildly above +jostling bodies. Traders dive for each other, clutch each other and +watch the clock. The red figure 5 has gone out and 7/8 has in turn +vanished in favor of 5/8--1/2--3/8--4--(?) Instead of going up, she's +falling fast. Before the market closes the price may rebound to $1.55. +Somebody will make a "clean-up" to-day and many speculators will +disappear; for margins are being wiped out every minute. + +To the Gallery it is a pandemonium of noise, unintelligible in the +volume of it that beats against the void of the high chamber. Only one +shrill voice flings up out of the roar: + +"Sell fifty Oc, sev'-eights!" He offers 50,000 bushels of wheat for +October delivery at $1.43 7/8 per bushel. It's that fellow down there +with the blazing red tie half way up his collar. He hits out with both +hands at the air as he yells. A surge of buyers overwhelms him. They +scribble notes upon their sales cards and go at it again. + +Down there in the melee those men are thinking fast. With every flash +of the clock the situation changes for many of them. Some pause, +watching, listening; others who have been quiet till now suddenly break +in with a bellow, seemingly on the point of punching the noses of the +men with whom they are doing business. Lightning calculation; +instantaneous decisions! "Use your discretion" many of them have been +cautioned by their firms and they are using it. A moment's hesitation +may cost a thousand dollars. Trading in the Pit is no child's play; +rather is it a severe strain even upon those who know every trick, +every firm and the character of its dealings, every trader and his +individuality, his particular methods--who know every sign and its +meaning, who can read the coming shout by the first movement of the +lips. And always, in and out, are darting the telegraph messenger boys +with yellow slips that cause upheavals. + +"Why don't they take their time and do their trading more quietly and +systematically?" ventures Friend Wife up in the gallery. + +"And lose a cent a bushel while they're turning around, eh?" laughs +Friend Husband. "On a hundred thousand bushels that'd only be a +thousand dollars. Of course that's mere car-fare!" + +The dear old lady from the quiet eddies of Shelterville is shaking her +head in disapprobation and communing with herself upon the iniquities +of gambling. + +"My, oh my! What won't men do for money! Jt-jt! Just look at 'em! +Fightin' like that for money they ain't earnt! An' that nice lookin' +young feller with the intelligent gold specs!--Dear me, it's enough to +make a body sad!" + +She could not know that but comparatively few of the traders below were +representatives of brokerage firms which were trading on margins for +speculating clients--that most of the traders were negotiating +legitimate deals in futures for firms who actually had the grain for +sale, for exporters who would take delivery of the actual wheat for +shipment, for milling companies who would grind it into actual flour. + +Because trading for delivery in future months affords opportunity for +speculation, it is not to be condemned necessarily. It is the balance +wheel which steadies the entire grain business. Even the speculating +element is not without its uses at times and the layman who ventures to +condemn This or That out of hand will do well to make sure he +understands what he is talking about; for the business of the grain +dealer is so subject to varying conditions and so involved in its +methods that it is one of the most difficult to be found in the +commercial world. + +Trading in futures finds birth in the very natural disinclination of +Mr. Baker to buy his flour by the warehouseful. He does not want to +provide storage for a year's supply, even if he could stand such a +large bite out of his capital without losing his balance. So while the +bakery man is anxious to order his flour in large quantities for future +use, he is equally anxious to have it delivered only as he needs it, +paying for it only as it reaches him--say, every three months. + +Before contracting for the delivery of the flour on this basis Mr. +Miller must look to his wheat supply on a similar basis of So-Much +every So-Often and he, too, has an eye on storage and, like his friend +the baker, he "needs the dough," as they say on the street, and he does +not want to part with any more hard-working money than he can help. +Accordingly he looks around for somebody who has wheat for sale and +will sell it right now at a fixed price but defer delivery and payment +to a future date. With the price of his wheat thus nailed down, Mr. +Miller can set the future price on his flour to his customers, taking +delivery and paying for the wheat as he requires it for filling his +flour orders. + +In the meantime where is the wheat? Out near the fields where it was +grown, in country elevators perhaps, ready for transportation to market +as the law of supply and demand dictates instead of the whole crop +being dumped at once and smothering prices below the cost of +production. Or perhaps it is in store at the terminal where Mr. +Exporter can handle it. It will be seen that the mutual arrangement to +buy and sell for future delivery simplifies matters for everybody in +the grain trade. + +The manner in which the legitimate trader in futures protects himself +from price fluctuation is easily understood. While a deal in cash +wheat would refer to a definite shipment as shown by warehouse +receipts, a deal for future delivery is merely an obligation involving +a given quantity of grain at a given time at a given price. Being +merely a contract and not an actual shipment, the seller does not +require to produce the grain immediately nor is the buyer required to +hand over the purchase price when the trade is made. Thus it is +possible to buy a thousand bushels to-day for October payment and sell +a thousand bushels to-morrow for October delivery, cancelling the +obligation. The trade can be balanced at any time before October 1st. +Again, a thousand bushels of October wheat may be bought (or sold) +to-day and the future switched to May 1st by the sale (or purchase) of +a thousand bushels for May delivery. + +Take the man with the blazing red tie half way up his collar, the man +who this morning offered to sell fifty thousand bushels for October +delivery at $1.43 7/8. Suppose that he represents a company with a +line of elevators at country points. To his office at Winnipeg has +come word from country representatives that fifty thousand bushels have +been purchased for the company. At once he enters the Pit and sells +fifty thousand bushels for delivery at a future date, thereby "hedging" +the cash purchase out in the country. Once this future of fifty +thousand is sold the company no longer is interested in market prices +so far as this grain is concerned. If the market goes up, their cash +grain is that much more valuable, offsetting the loss of an equal +amount on the future delivery; if the price goes down, what is lost on +the cash wheat will be gained on the future. So that the difference +between the price paid for the grain at the country elevators and the +price at which they sold "the hedge" is the only thing which need +concern the grain company and it is here they must look for expenses +and profits. This method of hedging enables a grain company to make +purchases in the country on much smaller margins than was possible in +the early days when the marketing machinery was less completely +organized. It eliminates to the greatest extent the necessity of +speculating to cover risks. + +The speculator's opportunity comes in connection with the fluctuations +of the market in deliveries. He merely bets that prices will go up or +down, as the case may be. He is not dealing in actual wheat but in +margins. He buys to-day through his broker, who has a seat on the +Exchange, and deposits enough money to cover a fluctuation of say ten +cents per bushel. If October wheat to-day is quoted at $1.45 his +deposit will keep his purchase in good standing until the price has +dropped to $1.35. He must put up a further deposit then or lose the +amount he has risked already, the broker selling out his holding. If +the speculator is on the right side of the market--if he has guessed +that it will go up and it does go up--he can sell and pocket a profit +of so-many-cents per bushel, according to the number of points the +price has risen. If he has bet that the market will go down the +situation merely is reversed. + +The machinery for handling the huge volume of business transactions in +a grain exchange must be complete and smooth running to the last +detail, so designed that every contingency which may arise will be +under control. For simplicity and efficiency in this connection the +Winnipeg Grain Exchange occupies a unique position among the great +exchanges of the American continent; in fact, it is a matter for wonder +that its methods have not been copied elsewhere. + +The Winnipeg Grain and Produce Exchange Clearing Association is a +separate organization within the Exchange and to it belong all the +Exchange members who deal largely in futures. Each day the market +closes at 1.15 p.m. By two o'clock every firm trading on the floor +must hand in a report sheet, showing every deal made that day by the +firm--the quantity of wheat bought or sold, the firm with whom the +trade was made, the price, etc. If on totalling the day's transactions +it is found that they entail a loss, the firm must hand over a cheque +to the Clearing House to cover the loss; if a gain in price is totalled +the Clearing House will issue a cheque for it to the firm so gaining. +Thus, if Jones & Brown have bought wheat at $1.39 and the market closes +at $1.35 they lose four cents per bushel on their purchase and must +settle the difference with the Clearing House. All differences between +buyers and sellers must be settled each day and if the volume of trades +has been heavy, the Clearing House staff work on their books--all +night, if necessary--until everything has been cleared for next day's +business. The firm which loses to-day may gain by to-morrow's trades, +maintaining good average business health. Any private trading which +may take place after official trading hours is known as "curb" trading. + +The rules of the Clearing House are very strict. Any firm which fails +to report by two o'clock is fined. The Clearing House assumes +responsibility for all purchases and sales and, being actually liable, +keeps close tab on every firm. Each firm has a certain credit on the +books of the Clearing House, allotted impartially, according to its +standing, and this credit forms the fixed basis of that firm's +dealings. If its activities exhaust the line of credit, the Clearing +House calls for "original margins" at once--a deposit of so-many cents +per bushel for every bushel involved and for every point which the +market drops. The amount per bushel called for is entirely at the +discretion of the Clearing House authorities and if the quantity of +grain reaches dangerous proportions the deposit required may be set so +high that it becomes practically equivalent to cash purchase. To +"corner the market" under these conditions would require unlimited +credit with the Clearing House. + +When Jones & Brown are "called" for deposit margins they drop +everything and obey. They have just fifteen minutes to reach the bank +with that cheque, have it "marked" and rushed to the Clearing House. +If they fail to arrive with it the Manager of the Clearing House will +step into their office and if there were any "hemming and hawing" Jones +& Brown would be reported at once to the Secretary of the Exchange who +would call a hurry-up meeting of the Exchange Council and Messrs. Jones +& Brown would find themselves posted and all trades with them forbidden. + +All clerical errors in regard to trades are checked up by the Clearing +House and fines paid in for mistakes. Only a nominal charge is made +for its services--enough to pay overhead expenses--but the fines have +enabled the Clearing House to accumulate a large Reserve Fund which +gives it financial stability to provide for all responsibilities should +occasion arise through failure of any firm. All futures which have not +been cancelled before delivery date are negotiated through the Clearing +House and with its assistance the grain can be placed just where it +should go and tremendous quantities of it are handled without a hitch +and with the utmost despatch. + +Excitement in the Pit is not always over wheat. It may be oats. It +was Canadian Western Oats which became the storm centre in 1911 when +the Grain Growers got into difficulty with the "bears." Traders who +attempt to boost prices are known as "bulls"; those who are interested +in depressing the market are "bears." A trader may be a bear to-day +and a bull to-morrow; thus the opposing groups are constantly changing +in make-up and the firm which was a chief opponent in yesterday's +trading may be lined up alongside the day following, fighting with +instead of against. It is all in the day's business and the strenuous +competition on the floor, into which the uninitiated visitor reads all +manner of animosity and open anger, is a very misleading barometer to +the actual good feeling which prevails. + +In recording what now took place in the Pit in connection with the +farmers' commission agency it will be well to remember that the rest of +the traders would have acted in the same way toward any firm which was +fool enough to leave the opening for attack. It may be that as the +thing developed some of those who were specially interested in the +downfall of the farmers' organization seized the opportunity to ride +the situation beyond the pale of business ethics and in their eagerness +to be "in at the death" revealed special vindictiveness. But in view +of the long struggle with this element it was only what the Grain +Growers should have expected when they ran their heads deliberately +into the noose. + +The situation was this: Shortly after New Year's the export demand for +Canadian Western Oats became heavy and it looked as if in Great Britain +and all over Europe, where the oat crop had been small, there would +continue to be a shortage of oats. In spite of this situation, +however, no sooner was the proposed reciprocity agreement reached +between the Canadian and United States governments of the day, on +January 26th, than market prices began to go down. + +The then Manager of the Grain Growers' Grain Company came to the +conclusion that this price lowering was a local condition and that the +export market for oats was too strong to justify it or sustain it. + +"I'll just step into the market and buy some oats," said he. "Later on +I'll sell for export at a satisfactory figure." Accordingly, one fine +morning he went into the Pit and began to buy. + +The Manager's motive in attempting to sustain the market may have been +of the best; but it was the first time that such methods had been +attempted by the Grain Growers--methods which were not at all in +keeping with the avowed principles of the Company. The Board of +Control had every confidence in their Manager and, although he was +merely a salaried employee and not an executive officer, he had been +given a pretty free hand in the conduct of the Company's operations. +Apparently it did not occur to him that he should consult the Board +before entering the market on a speculative basis. Had the Board known +what he was about to do they would have vetoed it; but when they did +discover what was afoot it was too late to prevent the situation. It +developed very swiftly. + +"The Grain Growers are up to the neck in May oats," was the whisper +which passed about among the other traders. That was all that was +necessary. + +"Sell May oats! Sell May oats!" + +On every side of the Pit they were being offered by thousands of +bushels--five--twenty-five--fifty thousand! The idea was to load up +the Grain Growers' Grain Company to the point where their line of +credit with the Clearing House would become exhausted, after which +every bushel would require a marginal deposit. Then when the Company +could carry no further burden the Clearing House would be forced to +dump back the oats onto the market, breaking it several cents per +bushel. At this lower price the traders who had obligated themselves +to make these big deliveries would buy back the necessary supply of +oats at a profit and everything would resume the even tenor of its +way--except the Grain Growers, of course. Their serviette would be +folded. Their chair would be pushed back from the table! They would +be _through_! + +Up until now all the troubles of the farmers in marketing their own +grain may be said to have come from sources outside themselves; but in +the present instance they had nobody to blame but themselves for the +predicament. It arose at a time, too, when the other grain dealers +were beginning to recognize the farmers as a force in the grain +market--a force which had come to stay. It was unfortunate, therefore, +that just as they were beginning to acquire a standing as a solid and +sensible business concern, the Grain Growers' Grain Company should find +themselves driven into a corner, their backs to the wall, the focus of +pointing fingers and gleeful grins. + +The fact that a salaried employee, not an officer of the Company, had +acted on his own initiative without the consent of the directors was no +excuse for a reliable business concern to tender as such. The first +question flung back at them naturally would be: "Then your 'Board of +Control' doesn't control, eh?" For although the Board of Control did +not know what their Manager was doing until it was too late to prevent +it, they should have known. That is what they were there for--to +protect the shareholders from managerial mistakes. + +However, there they were. The only thing they could do was to fight it +out to a finish in the Pit and, if they survived, to see that no +similar mistakes occurred in the future. + +All sorts of rumors were flying about the corridors of the Exchange, +gathering momentum as they passed from lip to lip, swelling with the +heat of the excitement until it was a general guess that the Grain +Growers must be loaded with anywhere between five and eight million +bushels of oats more than they had been able to sell. + +It was only a guess, though, and a wild one. Many traders would have +given a good round sum to know exactly how the farmers' company stood +on the books of the Clearing House. Only the Clearing House and the +Company itself knew the true figures and the Clearing House officials +were men of the highest integrity who dare not be approached for secret +tips. + +Thanks to the splendid export connection which had been built up in the +Old Country and to the equally solid financial relations with the Home +Bank, the farmers' agency was selling oats for export very rapidly. It +began to look as if they would get out from under the threatening +avalanche without much loss, if any. + +The Company's old-time enemies apparently saw an opportunity to +undermine its credit at this crisis; for attacks began to appear in +print--accusations of speculation, of official negligence and so forth. +If the Grain Growers could be prevented from paying for the large +quantity of oats, delivery of which they would have to take on May 1st +to complete the export sales made during the winter--if they could be +made to fail in filling these export orders when navigation opened, +they would be smashed. + +But in attacking the credit of the Grain Growers, these opponents +overlooked the rapid increase in paid-up capital and the ability of the +farmers to secure money outside of Winnipeg. It was not being +forgotten by the Grain Growers that upon the first day of May there +would be delivered to them over 2,200,000 bushels of oats. + +When the day arrived, therefore, the money was on hand to meet every +contingency. Every bushel was paid for immediately. Within a few +weeks half of the quantity was riding the waves of the Atlantic, bound +for the Old Country to fill part of the sales already made there. + +Before long some of the grain companies which had sold the oats were +trying to buy them back. Had the farmers' company been a speculating +firm they might have turned upon the market and cornered the oats with +a vengeance. It was one of those rare occasions when a corner could +have been operated successfully to a golden, no-quarter finish; for the +export demand was sustained and the local market could have been made +to pay "through the nose" for its fun. + + + + +CHAPTER XVII + +NEW FURROWS + +Fishes, beasts and fowls are to eat each other, for they have no +justice; but to men is given justice, which is for the best.--_Hesiod_. + + +The situation was changing indeed for the Grain Growers in Western +Canada. In spite of all opposition the farmers had made themselves a +factor in the grain trade and had demonstrated their ability to conduct +their affairs on sound business principles. Co-operative marketing of +grain no longer was an untried idea, advocated by a small group of +enthusiasts. The manner in which the farmers' pioneer trading agency +had weathered the stormy conditions of its passage from the beginning +and the dignified stand of its directors--these gradually were earning +status in the solid circles of the business world. + +Out in the country also things were different. Those farmers who at +first had been most certain that the trading venture would crumble away +like so many other organized business efforts of farmers in the past, +now were ready to admit their error--to admit that a farmers' business +organization, managed by farmers, could succeed in such ample measure +that its future as a going concern was assured. Instead of hovering on +the outskirts of its activities, like small boys surrounding a giant +fire-cracker on Victoria Day--waiting for the loud bang so freely +predicted--these gentlemen were beginning to look upon it as a safe +investment. + +The success of the Grain Growers' Grain Company was an argument for +co-operation which could not be overlooked and the co-operative spirit +spread rapidly among the farmers in many districts. + +It will be remembered that the promoters of the grain company had +intended originally to operate under a Dominion charter but were +compelled by circumstances to content themselves with provincial +powers. The farmers now were finding themselves too restricted and +application was made for a new charter which would facilitate the +transaction of business in other provinces than Manitoba. Special +powers were asked for and by special Act of Parliament the charter was +granted in 1911 in the face of considerable opposition at Ottawa from +those whom the farmers regarded as representing the Canadian +Manufacturers' Association and the Retail Merchants' Association. + +For the trend of the organized farmers was quite apparent. No secret +had been made of the views entertained by the Grain Growers regarding +co-operation. To familiarize every member of the various organizations +with the history of co-operative achievements in other countries had +been the object of many articles in the _Grain Growers' Guide_ and much +speech-making from time to time. The possibility of purchasing farm +supplies co-operatively in addition to co-operative marketing of grain +was being urged convincingly. And during the long winter evenings when +the farmer shoved another stick into the stove it was natural for him +to ask himself questions while he stood in front of it and let the +paring from another Ontario apple dangle into the ash-pan. + +"The fellow who made that stove paid a profit to the Iron an' Steel +Trust who supplied the raw iron ore," considered he. "Then he turned +around an' added a profit of his own before he let the wholesaler have +it. Then the wholesaler chalked up more profit before he shipped it +along to Joe Green over in town an' Joe just naturally had to soak me +something before I got her aboard for home. That's profits on the +profits! It's a hot proposition an' it's my money that goes up the +flue!" + +When he added further profits which he figured might be due to +agreements between supposed competitors in prices, the Grain Grower was +quite ready to believe that he had paid about twice as much for that +stove as the thing would cost him legitimately if he dealt with the +maker direct. Here was the High Cost of Living that everybody was +talking about. The remedy? The same chance as the Other Fellow for +the farmer to use the resources of Nature and, by co-operation, the +reduction to a minimum of production and distribution cost. + +"I've done it with my grain. Why can't I do it with what I need to +buy?" That was what the Grain Grower was asking himself. "Why must I +feed and clothe and buy the smokes for so many of these middlemen?" + +So when the directors of the grain-trading company came before him with +the suggestion of buying a timber limit in British Columbia in order to +put in their own saw-mills eventually to supply building materials on +the prairie, the Grain Grower slapped his leg and said: "Good boy! An' +say, what about a coal mine, too?" + +That was the beginning of great developments for the organized farmers +of Western Canada. It was the beginning of new furrows--the opening up +of new vistas of emancipation, as the farmer saw it. And as the +furrows lengthened and multiplied they were destined to cause much +heart-burning and antagonism in new directions. + +The timber limit which the Grain Growers' Grain Company purchased was +estimated to contain two hundred and twenty-two million feet of lumber. +A Co-Operative Department was opened with the manufacture and sale of +more than 130 carloads of flour at a saving to the farmer of fifty +cents per cwt, even this small beginning registering a drop in milling +company prices. Next they got in touch with the Ontario Fruit Growers' +Association and sold over 4,000 bbls. of apples to Western farmers at +the Eastern growers' carload-lot price, plus freight, plus a commission +of ten cents per barrel. More than one hundred carloads of coal were +handled in one month and the farmers then got after the lumber +manufacturers for lumber by the carload at a saving of several dollars +per thousand feet. + +Still experimenting, the Grain Growers' Grain Company added to the list +of commodities in 1912-13--fence posts, woven fence wire, barbed wire +and binder twine. Followed other staples--cement, plaster, sash and +doors, hardware and other builders' supplies; sheet metal roofing and +siding, shingles, curbing, culverts, portable granaries, etc.; oil, +salt and other miscellaneous supplies; finally, in 1914-15, farm +machinery of all kinds, scales, cream separators, sewing machines and +even typewriters. Of binder twine alone nearly seven million pounds +was handled during this season. Thus did co-operative purchasing by +the farmers pass from experiment to a permanent place in their +activities. + +Expansion was taking place in other directions also. In 1912 the +Company leased from the Canadian Pacific Railway a terminal elevator at +Fort William, capacity 2,500,000 bushels. A small cleaning elevator +was acquired at the same place and, with an eye to possible +developments at the Pacific Coast, a controlling interest in a small +terminal elevator in British Columbia was purchased. At Port Arthur, +on a six-hundred-foot lake frontage, a new elevator has just been built +with a storage capacity of 600,000 bushels. + +So much for terminal facilities of this farmers' pioneer trading +organization. Now, what about the country elevators for government +control of which the farmers had campaigned so vigorously in the three +Prairie Provinces? As we have seen, the problem had been handled in +Saskatchewan along very different lines to the method adopted in +Manitoba. In Manitoba the 374 elevators, owned by the Provincial +Government and operated by the Provincial Elevator Commission, showed a +loss. It was even hinted in some quarters that the Manitoba Government +had no intention in the first place of operating at anything but a +loss. Whether or not there was any ground for these irreverent +suspicions, the fact remained that the Government elevator system in +Manitoba was beginning to assume the bulk of a snow-white elephant. +The Government, not entering the field as buyers, had tried to run the +elevators as a storage proposition solely. In 1910-11 the loss had +exceeded $84,000 and the year following was not much better. At last +the Government said in effect to the Grain Growers: + +"We've lost money on this proposition. We tried it out to please you +farmers, but you're still dissatisfied. Try to run 'em yourselves!" + +"We'll just do that," replied the farmers, although the Grain Growers' +Grain Company was not enthusiastic over the prospect of converting the +elevator failure into immediate financial success. + +It was too much to expect. At many points the Government owned all the +elevators in sight. In some places there was too much elevator +accommodation for the district's volume of business. In certain cases +the elevators which had been sold to the Government were practically +discards to begin with. However, the need for improvement in the +service which the farmers were getting at country points was so very +great that finally, in 1912, the farmers assumed control of the +government system in Manitoba. + +It was late in August when this came about. With only three or four +weeks in which to prepare for the season's crop, make repairs, secure +competent managers, travelling superintendents and office staff the +results of the first season scarcely could offer a fair test. Even so, +prices for street grain went up at competing points. Line elevator +companies began asking the farmer for his grain instead of merely +permitting him to place it in their elevators. + +The farmers were quick to note this and asked that the elevator service +be continued by their company. With better organization the following +season brought still greater improvement in service. Prices rose. The +special binning service from their own elevators the farmers found +genuine, not just a last-minute privilege granted to secure their +grain. In spite of bad crop conditions in 1914-15, the elevators +continued to succeed under the farmers' own management and, the year +following, letters of highest praise from farmers everywhere marked the +complete success of the undertaking. So excellent was the service now +being rendered by the Company that independent Farmers' Elevators in +several instances approached the Grain Growers and sought their +management. + +The handling of co-operative supplies at elevator points began in +1913-14. Flour houses were erected where prices were out of proportion +and at other places the elevator agents began to arrange for carload +shipments and proper distribution of coal among the farmers at a saving +of from two to three dollars per ton. + +These co-operative lines at elevator points soon were enlarged with +much success. In addition to the elevators leased from the Manitoba +Government the Grain Growers' Grain Company bought outright, erected or +leased sixty elevators of its own. + +Those who were watching all this steadily grew more restive. The +Farmers' Movement in the West was fast becoming a subject of bitter +debate. + +"When farmers advance to the last furrow of plowed land on the farm +they breast the fence which skirts the Public Highway," argued many Men +of Business. "They are climbing over the fence!" + +But the organized farmers were not inclined to recognize fences in +restriction of honest competition. They believed they were on the Open +Range and held unswervingly on their way. + + + + +CHAPTER XVIII + +A FINAL TEST + +We sometimes had those little rubs which Providence sends to enhance +the value of its favors.--_Vicar of Wakefield_. + + +While developing co-operative purchasing of farm supplies the pioneer +business organization of the farmers had continued its policy of +expansion in the grain business. The ideal of the farmers had been to +reduce to the lowest possible point the cost between the producer in +Western Canada and the Old Country consumer who bought most of the +Western grain. By engaging in the export business they hoped to become +an influence in keeping export values--the price at Port William, in +other words--at a truer level. + +Prior to 1912 the export activities of the Grain Growers had been +restricted necessarily to an experimental basis; but on January 1st, +1912, the "Grain Growers' Export Company," as it was called, was +organized for business on a larger scale. + +It now becomes necessary to record a final test of the Grain Growers' +Grain Company inasmuch as it demonstrated the mettle of the farmers in +a significant manner--the test of serious internal disagreement. Of +all the threatening situations through which this organization had +passed none was more critical than this later development. + +The trouble was a brew which simmered for some time before the steam of +it permeated beyond directors' meetings. It began early in 1912 as an +aftermath of the unfortunate deal in oats, bubbled along to a boil with +the fat finally in the fire at the annual meeting of the shareholders. +The consequences were ladled out during 1913 and the bill was settled +in full at the annual meeting that year with a cheque for nearly a +quarter of a million dollars. + +Like most internal troubles in business organizations the personal +equation entered into it. Certain of the directors were inclined to +criticise other directors and to be somewhat dictatory as to how the +farmers' business should be conducted. With the idea of improving the +system of management, the directors at this stage abolished the Board +of Control and the President was made Managing-Director with +supervisory and disciplinary powers. + +Not long after this, at a special meeting of the directors to consider +future management, four of the nine directors introduced a resolution +to declare the position of Managing-Director vacant. They failed to +carry it--and promptly resigned. + +This occurred in March. In the June columns of the _Guide_ these four +directors addressed an open letter to the shareholders, urging full +representation at the forthcoming annual meeting in order that their +criticisms might be threshed out. President Crerar joined in the +request for a full meeting of shareholders. If the loyalty or ability +of any director was to be questioned because he refused to surrender +his judgment to other directors who might disagree with him on certain +matters, it was time to have an understanding. So far as he was +concerned, he could not agree to become a mere speaking-tube for others +who might want their own way against his own convictions of what was in +the best interests of the farmers. + +When the annual meeting opened, on July 16th, there was a record +attendance of shareholders and during the routine preliminaries it was +evident that expectancy was on tip-toe among the farmers. The split in +the directorate was a vital matter. + +In delivering his annual address the President detailed the business of +the organization for the past year, referring but briefly to the facts +which had led up to the resignation of the four directors. The +Shareholders' Auditor followed with the balance sheet, giving detailed +accounts of receipts, expenditures, assets and liabilities; he answered +all questions asked. Then came a resolution, expressing the thanks of +the shareholders to the President--and this moment was chosen by the +leader of the revolt to spin his pin-wheels. + +The debate began at three o'clock in the afternoon. It did not end +until ten at night. The President retired from the chair and the +Auditor was called on for detailed information, covering a period of +several years past. In the long speech which was then made by the +leader of the critics the President was declared responsible for all +the alleged mismanagement and his retention in office undesirable. + +To the surprise of everyone a fifth director now took the floor and +joined the attack. Not having been one of the four directors who +resigned, this new criticism was unexpected and the tension of the +meeting grew. After amusing himself and the audience for awhile with a +humorous speech, No. 5 ended by suggesting that the President was not +sufficiently wicked to be driven from office. + +Arose the remaining three members of the resigning quartette and, one +after another, had their say. Finally, when words failed them and they +rested their case, the President spoke briefly. + +In the annual address, which he had delivered that morning, no attempt +had been made to deny the inadequacy of the Company's office +organization to cope with the exceptional crop conditions of 1911 and +1912. The latter season particularly had been very trying owing to the +lateness of the crop and the wet harvesting conditions. Twenty-five +per cent. of the grain, which started for market a month late, was +tough, damp or wet. The arrival of snow had prevented hundreds of +thousands of acres from being threshed and, on top of it all, railway +traffic had become congested so that cars of grain got lost for weeks +and even months and there were long delays in getting the outturns of +cars after they were unloaded. Money was scarce and farmers who were +being pressed for liabilities to merchants, banks and machinery +companies found it hard to get cars; naturally, once they had shipped, +they were in no mood for further delays. + +Owing to the condition of the grain, too, the grading was so uncertain +that exceptional care had been necessary in accepting bank drafts on +carloads of grain for amounts nearly double their possible value under +the unusual current crop conditions. Even with the greatest care the +Company found that in many instances they had given greater advances +than were realized when the cars were sold. The refusal of drafts, +passed by some local banks for amounts the managers should have known +could not be met, led to many hard things being said against the +farmers' agency. + +Under these conditions it was only to be expected that the work in the +office would become congested badly for weeks at a stretch. Double the +amount of work was entailed in handling a given quantity of grain, +compared to the season before. The Company was handicapped for office +space also and errors were bound to occur in a business involving so +much detail that a simple mistake might lead to infinite trouble. +Correspondence had not been answered as promptly as it should have +been, the necessary information regarding shipments being unavailable. + +All of these things had been met frankly in the President's annual +address and now when he brought the day's animated debate to a close he +added merely a word or two regarding the strong financial position to +which the farmers' pioneer trading organization had won its way in the +commercial world. He pointed out the future that lay before it. Upon +personal attacks he did not comment at all. + +Immediately a unanimous vote of thanks for his untiring work and +loyalty was tendered Mr. Crerar. The debate was over. The following +morning the officers for the ensuing year were chosen and only one of +the four directors who had resigned from the old Board was re-elected. +He withdrew and the whole incident was closed. + +But the real test was yet to come. The withdrawal of the four +directors had left but five to cope with the difficult situation of the +Export Company. It had found itself with a large amount of ocean +freight on its hands--freight which had been secured on favorable terms +from shipping agents for use later in transporting grain which the +farmers' agency expected to sell in the Old Country. It was decided to +cut off the export business entirely for the time being and to re-let +the ocean shipping space to other exporters. The price of ocean +freight fluctuated to such an extent, however, that rather than accept +an immediate loss it was thought better to use the freight, after all, +making shipment to fill. + +At the time of the sixth annual meeting the Export Company had stood +about level on the books; but during the two succeeding months the +grain shipped from Fort William went out of condition while crossing +the ocean and when it arrived in port the Old Country buyers refused to +look at it. Heavy charges had to be met in treating to bring it to +sale condition and very heavy losses were incurred. Before the matter +was cleaned up finally these losses totalled more than $230,000. + +When a quarter of a million dollars has been expended in a direction +where tangible results have not been in evidence--when it has been +sacrificed apparently for the sake of a principle--then does the manner +in which such a loss is accepted become significant. The exporting of +grain had begun to receive particular attention from the shareholders +of the Grain Growers' Grain Company following the season of 1907-8 when +they discovered the apparent margin of profit in the export business +during much of the season to be from eight to twelve cents per bushel. +This had been due, no doubt, to the fact that it was a time of +financial stringency and only a few exporting firms could get the money +necessary to carry on the business. The export value of grain, the +farmers had figured, should be its value in the world's markets, less +the cost of delivering it. By engaging in the export business, +obtaining their cable offers regularly from the Old Country, they felt +that their competition would be a factor in governing the prices paid +the farmer, thereby benefiting every farmer in the West. + +That this had been accomplished the shareholders of the trading company +were convinced. Therefore, instead of losing their heads as well as +this large sum of money, they examined the situation coolly and sanely, +making up their minds that the loss was due to the grain going out of +condition because of the unusual weather which had characterized the +season. No doubt the executive and directors had been handicapped by +their lack of knowledge as to the methods and manner in which the +export business was done; but that was to be expected and only by +experience could they learn. + +"Can the export part of our business be developed successfully with a +little more time?" asked the farmers. + +"Yes, we believe so," replied their officers. + +"That's all we want to know. Write a cheque to cover this loss, +reorganize the Export Company and stick to it." + +This faith in their officers, in themselves and in the cause they had +at heart was justified within the next two seasons when success was +achieved with the subsidiary concern and the farmers were able to +congratulate themselves that they had been sufficiently level-headed +not to allow themselves to be stampeded from the exporting field +altogether to the great weakening of their influence. + +The accomplishments of the Grain Growers in marketing their own grain +cannot be dismissed with careless gesture. Their severest critic must +admit that the manner in which the farmers conducted themselves in the +face of the situation that threatened entitles them to respect. + + + + +CHAPTER XIX + +MEANWHILE, IN SASKATCHEWAN-- + +An old man on the point of death summoned his sons around him to give +them some parting advice. He ordered his servants to bring in a faggot +of sticks, and said to his eldest son: Break it. The son strained and +strained, but with all his efforts was unable to break the bundle. The +other sons also tried, but none of them was successful. Untie the +faggots, said the father, and each of you take a stick. When they had +done so, he called out to them: Now break; and each stick was easily +broken. You see my meaning, said their father. Let affection bind you +to one another. Together you are strong; separated you are +weak.--_Aesop_. + + +Eventful years, these through which the Grain Growers of Western Canada +were passing. While the Grain Growers' Grain Company was undertaking +the initial experiments in co-operative purchasing of farm supplies, +showing the Manitoba Government that farmers could run elevators +satisfactorily and fighting its way forward to success in the exporting +field, how were things getting along in Saskatchewan? With $52,000 and +another four or five hundred in loose change tucked away in its hip +pocket as the net profit of its first season's operations the new +system of co-operative elevators had struck out "on a bee line" for +Success and was swinging along at a steady gait, full of confidence. +The volume of business handled through these elevators the first year +had been affected by the failure of the contractors to finish +construction of all the elevators by the dates specified. Even so, the +new company had handled 3,261,000 bushels of grain, more than half of +it being special binned. + +In planning to build eighty-eight new elevators in 1912 and to purchase +six, thereby bringing the total to 140 co-operative elevators, the +directors thought it wise to form a construction department of their +own instead of relying upon outside contractors. Also it was decided +to open a commission department of their own at Winnipeg, the volume of +business in sight being very encouraging. This move was not made, +however, because of any dissatisfaction with the Grain Growers' Grain +Company's services as selling agent; on the other hand, although crop +conditions had been perhaps the most unfavorable in the history of +Saskatchewan and the grain with its diversity of grades therefore very +difficult to market satisfactorily, the Board of Directors acknowledged +in their annual report that the wisdom of the arrangement with the +Grain Growers' Grain Company had been proved by the satisfactory +working of it. + +The volume of business handled by the 137 elevators in operation the +second year jumped to 12,900,000 bushels with a net profit of +approximately $168,000, and it was apparent that the general acceptance +of the co-operative scheme throughout the province would mean +organization upon a large scale. This was emphasized during the 1913 +grain season when 192 elevators were in operation and about 19,500,000 +bushels of grain were hauled in to the co-operative elevators by +farmers. + +This rapid expansion of the Saskatchewan Co-Operative Elevator Company +was entailing such an increase in staff organization that it became +necessary to provide special office accommodation. Accordingly a site +for a permanent building of their own was purchased in 1914 at Regina +and the following year a modern, fireproof building was erected. It +stands two storeys on a high basement, with provision for additional +storeys, occupies a space of 9,375 square feet, has interior finish of +oak and architecturally it is a matter of pride to the farmers who own +it. This building has become the headquarters of the Saskatchewan +Co-Operative Elevator Company and likewise the Saskatchewan Grain +Growers' Association, the offices of the latter occupying the entire +top floor. + +While the erection of this building afforded visible proof of financial +progress the Saskatchewan farmers were warned by the directors and the +general manager of the "Co-Op" that co-operation which was allowed to +degenerate into mere production of dividends would but reproduce in +another form the evil it was intended to destroy. The ideal of service +was the vital force which must be kept in mind and the work of the +Grain Growers' Association in fostering this ideal must be encouraged. + +"The Association has its great work of organization, education and +agitation," stated Charles A. Dunning, the elevator company's manager, +"and the company the equally great work of giving practical effect to +the commercial and co-operative ideals of the Association, both +institutions being branches of one united Farmers' Movement having for +its object the social and economic uplift of the farming industry." + +Not a little of the early success of the Saskatchewan Co-Operative +Elevator Company was due to the energy and business ability which +Dunning brought to bear upon its organization and development. The +story of this young homesteader's rise from the ranks of the Grain +Growers is worth noting. It was back in 1902 that he first reached the +West--a seventeen-year-old Englishman, "green" as the grass that grew +over there in Leicester. He did not know anything then about the +historic meeting of pioneer grain growers which Motherwell and Dayman +had assembled not long before at Indian Head. He was concerned chiefly +with finding work on a farm somewhere and hired out near Yorkton, +Saskatchewan, for ten dollars a month. After awhile he secured one of +the Government's 160-acre slices of homestead land and proceeded to +demonstrate that oxen could haul wheat twenty-five miles to a railway +if their driver sat long enough on the load. + +There came a day when Dunning, filled with a new feeling of +independence, started for Yorkton with a load of wheat and oats. It +was along towards spring when the snow was just starting to go and at a +narrow place in the trail, as luck would have it, he met a farmer +returning from town with an empty sleigh. In trying to pass the other +fellow Dunning's sleigh upset. While helping to reload the farmer +imparted the information that oats were selling for eight cents and all +he had been able to get for his wheat was something like thirteen cents +in Yorkton the day before! The young Englishman's new feeling of +"independence" slid into his shoe-packs as he stared speechless at his +neighbor. Right-about went his oxen and back home he hauled his load, +angry and dismayed and realizing that something was wrong with Western +conditions that could bring about such treatment. + +When a branch of the Grain Growers' Association was formed at +Beaverdale, not far from his homestead, it is scarcely necessary to say +that young Dunning joined and took an active part in the debates. +Finally he was chosen as delegate for the district at the annual Grain +Growers' convention at Prince Albert on condition that he could finance +the trip on $17.50. The story is told that Dunning figured by making +friends with the furnace man of one of the hotels he might be allowed +to sleep in the cellar for the week he would be in Prince Albert and +manage to get through on this meagre expense fund! At any rate he did +find a place to lay his head and, if reports be true, actually came +back with money in his pocket. + +It was at this convention that the young man first attracted attention. +The delegates had deadlocked over a discussion in regard to a scheme +for insuring crops against hailstorms in Saskatchewan, half of them +favoring it and half opposing it. The young homesteader from +Beaverdale got up, ran his fingers through his pompadour and outlined +the possibilities of co-operative insurance which would apply only to +municipalities where a majority of the farmers favored the idea. He +talked so convincingly and sanely that the convention elected him as a +director of the Association and later when the co-operative elevator +scheme was broached he was elected vice-president of the Association +and the suggestion was made that he undertake the work of organizing +the new elevator concern. Incidentally, the man who suggested this was +E. A. Partridge, of Sintaluta--the same Partridge who had fathered the +Grain Growers' Grain Company and who already had located T. A. Crerar, +of Russell, Manitoba. + +Out of Dunning's suggestion at Prince Albert grew the Saskatchewan Hail +Insurance Commission which was recommended to the Provincial Government +by the Association in 1911 and brought into operation the following +year. The legislation provided for municipal co-operative hail +insurance on the principle of a provincial tax made operative by local +option. Twenty-five or more rural municipalities having agreed to join +to insure against hail the crops within the municipalities, authority +would be granted to collect a special tax--not to exceed four cents per +acre--on all land in the municipalities concerned. Administration +would be in the hands of the Hail Insurance Commission, which would set +the rate of the special tax. All claims and expenses would be paid +from the pooled fund and all crops in the respective municipalities +would be insured automatically. If damage by hail occurred insurance +would be paid at the rate of five dollars per acre when crop was +destroyed completely and _pro rata_ if only partially destroyed. This +co-operative insurance scheme was instituted successfully in the fall +of 1912, soon spread throughout Saskatchewan and was destined +eventually to carry more than twenty-five million dollars of hail +insurance. + +Shortly after the launching of co-operative hail insurance the +discussions among the Saskatchewan farmers in regard to the +co-operative purchasing of farm commodities for their own use came to a +head in a request to the Provincial Government for the widening of +charter powers in order that the Association might organize a +co-operative trading department. In 1913 authorization to act as a +marketing and purchasing agent for registered co-operative associations +was granted and next year the privilege was extended to include local +grain growers' associations. + +Thus the Trading Department of the Saskatchewan Grain Growers' +Association takes the form of a Central Office, or wholesale body, +through which all the Locals can act collectively in dealing with +miners, millers, manufacturers, etc. The Central sells to organized +Locals only, they in turn selling to their members. The surplus +earnings of the Central are distributed to the Locals which have +invested capital in their Central, such distribution being made in +proportion to the amount of business done with the Central by the +respective Locals. + +During its first season of co-operative purchasing the Association +handled 25,000 tons of coal and in a year or two there was turned over +in a season enough binder twine to bind fifty million bushels of +grain--about 4,500,000 pounds of twine. When the Western potato crop +failed in 1915 the Association imported four and one-half million +bushels of potatoes for its members, cutting the market price in some +cases a dollar per bushel. Flour, apples, cord-wood, building +supplies, vegetables and groceries likewise were purchased and +distributed co-operatively. The savings effected by the farmers cannot +be tallied alone from actual quantities of goods thus purchased through +their own organization but must include a large aggregate saving due to +reduction of prices by outside dealers. + +Such commodities as coal and flour being best distributed through local +warehouses, it is likely that eventually the Saskatchewan Co-Operative +Elevator Company will take a hand in helping the Association and the +Locals with the handling of co-operative supplies by furnishing the +large capital investment needed to establish these warehouses. + +The necessary financial strength to accomplish this is readily +conceived to be available after a glance at later developments in +Saskatchewan. The co-operative elevators now exceed 300. The figures +for the season of 1915-16 show a total of more than 39,000,000 bushels +of grain handled with an additional 4,109,000 bushels shipped over the +loading platforms. Without deducting war-tax the total profit earned +by the Saskatchewan company within the year was in the neighborhood of +three-quarters of a million dollars. The Saskatchewan Co-Operative +Elevator Company in 1916 began building its own terminal elevator at +Port Arthur with a capacity of 2,500,000 bushels. By this time there +were 18,000 shareholders with a subscribed capital of $3,358,900, of +which $876,000 was paid up. + +In these later years a remarkable development is recorded also by the +Saskatchewan Grain Growers' Association until it is by far the largest +and best organized secular body in the province with over 1,300 Locals +and a membership exceeding 28,000. + +The Secretary of the Association--J. B. Musselman, himself a +farmer--has done much hard work in office and looks forward to the time +when the Locals will own their own breeding stock, assemble and fatten +their own poultry, handle and ship their eggs, operate their own +co-operative laundries and bakeries, kill and cure meat in co-operative +butcher-shops for their own use--have meeting places, rest rooms, town +offices, libraries, moving-pictures and phonographs with which to +entertain and inform themselves. To stand with a hand on the hilt of +such a dream is to visualize a revolution in farm and community +life--such a revolution as would switch much attraction from city to +country. + +Whatever the future may hold in store, the fact remains that already +much valuable legislation has been secured from the Government of +Saskatchewan by the farmers. Perhaps in no other province are the +Grain Growers in as close touch with the Government, due to the nature +of the co-operative enterprises which have been launched with +Government support financially. Three members of the cabinet are men +who have been identified closely with the Grain Growers' Movement. +Hon. W. R. Motherwell has held portfolio as Minister of Agriculture for +many years. Hon. George Langley, Minister of Municipal Affairs, helped +to organize the farmers of Northern Saskatchewan in the early days. +Finally in 1916 C. A. Dunning[1] resigned as general manager of the +Saskatchewan Co-Operative Elevator Company to become the youngest +Provincial Treasurer in Canada; for already the Saskatchewan Government +had called upon him for service on two official commissions to +investigate agriculture and finance in most of the European countries +and his services were valuable. + +Langley has been a prominent figure in Saskatchewan affairs ever since +his arrival in the country in 1903. He was forty-one years old when he +came and he brought with him long training as a public speaker, a +knowledge of human nature and a ready twinkle in his eye for everything +humorous. According to himself, his first job was chasing sparrows +from the crops. After leaving the English rural life in which he was +reared, he had worked on the London docks and as a London business man. +In politics he became a disciple of the Cobden-Bright school and was +one of the first members of the Fabian Society under the leadership of +the redoubtable Bernard Shaw. It was Langley's habit, it is said, to +talk to London crowds on side thoroughfares, standing on a soap-box and +ringing a hand-bell to attract attention. + +In becoming a Western Canadian farmer it did not take him long to slip +around behind the problems of the farming class; for there was no +greater adept at poking a cantankerous problem about with a sharp stick +than the Honorable George. It was natural for this short, stout, +bearded Englishman to gravitate into the first Legislature of the +newly-formed Province of Saskatchewan and just as naturally he moved up +to a place in the cabinet. + +As one of the sponsors of the co-operative elevator scheme, by virtue +of his place on the commission which recommended it, Langley has taken +much interest in the co-operative activities of the farmers and on many +occasions has acted as their spokesman. + +With the relationships outlined it was to be expected that now and then +opponents would hint that the Saskatchewan authorities had played +politics with the farmers. Such charges, of course, are refuted +indignantly. Knowing the widespread desire among the farmers +themselves to keep free from political alliances, it would be a foolish +government indeed which would fail to recognize that not to play +politics was the best kind of politics that could be played. + +Other leaders of sterling worth have contributed to the acknowledged +success of co-operation in Saskatchewan, not forgetting John A. Maharg +who came from Western Ontario in 1890 to settle near Moose Jaw. From +the very beginning J. A. Maharg has worked for the cause of the +farmers. A pioneer himself, he has a deep understanding of the Western +Canadian farmers' problems and his devotion to their solution has +earned him universal appreciation among the Grain Growers of +Saskatchewan. Year after year he has been elected to the highest +office in the gift of the Association. He has been President many +times of both the Saskatchewan Grain Growers' Association and the +Saskatchewan Co-Operative Elevator Company. + +The Grain Growers' Movement, then, in this Province of Saskatchewan +where it had its beginning, has grown to wonderful proportions with the +passing of the years. Co-operation has been a pronounced success. The +old conditions have passed far back down the trail. The new order of +things has been fought for by men who have known the taste of smoky +tea, the sour sweat of toil upon the land, the smell of the smudge +fires on a still evening and the drive of the wind on the open plain. +Out of the pioneer past they have stepped forward to the larger +opportunities of the times--times which call for clear heads and wise +vision. + +For as they build for the future so will the Sons of the Movement watch +and learn. + + + +[1] The Union Government at Ottawa decided in February, 1918, to +replace the office of Food Controller by the Canada Food Board, +organized as a branch of the Dominion Department of Agriculture under +Hon. T. A. Crerar. Hon. Charles A. Dunning was selected as Director of +Production. The other members of the Canada Food Board were: H. B. +Thomson, Chairman and Director of Conservation; J. D. McGregor, +Director of Agricultural Labor. (Mr. McGregor resigned after a year in +office.) + + + + +CHAPTER XX + +WHAT HAPPENED IN ALBERTA + + Beyond the fields we plough are others waiting, + The fallows of the ages all unknown. + Beyond the little harvests we are reaping + Are wider, grander harvests to be grown. + --_Gerald J. Lively._ + + +Out in the great Range Country all this time the United Farmers were +lickety-loping along the trail of difficulties that carried their own +special brand. The round-up revealed increasing opportunities for +service and one by one their problems were cut out from the general +herd, roped, tied and duly attended to for the improvement of +conditions in Alberta. Here and there a difficulty persisted in +breaking away and running about bawling; but even these finally were +coralled. + +Along with the Grain Growers of Manitoba and Saskatchewan the United +Farmers of Alberta had campaigned consistently for government ownership +of elevators, both provincial and terminal. They had received +assurance from Premier Rutherford that if a satisfactory scheme could +be evolved, the Provincial Government was prepared to carry out the +establishment of a line of internal elevators in Alberta. It looked as +if all that remained to be done was to follow the lead of Manitoba or +Saskatchewan. + +But on careful consideration neither of the plans followed in the other +two provinces appeared to fit the special needs of the Alberta farmers. +The province at the western end of the grain fields accordingly +experienced quite a delay in obtaining elevator action. + +In the meantime the discussion of terminal storage facilities was going +on at Ottawa. The need for such facilities at Calgary and Vancouver +was pressed by the Alberta representatives on various farmer +delegations and finally the Dominion Government declared its intention +of establishing internal elevators with full modern equipment at Moose +Jaw and Saskatoon in Saskatchewan and at Calgary in Alberta; a Dominion +Government terminal elevator at the Pacific Coast likewise was on the +programme. + +By this time the government operation of the Manitoba elevators had +proved a complete failure and they had been leased by the Grain +Growers' Grain Company. In Saskatchewan, however, the co-operative +elevators were proving successful. + +A close study of the co-operative scheme adopted in the province just +east of them enabled the United Farmers of Alberta to work out a plan +along similar lines. This was presented to the Premier, whose name +meanwhile had changed from Rutherford to Sifton. The Act incorporating +the Alberta Farmers' Co-Operative Elevator Company, Limited, was +drafted in the spring of 1913 and passed unanimously by the +Legislature. The new company held its first meeting in August, elected +its officers[1] and went to work enthusiastically. + +It had been decided by the United Farmers that full control and +responsibility must rest in their own hands. They proposed to provide +the means for raising at each point where an elevator was built +sufficient funds to finance the purchase of grain at that point from +their own resources, at the same time providing for the handling of +other business than grain. + +Under the Act the Provincial Government made cash advance of +eighty-five per cent. of the cost of each elevator built or bought by +the Company, but had no say whatever as to whether any particular +elevator should be bought or built at any particular place, what it +should cost or what its capacity or equipment should be. In security +for the loan the Government took a first mortgage on the elevator and +other property of the Company at the given point. The loans on +elevators were repayable in twenty equal annual instalments. + +The Company started off with the organization of forty-six Locals +instead of the twenty which the Act called for and the construction of +forty-two elevators was rushed. Ten additional elevators were bought. +Although construction was not completed in time to catch the full +season's business the number of bushels handled was 3,775,000, the +Grain Growers' Grain Company acting as selling agent. By the end of +the second year twenty-six more elevators had been built and the volume +of grain handled had expanded to 5,040,000 bushels. + +Now, this progress had been achieved in the face of continuous +difficulties of one kind and another. Chief of these was the attempt +to finance such a large amount of grain upon a small paid-up capital. +The Company found that after finishing construction of the elevators +they had no money with which to buy grain nor any assets available for +bank borrowings. It was impossible to obtain credit upon the unpaid +capital stock. The Provincial Government was approached for a +guarantee of the account along the lines followed in Saskatchewan; but +the Government refused to assume the responsibility. + +It was at this juncture that the enemies of co-operation were afforded +a practical demonstration of the fact that they had to deal not with +any one farmers' organization but with them all. For the Grain +Growers' Grain Company stepped into the breach with its powerful +financial assistance. + +The Alberta farmers were clamoring for the handling of farm supplies as +well as grain; so that the young trading company in Alberta had its +hands more than full to organize a full stride in usefulness from the +start. The organization of the United Farmers of Alberta was growing +very rapidly and the co-operative spirit was tremendously strong +throughout the province. There was a demand for the handling of +livestock shipments and soon it was necessary to establish a special +Livestock Department. + +It will be recalled that one of the subjects in which the Alberta +farmers were interested from the first was the possibility of +persuading the Provincial Government to undertake a co-operative +pork-packing plant. Following the report of the Pork Commission upon +the matter, however, official action on the part of the authorities had +languished. The various committees appointed from year to year by the +United Farmers gradually had acquired much valuable data and at last +were forced to the conclusion that the development of a packing +industry along co-operative lines was not so simple as it had appeared +at first. Even in much older settled countries than Alberta the +question, they found, had its complications. The first thing to +discover was whether the farmers of a community were able and willing +to adjust themselves to the requirements of an association for shipping +stock together in carload lots to be sold at the large markets. Until +such demonstration had been made it seemed advisable to defer the +organization of a co-operative packing business. + +After the formation of the Co-Operative Elevator Company, therefore, +the Alberta farmers proceeded to encourage the co-operative shipment of +livestock on consignment by their local unions. The Livestock +Department entered the field first as buyers of hogs, handling 16,000 +hogs in the first four months. The experiment bettered prices by +half-a-cent per pound and the expansion of the Department began in +earnest the following season when nearly 800 cars of hogs, cattle and +sheep were handled. + +On top of all the other troubles of the first year the farmers lost a +valuable leader in the death of the president of the Co-Operative +Elevator Company, W. J. Tregillus. Complete re-organization of the +Executive was made and the question of his successor was considered +from every angle. It was vital that no mistake be made in this +connection and two of the directors were sent to study the business +methods and policies of the Grain Growers' Grain Company and the +Saskatchewan Co-Operative Elevator Company and to secure a General +Manager. They failed to get in touch with anyone to fill the +requirements and the management of both the other farmers' concerns +expressed grave doubts as to the wisdom of a farmers' company looking +for a manager whose training had been received with line elevator +companies and who had not seen things from the farmer's side. + +One of the remarkable features of the advance of the Farmers' Movement +has been the manner in which strong leaders have stepped from their own +ranks to meet every need. It has been a policy of the organized +farmers to encourage the younger men to apply themselves actively in +the work in order that they might be qualified to take up the +responsibilities of office when called upon. There are many +outstanding examples of the wisdom of this in the various farmers' +executives to-day; so that with the on-coming of the years there is +little danger that sane, level-headed management will pass. Several of +the men occupying prominent places to-day in the Farmers' Movement have +grown up entirely under its tutelage. + +So it turned out that in Alberta the man the farmers were seeking was +one of themselves--one of the two directors sent out to locate a +manager, in fact. His name was C. Rice-Jones. His father was an +English Church clergyman whose work lay in the slum districts of +London. This may have had something to do with the interest which the +young man had in social problems. When at the age of sixteen he became +a Canadian and went to work on various farms, finally homesteading in +Alberta, that interest he carried with him. Out of his own experiences +he began to apply it in practical ways and the Farmers' Movement drew +him as a magnet draws steel. He became identified with the Veteran +district eventually and there organized a local union. It was not long +before he was in evidence in the wider field of the United Farmers' +activities. + +Fortunately the new President and General Manager of the Alberta +Farmers' Co-Operative Elevator Company was not a man to lose his sense +of direction in a muddle of affairs. Into the situation which awaited +him he waded with consummate tact, discernment and push; so that it was +not long before his associates were pulling with him for the fullest +weight of intelligent effort. The difficulties were sorted and sifted +and classified, the machinery oiled and running true, and with a +valuable directorate at his back Rice-Jones "made good." + +The third season of the Alberta Farmers' Co-operative Elevator Company +brought the final proof that the farmers knew how to support their own +institutions. For through the 87 elevators that the farmers operated +in Alberta flowed a total of nearly twenty million bushels of grain, +with well over ten and one-quarter million bushels handled on +commission. The Livestock Department in the face of severe competition +achieved a permanent place in the livestock business of the province +with offices of its own in the stock yards at Calgary and Edmonton. By +this time livestock shipments had amounted to a value in excess of two +million dollars. The Co-Operative Department had handled farm supplies +to a total turnover of approximately $750,000. + +As in the case of the Grain Growers' Grain Company and the Saskatchewan +Grain Growers' Association's trading department the list of articles +purchased co-operatively by the Alberta farmers grew very rapidly to +include flour, feed, binder twine, coal, lumber and fence posts, wire +fencing, fruit and vegetables, hay, salt, etc. In 1915-16 a thousand +cars of these goods were purchased and distributed co-operatively, +besides which a considerable volume of business was done in +less-than-carload lots. Coal sheds were built in connection with many +elevators, the staff increased and the entire Co-Operative Department +thoroughly organized for prompt and satisfactory service. + + + +[1] See Appendix--Par. 13. + + + + +CHAPTER XXI + +IN THE DRAG OF THE HARROWS + + "I see the villain in your face!" + "May it plaze yer worship, that must be a + personal reflection, sure." + --_Irish Wit and Humor (Howe)._ + + +The "good old days" when the Farmer was a poor sheep without a +shepherd, shorn to the pink hide with one tuft of wool left over his +eyes--those "good old days" are gone forever. It is some time now +since he became convinced that if a lion and a lamb ever did lie down +together the lamb would not get a wink of sleep. As a matter of +survival he has been making use of the interval to become a lion +himself and the process has been productive of a great roaring in the +Jungle. + +All this co-operative purchasing of commodities in the three Prairie +Provinces has not been developed to its present great volume without +arousing antagonism in the business world. The co-operative idea in +merchandizing is not confined to the West by any means. From the +Atlantic to the Pacific various organizations have been formed to carry +on business along co-operative lines. A Co-Operative Union has been +formed to propagate the movement and the subject is vast. + +But the establishment of an extending network of elevators under the +control of the Western farmers has brought about possibilities which +threaten to revolutionize the whole established commercial system. +Farmers' Elevators in Dakota, Minnesota and Alberta have proved that it +is practical to utilize the same staff at each point to manage the +distribution of farm supplies as well as looking after elevator +operation during the grain season. This being so, it is not difficult +to visualize a great distributing system under centralized management +with tremendous purchasing power. + +There are those whose imaginations stretch readily to the extreme view +that the Grain Growers are a menace. Such are filled with foreboding. +They see the country merchant out of business and the whole business +fabric destroyed. + +"The farmers are talking everlastingly about 'a square deal,'" it is +argued. "Why don't they practice what they preach and give the country +merchant a square deal? What about the times of poor crops and money +scarcity? Where would the farmer have been if the country merchant had +not carried him on the books for the necessities of life?" + +"It didn't cost the merchant anything to carry me," denies the farmer. +"He just raised his prices to me and got credit from the wholesaler." + +"Then what about the wholesaler?" + +"Raised his prices and got credit from the manufacturer and the bank." + +"Then the banks----" + +"Refused to give me the credit in the first place!" interrupts the +farmer resentfully. "Do you dare to blame me, Mister, for cutting out +all these unnecessary middle charges when by proper organization I am +able to finance myself and take advantage of cash discounts on the cost +of living?" + +That is the Farmer's motive for taking action. He wants to improve his +scale of living for the sake of his family. By making the farm home a +place of comfort his sons and daughters will be more content to remain +on the land. He does not seek to hoard money; he intends to spend it. +If middlemen are crowded out of his community it will be because there +are too many of them. Instead of having to support parasites the +community will be just that much more prosperous, the farms just that +much better equipped, the land just that much more productive and +thereby the country's wealth just that much greater. + +That is how it appears to the Farmer. + +"If the Farmer is to be a merchant, a wholesaler, a banker and all the +rest of it he is no longer a farmer. Is nobody else to have a right to +live?" enquires the Cynic. "Did these Grain Growers fight the elevator +combine of the early days in order that they could establish a Farmers' +Combine? Is one any better than the other?" + +The inference is that the Grain Growers are bluffing deliberately and +aiming at all the abuses conjured by the word, "combine." The slander +is self-evident to anyone who examines the constitution of the Farmers' +Movement, so framed from the first that any possibility of clique +control was removed for all time. It is impossible to have a "combine" +of fifty thousand units and maintain the necessary appeal to the +cupidity of the individual. It is not possible for designing leaders, +if such there were, to take even the first step in manipulation without +discovery. It simply cannot be done. Woe betide the man who even +exhibited such tendencies among his fellow Grain Growers! These +organized farmers have learned how to do their own thinking and every +rugged ounce of them is assertive. They are not to be fooled easily +nor stampeded from their objective. And what is that objective? + +"To play politics!" explodes the hidebound Party Politician knowingly. + +"To get a share in the Divvy and eventually hog it!" suggests the +Financial Adventurer. + +"Equal opportunities to all; special privileges to none," the Grain +Grower patiently reiterates. + +He believes in doing away with "the Divvy" altogether. He believes +that "the spoils system" is bad government and that no stone should be +left unturned to elevate the living conditions of the Average Citizen +to the highest possible plane. He believes that the status of a nation +depends upon the status of its Average Citizen and in that he does not +consider himself to be preaching Socialism but Common Sense. + +Come back to the country store--to the Country Retailer who is pulling +on the other end of the whiffle-tree with the Farmer for community +progress. Each is necessary to the other and it is a vital matter if +the co-operation of the Farmer is going to kill off a teammate, +especially when tandeming right behind them are the Clydesdales of +Commerce, the Wholesaler and the Manufacturer. With the Farmer kicking +over the traces, the Retailer biting and squealing at the Wholesaler +every little while and the Manufacturer with his ears laid back flat +this distribution of merchandize in Western Canada is no easy problem. +It is bringing the Bankers to their aristocratic portals all along the +route and about the only onlooker who is calm and serene is the +Mail-Order Man as he passes overhead post-haste in the Government +flying machine. + +"I'd get along alright if the Farmer would pay up his debts to me," +cries the Retailer. "I've been giving him too long a line of credit +and now he's running rings around me and tying me up in a knot. When +he gets some money he goes and buys from my competitors for cash or he +buys more land and machinery. If I shorten the rope he busts it and +runs away!" + +"I'd be alright if everybody else would mind their own business," +grumbles the Wholesaler. "Just trot along there now! Pay your bills, +Farmer. Improve your service, Retailer. Don't ask me about high or +low tariff. I've got my hands full with established lines and it's my +business to supply them as cheaply as is consistent with quality. I +want to see everybody succeed and it isn't fair to include me in any +mix-up. Only the humming of that confounded flying-machine up +there--Can't somebody bring down that Mail-Order bird? He isn't paying +his share of the taxes while I've helped to finance this country." + +"We shall come rejoicing, bringing in the sheaves," sings the +Manufacturer. "Giddap, Dobbin!" + +"'Money makes the mare go,'" quotes the Finance Minister, taking +another look out of the window at the War Cloud. "'Money comes from +the Soil,'" and he push-buttons a buzz-bell over in the Department of +Agriculture. + +"Send out the choir and let's have that 'Patriotism and Production' +song again," is the order issued by some deputy sub-chief's assistant +in response to the P. M.'s signal. "We must encourage our farmers to +even nobler efforts." + +And all the while the Unearned Increment loafs around, studying the +Interest Charges which are ticking away like a taxicab meter, and the +"Common Pee-pul" gaze in frozen fascination at the High Cost of Living +flying its kite and climbing the string! + +Seriously, though, the situation demands the earnest thought of all +classes. The argument has so many facets that it is impossible within +the limits of a few pages to present an adequate conception of all the +vital problems that surround the Farmers' Movement. Each interest has +its own data--packages of it--and it is difficult to know what to +select and what to leave out and at the same time remain entirely fair +to all concerned. There is some truth in many of the accusations which +are bandied about. No new country can do without credit facilities. +What about the homesteader or the poorer farmer who is starting on +meagre resources? They will win through if given a chance. Who is to +give it to them if business is put on a cash basis? On the other hand, +is the man who has the cash to receive no consideration? + +The trouble with our banks is that their system falls down when the +retailer or the farmer need them most--in times of stringency. It is +true that the wholesaler has done much for the country, that the +retailer is often at the mercy of careless or selfish customers who +abuse credit privileges. It is true that the mail-order houses also +have performed good services in the general task of making a new +country. The solution can be arrived at only by co-operation in its +true sense--getting together--everybody. Also, while one may joke +about "Patriotism and Production," the fact remains that much has been +accomplished by these campaigns. + +Asked if the organization of the farmers meant that the retailer would +be forced out of business, the well posted Credit Manager of a large +Winnipeg wholesale establishment admitted that it would not mean that +necessarily. + +The same question put to C. Rice-Jones, President and Manager of the +Alberta Farmers' Co-Operative Elevator Company, brought the same denial. + +"The only men who would be weeded out," said he, "are those who have +gone into the local store business without knowing anything about it +and who can remain in it only because the present system allows them to +charge any price they like. The men who know their business will +remain. Those who are objecting to us are objecting to the very thing +they have been doing themselves for fifty years--organizing." + +"We want to farm, not to go into business," remarked H. W. Wood, +President of the United Farmers of Alberta. "The local merchant gives +us a local distribution service, a service which has to be given. We +cannot destroy one single legitimate interest. But if there are four +or five men living by giving a service that one man should give in a +community and get just a living--that is what we are going to correct +and we are absolutely entitled to do so. The selfishness we are +accused of the accusers have practiced right along and these very +things make it necessary for us to organize for self-protection. If +they will co-operate with us to put their business on a legitimate +basis we are willing to quit trying to do this business ourselves." + +That is straight talk, surely. It is a challenge to the business men +to meet the farmers half way for a better understanding. No problem +ever was solved by extremists on either side. Enmity and suspicion +must be submerged by sane discussion and mutual concessions bring about +the beginnings of closer unity. + + + + +CHAPTER XXII + +THE WIDTH OF THE FIELD + + Our times are in His hand + Who saith, "A whole I planned, + Youth shows but half; trust + God; see all, nor be afraid." + --_Robert Browning._ + + +The Grain Growers' Movement in Western Canada now had attained +potential proportions. In Saskatchewan, Manitoba and Alberta the +Provincial Associations with their many Locals were in a flourishing +condition. Each province was headquarters for a powerful farmers' +trading organization to market grain and provide co-operative supplies. +Unlike the Saskatchewan Co-Operative Elevator Company and the Alberta +Farmers' Co-Operative Elevator Company, however, the pioneer business +organization of the Grain Growers--the Grain Growers' Grain +Company--was not provincial in scope but had a large number of +shareholders in each of the three Prairie Provinces, in British +Columbia and Ontario. Altogether, in 1916 the farmers owned and +operated over 500 country elevators as well as terminal elevators to a +capacity of three million bushels. The farmer shareholders in the +three business concerns numbered more than 45,000. During 1916 the +farmers handled over ninety million bushels of their own grain. + +With this remarkable growth the danger of rivalries and jealousies +developing between their business organizations was a possibility upon +which the farmers were keeping an eye. A certain amount of friendly +competition was unavoidable. For some time, therefore, the necessity +of closer union of their various organizations had been a serious topic +among the leaders of the Grain Growers in all three provinces. It was +the logical preparation for future achievements. + +At its regular meetings in 1915 the Canadian Council of +Agriculture--comprising officials representing the whole Grain Growers' +Movement--had agreed that definite action would be desirable. A +meeting of representatives from the respective Associations and +companies interested accordingly was held in the offices of the +Saskatchewan Co-Operative Elevator Company at Regina. The plan +discussed was the formation of one large business concern, similar in a +general way to the Wholesale Co-Operative Societies in the Old Country. + +The idea was that this wholesale company should market and export +grain, control terminal elevators and any manufacturing that might be +done later on as well as importing supplies when necessary. This would +leave each provincial company with its own organization to look after +collection and distribution of supplies and to operate along the lines +already existing in Saskatchewan and Alberta. The provincial companies +would be in absolute control of the central or wholesale company. + +A difference of opinion arose in regard to the method of selling grain. +The representatives from the United Farmers of Alberta, the Alberta +Farmers' Co-Operative Elevator Company, the Manitoba Grain Growers' +Association and the Grain Growers' Grain Company were unanimous in +agreeing that it would be unwise to divide the marketing strength of +the farmers into three parts instead of concentrating for fullest +buying and selling power in the interest of the farmers in all three +provinces. With the individual organizations each having a voice in +the control of the central company there did not seem to them to be +justification for carrying provincial divisions into the marketing +machinery, thereby weakening it. With this view the Saskatchewan +representatives could not agree, holding out for a separate selling +channel for Saskatchewan grain. + +A committee was appointed to try to work out some other solution to the +problem of federating all three farmers' companies and a new proposal +was submitted at a meeting of the Canadian Council of Agriculture, held +in Winnipeg in July, 1916. This second attempt to get together was +along the line of joint ownership of subsidiary concerns which would +look after certain phases of the work--an export company, a terminal +elevator company, the Public Press, Limited, and so on. However, the +plan did not work out satisfactorily. + +The feeling of the Alberta officials after the Regina meeting was that +even if Saskatchewan were not ready at the present time to consider +federation on a basis acceptable to the other provinces, this should +not overthrow all idea of federation. In short, the Alberta directors +were strongly of the opinion that, failing complete affiliation of the +farmers' business organizations at this time, the organization in +Alberta and the Grain Growers' Grain Company should get together +nevertheless, and this suggestion they presented at the meeting of the +Canadian Council of Agriculture in Winnipeg. + +As this was approved by the Grain Growers' Grain Company and the +Manitoba Association officials steps were taken to go into the matter +in detail, the Saskatchewan organization having signified its intention +of withdrawing from present action. President C. Rice-Jones, of the +Alberta Farmers' Co-Operative Elevator Company, and President T. A. +Crerar, of the Grain Growers' Grain Company, were asked to give the +matter careful thought and make their recommendations to their +respective boards of directors. + +There followed a joint meeting of all those interested. It was held at +Winnipeg and the result was a recommendation that the Alberta Farmers' +Co-Operative Elevator Company and the Grain Growers' Grain Company be +amalgamated under the name "United Grain Growers, Limited." [1] When +the matter finally came before the farmers concerned--at their annual +meetings in 1916--it was decided unanimously to go ahead with the +amalgamation of these two farmers' business organizations. + +Accordingly application was made for necessary changes in the charter +of the Grain Growers' Grain Company and these changes were granted by +Act of the Dominion Parliament in June, 1917. The authorized capital +stock of United Grain Growers is five million dollars. Its annual +meetings are to be held in the different provinces alternately. The +shareholders are formed into local groups, each represented by +delegates at annual meetings, these delegates alone doing the voting. +Proxy voting is not allowed. The charter is designed, in brief, to +introduce the system of internal government that has been in practice +by the Alberta Farmers' Co-Operative Elevator Company and the +Saskatchewan Co-Operative Elevator Company and has proved so +satisfactory in every way. + +This "merger" is unique in that the objections to a monopoly cannot be +urged against it. There is no watered stock. With proxy voting +eliminated no group of men can gain control of the company's affairs. +Stock holdings by individuals is limited to $2,000 on a capitalization +of five million and no man can grow rich by speculation with assets. +Instead of exploiting the public the aim is service--reduction of +prices instead of inflation. + +United Grain Growers, Limited, have begun their first year's business +as an amalgamated farmers' concern, all the final details having been +settled to the entire satisfaction of the farmers interested. + +The fact that the Saskatchewan Grain Growers' executives did not decide +to amalgamate their co-operative marketing machinery with that of the +others just now must not be misconstrued as a lack of harmony among the +leaders of these powerful institutions. For they are meeting +constantly in their inter-provincial relations, for mutual business +advantages and in the broader educational aspects of the entire +Movement. + +It will be seen that with such complete and solid business resources +established in the three Prairie Provinces the organized farmers have +been in a position to widen their field of influence and to carry on +much propaganda work. The Movement has spread steadily until it +embraces organization in other than prairie provinces. There seems to +be a tendency among the entire agricultural population of Canada to +organize and co-operate; so that it is not impossible for Canadian +farmers in time to have a unity of organization in every province of +the Dominion. + +In Ontario for many years there have been various farmers clubs, +associations or granges. Until 1914 these were merely disorganized +units. At the annual meeting of the Dominion Grange, however--December +17th and 18th, 1913--the advisability of consolidating for greater +co-operation was discussed at some length. Representatives from the +Western Grain Growers were present and told the story of what the +Western farmer had accomplished. A committee[2] was appointed and, +after investigating rural conditions in Ontario, this committee called +a convention for March 19th and 20th, 1914, at Toronto. Farmers and +fruit growers turned out in strength, old-time organization was cast +aside and there came into being the "United Farmers of Ontario," [2] +and the "United Farmers' Co-Operative Company, Limited," [3] with aims +and organization similar to those of the Grain Growers. + +Although practically born during the war--although conditions have been +far from normal, the United Farmers of Ontario have progressed steadily +and naturally, with the co-operative activities setting the pace and +with efficient service as the watchword. By 1915 there were 126 local +associations with a total membership of 5,000. In the face of bad +climatic conditions and war disturbances 1916 found the young +organization being looked upon by the Ontario agriculturists with +interest instead of suspicion. It continued to grow of its own accord. +By that is meant that no advertising or other energetic campaign was +undertaken; yet the membership increased during the year to 8,000 with +200 Locals organized throughout the province. To-day there is a total +membership in excess of twenty thousand throughout the Province. Local +conventions, addressed by Western leaders and other qualified speakers, +have become a feature of the development. + +The first month in business for the United Farmers' Co-Operative +Company was September, 1914, when $827 was taken in. The next month +the sales increased to $6,250, and in November to $8,214. The December +sales jumped to $17,970. The sales for 1915 approximated $226,000. In +1916 this amount was nearly doubled and during the first five months of +1917 the business done reached a total of $513,000. All this on +paid-up capital of only $5,000. The Ontario Company has secured a new +charter, increasing its authorized capital from $10,000 to $250,000. + +This expansion has been very satisfactory in view of the special +conditions which necessarily make the progress of the Movement in the +East slower than in the West. Ontario crops varying widely in +different districts, the same unity of interest which has made possible +the large grain companies of the West does not obtain. The Ontario +farmers have had to confine their efforts to commercial lines. +Co-operative sale of livestock, cheese, etc., may develop in time. +Also the farm population in Ontario is in the minority and there are +few electoral divisions where the urban vote does not control, +resulting in mixed issues unknown on the prairies. Powerful influences +have been brought to bear to handicap the Farmers' Movement in Ontario; +but nevertheless it is spreading so rapidly that with the proper +educational campaign great possibilities lie ahead of the Ontario +farmers. + +The United Farmers of Ontario now have become affiliated with the +Canadian Council of Agriculture,[4] the inter-provincial body of the +organized farmers of Canada. The farmers of Nova Scotia, Prince Edward +Island and Quebec are showing much interest and have sought to have the +Movement extended. Meetings have been held and no doubt in due course +the Eastern farmers will be prepared for unity of action in every +province. + +What about British Columbia? On February 16th, 1917, the "United +Farmers of British Columbia" was a development in the Pacific Coast +Province. Prior to this there had been quite a number of individual +farmers' organizations scattered throughout the agricultural sections +of British Columbia. The initiative for closer unity was taken by the +Cowichan Creamery Association, which called a meeting of the farmers in +the Cowichan district to discuss the cost of production and serious +labor conditions which were threatening complete failure of agriculture +in British Columbia. At this meeting what was called temporarily the +"Vancouver Island Farmers' Union" was formed with over one hundred +members. Representatives from other districts were on hand to assure +the expansion of the movement and a provisional organization +committee[5] was appointed to carry on the missionary work. + +This Provisional Committee--called into existence by a mass meeting of +farmers held at Duncan, B.C., on November 4th, 1916--at once prepared a +strong circular, setting forth the case of the farmers and the need for +organization. This was sent out to the secretaries of all Farmers' +Institutes and suggested that a special meeting of delegates should be +held at Victoria when the usual farmers' conventions were in session a +few months later. Thus came about the final large organization meeting +of February 16th, 1917, which resulted in the "United Farmers of +British Columbia," with strong membership under the guidance of +enthusiastic officers.[6] + +Representatives of the Grain Growers, from Alberta and Manitoba, were +present to lend the encouragement of their experience. Among them was +Roderick McKenzie, then Secretary[7] of the Canadian Council of +Agriculture. When the farmers commenced organization in Manitoba, he +said, it was possible to find many old-fashioned farmers who could see +no reason for organization. Had not their fathers been successful +farmers? Had they not raised a family of eight or ten or a dozen or +more without belonging to any organization?--educated them, too? These +old-time farmers forgot that the world was making progress as the years +went by and they were not living in the same age as their fathers +before them. + +"Fifty years ago, when I was a boy," Mr. McKenzie continued, "there was +no such thing as a joint stock company. We would not hear a word about +combines or trusts or transportation organizations or financial +institutions. At that time the business was carried on by individuals. +Then it grew into partnerships. From partnerships it developed into +joint stock corporations and now we have these forming into trusts and +combines and holding companies. It is simply co-operation of the few +in the interests of the few. It created a force in public affairs and +this must be met by another force--the organization of the common +people, led by the farmers. + +"Where would the British Army be as a disorganized army confronting the +Germans? Nowhere! Place a body of disorganized farmers in front of +organized industrial interests and you see where you are at! There is +no form of industry, no form of labor, no form of finance, banking +associations, loan associations, insurance compensation associations, +transportation associations, that are not organized. In Winnipeg we +have a Bootblack's Association and each of the little fellows +contributes five dollars a year to the support of their organization +and five dollars represents fifty pairs of boots to blacken at a dime +the pair. + +"In our Grain Growers' associations the organization is simple and +coherent. There is no pass-word. There is no grip. There is no +riding of the goat. We don't ask a farmer whether he is a Grit or a +Tory; we don't ask him anything about his nationality or his relations +or where he comes from or anything else. One of the main aims of the +organization is to make good Canadians of the different nationalities +we have in this Western country. We are getting the Galicians and +other nationalities gradually brought in--getting them together for the +development of Canadianism and the community spirit. + +"The one thing we have steered clear of is letting party politics enter +into our organization. The thing we are trying to do is to co-operate +with our legislators by helping them to find out the things that need +enacting into law and that have not been enacted into law or to find +what laws already on the statute books are weak and ask that these +weaknesses be corrected--not in a dominating spirit but in a spirit of +equity." + +Public opinion is rallying to the leadership of the farmers. Their +policy is progressive. Probably the first body in Canada to give Woman +her proper place in its activities and councils was the Saskatchewan +Grain Growers' Association. To-day the farm women of the West are +organized with the Grain Growers in all three Prairie Provinces, +working side by side. Their aims are to solve the many problems +directly bearing upon home life, educational facilities, health and all +things which affect the farm woman's life and they have been of great +assistance in many ways, particularly in Red Cross and other patriotic +endeavors. To do justice to the noble efforts of Western Canada's farm +women would require a separate volume. + +Still another development with far-reaching possibilities is the +tendency of the Grain Growers and the Church to get together. It first +revealed itself in Alberta under the conscientious encouragement of +President H. W. Wood, of the United Farmers of Alberta, when in 1916 he +inaugurated "U.F.A. Sunday"--one Sunday in each year to be set aside as +the Farmers' own particular day, with special sermons and services. It +was born of a realization that something is fundamentally wrong with +our social institutions and that "the Church will have to take broader +responsibilities than it is now doing." + +"Is Christ to develop the individuals and Carl Marx mobilize and lead +them?" asked Mr. Wood. "Is Christ to hew the stones and Henry George +build them into the finished edifice? If Christ cannot mobilize His +forces and build true civilization His name will be forgotten in the +earth. The solution of the economic problems must be spiritual rather +than intellectual. This is the work of the Church and the Church must +take the responsibility for it." + +Not only did the idea of a special Sunday meet with hearty response +from the churches and farmers in Alberta, but it was taken up in +Manitoba and Saskatchewan. In 1917 "Grain Growers' Sunday" was +observed all over the West and led to many inspiring addresses. One of +the most significant of these was delivered by President J. A. Maharg, +of the Saskatchewan Grain Growers' Association, at a mass meeting in +Moose Jaw on Sunday, May 27th. + +"There has been a strong agitation against church union," said Mr. +Maharg. "We hope to bring the churches together. The establishment of +community churches is not altogether an impossibility. That groups of +churches will be brought together for the holding of community services +is not altogether impossible, and a farmers' organization is not an +organization that is farthest away from doing this." + +In these days of revolutionary thought who shall set the length and +width of the Farmers' field of influence, therefore? A string of +co-related provincial organizations of farmers, stretching right across +the Dominion, working harmoniously through the Canadian Council of +Agriculture, will create a national force which in itself will +represent Public Opinion--which cannot be denied the upward trend to +wider and better citizenship for all classes in Canada. + +For Public Opinion governs legislation as legislation governs the +country. + + + +[1] See Appendix--Par. 17. + +[2] See Appendix--Par. 14. + +[3] See Appendix--Par. 15. + +[4] See Appendix--Par. 11. + +[5] See Appendix--Par. 16. + +[6] See Appendix--Par. 16. + +[7] See Appendix--Par. 18. + + + + +CHAPTER XXIII + +THE DEPTH OF THE FURROWS + + Men at some time are masters of their fates: + The fault, dear Brutus, is not in our stars, + But in ourselves, that we are underlings. + --_Julius Caesar._ + + +Because it was the logical and primary source of redress for the abuses +which led the Western farmers to organize, the Grain Growers from the +first have concerned themselves seriously with legislation. It took +them a little while to discover that instead of being an all-sufficient +panacea, mere legislation may become at times as flat and useless as a +cold pancake. But by the time the farmers had come to close quarters +with their difficulties their vision had widened so that they were able +to look ahead, clearing the path for the next step forward. So +frequently have they besought the Governments, both Federal and +Provincial, that occasionally they have been accused by harassed +politicians of "playing politics and nothing else." + +As their organizations grew and acquired knowledge it is true that +these "petitioners" who "did humbly pray" began to straighten their +backs a little, the while they wrestled with the kinks that were +bothering them from too much stooping. It was a sort of chiropractic +process for the alleviation of growing pains--the discovery of the +proper nerve to ask and receive, to seek and find. As the People grew +more accustomed to the sound of their own Voice it was only natural +that the quaver of timidity began to disappear from the tones of it and +that their speech grew stronger in the Legislative Halls dedicated to +government "of, by and for" them. The "Backbone of His Country" set +out to prove that he was not spineless, merely disjointed. And as he +gained confidence in his vertebrae the Farmer began to sit up and take +notice--began even to entertain the bold idea of getting eventually +upon his feet. + +The intention was laudable. To make it audible he assembled a +platform, stood up on it, and argued. His protests could be heard +clean to the back of the Hall. Like the young elephant whose trunk was +being stretched by the crocodile, he said: "You are hurting me!" In +the nose-pulling game of Party Politics as it too often has been +played, it sometimes takes a lusty holler to make itself heard above +all the other hollering that is going on; if getting a hearing is +"playing politics," then the Grain Growers have run up a pretty good +score. + +They began with various amendments to the Grain Act. These included +the famous "car distribution" clause, the farmer's right to a car and +his procedure to obtain it and additional cars as he needed them, the +provision of penalties for the purchase or sale of car rights, etc. +Opposition to some of these amendments was keen and the farmers had to +fight constantly; when they were not fighting for necessary amendments +they were fighting to retain those already secured. Constant vigilance +was required. Many delegations of Grain Growers visited Ottawa from +time to time to plead for improvement of conditions in handling grain, +more equitable inspection methods, government ownership and operation +of terminal facilities and so on. + +Each year the annual conventions of the various associations in +Saskatchewan, Manitoba and Alberta grew in size and importance; each +year the Grain Growers' knowledge expanded, much of it gained by +marketing experience. From these "Farmers' Parliaments" and the pages +of the _Grain Growers' Guide_ they drew inspiration for many radical +ideas and threshed them out into well defined policies. By the time +Sir Wilfrid Laurier, then Premier of Canada, ventured West in 1910 the +farmers were pretty well posted on national topics. Everywhere he went +he faced thousands of ruddy, big-fisted men who read addresses to him +and did a lot of extemporaneous talking which was no less forceful and +complete than the prepared briefs. + +Six or eight hundred of them followed him back to Ottawa in December of +that same year and laid siege to the Government on its own +stamping-ground. It was the most remarkable red-seal record of the +Voice from the Soil that hitherto had been known thereabouts. In order +that there might be no doubt as to the planks on which they stood, the +Grain Growers assembled a platform in full view of the audience. + +"We want reciprocal Free Trade between Canada and the United States in +all horticultural, agricultural and animal products," declared the +farmers; "also in spraying materials and fertilizers; illuminating, +fuel and lubricating oils; cement, fish and lumber. + +"We want reciprocal Free Trade between the two countries in all +agricultural implements, machinery, vehicles and parts of each of +these. We want it carried into effect through the independent action +of the respective Governments rather than by the hard and fast +requirements of a treaty. + +"We want the duties on all British goods lowered to one-half the rates +charged under the general tariff schedule, whatever that may be. Also, +we want any trade advantages given to the United States in reciprocal +trade relations to be extended to Great Britain. + +"We want such further gradual reduction of the remaining preferential +tariff as will ensure the establishment of complete free trade between +Canada and the Mother Land within ten years. We're willing to face +direct taxation, in such form as may be advisable, to make up the +revenue required under new tariff conditions." + +"This bunch wants the whole earth!" cried the Canadian Manufacturers +indignantly. + +"Sub-soil and all!" nodded the Railways. + +"Certainly they're plowing deep," commented the Banks. + +"To eradicate weeds," admitted the Farmers. + +"Damn it all, anyway!" worried the Politicians. + +To show that they were talking neither Tory nor Grit, the Western +farmers proceeded to waylay the Leader of the Opposition, Hon. R. L. +Borden, the following year when he in turn decided to "Go West." He, +too, came face to face with thousands of ruddy, big-fisted men and +listened to their equally plain-spoken addresses, prepared and +extemporaneous. + +And what came of it all? Did these farmers get what they wanted? + +Not yet! + +But while all this agitation of the Grain Growers one time and another +seldom has resulted in assent to their full requests, certain +compliances have been made on different occasions with beneficial +results. For instance--to mention three--the Royal Grain Commission of +1906, the permanent Grain Commission, and the Government Terminal +Elevators are an outcome of various requests and delegations of the +Grain Growers. + +Certainly the organized farmers of Western Canada have attained a +measure of self-confidence which enables them to declare themselves in +definite language. While seeking wider markets and the real value of +their products, they have been opposed always to any scheme which +accomplishes higher prices at the expense of the consumer or of the +British workman. They do not believe in import duties on food stuffs, +clothing, fuel or building material. Rather do they favor bringing +closer together the producer and consumer to the advantage of both. +They believe in cheaper money for the development of agriculture and +other industries and in such utilization of natural resources that the +homes of the people may be improved. + +They have stood consistently behind woman suffrage and the abolition of +the liquor traffic. They would adopt direct legislation through the +Initiative and Referendum. They believe in the principles of +Co-Operation in buying and selling. They have urged extension of the +parcel post system, the reduction of traffic charges to a reasonable +basis, Government control of waterways and all natural resources that +they may be developed only in the public interest. + +Does a creed like this spell class legislation? Does it indicate that +in his eagerness to improve the conditions surrounding his own life the +Grain Grower is forgetting the general welfare of the Dominion of +Canada? Listen to the doctrine which the leaders have inculcated on +every occasion--to President T. A. Crerar before the War: + +"You have a very clear-cut and distinct responsibility in supporting +the whole movement of the organized farmers in Western Canada; for this +means that you are improving not alone your own environment and +condition, but also creating the conditions and influences that will +develop a higher and purer ideal of public service upon the part of our +people than we have in Canada to-day. It should be a source of great +satisfaction that upon all important matters the policies adopted and +supported by the organized farmers in the past have been formed upon +what in their judgment would benefit the country as a whole and not +from the narrow view of selfish interest. + +"During the past ten years the people of Canada have mortgaged the +prosperity of the future to far too great an extent. Our total +borrowings as a nation, for public and private purposes, have run into +such a colossal sum that it requires about $160,000,000 annually to pay +interest on the amounts borrowed. This constitutes a very heavy task +on a country with about eight millions of a population. Manufacturing +industries have been built up with a view of developing home industry +and furnishing home markets, but often at a very heavy cost to our +agricultural development, with the result that we have been travelling +in a circle, reaching nowhere, rather than along the road that leads to +Progress. + +"We hear considerable nowadays of the necessity of a 'Back to the Land' +movement. It is necessary, however, to do a little more than get +people located on the land with a view of increasing agricultural +production. It is necessary to free agriculture from the burdens now +resting upon it and make it the first business of the country. + +"Much of our natural resources has been recklessly handled, and as a +people we are faced with the necessity of overcoming the evil effects +of our unbusinesslike methods as a nation in administering resources. +If we are to surmount our shortcomings in this respect and pay our +obligations as a nation to the outside world, we must place agriculture +throughout Canada upon a thoroughly sound and profitable basis. The +creation of wealth from our wonderfully rich natural resources, in +which agriculture stands in the forefront, is the essential thing and +should receive most consideration from our Governments--both Dominion +and Provincial. + +"We must learn to respect each other's differences and, if we do, with +the development of that democratic spirit which is now day by day +becoming more manifest in Western Canada, we need have no fear of our +usefulness as an agency in bringing about the ultimate triumph of the +principles of justice between man and man." + +Listen to President J. A. Maharg, addressing the Saskatchewan Grain +Growers' Association in 1914: + +"What is wanted is the general recognition by all classes of the +importance of Agriculture and an honest desire by them to assist in +placing it on a basis equal to that of any other industry--making it an +occupation that will draw people to it instead of driving them away. +In soliciting the aid of other classes I am not asking them to assist +us in gaining any special favors whatever; all we ask is that they +assist us to have Agriculture placed in the position its importance +entitles it to." + +Hear the President of the United Farmers of Alberta, H. W. Wood: + +"This is the day of class co-operation. That means inter-class +competition. In this competition of class against class ours is the +losing class at every turn because we have been the least organized, +the least co-operative; consequently the weakest. Before we can hope +to hold our own in this struggle we will have to bring our full +strength, thoroughly organized, to bear in protection of our rights. + +"I have an abiding faith that the organized farmers will receive that +strength, not selfishly but unselfishly in the defence of the rights of +all and for the spoliation of none. The highest ambition I have for +our organization is that it may develop along the lines of safety and +sanity, that we may hold to a steady determination to go forward +unwaveringly in our efforts till the door of hope and opportunity is as +wide open to the farmers as to any class in the world, that we may +zealously cultivate unselfish co-operation and learn to treat fairly +and justly every man and every class that is giving a useful service to +society." + +And this from the Presidential address of R. C. Henders at the last +Manitoba Grain Growers' convention: + +"In order to have legislation that will be equitable to the different +interests concerned, all of these interests should be somewhat equally +represented in the passing of such legislation. We do not desire to +minimize in any way the great commercial interests of our people, yet +we feel that the work of our associations is educational and +legislative in its character. Democratic rule requires that the +average citizen be an active, instructed and intelligent ruler of his +country and therefore the success of democracy depends upon the +education of the people along two principal lines--first, political +knowledge; second, and what is of far more importance, political +morality. Ideal government is found when we have righteous rulers +governing a people of character and intelligence. Right education is +right thinking and right thinking can only come through accurate +information." + +Now, is all this preaching of the men who are leading the farmers just +so much talk?--chaff?--prairie wind? + +If not, what lies back of it? The farmers have an organization which +meets every so-often to harmonize and crystallize the thought among +their various associations and business units. It is that same +Canadian Council of Agriculture which has been mentioned already. It +consists of the executive committees of eight farmers' co-operative, +business and educational institutions, to wit: The United Farmers of +Ontario, The United Farmers' Co-Operative Company of Ontario, The Grain +Growers' Association of Manitoba, United Grain Growers (of the entire +West), The Grain Growers' Association of Saskatchewan, The Saskatchewan +Co-Operative Elevator Company, The United Farmers of Alberta, and the +_Grain Growers' Guide_, the official organ of the whole movement. + +At a meeting of this influential body in Winnipeg in December, +1916--representing an affiliation of 60,000 farmers--a "National +Political Platform" was adopted to embrace economic, political and +social reforms not alone in the interests of the farmers but of +Canada's citizens generally. The farmers are looking for the support +of all who live in cities and towns as well as the rural districts; of +organized Labor as well as organized farmers. + +This platform was referred to the provincial organizations which stand +behind the Canadian Council of Agriculture. It was considered by each +of the provincial boards and by them referred in turn to the three +thousand local community associations into which the members are +organized. Each Local was asked to call a meeting to consider the +platform and vote upon its adoption. The next step was for the members +to give their votes and financial support only to such candidates for +the House of Commons as would pledge support of this National Platform +in its entirety and who could be relied upon as Members of Parliament +to live up to their pledges. + +And here is the National Political Platform on which the farmers stand +without equivocation: + + +THE CUSTOMS TARIFF + +WHEREAS the war has revealed the amazing financial strength of Great +Britain, which has enabled her to finance not only her own part in the +struggle, but also to assist in financing her Allies to the extent of +hundreds of millions of pounds, this enviable position being due to the +free trade policy which has enabled her to draw her supplies freely +from every quarter of the globe and consequently to undersell her +competitors on the world's markets, and because this policy has not +only been profitable to Great Britain but has greatly strengthened the +bonds of Empire by facilitating trade between the Motherland and her +overseas Dominions--we believe that the best interests of the Empire +and of Canada would be served by reciprocal action on the part of +Canada through gradual reductions of the tariff on British imports, +having for its object a closer union and a better understanding between +Canada and the Motherland, and by so doing not only strengthen the +hands of Great Britain in the life and death struggle in which she is +now engaged, but at the same time bring about a great reduction in the +cost of living to our Canadian people; + +AND WHEREAS the protective tariff has fostered combines, trusts and +"gentlemen's agreements" in almost every line of Canadian industrial +enterprise, by means of which the people of Canada--both urban and +rural--have been shamefully exploited through the elimination of +competition, the ruination of many of our smaller industries and the +advancement of prices on practically all manufactured goods to the full +extent permitted by the tariff; + +AND WHEREAS agriculture--the basic industry upon which the success of +all other industries primarily depends--is almost stagnant throughout +Canada as shown by the declining rural population in both Eastern and +Western Canada, due largely to the greatly increased cost of +agricultural implements and machinery, clothing, boots and shoes, +building material and practically everything the farmer has to buy, +caused by the protective tariff, so that it is becoming impossible for +farmers generally to carry on farming operations profitably; + +AND WHEREAS the protective tariff is the most wasteful and costly +method ever designed for raising national revenue, because for every +dollar obtained thereby for the public treasury at least three dollars +pass into the pockets of the protected interests, thereby building up a +privileged class at the expense of the masses, thus making the rich +richer and the poor poorer; + +AND WHEREAS the protective tariff has been and is a chief corrupting +influence in our national life because the protected interests, in +order to maintain their unjust privileges, have contributed lavishly to +political and campaign funds, thus encouraging both political parties +to look to them for support, thereby lowering the standard of public +morality; + +THEREFORE BE IT RESOLVED that the Canadian Council of Agriculture, +representing the organized farmers of Canada, urges that as a means of +bringing about these much needed reforms and at the same time reducing +the high cost of living, now proving such a burden on the people of +Canada, our tariff laws should be amended as follows: + +(1) By reducing the customs duty on goods imported from Great Britain +to one half the rates charged under the general tariff and that further +gradual, uniform reductions be made in the remaining tariff on British +imports that will ensure complete free trade between Great Britain and +Canada in five years. + +(2) That the Reciprocity Agreement of 1911, which still remains on the +United States statute books, be accepted by the Parliament of Canada. + +(3) That all food stuffs not included in the Reciprocity Agreement be +placed on the free list. + +(4) That agricultural implements, farm machinery, vehicles, fertilizer, +coal, lumber, cement, illuminating fuel and lubricating oils be placed +on the free list. + +(5) That the customs tariff on all the necessaries of life be +materially reduced. + +(6) That all tariff concessions granted to other countries be +immediately extended to Great Britain. + + +TAXATION FOR REVENUE + +As these tariff reductions will very considerably reduce the national +revenue derived from that source, the Canadian Council of Agriculture +would recommend that in order to provide the necessary additional +revenue for carrying on the government of the country and for the +prosecution of the war to a successful conclusion, direct taxation be +imposed in the following manner: + +(1) By a direct tax on unimproved land values, including all natural +resources. + +(2) By a sharply graduated personal income tax. + +(3) By a heavy graduated inheritance tax on large estates. + +(4) By a graduated income tax on the profits of corporations. + + +OTHER NECESSARY REFORMS + +The Canadian Council of Agriculture desires to endorse also the +following policies as in the best interests of the people of Canada: + +(1) The nationalization of all railway, telegraph and express companies. + +(2) That no more natural resources be alienated from the Crown but +brought into use only under short term leases, in which the interests +of the public shall be properly safeguarded, such leases to be granted +only by public auction. + +(3) Direct legislation, including the initiative and referendum and the +right of recall. + +(4) Publicity of political campaign fund contributions and expenditures +both before and after elections. + +(5) The abolition of the patronage system. + +(6) Full provincial autonomy in liquor legislation, including +manufacture, export and import. + +(7) That the extension of the franchise to women in any province shall +automatically admit them to the federal franchise. + + +That is the official stand of the farmers and they point out that their +political platform[1] is constructive, not destructive. The farmers +are not trying to sidestep their fair share of the expenses in +connection with government and public institutions; where they have +torn down they have rebuilt. + +Admitting that the prosperity of Western Canada is essential to our +national prosperity, it is not necessary to look far in order to +understand why the farmers have taken this definite action. Western +farmers and citizens generally are carrying extra burdens which offset +the advantages of cheap and fertile land. Interest on mortgages and +bank loans have been higher than in Eastern Canada. It is more +expensive to distribute commodities West than East. On account of the +lavish donations of Western lands to railway promoters the cost of +railway construction has borne heavily on the West. Freight rates are +about sixty per cent. higher and express rates about sixty-six per +cent. higher than in Eastern Canada. Thanks to the protective tariff, +Western people are paying high for everything they get without any +return compensation. + +"Something has to be done to lift some of these unjust burdens," say +the farmers, "if a prosperous country is to be developed West of the +Great Lakes." + +Hence this platform. The Western farmers believe in it earnestly. It +is their politics. They believe that the results which would follow +its support in the House of Commons would be of untold benefit to the +Canadian people as a whole. They will continue to believe it. + +When the crisis arose which brought about the last election, in which +Union Government swept the West, the farmers saw the gravity of the +situation and were prepared to forego immediate discussion of tariff +amendments to concentrate on winning the war. Some of the farmers' +candidates even withdrew in favor of Union candidates. All those who +remained in the field were elected. + +After the war is won--what? Reforms of breathtaking sweep are taking +place as the natural outcome of current conditions. The liquor traffic +has been tossed aside like a useless boot. Woman has stepped forth to +a sphere of active worth without upheaval. Just where lie the +boundaries of the impossible and who shall define them? + +It is a far-seeing, clear-thinking New Farmer who has come forward in +the last decade. Through his associations, his marketing experiences, +his contact with railways and banks and manufacturers and governments +he has become a student of economics. At the same time he has +strengthened his thews and sinews for whatever may face him on the path +ahead. + +And his eyes are wide open to the fact that there are "lions in the +path!" + +Wait a minute, Mr. Business Man! Before condemning this Western farmer +out of hand, put yourself in his place and try for a moment in all +fairness to forget your own viewpoint. It may be that you have not +even seen the prairies. Have you ever been at sea with not a thing in +sight but water, sky, horizon? Imagine the water to be land, and +yourself living in a one-room shack or a little low sod hut bewhiskered +with growing grass. The nearest railway was fifty miles away and you +got so lonesome that the howl of a coyote or the cry of owls in the +night nearly drove you crazy. Neighbors so scarce your social +pleasures were cut off by distance and you reared your family on that +homestead twenty-five miles from a doctor, a church or a school. + +When you made the long trip in for supplies in those early days you +found you had to pay anywhere up to twice as much as their market value +while for what you had to sell you had to take from twenty-five to +fifty per cent. less than the market value. The implements you simply +had to have for your work you bought on the instalment plan with +interest at ten and twelve per cent. for the privilege. + +When you had survived three years of this and with high hopes took your +patent to the mortgage company to raise a loan at ten per cent. you +found you couldn't get accommodation. Thereupon in marched your +implement and other creditors with a chattel mortgage on everything you +had--except the missus and the kids and the baby's bottley-by! + +Then in the beautiful hot month of August it blew up black one day and +the chickens scurried for shelter and you and the wife stood with your +noses flattened against the window-pane--unless it was only oiled +paper--and watched the big ice-marbles bouncing and heard the hail +drumming flat in a few minutes the acres of wheat you had worked so +hard to produce. + +Or perhaps you escaped that time only to have your wheat frozen later +on and when you took three days on purpose to haul in a wagonload to +the elevator you couldn't get a decent offer for it. So that you +pulled off your mitts and clenched your frost-cracked hands as you +prepared to turn homeward with but a pitiful portion of the food and +clothing you had promised the family you would bring. As you spread +across your chest, inside your sheepskin coat, the old newspaper +somebody had given you would your soul expand with the joy of living +while you headed out into the snowy waste at forty degrees below zero? + +And if after you got home and the crying young ones had been put to bed +in the corner behind the canvas curtain and your wife came and sat +beside you, her own tears bravely dried--if then you read in the paper +that the Government had decided you farmers were so prosperous you +should contribute from your easily gained wealth a free gift to +manufacturers, financiers, railway magnates or others--then would you +say with a great booming, hearty enthusiasm and shining eyes: "I tell +you, Wife, this is the life!"--would you? + +Or would you just proceed to swear--naturally, successfully, in what is +known as "flowing" language? + +By just such pioneer hardships were the farmers of Western Canada +driven to organize in self-defence. It has ever been the history of +revolt that its wellspring was the suffering of the people. Pioneer +hardships it was that caused the various movements which agitated the +farmers of the Western States in earlier days. When fingers become +hardened and crooked from unceasing toil that achieves nothing but +premature old age; when hope withers in a treadmill that grinds to the +very soul--then comes rebellion. + + + +[1] Since the formation of the organized farmers' National Political +Platform several of its planks have been adopted as legislation at +Ottawa, notably the abolition of the patronage system, extension of the +franchise to women, total prohibition, and personal income taxation. + + + + +CHAPTER XXIV + +AND THE END IS NOT YET. + +The principle of co-operation draws the whole community together. It +breaks down barriers. It unites the State. It gives hope to the +humblest toiler. And it strengthens the great moral ideal of duty, +without which no State can endure.--_Earl Grey_. + + +What is to be the final outcome of the Western farmers' revolt and its +spread to rural communities in Eastern provinces? Is there to be greater +harmony among opposing interests or is Canada on the threshold of +internal strife which will plow deep furrows of dissension between class +and class to an extent hitherto unknown in this country? If there is to +be a pitched fight between capitalistic groups and the people at large, +led by the farmers, what are the chances of victory for the latter? If +they win, what will be the national effect? + +These were a few of the questions which first turned the writer's serious +attention to the Grain Growers. It seems scarcely credible that this +great economic movement has attained present momentum practically +unheralded; yet such is the case. The writer had watched its early +struggles to success from Government windows and as preparation for a +brief historical sketch it seemed desirable to get out among the farmers +themselves and study the situation from their angle. + +Frankly, the task was not approached without some skepticism as to the +motives which might be uncovered. Almost the only occasions on which the +Grain Growers revealed themselves to the public were when they waited +upon politicians for this, that or the other. So often did this happen +and so insistent were they that there seemed some grounds for the belief +that to satisfy a Grain Grower was humanly impossible. From Legislative +casements it even looked at times as if they were a new species of +Indian, collecting political scalps! All manner of people accused them +of all manner of things. In the East they were called "blacksmith-shop +politicians, nail-keg economists, grousers and soreheads"; in the West +they were dubbed "corner-grocer statesmen and political football players." + +When the caravans of the Eastern political chieftains, Liberal and +Conservative, came West they knew they were going to be held up by the +outlaws. Long before these respective expeditions started across the +plains infested with wild and dangerous Grain Growers, their scouts--the +Western M.P.'s--were ranging far and wide in preparation. + +And when those Grain Growers in turn rode East to take possession of +Ottawa there was a popular expectation that they were about to whoop in +and shoot up the town in the real old wild and woolly way. They were +referred to cleverly as "Sod-Busters." It was rather startling to find +them merely a new type of Business Farmer, trained to think on his feet, +a student of economics. + +To gather and verify the facts here recorded has required two years. +During that time the writer has listened to earnest farmers in prairie +shacks, pioneers and newcomers, leaders and followers, and has watched +these farmers at work in their "Farmers' Parliaments" where they assemble +annually by the thousands. It is impossible thus to meet and know these +men while examining the facts of their accomplishments without being +impressed by the tremendous potentialities that underlie their efforts. + +Almost the first discovery is that the organized farmers have ideals +beyond material advantage and that these ideals are national in scope, +therefore involving responsibilities. Undeterred by these, the farmers +are eager to push on to further achievements. Their hope for these +ideals lies in the success of their business undertakings and it is +because that success is the spinal column of the whole movement that it +occupies such a prominent place in this historical outline. + +Not all the Grain Growers are men of vision, it must be admitted. Many +have joined the movement for what they can get out of it. In all great +aggregations of human beings it is quite possible to discover the full +gamut of human failings. But loose threads sticking to a piece of cloth +are no part of its warp and woof. It is the thinking Grain Grower who +must be reckoned with and he is in the majority; the others are being +educated. + +If there is doubt as to the sincerity of the organized farmers, why did +their pioneer business agency spend its substance in educational +directions instead of solely along the straight commercial lines of the +concerns with which it was in competition? The very mould into which it +poured its energies shaped special difficulties, generated special +antagonisms and every possible obstruction to its progress. Its cash +grants to the Associations in the West, to the official organ of the +movement, even to the Ontario farmers, run over the +hundred-thousand-dollar mark. + +Or, take the case of the Grain Growers at Virden, Manitoba, who proposed +to bring into the district a large shipment of binder twine to supply +their members. When the local merchant who had been handling this +necessity learned of the plan he raised his voice, thus: + +"If you fellows are going to do that then I go out of binder twine this +season. I won't handle a pound of it." + +"Not even to supply the farmers who don't belong to our Association?" + +"That's what I said. You're going to make a convenience of me when you +rob me of all my cash business. The only business I could do would be +with farmers who wanted credit." + +Did the Grain Growers say: "That's their lookout, then. Let them join us +or go twineless"? No. They decided to bring in their co-operative +shipment as planned, but to allow the merchant to handle it on commission +in order to prevent any injustice to the other farmers. + +Incidents like that can be recorded from all over the country. It does +not take very many of them to compel the honest conviction that equity of +citizenship for all the people in every walk of life means more to these +farmers than a high-sounding shibboleth. That being so, it becomes +difficult to accept the slur of utter selfishness--the idea that the +farmers are auto-intoxicated, a pig-headed lot who cause trouble for +nothing. It is very hard to believe that Everybody Else is good and kind +and sincere and true, affectionate one to another with brotherly love, +not slothful in business; for one knows that the best of us need the +prayers of our mothers! + +When these Grain Growers started out they did not know very much about +what was going on. They had their suspicions; but that was all. To-day +they know. Their business activities have taught them many things while +providing the resources for the fight that is shaping unless the whole +monopolistic system lets go its stranglehold. + +Yes, the farmers do talk about freedom in buying and selling; also about +tariff reform. They point out that there are criminal laws to jail +bankers who dared to charge from twenty-five per cent. to forty-two per +cent. for the use of money; that food and clothing and the necessaries of +life are the same as money and that high tariff protection which fosters +combines and monopolies is official discrimination against the many in +favor of the few; that there are other and more just forms of taxation +and that all old systems of patronage and campaign funds have got to go +if the grave problems of these grave times are to be met successfully. + +It is no old-time "Hayseed" who is discussing these things. It is a New +Farmer altogether. The Farmers' Movement is no fancy of the moment +either, but the product of Time itself. It is a condition which has +developed in our rural life as the corolla of increased opportunities for +education. The Farmer to-day is a different man to what he was ten years +ago--indeed, five years ago. + +It has taken fifteen years of bitter struggle for the Western farmers to +win to their present position and now that they are far enough along +their Trail to Better Things to command respect they are going to say +what they think without fear or favor. They believe the principles for +which they stand to be fundamental to national progress. + +If there is to be any attempt to cram the old order of things down the +people's throats; if, under cloak of all this present talk of winning the +war, of new eras and of patriotism, profiteers should scheme and plan +fresh campaigns--then will there be such a wrathful rising of the people +as will sweep everything before it. In the forefront of that battle will +stand the rugged legions of the organized farmers. + +Make no miscalculation of their ability to fight. This year, 1918, will +see them sawing their own lumber in their own saw-mills in British +Columbia. If necessary, they can grind their own flour in their own +flour mills, dig their own coal from their own mines, run their own +packing-plants, provide their own fidelity and fire-insurance, finance +their own undertakings. They grow the grain. They produce the new +wealth from the soil. They are the men who create our greatest asset, +everything else revolving upon the axis of Agriculture in Canada. + +If, then, the farming population has learned to co-operate and stand +solid; if in addition they have acquired the necessary capital to educate +the masses and are prepared to spend it in advancing their ideals; if the +working classes of the cities and the soldier citizens of Coming Days +join their ranks--what chance will Special Privilege have against the +public desire for Equal Rights? + +Is it to be co-operation in all sincerity or class warfare? If the other +great interests in our national life will meet the Farmer in a fair +spirit, approaching our national problems in an honest attempt to +co-operate in their solution for the common good, they will find the +Farmer meeting them eagerly. They will find that these farmer leaders +are reasonable men, broad-minded, square-principled and just--no less so +because the class they represent is organized to stand up for its rights. + +The situation is not hopeless. Most of these pages we have been turning +are Back Pages. Old conditions and much of the bitterness which they +generated have passed. The story of those old conditions has been told +from the viewpoint of the Farmer in order that his attitude may be +understood. But it must be remembered that the grain trade to-day is a +very different proposition to what it was and that many of the men who +have devoted their lives to it in the cities have played a big and honest +part in its development. The Winnipeg Grain Exchange as an Exchange has +done a great deal for Western Canada, a point that undoubtedly has been +overlooked by many farmers. Gradually, however, the Farmer has learned +that all is not evil in "Babylon"; for out of revolution has come +evolution.[1] + +The key to that better future which is desired so earnestly and wisely is +Education. The problems of the day are commanding the mental focus of +the nation. The Banks, the Railways, the Manufacturers are considering +them. The Joint Committee of Commerce and Agriculture has great +opportunities for removing much old-time hostility on both sides. And +now that true co-operation of all classes has become a national duty, +surely out of the testing must come better understanding and a greater +future. + +Just now, of course, there is only the War. It has brought the Canadian +people to their feet. For the angry glare of the gun flashes has thrown +in silhouette many fallacies, many foibles and rubbish heaps, and these +must be swept out in preparation for the new nationhood which Canada is +called upon to assume. With a third of the entire British Empire +entrusted to her management and the hopeful gaze of homemakers the world +over turning upon her Canada's responsibilities are great. But she will +rise to her opportunities. + +Just now there is only the War. The history of mankind has no previous +record of such chaos, such a solemn time. Thrones toppling, maps +changing, whole peoples dying of starvation and misery while the fate of +Democracy is balanced on the issue. Men are slaying each other on land, +in the air, on the water and below it while the forces of Destruction are +gnawing holes in the World's resources with the rapacity of swarming +rats. It is costing Great Britain alone over thirty-five million dollars +every day--a million and a half every hour! + +As for Canada--much figuring is being done by experts and others in +attempts to estimate the total debt which the Canadian people will have +to carry after the war. But the people themselves are too far immersed +in war efforts to pause for futile reckonings. There will be time enough +for that when the war is won, and won it shall be, no matter what the +cost. It requires no great perspicacity to realize that our total +national debt will be a sum which rolls so easily on its ciphers that it +eludes the grasp of the average mind. It is going to cost a lot even to +keep the wheels greased at five and one-half per cent. from year to year. +Everybody knows it. _Win the War!_ + +When the lamp went out and the old world we had known blew up--away back +in 1914--we spagged about anxiously, calling to each other: "Business as +Usual!" Since then factory production has gone up fifty per cent.; +export trade a hundred; profits on capital all the way up to the +billion-and-a-quarter mark. We have got so used to things in four years +that there is danger of forgetting that War has driven a sap beneath +these ironical gifts of Mars and it is full time Business looked around +for a place to light and got ready to dig itself in. + +Mobilization, co-operation of every interest, the full grapple of every +individual--national effort, in short--these the State demands. The +coverlet has been thrown back upon the realization that the State has +claims upon each citizen which transcend his individual fortunes--that +individual prosperity, in fact, is entirely dependent upon the prosperity +of the national whole. + +Not all by himself can the Man Behind The Gun win a war like this. At +his heels must stand the munition workers, the Man Back of The Desk, the +people themselves, each guarding against waste and each contributing his +or her part, great or small, for that national economy which alone can +hope to sustain the terrific pace that victory demands. Finally, out in +the great open spaces, faithful and unassuming and backing his country to +the limit, must plod the Man Behind The Plow, working silently and +steadily from dawn till dark to enlist and re-enlist the horizoned acres. + +Canada has reason for pride in her farmers. No class is more loyal to +British traditions. No class is more determined to win this war. +Thousands of their sons are at the front. Many a lonely mother has stood +on a prairie knoll, straining her eyes for the last glimpse of the buggy +and bravely waving "God-speed." In many a windswept prairie farm home +reigns the sad pride of sacrifice. + +Out of the sanctifying fires is arising a national tendency to new +viewpoints. The hope of Canada lies in a more active participation in +affairs by the Average Citizen. In opposition to an awakened national +interest what chance is there going to be for the silent partnerships of +"invisible government"? 'Twill be a sorry partizan who allows his +thoughts at this crisis to patter away at that old practice line, so full +of past mistakes: "Now is the time for all good men to come to the aid of +the Party." + +Win-the-War unity is the leaven at work in Canada to-day and regeneration +is coming. + +What does it matter except that our country's leaders shall rise to their +opportunities for true statesmanship with a deep sense of their +responsibilities to the millions who turn to them for guidance in this +time of national stress? What does it matter except that the people +shall grant to their leaders their sympathy and co-operation in the cares +of crisis? + +As this book goes to the publisher Union Government in Canada has become +a fact. Not since Confederation has such a thing happened in this +country. The vampire methods with which our political system has been +cursed have been thrown under foot and thinking Canadians everywhere have +drawn a breath of relief. The energies which have been wasted in +jockeying for party position are now concentrating upon effective unity +of action. Let us hope so indeed. There must be no want of confidence +in the cheers which echo from Canadian trenches. + +For over there where Canada's first line of defence runs from the North +Sea through Belgium into France your boy, Mr. Business Man, and your boy, +Mr. Farmer, stand shoulder to shoulder. Think you that in the crucible +which bares the very souls of men those boys have any thought of class +criticism or of selfish grabbings? In those trenches you will find more +practical Christianity, more unselfishness, more true brotherhood than +can be realized at this distance. The spirit of sacrifice, the +help-one-another idea, the equal share and charity of thought--these +revitalizing principles will be brought back by our khaki citizens when +they march home from victory. It is past belief that there should be +anything but complete unity of purpose as they look back for their +country's supports. + +A coat of arms on the red field of a British flag, a maple leaf on khaki +cap or collar-band, a single name on every shoulder-strap--CANADA. All +the nations of the earth salute that name. For it is emblazoned on the +shell-churned fields of Ypres where, sweltering and bleeding, Canada +"saved the day" for all humanity. It is inscribed for all time to come +on the Somme--on Vimy Ridge--on the difficult slopes of Passchendaele. + +Just now, only the War. + +But when in the Years To Be we find ourselves in some far land or in some +international circle which Chance, mayhap, has thrown together; when the +talk turns upon the Great War and the wonderful victory of Civilization; +when we are questioned as to who and what we are and we reply simply: +"Gentlemen, I am a Canadian"---- + +Then may the light of pride in our eyes be undimmed by any sense of shame +for duty shunned. May it be that out of it all has arisen a higher +conception of individual and national life. So that in place of deep +furrows of dissension there will be the level seed-bed of greater unity +and justice among men. + + + + +THE END. + + + +[1] Abnormal conditions in the grain trade at present, due to the war, +have led to government control of the crop by means of a Board of Grain +Supervisors, aside altogether from the permanent Board of Grain +Commissioners. This government commission has very wide powers, +superseding the Grain Act for the time being, and can fix the price at +which grain stored in any elevator may be purchased, ascertain available +supplies, fix conditions of removal from storage and determine the +destination of grain, receive purchase offers and fix sale prices, take +possession of grain in elevators and sell it, provide transportation, etc. + +The Board of Grain Supervisors consists of two representatives of the +organized farmers--Hon. T. A. Crerar, Minister of Agriculture, and H. W. +Wood, President of United Farmers of Alberta; one representative of +unorganised farmers--S. K. Rathwell; three representatives of the +Winnipeg Grain Exchange--J. C. Gage, W. E. Bawlf and Dr. Magill +(Chairman); a representative of the British Food Commission--Jas. +Stewart; two representatives of Labor--Controller Ainey (Montreal) and W. +B. Best, of Locomotive Firemen; W. A. Matheson, of Lake of the Woods +Milling Company, and Lionel H. Clarke, head of the Canada Malting Company +and a member of the Toronto Harbor Commission. Dr. Robert Magill, the +Chairman, is Secretary of the Winnipeg Grain Exchange and was formerly +Chief Commissioner of the permanent Board of Grain Commissioners. + + + + +APPENDIX + + +FIRST OFFICERS, DIRECTORS, COMMITTEES, ETC., OF THE FARMERS' + MOVEMENT IN WESTERN CANADA, ETC. + + +1. _Territorial_ (Saskatchewan) _Grain Growers' Association--1902_. + +President, W. R. Motherwell (Abernethy); Secretary, John Millar (Indian +Head). Among those who acted on the first Board of Directors were: +Messrs. Walter Govan and M. M. Warden (Indian Head); John Gillespie, +Elmer Shaw and Peter Dayman (Abernethy); Matthew Snow (Wolseley). + + +2. _Virden_ (Manitoba) _Grain Growers' Association--1903_. + +President, J. W. Scallion; Vice-president, George Carefoot; +Secretary-Treasurer, H. W. Dayton; Directors: J. A. Blakeman, Isaac +Bennett, Peter McDonald and C. E. Ivens. + + +3. _Manitoba Grain Growers' Association--1903_. + +President, J. W. Scallion (Virden); Vice-President, R. C. Henders +(Culross); Secretary-Treasurer, R. McKenzie (Brandon); Directors: +Donald McEwan, Brandon; William Ryan (Boissevain), W. A. Robinson +(Elva), D. W. McCuaig (Portage la Prairie), John Wilson (Lenore), and +H. A. Fraser, Hamiota. + + +4. _Committee to Investigate Possibilities of Farmers Trading in +Grain--1905_. + +The first step towards co-operative trading in grain by the farmers of +Western Canada was a scheme, fathered by E. A. Partridge, of Sintaluta, +Sask., the first official action being taken by the Manitoba Grain +Growers' Association at their annual convention in 1905, when the +following committee was ordered to investigate and report: + +Chairman, E. A. Partridge (Sintaluta, Sask.); J. A. Taylor (Cartwright, +Man.); A. S. Barton (Boissevain, Man.). + + +5. _Local Committee to Organise Meeting of Sintaluta Farmers--1906_. + +The following committee of Sintaluta farmers made arrangements for a +meeting of the farmers in the Sintaluta district to discuss +co-operative trading in grain and to pledge support of the trading +company proposed by E. A. Partridge: + +E. A. Partridge, Al Quigley, Dave Railton, W. J. Bonner, T. McLeod, +James Ewart. + + +6. _Preliminary Organisation Committee of Sintaluta Farmers--1906_. + +E. A. Partridge (Chairman), A. J. Quigley (Secretary), William Hall +(Treasurer), James Halford, James Ewart, D. Railton, Sr., J. O. +Partridge, William J. Bonner, Thomas S. McLeod, W. Malhiot, H. O. +Partridge, G. K. Grass, Harold Bird, H. T. Smith, George Hill--all of +Sintaluta, Sask. + +Subsequently this committee was enlarged to include a number of +Manitoba canvassers. + + +7. _Provisional Officers of Grain Growers' Grain Company--1906_. + +Provisional organization of the Western farmers' pioneer trading +company finally took place at Winnipeg, July 26th, 1906, when the +following officers were chosen: + +President, E. A. Partridge; Vice-President, John Kennedy; +Secretary-Treasurer, John Spencer; Directors: W. A. Robinson (Elva, +Man.), and Francis Graham (Melita, Man.). + +At a general meeting of the shareholders these same officers were +elected subsequently and the directorate increased by two--Robert +Cruise (Dauphin) and T. W. Knowles (Emerson). + + +8. _Sintaluta_ (Sask.) _Farmers Who Pledged Personal Securities--1906_. + +Finding themselves $1,500 short of the necessary $2,500 for the +purchase of a seat on the Winnipeg Grain Exchange, the young trading +company of farmers had recourse to personal securities in order to +finance their start in business. The friends to whom E. A. Partridge +appealed and who immediately gave the bank their personal notes were +the following Sintaluta men: + +Dave Railton, Al Quigley, Tom McLeod, Jim Ewart, William E. Hall. + + +9. _Inter-Provincial Council of Grain Growers' and Farmers' +Associations--1907_. + +It was under this name that the executive officers of the various +farmers' organizations in the three Prairie Provinces first came +together to discuss problems affecting the Movement as a whole. The +first officers of the Inter-Provincial Council were: + +President, E. N. Hopkins (Moose Jaw, Sask.); Secretary, M. D. Geddes +(Calgary, Alberta). + + +10. _United Farmers of Alberta--1909_. + +Until January 14th, 1909, the farmers of Alberta had two provincial +organizations--the "Canadian Society of Equity" and the "Alberta +Farmers' Association." On this date amalgamation took place at +Edmonton under the name, "United Farmers of Alberta" with officers and +directors as follows: + +President, James Bower (Red Deer); Vice-President, Rice Sheppard +(Strathcona); Secretary, Edward J. Fream (Calgary); Directors: G. A. +Dixon (Fishburn), A. Von Mielecki (Calgary), George McDonald (Olds), +George Long (Edmonton), Thomas Balaam (Vegreville), L. H. Jelliffe +(Spring Coulee), E. Carswell (Penhold), H. Jamieson (Red Deer). + + +11. _Canadian Council of Agriculture--1910_. + +The name of the Inter-Provincial Council (Par. 9) was changed to the +"Canadian Council of Agriculture" in 1909 when relations were +established with The Grange, the early organization of Ontario farmers. +The first officers of the new inter-provincial body were: + +President, D. W. McCuaig (Portage la Prairie, Man.); Vice-president, +James Bower (Red Deer, Alberta); Secretary, E. C. Drury (Barrie, Ont.). + + +12. _Saskatchewan Co-Operative Elevator Company--1911_. + +_Provisional Officers_: President, J. A. Maharg (Moose Jaw); +Vice-president, F. W. Green (Moose Jaw); Secretary-Treasurer, Charles +A. Dunning (Beaverdale); Directors: A. G. Hawkes (Percival), James +Robinson (Walpole), Dr. T. Hill (Kinley). + +Upon early withdrawal of F. W. Green for personal reasons, George +Langley (Maymont) was called by the Board in an advisory capacity. + +_First Election_: President, J. A. Maharg (Moose Jaw); Vice-President, +George Langley (Maymont); Secretary-Treasurer, Charles A. Dunning +(Beaverdale); Directors: James Robinson (Walpole), W. C. Sutherland +(Saskatoon), N. E. Baumunk (Dundurn), A. G. Hawkes (Percival), J. E. +Paynter (Tantallon), Dr. E. J. Barrick. + + +13. _Alberta Farmers' Co-Operative Elevator Company--1913_. + +_Provisional Officers_: President, W. J. Tregillus (Calgary); +Vice-President, E. Carswell (Red Deer); Secretary-Treasurer, E. J. +Fream (Calgary); Directors: Joseph Quinsey (Noble), William S. Henry +(Bow Island), Rice Sheppard (Edmonton), P. P. Woodbridge (Calgary). + +_First Election_: President, W. J. Tregillus; Vice-president, J. +Quinsey (Noble); Secretary-Treasurer, E. J. Fream (Calgary); Directors: +E. Carswell (Red Deer), Rice Sheppard (Edmonton), P. S. Austin +(Ranfurly), J. G. McKay (Provost), R. A. Parker (Winnifred), C. +Rice-Jones (Veteran). + + +14. _United Farmers of Ontario--1914_. + +_Organisation Committee--1913_: E. C. Drury (Barrie), J. J. Morrison +(Arthur), Henry Glendinning (Manilla), Elmer Lick (Oshawa), H. B. Cowan +(Peterboro), W. C. Good (Paris), Col. J. Z. Frazer (Burford). + +_First Election of Officers--1914_: President, E. C. Drury (Barrie); +Secretary-Treasurer, J. J. Morrison (Arthur). + + +15. _United Farmers' Co-Operative Company, Limited--1914_. + +President, W. C. Good (Paris); Secretary-Treasurer, J. J. Morrison +(Arthur); Executive: Anson Groh (Preston), C. W. Gurney (Paris), Col. +J. Z. Fraser (Burford), E. C. Drury (Barrie). + +16. _United Farmers of British Columbia--1917_. + +_Provisional Committee_ (Vancouver Island Farmers' Union)--_1916_: +Chairman, R. M. Palmer (Cowichan Bay); Secretary-Treasurer, W. Paterson +(Duncan); H. G. Helgesen (Metchosin), G. A. Cheeke (Shawnigan Lake), A. +E. Brooke Wilkinson (Cobble Hill), E. H. Forrest (Hillbank), F. J. +Bishop (Cowichan Station), G. H. Hadwen (Comiaken), C. G. Palmer, +C.I.E. (Quamichan), F. Maris Hale (Deerholme), A. A. Mutter (Somenos), +L. F. Solly (Westholme), R. U. Hurford (Courtenay), A. C. Aiken +(Duncan). + +_First Election_ (United Farmers of British Columbia)--_1917_: +President, C. G. Palmer (Quamichan); Vice-Presidents: J. W. Berry +(Langley), R. A. Copeland (Kelowna), P. H. Moore (Saanich); Secretary, +H. J. Ruscombe Poole (Duncan); Directors: J. Johnson (Nelson), R. U. +Hurford (Comox), L. Dilworth (Kelowna), R. H. Helmer (Summerland), W. +E. Smith (Revelstoke), W. Paterson (Koksiloh). + + +17. _United Grain Growers, Limited--1917_. + +By Act of Dominion Parliament, June, 1917, the necessary changes in the +charter of the Grain Growers' Grain Company, Limited, were granted to +enable amalgamation with the Alberta Farmers' Co-Operative Elevator +Company under the name, "United Grain Growers, Limited"; authorized +capital, $5,000,000. The first election of officers was as follows: + +President, T. A. Crerar; 1st Vice-president, C. Rice-Jones (Veteran, +Alta.); 2nd Vice-president, John Kennedy; Secretary, E. J. Fream +(Calgary, Alta.); Directors: C. F. Brown (Calgary), R. A. Parker +(Winnifred, Alta.), J. J. McLellan (Purple Springs, Alta.), P. S. +Austin (Banfurly, Alta.), H. C. Wingate (Cayley, Alta.), Roderick +McKenzie (Brandon, Man.), F. J. Collyer (Welwyn, Sask.), John Morrison +(Yellow Grass, Sask.), J. F. Reid (Orcadia, Sask.). + + +18. At the meeting of the Canadian Council of Agriculture in Winnipeg +on July 5th, 1918, Norman P. Lambert was appointed Secretary-Treasurer +to succeed Roderick McKenzie, who now occupies the position of +Vice-president. + + +19. R. A. Bonnar, K.C. (Bonnar, Trueman, Hollands & Robinson), has +been solicitor and counsel for the Grain Growers since 1906 and has +been identified closely with them on many dramatic occasions. + + + + + +End of the Project Gutenberg EBook of Deep Furrows, by Hopkins Moorhouse + +*** END OF THIS PROJECT GUTENBERG EBOOK DEEP FURROWS *** + +***** This file should be named 21657.txt or 21657.zip ***** +This and all associated files of various formats will be found in: + http://www.gutenberg.org/2/1/6/5/21657/ + +Produced by Al Haines + +Updated editions will replace the previous one--the old editions +will be renamed. + +Creating the works from public domain print editions means that no +one owns a United States copyright in these works, so the Foundation +(and you!) can copy and distribute it in the United States without +permission and without paying copyright royalties. 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