The Nonpartisan Leader Newspaper, March 7, 1921, Page 8

When Farmers Began to Co-Operate Another Chapter of ‘“The Autobiography of the Grain Trust” —How Line Elevators Conspired to Beat Farmer Elevators N THE last issue of the Leader we cited letter after letter from the files of the line elevator companies, show= ing how the grain market of the Northwest was controlled from Mine neapolis, and how buyers, who pretended to be com- peting with each other, were getting together and fixing up deals to divide up business and pay farm- ers the smallest possible price for their grain, and at the same time were raising prices on coal and other supplies they were selling to the farmers. About 10 years ago the co-operative elevator movement was under full swing in Minnesota and the Dakotas. It is interesting to note the effect that this movement had on the line elevators. Here are a few letters that show: On September 21, 1915, C. B. Rogers, manager of G. W. Van Dusen & Co., Minneapolis, wrote the Bagley Elevator company, also of Minneapolis, as follows: : Pursuant to our talk yesterday you will be in- terested to know that we have wired Mr. Moritz, our auditor on the Gettysburg line, to go to Faulkton and put that market on condition where the line companies will get some share of the business. The situation seems to be very peculiar, as we are get- ting it from our agent this morning, in that no mat- ter what we offer we are getting absolutely nothing; the Farmers’ Elevator company is buying strictly at list and the farmers have all gone crazy over the idea of a Farmers’ Elevator company. BOOSTED THE PRICE BUT COULD NOT “TUTCH” THE GRAIN 0. M. Lee, agent of the Andrews Grain company at Northwood, wrote his home office January 16, 1913: T have tried for a week to get some wheat at a cent over the price the rest is paying but can not tutch it at that. I have talked to the farmers and asked them why they would not hall some here and they say they would sooner the mill or the Farmers’ glevator would get it as they was run to protect the armer. Five months later Mr. Lee was apparently still in difficulties for he writes under date of Junme 4, 1913: There is about 125 wagonloads daily in town, but 1 can’t buy it. The farmers think this house was bought to stop a good market and they won’t patro nize us if they can help it. The Northwestern Elevator company, October 81, 1917, wrote the Grain Bulletin: At Rothsay we can not do any business without aying over list, inasmuch as the Farmers” elevator is co-operative and they are paying back to those hauling, J. P. Ha&ens, agent of the Powers Elevator com- pany at Halliday, N. D., wrote his main office January 7, 1915: ‘ The Farmers’ Elevator people are pretty sore at me for going over list.. * * I offered one of his stockholders the limit on wheat today and he laugh- ed at me and told me that he had been told that if I gave him more than list price I would get it back some way, either in dockage or weight. C. F. Schoen, agent of the Victoria Elevator com- pany at Charbonneau, N. D., wrote his main office December 26, 1914: Yours of the 22 instant at hand and note what you say about the farmers getting most all the wheat. * * * Please don’t think that I am pleas- ed and contented with the way business goes here; there is nothing harder on my nerves and gives me more werreau than when I have to sit around and can’t do anything. * * * Thave got about $1,300 invested in a house. I wish both house and elevator was somewhere else. You may do better by send- ing someone else here but as long as them farmer- stockholders think they will clear about $100 on a $25 share. it is hard to get them to go past the Farmers’ elev. What did the line elevators do about the farmer competition? In the days when poker used to be played professionally in the West each game run in a saloon or gambling house had three or four “professionals” working for the “house.” When a farmer would come along they would “high hand” him—that is, on every play the professional who had the highest hand would stay in the “pot” with the farmer while the others dropped out. About four times out of five the “house” would win under this method and soon they would have all the farmer’s coin. - That the wheat gamblers tried the same methods as the poker players is evidenced by this letter ad- dressed to C. A. Magnuson, former president of the Minneapelis Chamber of Commerce: November 17, 1913. Northwestern Elevator Company, Mpls., Minn. C. A. Magnuson. ‘ Gentlemen: We are enclosing you 2 copy of let- | AN APPEAL TO HEADQUARTERS o | 12444444 prerAARAR —_————— Farmers’ elevators at country stations in North Dakota broke up the combinations of line buye l S I‘m Z. ‘u..,.,‘.'.‘./:x, e — rs wher- ever they were established. They opened the eyes of the grain gamblers at Minneapolis to the still greater danger to them of a state-owned terminal elevator. For 10 years now. the Minneapolis Chamber of Commerce has been fighting every attempt of the farmers to get their terminal elevator. Unless the terminal elevator, now half built at Grand Forks, N. D., is completed, the grain gam- blers will have won. That is what the fight is about in North Dakota. PAGE EIGHT . ter from our Mr. Sheffield in regard to conditions at Hillsboro. Now, I believe you look at Hillsboro just as we do. It’s anything to get that stuff away from. the farmers’ house, and we are trying to do that and not interfere with any one else’s business, and I think we have been able to make quite a hole in their business so far, without paying much attention to what your agent has done, but it would seem that in the future we should try and maintain the list price there and let the man that can get the stuff get it, I don’t care whether it is you or ourselves. At any point where we have got farmers’ competi- tion and where they are getting all the business, it’s the live wire at the station who should get the busi- ness and not be hampered by the rest of us. I think you will agree with us on this. Yours truly, C. D. JUNKIN, Gen. Supt. »Here is another letter, from the file of the Vie- toria Elevator company, to the same general effect: Hazelton, N. D., Sept. 25, 1915. Mr. R. G. Cargill, Minneapolis, Minn. Dear Sir: In regard to this paying over propo- sition at Hazelton will say that we got together and agreed to put the market down to 2 cents over list and in order to come to this point we had to promise the Columbia man that he could pay lc more than the Victoria or Occident providing that he go after the farmers’ elevator customers and leave our trade alone, this extra cent is a great advantage and as soon as he gets his full share of trade we will have to bring him down again to an equal market. Yours truly, B. C._HANSON. Under date of November 12, 1913, C. A. Brown, general manager of the St. Anthony & Dakota Ele- vator company, wrote the International Elevator company of Duluth that the St. Anthony was “very anxious to get a better share of the business” at Humboldt, N. D., but added: It is our desire and intention, however, to draw business from the Farmers’ Elevator company, as they get more than both of us combined, and I do not approve for a moment our agent’s interfering with any of your customers. WILLING TO BREAK LAW BUT AFRAID OF NONPARTISAN OFFICIAL When the line elevators found the farmers’ ele- vators getting the bulk of the grain they often ar-_’ ranged to operate at an actual loss for a time in an effort to put the farmers’ elevator out of busi- ness. Such operations, of course, are against the law. That the line elevators knew they were guilty of. illegal actions by combining to pay “freight off” (the full Minneapolis price, with only freight de- ducted, thus allowing the local elevator no margin whatever for expenses of operation) is shown by a letter written by W. B. Grobe, general manager of the Occident Elevator company of Minneapolis, to their Hazelton agent, Leroy Irvine, under date of August 30, 1919. The Occident and the Victoria both had line elevators at Hazelton, attempting to put the farmers’ elevator out of business. Grobe says in his letter: ’ I received ‘your wire in-regard to the Victoria paying 7c over on rye and I took this up with Mr. Cargill and he stated that he had authorized his agent to pay 10c over on wheat and durum, 20c over on flax, 4c over on oats, 7c over on barley and 10c over on rye. * You are authorized to use your own judgment about the price you will pay. Of course I would prefer to have the Victoria take the lead so if there is any investigation about who is responsible for paying freight off there it will be with the Victoria Elevator company, and I don’t be- lieve that the farmers will submit to us paying freight off there without a roar to McGovern’s office and we are apt to get in very bad. Mr. McGovern is the chief deputy grain inspector, appointed by the Nonpartisan league state admin- istration. 3 Even after organizing local elevators, however, the farmers found that they had not fully solved the grain marketing problem. They still had to deal with commission houses in order to sell their grain and they found that commission house after