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 farmerI'm naturally interested in that sort of thing, you know, and I've gota particular interest in that little grain company. My name isPartridge 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 theGrain Growers' Guideadopted as the official organ for Alberta. First published under the auspices of the Manitoba Grain Growers' Association, theGuidenow 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 theGuideand 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 theGuide'sstruggle 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 organizationcouldsucceed—that this venture of the Grain Growers wasnotgoing 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.
It's scarcely in a body's powerTae keep at times frae being sourTae 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 theGrain Growers' Guidehad 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 theGuide. "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 theGuideweek 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.
Observation tells me that you have a little reddish mold adhering toyour 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, theGrain Growers' Guidewas 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 theGuidewas 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 theManitoba 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 theGuidehad 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 thenom-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 theGrain 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 theGuideoffice.
"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 theGuide, 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 theGrain Growers' Guide—one paper, of course, which could not be approached for the purpose in view. It was necessary, nevertheless, to clip and file theGuidevery 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 theGuide. 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.
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.