The great West. [volume] (St. Paul, Minn.) 1889-18??, 1890-05-02
Tho Purchasing Agency.
MINNEAPOLIS, April

The Purchasing Agency.
MINNEAPOLIS, April 26, 1890.
As business agent of the Minnesota
State Alliance, 1 am receiving
great many inquiries as to price OF
farm machinery, Irvine, wire, coal,
lumber, etc. The impression seems
to prevail that 1 could handle these
goods as soon as the appointment
was made. This is a mistake; it will
take time to build up such an insti-
tuition. Had my appointment, made
last December, not been Cancelled, l
would have been prepared by this
time to do something. Farm imple-
ment manufacturers usually make
their contracts in December or JAN
uary, for the ensuing year. 1t will
be difficult now to make contracts
for this season. Twill do what can,
and notify you by circular or
through the GREAT WEST, of prog
ress made. Another great difficulty
that confronts us is the opposition
of local dealers, who do not hesitate
to use their influence on wholesale
dealers and manufacturers to pre-
vent them selling to us direct. The
wholesale dealers refuse, and with
good reason. to interfere with their
old customers trade unless the new
one promises larger or safer trade.
The first thing they want to know
is: What is our financial standing?
Can they compel us to keep con-
tracts we make? How large trade
can we guarantee them?
The first is the most important,
and the first thing necessary is to
put sufficient capital back of us to
enable us to compete with the Job
bers and wholesale dealers. When
we can go to the manufacturers and
buy from them by the car load for
cash. we will have no trouble in secur-
ing bottom figures. Wereceive many
inquiries for time prices. Believing
as | do that the liberal credit system
that has prevailed in the Northwest,
for farm machinery, has been one of
the chief causes for the abnormally
high prices, and curse to the
farmers generally, cannot recon-
mend it's continuance From nv
own knowledge Of the business, and
} correspondence received, | am salts
fed that even though the farmer has
to borrow the money from his local
banker at current usurious rates,
that under strictly cash system we
can make saving of from 25 per
cent to 40 per cent. We should
therefore insist on the cash system
for both buying aud selling.
The organization Of new COM
pany is not necessary. The Alliance
Elevator Company is farmers CO.
operative company, organized for
the purpose of enabling us to handle
our own grain until it reaches the
consumer, as nearly as possible. The
handling OF our grain, particularly
our wheat crop, is of very much
greater Importance to the majority
OF our members than all other things
combined. The GREAT WEST has
been giving some very interesting
figures lately OH margins in handling
wheat, and yet they have omitted
one very important item, viz: the
loss to the producer by mixing in
transit. 1t is fact beyond DISPUTE
that the prices in Liverpool govern
the price in America. It is not 60
we'll understood however. that tho
price in Liverpool is fixed on the in
ferior quality, though carrying the
same grade. That is, the price in
the Northwest is based, not on tho
quality produced, but on the oual;tv
exported. This can only be remed;ea
by a system OF elevators of our own
Ii each farmer in Minnesota and tho
Dakotas, who raises wheat. wonlJ
take even one share of stock. tho
thing could be accomplished. The
capital used in handling the wheat in
the busy season would not be re-
quired in summer, and could be used
in handling farm machinery. Tho
two will work together very we'll
would therefore urge that each or
ganizer or lecturer solicit stock for
the Alliance Elevator Company at
once, that we may, as soon as possi-
ble, be in position to place our
business agency on astrong financial
basis. The stock is ten dollars nor
share. Where cash is not available
we will take notes payable at as
early a date as practicable; stock tn
be delivered when notes are paid
When q sufficient amount of cash
subscriptions has been secured in a
county we will build warehouse for.
the handling of grain, ETC.. at sn ,
point in the county as the stock
holders may select. At the present
time we are in a position to handle
on commission all kinds of grain
nay, iced, etc, at Minneapolis Dn'
iuth, Milwaukee or Chicago. and ora
now prepared to give tho 1c,,,oa. oA0