The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1893-02-27
FARMER IN BUSINESS.
The Palouse Wheat Growers
and Their Warehouses.
PROFITS OF ALLIANCE SCHEME.
Thirty Storage Baildings HaaAline Grain
-l7 Per Cent. PFoAt On Invest.
nent-Tho Elovator Plan.

OAKEsDALE. Wash. Feb. 26.-fspecial. J.
The Palouse country il strictly farming
community. and if one wishes to study
farming and to SEQ what kind of . busi-
ness man the farmer makes here 10 the
place to get this information. At Cakes
dale the idea Of farmers handling their
own grain originated. Here Is the point
where the Farmers' Alliance first en-
barked In business. and from this start
has grown . big business.
The idea Of farmers handling their own
grain was conceived in this c ity ct meet
ing of the state Alliance In November,
1880, when Speaker Arrasmith, of the
state house of representatives, was secre-
tary of the Alliance. The idea was con-
sidered good. A warehouse was secured
and T. Y. Williams placed in charge.
State Senator McCrosky was an enthusiast
tic advocate of the scheme. and through
his efforts warehouse was erected at Gar
field, twelve miles south of Oakesdale.
Up to that date the Northern Pacific
and Pacific Coast Elevator companies,
the former an adjunct of the Northern
Pacific and the latter of the Union Pacific
railroad companies, had controlled the
grain trade Of this country, and had been
able to dictate prices and crowd out indi-
vidual buyers with limited capital. all to
the detriment of the farmer. The winter
before the prices had been forced down
until there was small margin left for the
producer, and the farmers felt that some
thing had to be done or they could not
afford to raise wheat.
Grain dealers who had been crowded out
by the big companies laughed at the idea
OF farmers going into the grain business
against tho railroad companies, and pre-
dicted fat failure of the plan. How they
were mistaken is shown today by the vast
number of warehouses owned and con-
trolled by this organization throughout
the Palouse country. From the two ware
houses established by the Alliance in 1890,
the association now owns thirty ware
houses, and CONTROLS at least two-thirds
OF the grain trade of that section. During
the past season at Guy, a sidetrack station
of the Union Pacific, the farmers ware
house handled 1872 900 bushels of wheat az
against $4,000 bushels handled by the
Pacific Coast Elevator Company, the
latter having three wears ago handled
every bushel of the grain sold at
that point. Al though there is not even a
depot at Guy. the farmers erected ware
house there two years ago and handled a
large amount Of grain. Last season it was
found necessary to erect another ware
house at that point and the stockholders
were preparing to erect third warehouse
when the project of erecting q LOCO. 900
bushel elevator at tidewater was raised.
and they have abandoned the idea of
erecting third house here, but will invest
the money in stock in the terminal ware
house.
These warehouses have been a grand
success from the beginning both to the
stockholders and the grain producer. The
price of grain has been advanced at least
cents per bushel each year. This is
partly owing to the fact that the combine
ton forces the price up and partly be-
cause the farmers store their grain in
their warehouse and then sell in large lots.
thus being able to get a much higher price
than when sold in wagon load or single
crop lots. Thus the farmer is greatly
benefited, and the Alliance shareholder
are greatly benefited, for the storage
charges pay big dividends on the stock
each year after all the expenses have been
paid.
stock investment that will pay 20 per
cent. on the money invested is considered
fine investment and such stock would be
sought after eagerly by capitalists. who
would pay large premiums for stock in
such . company. But the stock of the
alliance Warehouse Company of Eastern
Washington and Western Idaho' has.
during the past two years. paid an average
of more than 10 per cent. despite the ter.
rible name the institution carries. proba-
bly, ono of the longest in the world. It il
safe to say the stock 10 not on the market
and no stakeholder would sell at any rem
sonable price.
When the first warehouse was erected at
Garfield, c. A. Gwinn. proprietor of the
Garfield Enterprise. did lot of printing.
amounting to nearly $50, and as the matter
was an experiment and the prospects for
success were not flattering Mr.. Gwinn was
persuaded to take his pay in two shares of
stock, ''jnst to help the company out" az
they expressed it. Mr.. Gwinn was verv
agreeabIy surprised to receive a good diyi-
dend upon the stock after the expense of
erecting the building had been paid the
first year. During the two succeeding
years he as we'll as all the other stockhold.
ers received SO per cent. in dividends each
year and tina, $50 worth of stock could not
today be purchased for $lCO. so Mr.. Gwiun
said to the Pos1.INrELIlGENCER CORE
spondent.
The history Of the Garfield houses is the
history of all the houses erected bv this
company in this state and Idaho. At
Pullman and Palouse the dividends last
year were 10 per cent. At Gray and manv
other points. 40 per cent. while at La,ah
the dividends the first year, after paving
for erecting the building and all running
expenses, were SIS per share each share
being worth $23. Last year, the second
year OF the Latah house, the dividends
were 80 per share. or TO per cent. on
money invested. Your correspondent. has
taken list OF twenty of these warehouses.
and the result shows an average dividend
nj traction over Al per cent. per year for
the past two years. This certainly shows
that the project is q success from busl-
ness standpoint.
Speaking OF the terminal warehouse
your correspondent has asked many farm.
ers for their opinion regarding the rumor
that il would be located at Everett, and
has yet to lind the first one who favors the
latter place. They all say that they are
III search OF grain market where they can
sell their grain At 4 good price, and they
nope by erecting this warehouse TO ad-
vance the price o. wheat and other grains.
The only way tins can be done, they saw.
IS by getting into worlds market like
Seattle. Tacoma or Portland, where ships
from all parts of the world come for the
express purpose of loading with grain.
The heavy expense OF towing across the
Columbia river bar is against Portland. as
IS also its location. for the farmers say