The independent. [volume] (Lincoln, Neb.) 1902-1907, 1904-02-04

lHe HrSC dLCeIupt at eucCtluS Uuoi-
ness organization of farmers in Kan
sas was on August Z, 1900. A meeting
was held at the National hotel, To-
peka, Kas. and considerable enthus-
iasm was manifested.
The prevalent idea at that time was
to effect national organization and
get various states of the Union in
terested in pushing forward such an
organization. After working along
those lines for several months it was
found that the plan was impractical,
that people would not invest in or
support such an organization.
The grain dealers Of the west had
combined or formed pools at the vari-
Gus stations. There was no cOmpeti-
ton among them for they agreed
~rpon a division of the grain that
came to the station On the per cent
plan. Each dealer getting his pro-
portionate profit on the amount OF
grain handled at the station. This
led up to exorbitant margins which
were exact5d from farmers by the
regular dealers. The grain dealers
being thoroughly organized, they
joined in a request to the various
railroads, operating in the west, ask
ing them to refuse to furnish cars to
scoop-shovel dealers, which, Of course,
included farmers. This conc cession
was conceded by the railroads.
Then the grain dealers, not being
satisfied with what they had accom-
plished they demanded Of commission
men, and all receivers Of grain in the
central market as well as exporters,
that they refuse to handle grain from
parties who were not regular dealers.
They even went so far as to include
those who operated elevators inde-
pendently, and who would not comply
with the demands of the trust. This
placed the trust dealers in position
to exact margins from the farmers,
limited only by their selfishness.
Something more practical in the way,
of farmers organization became a
necessity. They could not wait for
the people of the nation to become in
terested. A conference was held by
those who had taken an interest in
effecting a farmers organization and
it was decided to hold a state meeting
for the purpose of organizing on busi-
ness lines. with view of securing
ielef.
meeting was held at Salina, Kas.,
and an organization was effected on
May 16. 1901. This organization Was
known as the Farmers Cooperative
Grain and Live Stock association. The
plan adopted embodied the organiza-
tion of local cooperative elevator
companies, operated on the indepen-
dent plan. Ard the central company
referred to above has incorporated
and it was expected that all the local
independent associations were to fed
crate with the central company, and
take stock in the same and transact
their business through the central
company. In the unorganized, chaotic
condition of farmers at that time. it
was the only plan that would COM
mand support.
The cooperative movement among
farmers has been one of continued
growth and advancement. BY actual
test the independent plan proved to
be inadequate and impractical. 1t was
soon discovered by the most practi-
cal men in the movement that closer
organization was an absolute neces-
sity. II was found thas the grain
trust could confuse. divide and prevent
the locals from consolidating their
business and prevent them from asso-
ciatlng together In way tnat would
insure success.
At the annual meeting of the stock
holders Of the Farmers Cooperative
Grain and Live Stock association Il
was decided TO adopt the corporation
plan of line system OF elevators.
adding 10 II the principles 0f cooper
alton. This plan was unanimously
adopted BY the board Of directors OF
the old association and unanimously
coniirmsi by the stockholders IN an
nual session.
The Farmers Cooperative Shipping
association. now 80 successfully opcr-
atlng In Kansas. Nebraska aud OKLA
homa, originated with the board of
directors OF the old association. and
was adopted by tha stockholders OF
that company. and was promoted and