The independent., 1907-04-11
COOP. GRAIN CO. DIssoLvEs
General Manager EngeIhard Tells Of
the Business End.

The dissolution of the Farmers CO.
operative grain shipping association,
which was decided upon at a meeting
of the stockholders in Topeka, says
the Drovers' Telegram, marks the
passing of what was a promising en-
terprise 1t will be some time before
the affairs Of the association are
wound up, but that this end will be
accomplished at the earliest possible
date was confirmed today by Fritz
Engelhard of Rising, Neb., who has
been general manager OF the concern
since July /, 1905. with headquarters
in Kansas City, where the bulk OF the
associations grain WAS marketed. In
an interview for the Telegram Mr..
Engelhard, who Is now president as
we'll as general manager, told in the
presence Of Col. John W. Moore, sec
ond vice president, and J. G. Goings.
director, the following story of the
rise, decline and fall of an institution
In which the farmers of the west once
centered great hopes.
THE Farmers Cooperative grain
shipping association" said Mr.. Engel-
hard, was organized at Topeka In
May, 1903, as the result of agitation
for such an institution that had been
going on among the farmers of Kan
S<tS, lNtDTdSkd anu DhIdIHJftid IOT sew
eral years. 1t was Incorporated under
the laws of Kansas. with an author
lied capitalization of 100000, divided
into 10000 shares of $40 each. Farm
ers of the three states paid in $40, 900
and with this the association bought
ten or eleven country elevators and
began the business of buying and ship
ping the grain OF its members and re-
ceiving grain at Kansas City on con-
signments. c. 3. Hoffman, miller at
Enterprise KaS., who was instrument
ai in founding the organization, was
its first general manager and James
Butler of Topeka its first president.
During the first year the company
made profit Of 80 per cent. 1t de-
clared q dividend Of one and three
fourths cents a bushel on all grain
sold by stockholders to the association.
The membership then increased to
about 5000, fully four flfths of whom
had not over one share of stock each.
The purchasing OF elevators went on
until the number Of houses was thirty
seven. The capital represented val
uation of $130, 900.
During the year 1905 the associa-
tion lost $4,000 as result Of being
caught with 27b,0o0 bushels of wheat
on It's hands in the country and in
transit when the Gates corner coi-
lapsed in Chicago. This was In April
The market dropped about 33 cents a
bushel within a few days. Our wheat
was not 'hedged or protected in any
way. Hence the loss. Mr.. Hoffman
soon retired from the association, and
in July of that year / was elected gem
eral manager.
"A hard struggle was made to keep
the organization intact, and to recover
the lost ground, but the association
continued to sink money until the
present year, when the loss reached
an aggregate of $4,000. Among the
difficulties encountered was the car
shortage of the last several months.
There was some trouble attributable
to the unfair competitive methods of
private shippers In the country. In
ternal dissentions, which had been en-
countered almost from the first, null
tiplied 1t became necessary several
months ago to begin selling the eleva-
tors and about nineteen We're disposed
of We have seventeen houses left,
mostly in southern and western Kan
sas. ! anticipate that when these ele
vators are sold and the associations
affairs finally liquidated the dlsburse
ment to stockholders will be about 40
per cent or "a a share. There are
about $4,000 shares out, some members
holding as high as thirty
1T should not be assumed that liti-
CATION or q squabble OF any kind is
likely TO ensue. or that any member
of the association will really lose a
dollar. The benefits received through
the associations methods OF handling
grain largely from the grower direct to
the miller or the exporter made for
the members between s500,000 and ST.,
600 900 during the last four years
Records show that we have handled an
average OF 100000 bushels OF grain
annually.
Among the members there have
been many farmers whose loyalty to
the association in tho face Of discour
aging experience was highly commend
able. Now. however. there IL very little
sentiment In favor or a reorganization.
In few scattered localities there may
be efforts 10 maintain local cooper
ative shipping societies"