The Owosso times. (Owosso, Mich.) 1897-1926, 1910-11-18

NEARLY A THOUSAND COOPERATIVE ELE-
vATORS IN THE MIDDLE WEST.
was established. This was located at
Rockwell. Ia. and was known as the
Rockwell Cooperative Elevator COM
pany. The conditions In the grain
trade at this time and even up to
within the last half decade were such
that the farmer was held up unmer-
ctfully. There were two classes Of
elevators-the line companies and the
Independents. Nearly all Of these
were banded together In the form Of
state associations. In several states
the officers of these state associations
fixed prices arbitrarily. sending out
price cards to the members every
morning. These were based more on
the competition In the locality than
upon the market demand for grain.
Finally most of the competition was
done away with. except In form by
pooling combinations. The different
elevators in a town paid various rates
to keep up a show of competition, and
at the end Of each month the profits
were divided. Thus it made no partic-
ular difference which elevator did the
business.
1t was TO escape s,ich cutthroat
methods that the Rockwell Co-opera.
tive association was organized. From
all sides advice poured in upon the or
ganizers of the new company. They
were told that the place for the farm
er was in his fields and that business
would better be left to business men.
The farmers went doggedly ahead,
subscribed stock and put up an ele-
vator. The Grain Dealers association
sought to crush them by competition,
but the founders had provided for that.
They had inserted a protection clause
In the constitution which compelled
each Of their members to pay the asso-
citation one-fourth of a cent for each
bushel Of grain sold to a rival COM
pany. When the line company offered
more than the farmers were able to
pay they got the grain. But the one
fourth Of cent bushel was turned
into the treasury of the farmers COM
pany to pay expenses.
Since that time the cooperative idea
has spread throughout the middle
western states until nearly every town
has its cooperative elevator. There
are at present nearly a thousand CO.
operative elevator companies In the
middle west. They do business ag-
gregating hundreds Of millions Of dol
lars year. They do 1t at cost to the
farmers. So far this cooperative ele-
vator movement has helped the con-
sumner only indirectly. When the grain
reaches the markets II is turned over
to the terminal elevators. Here It is
past the farmers control. The rest of
the way to the consumer Is through the
same cumbersome, expensive system
from which the farmers escaped by
cooperation. One big leak comes in
the lack Of federal inspection at these
markets. Low grade grain comes in
and high grade grain comes out. The
consumer pays the bill, and the ter
minal elevator men grow fat on the
proceeds.
1t Is but question of time until CO.
operative companies will handle the
grain from the time 1t leaves the
grower until it reaches the consumer.
When a system like this is put into
working order and the discriminatory
freight rates that favor the large cities
are done away with the problem Of
getting the products from producer to
consumer at least expense will be
solved When an eastern feeder or
miller wants car of corn he can have
It billed direct from a cooperative as
ISOLATION in Kansas. It will go through
no expensive terminals. and expensive
loading and unloading will be done
away with.