Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1912-06-03
EXPERIMENT IN GOVERNMENT
OWNERSHIP PROVES COSTLY
TO CANADIAN PROVINCE.
ENTIRE LINE OF ne
ELEVATORS FOR SALE
Government Sought to Secure Monop-
oily Of Grain Business and Bought
UP All Eisvators-Many Were Ready
For Junk Heap and People Will Lose
Investment Of More Than 100000.

Winnipeg, Manitoba, June 3.-TWc
years ago the Manitoba government
went into the grain business on a large
scale by purchasing and building liz
elevators In all parts of this province
The event was heralded turnout the
United States and the plea of "the gov
eminent owns the grain elevators" was
made card with Which to draw thous-
ands of American farmers to the
Canadian northwest.
Some days ago the grain commission
of the province made the fiat announce
ment that the government operation
was a complete failure, ordered the
discharge of practically all the en-
ployes, and offered the entire line of 172
elevators for sale. The government
elevators will go out of business on
Aug. 81 and thousands of American
farmers in western Canada will lose
their 1912 wheat crops.
Will Lose Investment.
1t took the state just two years ia
demonstrate its inability to success
fully compete with the privately owned
elevators and it is charged by the OPP
position that the entire investment OF
more than s1,000.O00 will be lost to the
people Of the province. who will have
to pay the bonds when they fall due.
The statement Is made by grain men
that the plant is worth not more than
25 per cent Of the sum for which IT
was loaded on the government. The
business has been carried on at heavy
loss from the beginning and there has
not been at any time a clear prospect
that the venture would be converted
into a definite success. The announce
ment that the affairs Of the state con-
Germ are to be wound UP on Aug. 81
was made by the chairman, D. w. Nc
Cuaig.
Robin Admits Failure.
Two years ago there was an agitation
for government elevators. II took the
voice Of the demagog for the voice
of the people" said Premier Robin.
Before parliament the premier stated:
THE elevator proposition grew out OF
an agitation in this country. A certain
number Of men went up and down and
led many farmers to believe that great
wrongs were being perpetrated by the
private concerns and that the panacea
lay in government owned elevators.
tbok the voice Of the demagog FOR the
voice Of the people. have since
learned I was mistaken"
Y At that time the government pur-
chased 162 elevators in different parts
of the province. Ten new elevators
were constructed by the state concern
The annual report submitted to parlia :
ment shows that s1.001,342 was ex-
pended by the province before the ele-
yators were ready for a bushel of grain.
y Last year there was deficit or va
145 in its operation. The deficit for
this year will be even greater. This
includes nothing for deterioration OF
the plants. interest on the investment
nor loss Of taxes had the 172 elevators
belonged to private concerns
Bought Lots Of Old Junk.
The charge is made that all sorts o,
old worn out. unstable and unproht-
able elevators were unloaded on the
government agents at exorbitant prices
but that owners did not sell their lines
upon which they were making money
In many towns the government. in or
der to secure monopoly. purchased
several elevators At the town OF Vir'
den the state took over three elevators
At Binscarth there were four. Crysta
City, three. Elva. three Shoal Lake
ave. In twenty-one towns there were
seventy -one elevators purchased by thu
government.