Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1914-09-18
Determined Men with a
Determination * eE. r Gram D ]4 issase;s5

NIalh Growers association mud
"heh the Grain Growers Grain com.
pahy was organized, solicitors waro
sent over into Manitoba and stool,
was placed with the organization of
TINS province In July, 1906 the
llrst meeting of shareholders wa.
held at Winnipeg. To buy and sell
gram in that mraket you must he a
member of the grain exchange. A
membership in that BODY costs
S25OO. The Grain Growers Crow
company bought a membership. Re-
suit $500 in debt right from the
start.
IL takes money to operate on the
TRAN Exchange at Winninep
Freight charges must be taken care
of. Shippers have a way of drawing
Tor portion of the value of the
consignment. This must be taken
care OF, and the infant concern was
already $500 in debt and all the
assets it possessed was a Grain FIX.
change membership. However. the
start had been made, and the faces Of
its promoters We're turned toward
the rising sun. They must meet ~
necessary conditions and so the
stockholders all signed a Joint note
payable to a local bank. and thereby
secured credit to finance their deals
The Grain Growers Grain Co
wanted to make the concern co-oDer-
atiye. They sent out letter to all
shippers, stating that after all ex-
penses and a fair rate of stock divi-
bends were paid, all moneys left
would be divided between patrons
according to the amount of bust
ness given.
The Grain Exchange would not
stand for this. There was a rule of
the Exchange providing that all
members must charge a uniform fee
and no rebates or concessions given.
The directing board of the Exchange
met, and without waiting for the
Grain Growers Grain company to
carry out its plan, expelled 1t from
the Exchange. This was a hard
blow, for the reason practically no
grain is bought or sold except
through the Exchange. The eXpul-
sion took place in October, 1906,
Just at the time the crop began to
move. The manager went east and
sold some wheat, but to do a profit
able business it was necessary to op-
crate on the Exchange. An appeal
was taken to the Manitoba govern
ment, asking that the Grain EX-
change be compelled to restore the
forfeited membership. T The govern
ment acted fayorably on the appeal
and ordered the expulsion revoked,
threatened to take away the charter
Of the Grain Exchange unless the
order was obeyed.
The Grain Growers Grain company
was compelled to revoke their CO.
operative plan and to charge and
retain regular fees. However, this
proved to be a blessing in disguise,
as the company was able to build up
a substantial surplus, and to have
ready funds to carry on their bust
ness. The first year there was paid
a seven per cent dividend, the second
year 40 per cent, third year 80 per
cent. The second and third divi-
dends were applied to the payments
on stock subscriptions, upon which
but one payment had been made
The original subscribers paid only
$3.50 for shares of $25 par value,
the dividends taking care of the I'M
paid balance.
The policy has been changed and
now but 10 per cent dividends are
paid the remainder of the profits
being placed in a reserve fund.
The growth of the concern was
disuuieting to other members OF the
Grain Exchange. In order to combat
the new concern, the rule regarding
uniform commissions was suspended.
This was the rule the Exchange had
expeIled the Grain Growers Grain
company for announcing they would
not observe. The Winnipeg Grain
Exchange believed that by suspend
inc the rule this new concern would
he compelled to handle business at
loss. as competition then could go
ont after business and offer any in
ducement for consignments they
might desire. They could even re-
hate the entire fee If they so desired
and these farmers without capital
with only notes given by individual
Members to enable them to operate
would soon sustain such losses tha'
thew would be removed from the
field of action. j.,
Right here is where pre-conceiVeu
ideas got a knockout. The cram
Growers Grain company had meet
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