Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1914-06-07
ANDERSON Tells
STORY OF EXCHANGE

STORY Of EXCHANGE
Continued From Page One.)
are Knocking the Farmers Union.
want to say, first OF all, we are not
Boosts the Union.
We are not knocking any organiza'
ton of farmers that is working for
the farmers interest, and II you
have, as / understand you have, a
good organization in Bismarck, an
organization that is trying to organize
local cooperation companies, we get
back Of that organization that you are
forming and boost for and help them,
but we will not throw any sticks in
your way. Now, I want to speak this
afternoon on the general principles
of this organization.
We have with US, Mr.. J. w. Kelly,
of South Dakota, who Is one of the
warehouses; in this movement, and as
you know, we also have with us Mr..
Lotus, who Is sales manager for the
Equity Cooperative Exchange, and
who is the fellow who is fighting the
Minneapolis Chamber of Commerce
before their very doors. So I will not
take up much Of your time. and
want to say. first of all, regarding the
principle Of the Society OF Equity.
that we are organizing and building
farmers elevators in local markets,
and organizing them and building
them on the principle of cooperation.
You folk, who are in the marketing
business. know that it is not very
many years ago since the line ele-
vator companies were in absolute
control of the local markets.
In those days the farmers would
sell all their grain from Is cents to
80 cents per bushel below the Mime
apolis and Duluth market quotation.
Absolute Control.
The line elevator companies had
absolute control of the situation in
those days. How did you break that
control? You broke it up by organic.
ing companies of your own and by
standing by those companies after
they were organized. And you have
beaten the line. elevator companies
to a standstill; you have defeated
them, you have whipped them so a
great many people have our heartfelt
sympathy for those companies. Well,
gentlemen, you have trimmed up the
line elevator companies and you have
done this by organizing, by organic
ing companies of your W and stand
ing by them. 1t riles me up to hear
these line commission men and the
fellows representing the Minneapolis
Chamber of Commerce saying the
farmers elevators have not done
much for local markets. In spite OF
whatever the prices may be at Min.
neapolis, Duluth, the spread between
your local markets and those termin-
al markets will increase from &c to
sc per bushel, all depending upon the
distance that the next farmers ele-
vatOr is away. So while we are dis
cussing this matter of marketing grain
do not forget your farmer elevator
companies, nor what you have &C.
complished in the local markets. Now
there is another end to the grain bus
iness-this grain marketing system,
and that is known as the terminal
markets; the cars at Minneapolis and
at the head of the lakes. Those are
the great primary markets ofthe
country, especially here in the north.
west. There is only one other market
in the country that equals these il
size, and that is the Chicago market.
But Minneapolis and Duluth are the
objective points here in the northwest
as far as marketing grain is concern
ed. and there, at those points, the
farmers have, in the past, been with
out any representation. They have
had no one there to represent them,
except the old line elevator compan-
les and the commission house, which
those old line elevator companies
have organized. and which they now
control. And in 1912, we went to
Minneapolis with a company that had
been organized by the Society of
Equity. and that company is known
as the Equity Cooperative Exchange.
We placed in charge there, Mr.. Geo.
F. Lotus. You will hear him today,
and we made him the general salee
manager ofthe corporation. r
Went Is Him.
Now, please bear in mind that the
Equity members went to Mr.. LOTUS.
He did not come to them. 1t was
with considerable difficulty on their
part that they gdt him to take up
this fight. l emphasize this because
the line commission men are going
up and down the line and saying it is
a Lotus and Anderson concern. 1t is
not. 1t ID a farmers company. We
have in the neighborhood of 400
stockholders, all Of whom are farm.
ers, and IS per cent of whom live on
their farms. Mr.. LOTUS, myself, and
others, r simply employees of that
company. That's all. Now, we went
to Minneapolis and tried to do a grain
commission business, trying to repre-
sent the farmers as a grain commits
sion company. We were licensed by
the state Of Minnesota W. have also
been licensed by the state of North
Dakota, as required by law of grain
commission merchants. And we
thought. having been bonded to the
state, having been licensed by this
state, to do a general grain commits.
sion business, that we should be per.
mitted to go out through the country
and solicit for shipments Of grain, to
be handled in the city of Minneapo-
lis on the Minneapolis market. Now,
you would naturally believe that,