64 IOWA DEPARTMENT OF AGRICULTURE. 



FARMERS' CO-OPERATIVE ASSOCIATIONS, Vv'HY THEY ARE OR- 

 GANIZED AND WHAT THEY ACCOMPLISH. 



C. G. MESEROLE, COWRIE, IOWA. 



In discussing co-operative practice on the part of farmers in handling 

 grain, it at once becomes necessary to consider transportation and ware- 

 housing. 



Between the producer and consumer there is, and always will be, the 

 barriers of distance, and the facilities of warehousing and conditioning 

 of grain; and we are ready to admit that these items of necessity have 

 a legitimate place in the determination of values, and I shall leave it 

 for my hearers to determine whether or not these items have been justly 

 fixed or fairly maintained. 



One instance of such justice will suffice to show the power and dispo- 

 sition of these masters of Iowa's agricultural destiny; twice within the 

 past three years has the bulk of Iowa's crop paid a transportation tax on 

 the basis of 12 cents per hundred pounds to the Mississippi river, while 

 the grain of the Nebraska farmer was transported to the seaboard, a dis- 

 tance six times as great, on the basis of 11 V2 cents per hundred pounds, 

 and yet the relations of the railroads and the elevator interests were such 

 that only a fraction of the difference was given to the Nebraska farmer. 



Some might ask, what has all this to do with farmers' co-operative 

 associations? My answer is this: The line house elevator system, which 

 absolutely controls the terminal elevators at the market centers, through 

 their connection with the transportation companies, were able, and as a 

 matter of fact did, for some time, dominate and control the local markets 

 not only of Iowa but of all the grain belt states. 



Toiling in the shadow of these great evils, the farmer has prospered 

 in a measure; but this small measure of prosperity has been forced from 

 the bosom of the soil by perseverence and self-denial; but the greater pos- 

 sibilities for profit to himself were often made apparent to him by the 

 rapid and sure advance in prices after he had disposed of his holdings. 



We must not suppose that the average farmer did not realize what the 

 effect of these conditions were upon his chances for financial development, 

 the problem with him then was a remedy, as an individual he could do 

 nothing, railroads refused to furnish cars, commission men refused to sell 

 his grain, he was told if he wanted to ship grain he must provide him- 

 self with an elevator. 



What more natural result could be expected than the establishment of 

 cooperative grain companies? But the farmers of Iowa, ever cautious, 

 ever conservative, but ever practical as well, have not made as much haste 

 in this work as the results of the earlier experiences would warrant. 



