COOPERATIVES: EARLY PHASES 79 



similar associations had been formed in six out of the nine states of the 

 western Middle West. In the Nebraska state association, organized in 

 1903, grain and livestock producers joined forces to form the Farmers' Co- 

 operative Grain and Livestock Association. 47 



Thus, despite all opposition, the farmer elevator movement continued 

 to grow. From Illinois and Iowa it had spread into the Dakotas, Kansas, 

 Minnesota, Nebraska, Wisconsin, and Indiana. Besides being engaged in 

 the marketing of grain, some, but by no means all, of the farmer elevators 

 handled coal, lumber, farm implements, bricks, drainage tile, flour and 

 feed, binder twine, oils, kerosene, and gasoline. Some elevators also traded 

 in livestock. In general, the establishment of a farmers' elevator at any 

 given point meant a higher local price for grain, and as knowledge of 

 this fact grew, the cooperative movement grew with it. 48 



With better control of their grain market assured, the farmers turned 

 their attention increasingly to the great central terminal markets at Chi- 

 cago, Minneapolis, Omaha, Kansas City, St. Louis, Duluth, and Mil- 

 waukee the nerve centers of the grain business. Here were located the 

 headquarters for all the large buyers and sellers, for the principal banks 

 that financed the grain trade, and for the transportation companies that 

 handled the grain. Here, too, were large accumulations of grain, stored in 

 terminal elevators. Whatever the grievances of the farmers against the 

 country system of grading, weighing, and cleaning, they were insignif- 

 icant in comparison with those that might, and often did, arise on the 

 terminal scene. With the growth in volume of cooperative business, the 

 attitude of the terminal commission firms toward the farmer elevators 

 tended to become more and more friendly. Commission firms that had 

 formerly refused to do business with the cooperatives began to solicit their 

 business eagerly, while those who had always been friendly to the farmers' 

 movement flourished as never before. But the usual mixing, grading, and 

 inspection practices at the terminals still gave rise to much farmer dis- 

 satisfaction, and the railroads were by no means free from the charge of 

 discrimination. 49 



47. Ibid., pp. 246-51. See also Refsell, in Journal of Political Economy, XII (De- 

 cember, 1914), pp. 977-78. 



48. Ibid., pp. 986-87. 



49. Ibid., pp. 978-79; Senate Document 95, 70 Congress, i session, p. 61. 



