THE MARKETING OF WHEAT? 2l7 



Dakotas, farmers' associations provide themselves with storage 

 and elevating facilities, 'lo their own shipping, and sell through 

 commission merchants. 



The Local Grain Dealers' Associations are one of the main 

 features in the local elevator management. The two great 

 puiposes that they have served were the improvement of the 

 distributive system and the securing of justice for the country 

 shipper at the primary markets. While the absence of these as- 

 sociations would have been a public misfortune to producer and 

 consumer alike, there is much evidence that they have exceeded 

 the limits of economic usefulness in some directions. It is for 

 the courts to determine whether they have exceeded the legal 

 limits of rightful association. 



The Independent Grain Dealer has frequently served in a 

 most useful capacity. He has generally had the sympathy and 

 support of the grain producer. As a rule, his capital is small, 

 his facilities for handling grain are not elaborate, and he is 

 subjected to the fiercest of cut-throat competition. In spite of 

 all of his disadvantages, however, he sometimes succeeds in 

 maintaining himself for years, to the dismay of his competi- 

 tors and to the profit of the wheat growing community in 

 which he is located. Situated at some little railway station, 

 and perhaps not even possessing an elevator, he keeps the price 

 at the highest notch. This draws the grain from miles of the 

 surrounding country, and it is even hauled past the elevators of 

 the larger towns to the little railway station. The competitors 

 of the independent dealer buy most of the grain, but the latter 

 secures enough for a profitable business. If he happens to be 

 hard pressed by competition, many of the farmers will sell him 

 their grain, even though his competitors are offering a cent or 

 two more per bushel. The farmer can well afford to deal with 

 such consideration, for he may secure several cents more per 

 bushel on account of the competition which results from the 

 independent dealer's operations. The combination, however, is 

 often, perhaps usually, of such strength that it can stifle all 

 competition. The larger interests endeavor to crush out the 

 smaller ones, and the usual methods are employed. The rules 

 of the association do not permit the farmer to consign his grain 

 to a grain dealing firm in the primary market. Complaints have 



