250 THE GRANGER MOVEMENT 



operations devolved upon the state grange, which was organized 

 in July, 1873. The way in which the business feature dominated 

 the movement in California is seen in the declaration adopted 

 at this time, by which the specific objects of the state grange 

 were said to be to establish farmers' banks and Grange stores; 

 to arrange for the purchase of farm machinery directly from 

 manufacturers and the shipment of products directly to con- 

 sumers; gradually to substitute the cash for the credit system; 

 and eventually to introduce the shipment of grain in bulk instead 

 of in sacks. 1 



In carrying out this program, the executive committee of 

 the state grange made arrangements with the firm of Morgan's 

 Sons to act as shipping agents for the Patrons, and appointed 

 a state agent under bonds, who devoted himself, in addition 

 to supervising the operations of the shipping agent, to making 

 favorable terms with dealers in implements and importers of 

 grain sacks and other supplies. Morgan's Sons also entered 

 the field as direct purchasers of grain, and a lively competition 

 sprang up between them and the old " wheat ring," which pushed 

 the price of wheat up steadily. As a result of the operations 

 of this firm and the purchasing agency during the year 1873-74 

 it was claimed that over five million dollars were saved for the 

 farmers of the state. 2 



The wheat crop of 1874 in California was very large, being 

 nearly double that of the preceding year, and Morgan's Sons 

 apparently got beyond their depth in attempting to handle 

 the Granger consignments. Seventeen cargoes in all were 

 shipped for the Patrons in 1874 and fifteen more were in port 

 under charter to load when, through a combination of circum- 

 stances, the firm of Morgan's Sons was forced into bankruptcy. 

 It might be thought that this experience would be enough for 

 the Grangers, for their losses were considerable, and it was, 

 probably, the most potent cause for the rapid decline of the 

 order in the state during the next few years. The leaders, 

 however, were only spurred on to greater effort. A special 



1 Carr, Patrons of Husbandry, 134; Chicago Tribune, July 26, 1873, p. 5. 



2 Carr, Patrons of Husbandry, 160, 177. 



