Cooperation 127 



the coercion of the large grain dealers. The grain pro- 

 ducers were square against an unregulated, predatory 

 combination of dealers who fixed the price that the farmer 

 should receive and the conditions under which his grain 

 should be handled and sold. 



At this point, as an outgrowth of these conditions, the 

 farmers' cooperative elevator companies were formed. 

 The grain growers were forced to meet the competition 

 of the commercial grain handlers by forming organizations 

 which were equal or superior to those already in the field. 

 The producers insisted that they should determine to 

 whom their grain should be sold, the conditions under 

 which it should be sold, and that the railroads should 

 accord them the same privileges that they extended to 

 other shippers. In 1889, the first farmers' elevator com- 

 pany was organized at Rockwell, la., where the farmers 

 leased an elevator and proceeded to buy and sell grain. 

 They were subjected to the most vicious competition by 

 the grain dealers of the state. In 1900, two more com- 

 panies were formed. In 1904, thirteen had been organized, 

 and in 1911, there were more than three hundred and 

 twenty-five of these farmers' elevator companies in Iowa. 

 They handled 65,000,000 bushels of grain, and purchased 

 200,000 tons of coal, $750,000 worth of lumber, machinery, 

 flour, feed, and other supplies used by the grain producers. 

 The cost of operating the larger elevators varies from one- 

 half to one per cent of the total business transacted, while 

 the cost to the smaller elevators is about two per cent of 

 the total volume handled, or about two cents a bushel. 



