COOPERATIVE GRAIN MARKETING. 9 



conditioning purposes ; the other has a capacity of 2,500,000 bushels 

 and is being enlarged to practically double its original capacity. 

 This is used exclusively for public storage purposes. 



The affairs of the Saskatchewan Cooperative Elevator Co. are ad- 

 ministered by a board of nine directors, each of whom holds office 

 for three years. In the election of these directors the stockholders 

 do not have a direct vote, but each local, at least 30 days prior to the 

 annual meeting, elects a delegate to represent all of the stockholders 

 within such local. This delegate has one vote only, regardless of the 

 number of stockholders in a given local. 



The locals are established in this manner: Whenever a group of 

 farmers desire an elevator at their shipping point, to be operated as 

 a unit of the Saskatchewan Cooperative Elevator Co.'s system, they 

 may petition the company to establish a local. Under the provisions 

 of the Saskatchewan Cooperative Elevator Act the directors may not, 

 without the consent of the Lieutenant Governor in Council, establish 

 any local unless it appears to their satisfaction that the amount of 

 shares held by the supporters of the proposed local is at least equal to 

 the value of the proposed elevator, that 15 per cent of the amount of 

 such shares has been paid up, and that the aggregate annual crop acre- 

 age of the said shareholders represents a proportion of not less than 

 2,000 acres for each 10,000 bushels of elevator capacity asked for. 

 Upon the establishment of a local the supporting shareholders meet 

 and elect a local board of management consisting of five members, who 

 hold office until their successors are appointed. Each stockholder 

 may own not more than 20 shares of the stock of the company 

 ($1,000) and has only one vote, regardless of the number of shares 

 owned. At this meeting of the supporters of a local there is elected 

 the delegate who represents all of the stockholders in that local at 

 all the general meetings of the company. 



While the local board of management has no powers or authority 

 not delegated to it by the general board of directors of the company, 

 it does, nevertheless, perform a valuable service in advising the gen- 

 eral directors with respect to matters of local concern. The directors 

 in the local do not actually control even the manager or agent of their 

 own local elevator, but their recommendations relative to such 

 matters are necessarily given weighty consideration by the general 

 board. They also are able to bring to the attention of the general 

 board any dissatisfaction existing among the local members and to 

 suggest improvement in the service. The price to be paid for grain 

 at a local elevator, of course, is determined exclusively by the central 

 office, and all matters of business policy are dictated from this office. 

 The duties of the local agent are confined mainly to carrying out 

 the instructions of the central office and reporting to it regularly 

 and in detail the business transacted by him. 

 21395°— 21 2 



