18 BULLETIN 937, U. S. DEPARTMENT OF AGRICULTURE. 



Paul, Minn., but instead of operating on the Minneapolis grain ex- 

 change (the Minneapolis Chamber of Commerce), it has established 

 a market place in St. Paul. 



The Montana Grain Growers of Great Falls, Mont., organized in 

 1918 under the laws of Montana, is another organization which in 

 many ways has sought to emulate the Canadian companies. It has 

 now about 20 country elevators under its control with approximately 

 3,000 members. 



In the Pacific Northwest the Tri-State Terminal Co. of Seattle, 

 Wash., furnishes another example of line-house operation of farmers' 

 elevators. This company was formed in 1911. The annual statement 

 of the company for the year ending May 31, 1919, shows a paid-up 

 capital stock of $271,920 and a surplus of $34,302.75. It has a mem- 

 bership of about 2,500, in addition to a number of local farmers' 

 elevator companies owning shares of its capital stock. Over 20 coun- 

 try elevators are operated by it as a part of the line-house system. 



Among other organizations which serve or are preparing to serve 

 the interests of farmers' elevators in the terminal markets are the 

 Farmers' Commission Co. of Hutchinson, Kans. ; the Farmers' Ele- 

 vators Commission of Minneapolis, Minn. ; the Farmers' Terminal 

 Elevator Co. of Sioux City, Iowa ; the National Cooperative Co. of 

 Omaha, Nebr. ; the Equity Union Grain Co. of Kansas City, Mo. ; and 

 the Michigan State Farm Bureau Elevator Exchange of Lansing, 

 Mich. 



FUNCTIONS OF COOPERATIVE GRAIN MARKETING 

 ORGANIZATIONS. 



In the case of farmers' elevators of all types in this country and in 

 Canada there has been no material difference in their methods of 

 operation as distinguished from the methods of private interests, 

 except, of course, with respect to policies growing out of ownership 

 of the marketing facilities by a large number of actual grain growers. 

 No attempt has been made to secure control over crops of members, 

 but each grower member has been left free to dispose of his crop when 

 and to whom he chose. The whole effort in regard to cooperative 

 marketing has been directed toward having the grower perform for 

 himself certain functions of marketing which previously had been 

 performed by others, but using exactly the same kind of marketing 

 machinery. The only change is the substitution of cooperative 

 ownership of middleman facilities for private ownership. If the 

 idea of capital stock ownership by growers who are also patrons of 

 the elevator company and the plan of distributing earnings among 

 the members on the basis of patronage furnished were eliminated 

 there would be nothing to distinguish the present day farmers' ele- 

 vator company from any other corporation engaged in the grain 

 business. 



