FARMERS' CO-OPERATIVE ELEVATORS 257 



The origin and growth of the farmers' elevator movement repre- 

 sents one of the most hotly contested battles of modern grain market- 

 ing. It has withstood triumphantly and today is a great factor in the 

 marketing of the annual corn crop. 



Back in the early eighties and previous to that time a growing dis- 

 satisfaction was fomented among the grain producers on account of 

 the apparent depression of prices, frequent "short weights" in selling 

 and shipping, "leakage" and "shrinkage" in transportation and dishon- 

 est treatment on the part of some grain buyers. At that time the "line 

 elevators" held practically a monopoly on the grain trade. Then it 

 was that "scoopers" originated. A scooper was a grain buyer who 

 went from place to place buying and shipping grain. He did not have 

 an elevator, but had the grain scooped into the cars from the farmer's 

 wagons. 



About this same time a large syndicate arose which was headed by 

 large exporters and commission firms with capital. Other syndicates 

 followed. These operated along the various railroad lines. The 

 "scoopers" were then forced out of business. In many cases it was 

 discovered that members of these grain buying syndicates were also 

 stockholders of the railroads, and were owners of large storage ware- 

 houses. They were able to dictate prices. Besides this they became 

 favored shippers through their influence with the railroad companies ; 

 and by owning their warehouses in addition to doing their own buying 

 and selling through the Exchanges, they could influence practically 

 every department of marketing. 



At this same time independent elevators were increasing in num- 

 ber. However these were very largely dominated by the syndicates. 

 Those who refused to be controlled by the syndicate were soon forced 

 out of business. 



Grain Dealers' Associations represent the next step in the history 

 of grain buying. These associations brought about many improve- 

 ments in the marketing of grain but in many cases they increased the 

 suspicion on the part of the producer that prices were being "fixed". 



Out of the discontent which was growing among the farmers, at- 

 tempts were made to ship grain directly to the principal markets. 

 This proved impracticable on account of the failure to get cars from the 

 railroads. The only escape seemed to be through organization, so late 

 in the eighties we find records of the Farmers' Elevators. 



