But events even now slowly were shaping. With the winning of their first clash the farmers" movement was achieving momentum. In the latter part of December, 1902, down in the town of Virden, Manitoba, a committee was appointed at a meeting of the Virden Agricultural Society, to arrange a district meeting for the purpose of organizing the first Grain Growers" a.s.sociation in Manitoba. As soon as the date was set J. W. Scallion wrote to W. R. Motherwell, urgently asking him to a.s.sist in the organization. Although roads and weather were rough, the President of the Territorial Grain Growers" a.s.sociation at considerable inconvenience went down to Virden, taking with him Matt.

Snow and copies of the const.i.tution and by-laws upon which the Territorial a.s.sociation was founded, With this a.s.sistance a strong local a.s.sociation was formed at Virden on January 9th, 1903, with capable officers[2] and a first-year membership of one hundred and twenty-five.

The same difficulties that faced the farmers farther West were being experienced in Manitoba and the newspapers were full of protesting letters from country points. As President of the Virden Grain Growers"

a.s.sociation, J. W. Scallion wrote letters to every place where complaints were being voiced and urged organization. At every opportunity it was advocated through the press that from the eastern boundary of Manitoba to the Rocky Mountains the farmers should organize themselves for self-defence against oppression, present or possible, by "the interests." In about six weeks over fifteen local a.s.sociations had been formed in Manitoba and Virden began calling for a Provincial a.s.sociation. Accordingly, on March 3rd and 4th, 1903, the Manitoba grain growers held their first convention at Brandon with one hundred delegates present, representing twenty-six local a.s.sociations. Great enthusiasm marked the event and the officers[3] chosen were all men of initiative.

The members of the parent organization watched the rapid expansion on all sides with sparkling eyes. Their own second annual convention at Indian Head revealed considerable progress and the promise of greater things to come. On the invitation of the delegates from the Regina district it was decided to hold the third annual convention at the capital and the rousing gathering which met there in due course was productive of such stimulus and publicity that its effect was felt long afterward.

At every convention the farmers found some additional weak spot in the Grain Act and suggested remedial legislation. Records are lacking to show in what order the various changes came; but step by step the farmers were gaining their rights. It all seemed so wonderful--to get together thus and frame requests of the Government at Ottawa, to find their very wording incorporated in the Act. The farmers scarcely had dared to think of such a thing before. To them the ear of a government was a delicate organism beyond reach, attuned to the acoustics of High Places only; that it was an ear to hear, an ear to the ground to catch the voice of the people was a discovery. At any rate when W. R.

Motherwell and J. B. Gillespie, of the Territories, D. W. McCuaig and R. C. Henders, of Manitoba, went to Ottawa for the first time they were received with every consideration and many of their requests on behalf of the farmers granted.

With such recognition and the recurring evidence of advantageous results the jeering grins of a certain section of the onlooking public began to sober down to a less disrespectful mien. Those who talked glibly at first of the other farmers" organizations which they had seen go to pieces became less free with their forebodings.

In 1904 the farmers began to press for something more than the proper distribution of cars and the freedom of shipment. They were dissatisfied with the grading system and the re-inspection machinery.

Some of them claimed that the grading system did not cla.s.sify wheat according to its milling value. Some wanted a change in the Government"s staff at the office of the Chief Grain Inspector where the official grading was done. Some wanted a sample market; some didn"t.

The farmers were about evenly divided.

The Department of Agriculture for the Territories commissioned Professor Robert Harcourt, Chemist of the Ontario Agricultural College, to conduct tests as to the comparative values of the different grades of wheat. E. A. Partridge, of Sintaluta, and A. A. Perley, of Wolseley, undertook to secure eight-bushel samples of the various grades from their districts. These were carefully sacked and shipped to the Chief Grain Inspector at Winnipeg, where he graded them and forwarded them to Professor Harcourt, sealed in such a way that any tampering with the shipment would be detected readily.

These samples were all of 1903 crop. There had been a bad snowstorm in September of that year and much wheat had been standing in stook. The farmers believed that the grain was not frozen or injured in any way and that they were defrauded to some extent in the grading of their wheat. The samples represented all grades from "No. 1 Hard" to "Feed."

They were milled with exceptional care to prevent mixing of the various lots and the flours obtained were put through three different baking tests.

The conclusion reached was that there did not appear to be much difference in the value of the different grades of wheat. Even the "Feed" sample proved by no means useless for bread-making purposes, either in yield or quality; the only thing that rendered it less available for bakers" use was its darker color. All who saw the loaves were surprised at the quality of this bread.

The tests on these 1903 samples confirmed the farmers in their opinion that on 1903 wheat the spread in price between No. 1 Hard and No. 4 was not in harmony with the milling quality. From No. 1 Hard the amount of flour obtained was 70.8 per cent. as against 68 per cent. from the No.

4 grade. The large percentage of stook-frozen grain that went into the lower grades because it was technically debarred from the higher ones no doubt raised the milling value, it was thought, of all the grades that year.

The Department of Agriculture for the Territories therefore decided to repeat the tests with 1904 wheat. The samples with which Professor Harcourt was furnished represented the grain just as it was sold by the farmer and graded either at the elevator or by the Chief Grain Inspector; it was not a composite sample of the commercial grades. The second tests practically confirmed the work done the previous year.

The milling, chemical and baking tests failed to show very wide differences in the composition and milling value of the grades submitted. The conclusion reached was that the difference in composition and milling value was nearly as great between samples of any one grade as between the various grades.

The farmers began to feel that it would be a good thing to have a representative at Winnipeg to watch the grading of their cars and to look after their interests generally. The Department of Agriculture for the Territories was asked by the Sintaluta grain growers to appoint a man and W. H. Gaddes was commissioned to act for two weeks. Then the farmers began to wonder if they could not send down a man of their own; at one of their meetings the question was put and those present subscribed five dollars apiece for the purpose.

Thus it came about that on the 7th of January, 1905, there stepped from the train at the C. P. R. depot in Winnipeg a man who looked no different from any one of a dozen other farmers who daily reached the city, tanned of cheek and bright of eye. But his business in town was of a very special nature. In his pocket was a hundred dollars and the grip in his hand was packed for a month"s stay.

It was a month of "cold shoulders" and patronizing manners for E. A.

Partridge. No band music was played in his honor, no festive board was spread, nor was he taken around and shown the sights of the city. On the contrary, he was made to feel like a spy in the camp of an enemy; for he found himself entirely without status, the grain dealers recognizing him merely as a farmers" representative, whatever that was.

Even at the office of the Chief Grain Inspector he was looked upon as a man who was meddling with something which he wasn"t supposed to know anything about.

Nevertheless, the Chief Inspector himself gave him information at times and there were one or two others who took the trouble to explain some things about which he asked questions. Among the latter was a grain man by the name of Tom Coulter. For the most part, however, the presence of the "farmers" representative" at Winnipeg was looked upon as a joke; so that information as to the grain business became for him largely a still hunt. He visited offices, listened to how interviews were conducted over the telephone and picked up whatever loose ends he could find to follow up.

"Who is that fellow, anyway?" asked a grain man who had just got back to the city. He jerked his thumb over his shoulder.

"Oh, him!" laughed his partner as he saw who was indicated. "Only that gazabo from Sintaluta who"s been nosing around lately. Some hayseeds out the line sent him down here to learn the grain business. They believe that all wheat"s No. 1 Hard, all grain buyers are thieves, and that h.e.l.l"s to be divided equally between the railways and the milling companies!"

"So that"s the guy, eh?--that"s that man Partridge!"

[1] The new name of Rat Portage is Kenora (Ontario).

[2] See Appendix--Par. 2.

[3] See Appendix--Par. 8.

CHAPTER V

"THE HOUSE WITH THE CLOSED SHUTTERS"

Knock, knock, knock! Who"s there, i" the name of Beelzebub? Here"s a farmer . . .--_Macbeth_.

When wheat ceased to be grown for local needs and overflowed upon the markets of the world, becoming a factor in finance, arenas where its destiny was decided were established in the large centres of trade. In these basins of commerce the never-ending flow concentrated and wheeled for a short s.p.a.ce before in re-directed currents it rolled on its way to ocean ports. Here, according to the novelists, frantic men were sucked into the golden eddies, their cries strangled and their fate forgotten even as they were engulfed by the Leviathan with which they adventured; or they emerged with eyes bloodshot, voices gone and clothes torn, successful speculators of a day. Perhaps the general reader is more familiar with these mad scenes of "The Pit," as the trading floor is called, than with the steadily turning marketing machinery of which they are but a penumbra.

The modern grain exchange is much more than a mere roulette wheel for the speculator. Its real purpose is to provide a centre for the legitimate trader. It is a great information bureau of world happenings where every item of news concerning the wheat in any way is gathered and cla.s.sified--drouth, rain, frost, rust, locusts, hail, Hessian fly, monsoon or chinch bug. In every corner of the earth where the wheat streams take their rise, from green blade to brown head the progress of the crop is recorded and the prospects forecasted--on the steppes of Russia, the pampas of the Argentine, the valley of the San Joaquin, the prairies of Western Canada and the Dakotas, the fields of India, Iowa, Illinois and Kansas. Good news, bad news, the movements of ships, the prices on the corn exchanges of London and Liverpool, at Chicago, on the bourses of Paris, Antwerp and Amsterdam--all are listed. With such a Timepiece of International Exchange ticking out the doings of nations, both buyer and seller can know what prices will govern their dealings. In office or farmhouse an ear to a telephone is all that is necessary.

A grain exchange, then, is the market-place where grain dealers meet to secure information and maintain regulations for the prompt performance of contracts. The exchange organization does not deal in grain, but has for its sole purpose the protection of those who do and the facilitating of transactions; in other words, it is on the ground to see that the grain trade is carried on in an honest and capable manner and to punish offenders against proper business ethics and established rules.

Its membership is composed of grain dealers doing business in the exchange"s territory--milling companies, exporting companies, line elevator companies as well as independent dealers and "commission men."

Besides seeking a supply of wheat to keep their mills busy for the season, the milling companies sell wheat. It is the business of the exporters to make shipment to other countries. Wheat is sold to exporters and millers by the elevator companies, who are interested in running as much grain as possible through their elevators at country points. The chief business of independent dealers is to handle wheat that stands "on track," ready for shipment, either buying outright from the farmer or handling it for him on a commission basis.

The "commission man" is in an especially good position to do a clean-cut business. He a.s.sumes no burden of large capital investment and operating expense, as do the elevator companies. His chief need is a line of credit at a bank and from this he pays advances to his clients, his security being the bills of lading of wheat consigned to him. He does not need to buy or sell on his own account and, unlike the exporter, he does not have to risk changes in freight rates or in prices or make deliveries by given dates. As for the satisfactory milling quality of the crop--that is something for the miller to worry over. In order to do business it is necessary only for the commission man to be a member of the exchange and to obey its rules.

For a long time Winnipeg has been known as the greatest primary wheat market in the world. That means that a greater volume of new wheat, direct from the producer, pa.s.ses through the Winnipeg market than anywhere else, not even excepting Chicago where the first grain exchange to reach international development was established in 1848.

The Winnipeg market is fed by the vast wheat area of Western Canada and frequently between two and three million bushels of wheat go through Winnipeg in a single day. During the rush season sixty or seventy cars of wheat leave Winnipeg for the East every twenty minutes of every twenty-four hours. The freight boats on the lakes load 460,000 bushels in three-and-a-half hours.[1]

It is interesting to note that nowhere else in the world is a great public grain market like the Winnipeg market found located four hundred miles away from the storage point where grain dealt in is kept for sale delivery. Geographically Fort William and Port Arthur at the head of the great lakes water route would provide the natural delivery point for Western grain which has been routed eastward[2] and there the location of the exchange might be looked for logically. It so happens, however, that the eastern edge of the vast grain fields lies four hundred miles west of the twin harbors, the country between not being adapted for farming, and to avoid the delay of mail transit and to operate the trading effectively it was necessary to locate the exchange at Winnipeg, the great metropolitan railway centre where the incoming grain concentrated.

In Western Canada the grain is stored in bulk by grades, thereby cheapening handling cost. Unlike most countries--which sell grain on sample--Western Canadian grain has been sold by grade. The inspection and grading of wheat, therefore, is a very important factor in the grain trade of Canada and is in full charge of Dominion Government officials. Upon their verdict depends the price per bushel which will be paid for any shipment of grain, market quotations varying for different grades; whether stored, sold at home or sold abroad their certificate of grade brands that particular wheat throughout. The huge river of grain flows in upon them unceasingly; at times the inspectors have to work at top speed to avoid being engulfed. The variety of Nature"s response to the growing conditions in changing seasons must not confuse them from year to year; but with sharpened senses and sound judgment they must steer a sure course through the multiplicity of grades and grade subdivisions.

The thoroughness of the system adopted by the Grain Inspection Department is shown by description of the work done at Winnipeg.

Offices and staffs in charge of deputy inspectors are maintained in the different railway yards. They work in shifts night and day; for during the mad seventy-or-so days in which the Western crop stampedes for the lakefront there is no let-up to the in-rolling wheat-bins which come swaying and grinding in over the rails like beads on a string--the endless rosary of harvest thanksgiving. Wheat samples must be obtained from each car and no train can be moved until a placard has been placed at the end of it, reading: "Grain Inspectors have finished this train."

A fifty-car train can be sampled in about an hour and a half, which is comfortable time for a change of engines and crews.

The sampling gangs work with all the precision of gun crews--each man with a particular thing to do. One goes down the train, opening car doors and leaving an empty sample bag in each car. Running up a short ladder, the sampler climbs over the top of the inner door, which extends above the "load line"; the standard sampler which he uses is a cylindrical bra.s.s rod, so constructed that when it is "stabbed" to the bottom of the car the grain which fills it is a correct sample of wheat at every depth. Seven such samples are procured from different sections of the car, and the track foreman, standing on a ladder, watches these poured onto a cloth with an eye to detecting evidence of "plugging" with an inferior quality of grain; these seven samples having been mixed thoroughly, a canvas bag is filled from the result and the two-and-one-half pounds which it will hold become the official sample. The rest of the mixture is dumped back and the car resealed.

The foreman has filled out a sample ticket with car number, date, load line, initials of sampler and any other notations necessary--such as leakages, etc. His own name is stamped on the back of the ticket, which goes into the sample sack. Copies of the way bills with full information as to all cars, shipping points, consignees or advisees and destinations are obtained from the railway yard office and these, together with the samples, are sent twice a day to the Chief Grain Inspector"s office at the Grain Exchange.

Here the samples are inspected and graded in a room with special lighting facilities. The grading is done only in broad daylight. The quality of the grain, its condition and the admixtures are determined respectively by judgment of hand and eye, by elaborate mechanical moisture tests and by a sieving and weighing process. The whole sample is examined closely for color, plumpness, weight, etc., in order to fix its grade as No. 1 Hard, No. 1 Northern, 2 Northern, 3 Northern; 1 Hard and 1 Northern must weigh at least sixty pounds, 2 Northern fifty-eight pounds, and so on. Grades below these are set by the Grain Standards Board. Damp or wet grain is marked "No Grade," which means that it is considered unfit for storing and therefore has a lower market value.

Grain which is heated or bin-burnt is "condemned." If it is unsound, musty, dirty, s.m.u.tty, sprouted or badly mixed with other grain, etc., it is "rejected." Grain which, because of weather or other conditions, cannot be included in the grades provided by statute is given a "commercial grade."

It will be seen at once that here is work requiring great nicety of judgment and that long experience is necessary to enable the grader to reach his decisions quickly and accurately. When the grading is completed the sample is placed in a small tin box and filed systematically; it is supposed to remain thus stored until there is no longer the possibility of a demand for re-inspection and finally the samples are sacked and sold to the miller with the highest bid, the money being paid to the Dominion Government.

Grade certificates, bearing the Chief Grain Inspector"s signature, are issued for each shipment and sent at once to the elevator company, miller or commission agent to whom the car is consigned. These grade certificates, together with the weight certificate and the bill of lading, make the grain negotiable on the market; the dealer does not see the actual grain, merely handling these papers.

If dissatisfaction with grade or dockage arises, the owner of the grain or his agent can obtain re-inspection at the office of the Chief Grain Inspector free of charge, and, if still dissatisfied, appeal can be made to the Survey Board. This is a board of twelve men; the governing rules and regulations are established by the Grain Commission. Six members are recommended by the Winnipeg Board of Trade and two each by the Minister of Agriculture in each of the three prairie provinces.[3]

The verdict of the Survey Board is final.