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Grain Growers' Grain Company

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The Grain Growers' Grain Company (GGGC) was a farmers' cooperative founded in the prairie provinces of western Canada in 1906. The GGGC met strong resistance from existing grain dealers. It was forced off the Winnipeg Grain Exchange and almost failed. With help from the Manitoba government it regained its seat on the exchange, and soon had a profitable grain trading business. The company founded the Grain Growers' Guide , which became the most popular farmer's newspaper in the region. In 1912 the GGGC began operating inland and terminal grain elevators, and in 1913 moved into the farm supply business. The GGGC was financially secure and owned or operated almost 200 elevators as well as 122 coals sheds and 145 warehouses by the time it merged with the Alberta Farmers' Co-operative Elevator Company to form the United Grain Growers in 1917.

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58-644: The GGGC was largely the creation of the agrarian activist Edward Alexander Partridge , an "impetuous and idealistic" man. He was called "the sage of Sintaluta". Partridge was sent by the Sintaluta , Saskatchewan local of the Territorial Grain Growers' Association (TGGA) to Winnipeg in January–February 1905 to observe the Winnipeg Grain Exchange . He was treated poorly and became convinced that

116-461: A "watchdog" to make sure that the exchange was treating grain growers fairly, and they sent Partridge to Winnipeg in January–February 1905 to observe the exchange. He was treated poorly and became convinced that the exchange was not interested in the farmers, who needed their own grain company. For his observations of the Grain Exchange he earned the nickname "That Man Partridge." Patridge spoke at

174-641: A co-operative commonwealth to be established in Western Canada. It includes a section called "Coalsamao" in which he describes this future utopian state from an insider's viewpoint. In 1925 Partridge's wife died from a heart attack. In 1926 Partridge moved to a room in a boarding house in Victoria, British Columbia to be near his youngest daughter. With no money apart from the small, monthly $ 75.00 UGG stipend, in poor health, and despairing of achieving further reforms, Partridge committed suicide on 3 August 1931. He

232-550: A farm. They had three daughters and two sons. Farmers formed the Territorial Grain Growers' Association (TGGA) in January 1902 to help them fight abuse by the grain dealers and railways. The TGGA had succeeded in getting the Manitoba Grain Act amended to eliminate the main abuses by 1903. With the passage of the amendments to the act it had achieved its primary objective, and lost some of its momentum. Partridge began to push

290-631: A farmer. He was active in the Territorial Grain Growers' Association (TGGA), founded in 1902, which addressed various problems with the Western Canada grain market . He founded the cooperative Grain Growers' Grain Company , the predecessor of the United Grain Growers , and the Grain Growers' Guide , a widely distributed weekly paper. His "Partridge Plan" was a broad and visionary proposal for addressing

348-558: A farmers' publication. The Grain Growers' Guide first appeared in June 1908, edited by Partridge. It was published by the Grain Growers' Grain Company through its subsidiary, Public Press Limited. The Guide represented the interests of the three provincial grain growers' associations, the MGGA, SGGA and United Farmers of Alberta (UFA). This created a sense of solidarity and unity of purpose among

406-563: A government-guaranteed loan that the SCEC would repay from its income. John Archibald Maharg (1872–1944) was the first president, holding office until 1923. The SCEC built forty elevators in 1911 and leased six. It built 93 elevators in 1912. In 1913 the Alberta Farmers’ Co-operative Elevator Company (AFCEC) was created using the same model. By 1916 the SCEC was operating 190 elevators, and by 1917 had 230. In 1912

464-481: A group that wrote an open letter to the grain growers in which they accused Crerar of "lack of industry and business ability," and of failure "in carrying out the wishes of the directors." Partridge was concerned about a speculative purchase that one of the executives had made and felt that Crerar, the president of the GGGC, should be forced to leave. Instead Partridge left the GGGC and tried to launch another grain company, but

522-427: A leg in an accident. Partridge felt that the press had given unfair treatment of the struggle to get the GGGC off the ground, and helped organize a farmers' publication. The Grain Growers' Guide first appeared in 1908, edited by Partridge. It was published by the Grain Growers' Grain Company through its subsidiary, Public Press Limited. The Guide represented the interests of the MGGA and its sister organizations

580-546: A wide range of farmers' issues, eliminating many abuses caused by the near-monopoly of grain elevator companies, and resulted in important reforms by the provincial governments. Patridge was named a National Historic Person in 2018. Edward Alexander Partridge was born on 5 November 1861 near Crown Hill, Springwater then in Canada West . He was the third son in a farming family. His parents were John Thomas Partridge and Martha Chappell. There were fourteen children altogether in

638-553: Is doubtful if it [SCEC] has helped them much, except as a powerful and keen competitor with other firms." The poorer farmers saw the SCEC and UGG as no different from the other grain companies apart from the fact that their owners were prosperous farmers. Early in 1924 wheat pool organizers, inspired by their success in Alberta, began campaigns to sign up farmers in Saskatchewan and Alberta. The two farm organizations in Saskatchewan lent

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696-799: The District of Assiniboia . They settled at the hamlet and railway station of Sintaluta , now in Saskatchewan but then in the North-West Territories. Unable to afford the equipment and supplies he needed to operate a farm, Partridge returned to teaching. He taught near Broadview, at Saltcoats and at Maple Green near Lemberg. He served in the Yorkton Militia from April to June 1885 during the North-West Rebellion . In 1886, he married Mary Elizabeth Stephens in Balcarres, Saskatchewan , and they began

754-555: The Grain Growers' Grain Company (GGGC) was founded as a cooperative company to handle marketing of the grain, under Partridge's leadership. The GGGC found itself engaged in a lengthy struggle with the existing grain companies over its seats on the Winnipeg Grain Exchange . It was expelled for paying patronage dividends to its member clients, then reinstated when the Manitoba Grain Growers' Association MGGA exerted pressure on

812-555: The Grain Growers' Guide . The Saskatchewan Co-operative Elevator Company was involved in the merger discussions, but in the end decided not to join the UGG. Crerar continued as president of the UGG. Edward Alexander Partridge Edward Alexander Partridge (5 November 1861 – 3 August 1931) was a Canadian teacher, farmer, agrarian radical, businessman and author. He was born in Ontario but moved to Saskatchewan where he taught and then became

870-575: The Guide published the "Partridge Plan", in which he again proposed that grain elevators should be owned by the public, a position already accepted by the SGGA. The premiers of the three Prairie provinces all took an interest in the plan, although Alberta and Saskatchewan preferred cooperative ownership to public ownership. The plan covered a wide range of issues and was somewhat confused, but most SGGA members were enthusiastic about it. The plan covered grain handling,

928-457: The Manitoba Grain Act was passed in 1900. The act was well-meaning, but at first was ineffective, and a series of amendments were needed to iron out the flaws. The Saskatchewan Co-operative Elevator Company (SCEC) had its roots in agitation by the agrarian reformer Edward Alexander Partridge of Sintaluta. The organization meeting for the Grain Growers' Grain Company (GGGC) was held in Sintaluta , Manitoba on 27 January 1906, with Partridge as

986-732: The Saskatchewan Grain Growers' Association (SGGA) and the United Farmers of Alberta (UFA). Partridge thought the guide should be a militant paper, but was not supported in this view. He resigned after the first issue. Partridge and Thomas Crerar of Manitoba attended the January 1909 convention where the Alberta Farmers' Association merged with the Canadian Society of Equity to form the United Farmers of Alberta. Before

1044-475: The "Siege of Ottawa". On 16 December 1910 from 850 to 1,000 delegates marched on the House of Commons. They were allowed to enter the house and present their briefs. In 1912 Partridge left the GGGC during a dispute about a speculative purchase that one of the executives had made. He felt that Thomas Alexander Crerar, the president of the GGGC, should be forced to leave. Partridge tried to launch another grain company, but

1102-500: The $ 2,500 needed for the seat, so five of the founders had to sign personal notes to make up the amount. The first car of grain was received on 21 September 1906. The GGGC immediately found itself engaged in a struggle with the existing grain companies. On 8 November 1906 it was expelled from the exchange due to its practice as a cooperative of paying patronage dividends to its member clients. In December 1906 Partridge and other officers were forced to pledge their personal assets to prevent

1160-536: The Canadian Co-Operative Wheat Producers to market the grain. The SCEC raised difficulties about letting the pool use its elevators, so the pool's leaders made arrangements with private companies, and then started to build its own. In 1925 the pool offered to buy the SCEC's elevators. At the December annual meeting of the SCEC the farmer delegates overrode the board, and forced the SCEC to consider

1218-455: The GGGC had also entered the elevator business when it began to operate 135 country elevators leased from the government of Manitoba. In 1917 the GGGC merged with the AFCEC to form the United Grain Growers (UGG). The SCEC was involved in the merger discussions, but in the end decided not to join the UGG. By 1920 the SCEC had 318 licensed elevators, and was the largest operator of grain elevators on

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1276-492: The GGGC in 1912. In Saskatchewan premier Thomas Walter Scott arranged for a Royal Commission on Elevators in 1910. The commission recommended a system where the elevators would be cooperatively owned by the farmers rather than by the government. In 1911 legislation was passed by which the Saskatchewan Co-operative Elevator Company (SCEC) was incorporated to run elevators under this model. The SCEC

1334-428: The GGGC made arrangements with the elevator companies to handle the grain, which it sold on a commission basis on the exchange and returned profits to the investors. The GGGC made no effort to sell direct to foreign buyers, and was criticized by Partridge and others for its cautious approach. The growers' associations often asserted that the GGGC officials were inefficient and lacked judgement. In 1912 Partridge organized

1392-658: The GGGC merged with the Alberta Farmers' Co-operative Elevator Company (AFCEC) to form the United Grain Growers (UGG). The AFCEC had been established in 1913 and at once began construction. At the time of the merger it owned 103 elevators, 122 coals sheds and 145 warehouses. The GGGC owned 60 elevators in Manitoba and Saskatchewan, leased and operated 137 elevators owned by the Manitoba Government, and had 55 coal sheds and 78 warehouses for flour and farm supplies. It also owned

1450-474: The MGGA, D.W. McCuaig, sued three of the exchange's members for combining to obstruct trade. The farmers saw the reinstatement of the GGGC and a forced reorganization of the exchange as a vindication of their criticisms of the trading companies. However, the GGGC quickly adapted to following the same practices that the farmers had attacked. The first annual meeting of the GGGC was held on 16 July 1907. Partridge resigned as president at this meeting, in part because

1508-684: The Partridge Plan thus addressed a wide range of farmer's concerns. In 1909 Partridge attended the annual meeting of the Dominion Grange, where the western grain grower's associations and the Farmers' Association of Ontario established the Canadian Council of Agriculture. He became interested in the idea of forming a major delegation of farmers to go to Ottawa and present their views to the government of Wilfrid Laurier , an event that became known as

1566-650: The SCEC, was later premier of Saskatchewan. J. B. Musselman, an influential Liberal and former secretary of the SCEC, was given a position in the SCEC when he was forced to leave the SGGA by reformers. The SCEC's relationship with the Liberals drew criticism from those who felt that a cooperative should be politically neutral, particularly from those who did not support the Liberals. The SCEC drew criticism for being too conservative, unwilling to expand from running elevators into marketing grain. Its directors were elected at central meetings, so did not represent local needs. The SCEC

1624-474: The SGGA convention in 1906, and attacked the grain handling system. He said that the elevator companies, millers and exporters rigged the grain prices so they were low during the fall harvest period, when farmers had to sell to obtain cash to pay their debts. They then made future contracts to the English buyers for delivery at far higher prices. Many of his audience were convinced by his argument. On 27 January 1906

1682-588: The Supreme Being, and reflects his profound belief in the Social Gospel . Partridge decried government-protected capitalists such as Gordon McGregor and Wallace Campbell who continued "to prey upon that part of the poor bedevilled Canadian public who can't escape to the United States". He was deeply influenced by John Ruskin 's social ideals, and by social Darwinism and Christian socialism . His book calls for

1740-448: The TGGA members to demand tighter control of the grading system and inspection of elevators. He also proposed a cooperative grain trading company owned by the farmers, a newspaper to help communication and greater involvement by farmers in political issues. The Sintaluta Local was concerned about the operation of the Winnipeg Grain Exchange . They persuaded the federal government to appoint

1798-419: The bank from closing the company's account. The first general meeting of shareholders was held on 5 February 1907. The company was reorganized along lines that were no longer explicitly cooperative. The GGGC was reinstated on the exchange when the Manitoba Grain Growers' Association (MGGA) exerted pressure on the government of Rodmond Roblin . Trading privileges were restored on 15 April 1907. The president of

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1856-421: The company's original cooperative structure had been modified to meet the requirements of the Grain Exchange, in part because he was not interested in running the company he had launched. Partridge was succeeded by Thomas Crerar of Manitoba, who was president and general manager until 1917. Partridge felt that the press had given unfair treatment of the struggle to get the GGGC off the ground, and helped organize

1914-498: The effective monopoly of the large grain handlers, and could be eliminated by the government taking over the local elevators. Partridge saw a conflict between the dual role of the elevator companies in storing and selling grain, which would be resolved if the elevators were strictly handling and storage facilities. He also addressed the problems of the smaller farmers by proposing to combine wagon lots of equal quality grain into car lots. The farmer would be given an advance of up to half

1972-547: The exchange was not interested in the farmers, who needed their own grain company. He called the Exchange the "House of the Closed Shutters." He described it as "a combine" with "a gambling hell thrown in." Patridge spoke at the Saskatchewan Grain Growers' Association (SGGA) convention in 1906, and attacked the grain handling system. He said the elevator companies, millers and exporters rigged grain prices so they were low during

2030-422: The fall harvest period, when farmers had to sell to obtain cash to pay their debts. They then made future contracts to the English buyers for delivery at far higher prices. Many of his audience were convinced by his argument. The leaders of the SGGA were opposed to Partridge's plan to establish a farmer-owned company, but he ignored their objections. The organization meeting for the Grain Growers' Grain Company (GGGC)

2088-479: The family. His father's parents had emigrated from New York State in 1819 and settled to the northeast of Barrie , Ontario. Partridge's mother died while he was an infant, and he lived with his grandparents for a period while he attended public school. He completed secondary school in Barrie and obtained a teacher's certificate. He taught for a period, then in December 1883 moved west with his brother to attempt farming in

2146-410: The first president. The GGGC was a cooperative marketing company, but at first did not own elevators. In 1908 Partridge published the "Partridge Plan" in which he advocated many reforms to the structure of the grain industry, including government ownership of elevators. Under pressure, the Manitoba government purchased elevators in 1910, but the operation was not successful. The elevators were leased by

2204-447: The government of Rodmond Roblin . The president of the MGGA, D.W. McCuaig, sued three of the exchange's members for combining to obstruct trade. Partridge resigned as president of the GGGC at the 1907 convention, in part because the company's original cooperative structure had been modified to meet the requirements of the Grain Exchange, in part because he was not interested in running the company he had launched. In 1908 Partridge lost

2262-605: The government of Manitoba, and began to operate 135 of them. The GGGC started to build new country elevators. The GGGC leased two terminal elevators from the Canadian Pacific Railway at Fort William, Ontario , on Lake Superior . They started to operate the terminals in October 1912 as one unit with a capacity of 2,300,000 imperial bushels. In 1913 the company bought another terminal in Fort William. It burned down in 1916 and

2320-408: The grain blockade, farm credit and market speculation. It identified and proposed remedies for practices by the elevator companies that included excessive dockage fees, light weights, refusing to bin special grain, replacing special binned grain with lower-quality grain and preventing farmers who had bought storage space in an elevator from dealing with non-company buyers. All these abuses derived from

2378-534: The grain dealers, but called for better regulation rather than government intervention. Partridge became the leader in a campaign to nationalize the elevators in the grain terminals. Early in 1908 Partridge convinced the SGGA to endorse the principle that inland grain elevators should be owned by the province and terminal elevators by the Dominion of Canada. The Manitoba association passed a resolution supporting this proposal at their convention. Soon after being launched,

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2436-485: The kernel rather than the milled value, and encouraged mixing at the terminal elevators. Partridge proposed to replace this by a market where buyers could make their offer based on visual inspection of the grain being sold, eliminating the need for grading and letting sellers and buyers interact directly. The end result would also be to eliminate speculation in grain futures, with exporters buying stored grain only as needed based on samples. The far-reaching reform proposals of

2494-612: The merger the AFA's official organ was the Homestead , and the CSE published The Great West . At his urging, these papers were absorbed by the Grain Growers' Guide . Partridge continued to push for reform of the terminal market. Under pressure, the government appointed the Millar Commission, led by SGGA secretary John Millar , to investigate the system. The commission uncovered evidence of abuse by

2552-561: The pool funds, and the provincial government provided a CAN$ 45,000 advance. The SCEC was violently opposed to organization of a wheat pool in the province, which it saw as a threat to its existence, but could not stop rapid growth in membership. By 6 June 1924 the pool in Saskatchewan had signed up 46,500 contracts covering more than half the acreage in the province. The pool incorporated as the Saskatchewan Co-Operative Wheat Producers . The three provincial pools formed

2610-458: The prairie farmers. The GGGC gave subsidies of CAN$ 25,000 to programs ran by the provincial growers' associations between 1909 and 1914, and provided CAN$ 60,000 for education in the same period. On 19 May 1911 the GGGC received a Dominion charter. The company grew fast, from 1,800 shareholders in 1907 to more than 27,000 in 1912. The volume of grain handled by the company increased in that period from 2.3 million to almost 28 million bushels. At first

2668-525: The prairies, ahead of the UGG. By the mid 1920s it had more than 400 elevators. The SCEC was closely aligned with the Saskatchewan Grain Growers' Association (SGGA), a farmer's group, and with the Liberal Party of Saskatchewan. Maharg, president of the SCEC was also president of the SGGA, and in 1921 was provincial minister of agriculture in the Liberal government. Charles Avery Dunning , the first manager of

2726-460: The province had 95,013 farms covering 9,100,000 acres (3,700,000 ha), mostly growing wheat. By 1916 there were 104,006 farms with 14,000,000 acres (5,700,000 ha) of cultivated land. For years the prairie farmers complained of unfair treatment and lack of true competition between the existing line elevator companies, who owned the grain elevators where the grain was stored before being loaded into railway cars. In response to these complaints

2784-481: The total value, and a share of the price received when the car lot was sold. This anticipated the practice later adopted by the Wheat Pools and Wheat Board. Partridge also proposed that the government build increased storage facilities so that farmers were not forced to sell as soon as the harvest was over, but could wait until prices rose in the spring or summer. The grading system unduly emphasized color and weight of

2842-686: Was 69 years old. Saskatchewan Co-operative Elevator Company The Saskatchewan Co-operative Elevator Company (SCEC) was a farmer-owned enterprise that provided grain storage and handling services to farmers in Saskatchewan , Canada between 1911 and 1926, when its assets were purchased by the Saskatchewan Wheat Pool . In the early 20th century wheat farming was expanding fast in the Canadian prairies. Saskatchewan had 13,445 active farms in 1901 covering 600,000 acres (240,000 ha). By 1911

2900-412: Was a joint-stock cooperative company whose shares would be sold only to farmers, who could not buy more than ten shares each. The government guaranteed the company's credit. The SCEC was to provide elevator services for local farmers, and later expanded into selling grain. Farmers could buy shares with nominal value of CAN$ 50 for just CAN$ 7.50. The remainder of the company's capital requirements came from

2958-537: Was a past president of the TGGA and had opposed the Partridge Plan. In the 1921 general election Partridge was almost nominated candidate for the Progressive Party in Qu'Appelle, Saskatchewan . The Canadian Wheat Board was dissolved in 1920. Partridge campaigned for it to be reestablished. He did not succeed, but his campaign led to the creation in 1926 of the Saskatchewan section of the United Farmers of Canada . Partridge

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3016-451: Was allowed to own more than four of the $ 25 shares, and each farmer received just one vote at the meetings. The provisional directors held their first meeting on 26 July 1906, where they elected Partridge president. The GGGC was officially launched on 5 September 1906. The company set up its headquarters in Winnipeg and purchased a seat on the Winnipeg Grain Exchange . The company did not have

3074-534: Was held in Sintaluta on 27 January 1906. At first it was an uphill battle to gain support. Less than a thousand shares had been sold by midsummer 1906. In June the Secretary of State at Ottawa refused to grant the company a Dominion charter on technical grounds. The GGGC was forced to apply for incorporation in Manitoba, which would handicap inter-provincial operations. The original charter was dated 20 July 1906. No farmer

3132-447: Was highly profitable. It paid 8% dividends between 1917 and 1924, and annual bonuses that ranged from CAN$ 0.50 and CAN$ 4.50 a share. However, it did not pay patronage dividends to non-shareholding farmers. Instead it used its profits to pay for expanding its facilities. It was therefore not a true cooperative. The SCEC alienated the poorer farmers. One of them noted, "Inasmuch as most of the pioneer settlers are too poor to hold shares, it

3190-413: Was made honorary president of the organization. Partridge came to believe that cooperation between farmers was not enough to solve the problems of wasteful competition and the accumulation of private wealth. In 1925 he self-published a major book, A war on poverty: the one war that can end war , in which he violently attacked capitalism and supported the poor and underpaid. The book has many references to

3248-476: Was not successful. On 14 June 1914 Partridge's daughter Mary drowned in a swimming accident. During World War I (1914–18) both of his sons enlisted, and later died. In 1916 the GGGC directors started to remit money to Partridge. In 1919 Partridge resumed public activity when he opposed the candidacy of William Richard Motherwell , who was running for the Liberals in a federal by-election in Assiniboia. Motherwell

3306-438: Was not successful. The GGGC provided a pension to Partridge from 1916. Although the company operated in all three prairie provinces, it was mainly concentrated in Manitoba. The Saskatchewan Co-operative Elevator Company was founded in 1911 to provide elevator services for local farmers, and later expanded into selling grain. In July 1912 the GGGC also entered the elevator business when it leased 174 country grain elevators from

3364-584: Was replaced by a terminal in Port Arthur with a capacity of 300,000 imperial bushels. In May 1913 the GGGC leased a flour mill in Rapid City, Manitoba and entered the farm supply business, selling other products such as coal and apples. After a slow start the business began to flourish as vendors of supplies came to realize the value of the farmer-owned outlets. The GGGC opened a livestock branch in March 1916. In 1917

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