CHAPTER XV

CONCERNING THE TERMINALS

I have but one lamp by which my feet are guided; and that is the lamp

of experience. I know no way of judging the future but by the

past.--_Patrick Henry_.

With the establishment of co-operative elevators for the storing of

grain at interior points the farmers of Western Canada launched out

upon the greatest experiment in co-operation this continent has seen.

The success of these elevators, owned and controlled by the farmers

themselves, in all probability would evolve the final phase of internal

storage in connection with the Canadian grain fields.

Co-incident with their agitation for government ownership of elevators

at country points, the farmers were urging upon the federal authorities

the desirability of government control and operation of terminal

storage facilities. It was not enough that the Provincial Governments

of the Prairie Provinces should protect the farmers within their

boundaries; for the terminal storage of grain was a part of the system

and the farmers contended that corporation control of the terminals by

grain dealers was leading to abuses and manipulations of the grain that

were not in the best interests of the country.

Grateful as they were, therefore, for the efforts to improve early

conditions by legislation, it was the opinion of the Grain Growers that

these contraventions of the Grain Act would be prevented only by

acquisition of the terminals by the Dominion Government. Mere

legislation and supervision by the Government would not provide an

effective remedy.

At the head of the lakes the grain passed out of the control of the

transportation companies into the hands of the grain dealers; it was

the only point in transit where it became subject to manipulation.

With the exception of those owned by the C. P. R., the terminal

elevators were operated by dealers, largely controlled by United States

concerns and managed by experts from across the line. It was

frequently charged that terminal operators forgot that they ought to be

warehousemen solely and sought profits outside those of legitimate

elevation and storage charges, although these authorized charges paid

ample return on capital investment. The farmers wanted this temptation

of handling and mixing grain at the terminals removed so that terminal

operators could not tamper with the grain while it was in their

custody. The claims of the Grain Growers that mixing was going on at

Fort William and Port Arthur were based upon the report of the Royal

Grain Commission which had investigated the grain trade in 1906-7.

The first definite step taken to lay these matters before the Dominion

Government was in the winter of 1908 after the formation of the

Inter-Provincial Council of Grain Growers' and Farmers' Associations.

At a meeting of these representatives of all the organized farmers it

was decided to send delegates to Ottawa. When these gentlemen reached

their destination in May, 1909, they found themselves face to face with

a large and active group of grain men, railway officials and bankers

who had gathered to take a hand in the interview with Sir Richard

Cartwright, then Minister of Trade and Commerce. Beyond some

concessions regarding special binning of grain, nothing came of this

trip apparently, although the Western farmers were supported strongly

by the Dominion Millers' Association.

A second memorandum was presented early in 1910 and the Grain Growers

were granted a very respectful hearing by the Government; for, while

the organized farmers represented but part of the farming constituency

in the West, they had the sympathy of the entire farming community

behind them in these requests. They went home, however, feeling the

need of concentrating their energies on organization if they were to

get actual action from politicians.

They had not much more than got home safely before something happened

which proved their assertions that all was not as it should be down on

the lake-front. Mr. C. C. Castle, Warehouse Commissioner, one day held

in his hand some official reports from the Inspection Department

concerning certain elevator concerns and compared the figures with the

returns made to the authorities by these concerns themselves. He shook

his head at the discrepancies and started an investigation. There were

three companies involved and after full evidence was taken legally

these three companies were prosecuted for returning untrue statements

and in the Police Court at Winnipeg they were fined a total of $5,550

by the Magistrate.

The next thing was the drafting of a Grain Bill which aimed to improve

certain matters. It was considered by the Senate and passed. It

reached the House of Commons and Hon. Frank Oliver took it by the

halter and led it about. Before anything could happen to it, however,

and the judges get a chance to study its good and bad points, July

(1911) came along and Parliament dissolved like a lump of sugar dropped

into a cup of tea and in the hub-bubbles of a general election

everything was _in statu quo_, as they say. And when the race was over

and the Party Nags back in their stalls, lo! new tenants were taking

their turn at sliding around on the polished Treasury Benches and

having a sun bath!

The new Minister of Trade and Commerce was Hon. George E. Foster. He

looked over the Grain Bill, passed his hand along its withers and

patted it on the rump. Then he sat down and made a copy of it,

idealizing it by injecting a few "betterments," then trotted it out for

inspection with tail and mane plaited and bells on its patent-leather

surcingle. He did not claim to be its real father--only its

foster-father. He introduced it to the House with a very lucid review

of the whole agitation for improvement in the Grain and Inspection Acts

since "Johnny" Millar, of Indian Head, Saskatchewan, handed in the

Royal Grain Commission report in 1907.

The new Government proposed to grant government control of terminal

elevators only on a limited and experimental scale. They wanted to

test out the principle by lease or construction of two or three

terminals at the head of the lakes before undertaking the financial

responsibility of handling the entire terminal system. Heretofore

there had been government supervision merely; but now for an experiment

there would be government operation as well while the management of the

remaining terminals would have to be satisfactory to the Government.

"The demand of the West is that the grain should not be manipulated at

the terminals," declared Mr. Foster. "It does not matter a pin as to

how that is brought about so that the thing itself is accomplished."

The new bill provided for sample markets and the farmers did not like

this unless the Government acquired the terminals as had been

requested. Owing to the grain blockade, due to car shortage, feeling

was running high in the West and the farmers eyed the new legislation

closely. They came upon a clause which startled them and in the row

that followed it looked at one time as if the new Bill would be led to

the boneyard and killed.

One of the proposals of the Government was the formation of a Board of

Grain Commissioners with wide discretionary powers. They would be made

responsible for the proper conduct of the entire grain trade and deal

with all matters pertaining thereto. They were to have the absolute

say-so in regard to car distribution and there was one clause that

threatened this protection for which the Western farmers had fought so

hard in earlier days.

At once consternation spread among the Grain Growers, their

apprehensions based upon bitter experience. They protested vehemently.

Letters, petitions and resolutions slid all over the official

Government desks and delegations followed to Ottawa. Not the organized

grain growers alone, but the whole Western farming element was up in

arms.

Nevertheless, the new Grain Bill passed the House of Commons and

browsed over to the Senate.

It was the farmers' last chance to stop it. R. McKenzie and J. S.

Wood, of the Manitoba Grain Growers; J. A. Maharg and F. W. Green, of

the Saskatchewan Grain Growers, and E. J. Fream, of the United Farmers

of Alberta--these practical men figuratively took off their coats and

waded in when they got in conference with Senate members. They

preferred to see the whole bill killed unless the objectionable clause

regarding car distribution were struck out; they saw the old-time

elevator abuses again becoming possible and quite nullifying the many

good features which the new legislation possessed.

The final upshot was that somewhat unexpectedly Hon. Senator Lougheed,

leader in the Upper House, withdrew the offending clause on behalf of

the Government, although the Government felt that the farmers were

unduly excited.

The new Board of Grain Commissioners was appointed without delay and

consisted of three men who understood Western conditions--W. D.

Staples, of Treherne, Manitoba; Frank E. Gibbs, of Fort William, and

Dr. Robert Magill, now Secretary of the Winnipeg Grain Exchange. Dr.

Magill was made Chief Grain Commissioner, for he had rendered excellent

services in the past and commanded the respect of the entire West.

The Board was not long in reaching the conclusion that if grain dealing

companies were to be eliminated from the business of owning and

operating terminal elevators, outright purchase and breaking of leases

would be necessary. The companies refused to lease to the Government

voluntarily on any terms which the Board could recommend. Some would

not lease on any terms whatever, claiming that to lease their terminals

would dislocate their whole system of interior elevators, involving a

loss of capital which had been invested legitimately. Apart from this,

the Board had its hands so full with other important things that

expropriation and all that it involved would claim their whole time and

energy to the neglect of other urgent matters.

Accordingly, the Grain Commissioners recommended that the Government

meet the immediate need of increased terminal facilities at the head of

the lakes by building a three-million-bushel elevator, thoroughly

equipped for storing, cleaning, drying and handling grain and with

provision for future extensions to a capacity of thirty million

bushels. They also approved of the Grain Growers' Grain Company

leasing one of the C. P. R. elevators. In this way both the Board and

the Grain Growers would gain first-hand knowledge of terminal elevator

conditions.

While formulating a policy for terminal elevators the Grain

Commissioners considered the need for terminal storage in the interior

as well as at the lakefront. The increase in the area of the grain

fields, particularly in Alberta, was straining the transportation

facilities to the limit and the construction of the Grand Trunk Pacific

promised to open up still more acreage. Railway rolling stock, railway

yard accommodations at Winnipeg and Fort William and elevator storage

were not keeping pace with the annual volume of new grain. The

Government Inspection Department was up to its eyes in grain, working

night and day during the rush season, while lake and ocean tonnage

likewise were inadequate. Even the eleven million bushels of extra

storage capacity being built at the lake at the time the Board was

considering the situation would soon fill and overflow. Congestion at

eastern transfer houses or terminal points was threatening, water

freight rates were up and the export market disturbed and there was no

reserve of storage capacity in Western Canada to meet emergencies. In

a wet season the drying plants at Fort William and Port Arthur were far

from adequate. Delayed inspection returns and terminal outturns, due

to the recurring car shortage, prevented the farmers from financing and

widened the spread between street and track prices as the close of

navigation approached.

Reviewing all this, the Grain Commissioners came to the conclusion that

it was time to consider seriously the erection of Government terminal

facilities nearer the grain fields. Especially in Alberta was the need

great for inspection and terminal storage to be nearer the producer.

It would relieve congestion, benefit the whole grain trade and provide

for the future possibility of alternate shipping routes via Hudson Bay

or the Panama Canal.

It was true that the Royal Grain Commission of 1906-7 had raised

objections to interior terminals and inspection, such as the extra

expense of handling, the extra loss to the grain in handling and

re-handling, the possibility of the railways solving the car shortage

problem, the difficulty of getting shippers to send their grain to such

elevators and so forth. But the Board considered that, in view of

other possible routes than the Eastern, these objections were not

strong enough to balance the benefits. Accordingly they recommended

the Government to take action, the elevators to be regarded as public

terminals in which mixing of grades would be forbidden.

While the farmers in all three Prairie Provinces were busy with these

vital matters, the Grain Growers' Grain Company meanwhile was wading

along through all the difficult seasons of car shortage, expanding its

usefulness and trying its best to give the maximum of service the while

it was reaching out into the export field in an experimental way.

Then, in 1911, a situation arose unexpectedly that caused turmoil among

the officers of the pioneer company and led to considerable anxiety

among the Grain Growers all over the West. For, through an excess of

zeal upon the part of an employee, the Grain Growers' Grain Company

suddenly found itself dragged into the maelstrom of "The Pit." It was

accused of trying to corner the oat market and was forced to fight for

very life.

So that at last it looked indeed as if Chance had delivered the farmers

into the hands of those who preferred to see them eliminated altogether

from the market.

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