"Our daily bread" must be freed from the greed of private monopoly

Foreword

"With the lower classes in Europe bread is the Fetish of food and without the loaf you could not preserve tranquility."

"Food is more necessary than arms, and munitions and fighting men."

"I feel it my duty to emphasize that the food situation is one of the utmost gravity ,which unless solved, may possibly result in the collapse of everything we bold dear in civilization/" — Hoover, the agent of our Aliies, and the neutral nations of Europe.

President "Wilson: "Upon the farmers of this country in large measure rests the fate of the war and those of the allied nations."

"In this greatest of human needs I feel that the American farmer will do his part to the utmost."

"By planting and increasing his production in every way possible every farmer will perform a labor of patriotism for which he will be recognized as a soldier of the commissary adding his share to the food supply of the people."

Such was a part of the appeal made to the American farmer.

And our immense crops was the practical answer.

How was the main food product — wheat — handled ■

For details see report of Federal Trade Commission.

Representative Keating, of Colorado, said in Congress Sept 5th, in part :

"In Great Britain 32 ounces of bread sells for 11 cents ; in France, 35 ounces for 9 cents ; in Italy, 35 ounces for 8 cents, and in Belgium, 35 ounces for 9 cents. In AVashington. D. C, 14 ounces sell for 10 cents."

"Remember, the grain which goes into this bread was raised and sold by American farmers ; that freight

4 THE MILLtERS 5 ANl MIXERS 5 PARADISE

w - raid to the seaboard .and the highest cargo rate in history was paid for its shipment across the Atlantic.'" • ' What reason can be assigned, then, for the fact that bread is sold cheaper 5,000 miles away from the original wheat field than it is at home I" In z .-. : : . z : : less ~han one-half the pr:

MINNEAPOLIS THE PARADISE OF THE MIXERS AND MILLERS.

Minneapolis, the great wheat terminal, beeame the Paradise of the mixers and mill-

American dtizens who would take advantage of

critical :»rld condition to increase the misery

d suffering of the whole civilized world by doubling

the price of bread for private profit, are far worse than

the pirates of old. They preyed npon their enemies

for the benefit of their friends.

Our mixers and millers preyed upon our Alliesbroke faith with our government, and exacted an extra gss profit, from us, during the war. With an armistice and prospective peace and the raising of the alleged eontrol by the food administration the price of flour and mill-stuffs were advanced for our home needs.

The system that permits of such abuse of a vital :: should be deprived of any further opportunity. The lesson of the war must be heeded.

All unnecessary profits in the handling, transportation, manufacturing and distribution of food product? between producer and consumer must be eliminated.

Bread is not only the "Fetish 5 'of the "lower -lasses of Europe", but also of the middle classes, and the upper classes of the whole civilized world, and inr#t be freed from the greed of private monopoly.

That is the hoped-for mission of this little book.

Profits vs. Patriotism.

A safe axiom to follow is, that you can best judge a person^ estimate of you by his manner of addressing you ; and just as true of a public speaker, editorial writer, or business exploiter, or of the student, or statesman, whose aim is the uplift of humanity, or oi the practical politician whose aim is public office foi private gain ,and just as true in a time of stress and cruel Avar as in a time of peace and prosperity.

Before our participation in the great world's war our leading industries had been enjoying a period oi unexampled prosr>erity and undreamed of profits. They were well organized, with one exception — Agriculture.

The European belligerents had opened up an immense field for exploitation ; the organizations co-operating to take advantage of it were numerous, and there was no exception made in favor of our own citizens.

Our entry into the war increased their opportunities by giving a great stimulus to increased production of everything needed to "aid in winning the war."

As the first illustration of our axiom we give the origin of the policy that was adopted, by those whose chief aim (no matter how carefully camouflaged) war the maximum of profits to be secured during the continuance of the war, and protection for same afterwards.

The organization was called the National Foreign Trade Council; and the object was profits at home as well as abroad.

Thpv were no respectors of the source ; it was profits, more profits; the world to pay tribute to American profiteers.

The organization was- composed of our leading industrial, commercial and financial repersentatives ; such as would command respect. -

They were dollar a year, volunteer patriots to control prices, every one willing to advise how his own business should be managed in accord with their program.

They prepared a very complete report containing recommendations as to the most effective means of winning the war.

The report was prepared by Lewis F. Pierson, chairman of the board of directors of the Irving National Bank of New York, and this with the imposing list of officers and backers gave it the proper stamp of efficiency and successful business: that would impress the public, and more especially members of Congress and national officialdom.

That it did so impress them is confirmed by the fact that it was adopted as the federal official policy in dealing with every industrial, commercial, or financial business in the nation with the one exception — Agriculture. In this they paid the farmers of the nation the very highest compliment possible; in appealing tc their patriotism and love of country, and a WOELD FEEE FOE DEMOCEACY, instead of their greed for gain.

The appeal was well founded ; for the farmers responded nobly, just as they have always done in everv hour of emergency, since the farmers of the Mohawk Valley of New York met in the farm home of Adam Loucks, my great great grandfather, and organized the "Minute Men" who became such an inspiring force in the revolution which made America free for democray. Now, a few extracts from the report of the National Foreign Trade Council which was presented to President Wilson Nov. 26, 1917, and later to the ways and means committee of the house of representatives and to the finance committee of the senate. Unlike the efforts of the organized farmers as told by Eepresentative Steenerson, they were not "without avail", but were promptly adopted, with the one exception mentioned — Agriculture.

AGRICULTURE NOT INCLUDED 7

From press reports: "It was drawn up in an effort by the council to aid the government in the fixing of commodity prices and in the taxation of business profits."

"High production and not low prices should be the controlling consideration in an ideal plan for price fixing and profit taking."

"Effectiveness of American participation in the war demands the maintenance of production in practically all lines at the maximum capacity, and the maintenance of foreign trade is a most efficient means of preventing disturbance of credit, insuring funds with which to meet the needs of government in taxation or loans ; stabilizing conditions of industry and maintaining the economic structure of the nation."

"For these reasons the Council recommends to the administration and Congress the co-ordination of its efforts at price fixing and taxation upon principles that will stimulate production, insure the fullest maintenance of foreign trade and so provide a ready source of funds for the vigorous prosecution of the war. The only really big thing in the world today is to win the war. ' ' In the opinion of the council, however, as expressed by their business plans, the really "big thing" was the securing of maximum prices and provide for the minimum of taxation on war profits-

Although agriculture was recognized as "the most important arm of war, more important than arms, and munitions and fighting men," there was no effort made at "price fixing" for farm products "to stimulate production"; but the very reverse.

The price of wheat was fixed at one-third less than the market, and an increase to compensate for increased cost of production denied, but the price of flour and bread did not follow down.

Had not the Secretary of Agriculture enunciated the policy of his department clearly in the 1914 Year Book, page 35. as follows: "There seems to be no emergency which requires or justifies government as-

8 WILL SOUTH DAKOTA LEAD?

sistance to the farmers directly through the government's cash, or the government's credit. The American farmer is sturdy, independent and self-reliant. "

That turned the trick for free trade in farm products and in the farmers' rural credit betrayal; so now when the farmer is to be discriminated against, once more, and the price of his wheat "fixed 7 '; he need only to be '"stimulated to greater production" by appealing to his patriotism.

Bread is now recognized the world over as our one great vital necessity. The high cost of food even now is endangering the peace of the whole civilized world.

Our food profiteers, having secured a monopoly of handling, manufacturing and distributing food have reversed the custom of the ages in relieving threatened starvation, by free, or cheaper, food; by increasing the price to everybody, including the producers.

The governments of the whole civilized world have been forced to commandeer, regulate and control the price of food.

The Lnited States alone has proven powerless, unable, or unwilling ,to control our food profiteers. In fact have encouraged them to "stimulate production."

"What our Federal Government has failed to do. oui great agricultural states must do, for self -protection, if for no higher motive.

The organized farmers of Dakota pointed out the way thirty-one years ago.

South Dakota leads in the production of farm products.

The consumer cannot use a part of our farm produts; they must first be manufactured into food products. That is our next great task and duty. Will South Dakota continue to lead?

Development of Co-Operation.

■ In 1885 1 had between 500 and 600 acres in wheat. It was a good, clean crop. My business experience said that I should sell that wheat to the best advantage and it also said that I should give the preference to the local dealer.

Now, with 10,000 to 12.000 bushels of wheat tc sell, it was natural that I should be looking for a consumer.

I learned that The Union Mills, of Waterloo, Iowa would be in the market for Dakota wheat, and corresponded with them, agreeing to send them a sample when ready for market. But I also remembered the local buyer, and when the Avheat was ready for marketing, took in two samples.

The local buyer offered me 62 cents, two pounds off for dockage. I remonstrated that there was no dockage. He agreed with me, but said the rule was two pounds off no difference how clean the wheat was, and he could do no better.

I promptly received an offer for the whole crop from the Waterloo Mill of 72 cents straight, making a difference of a little over 12 cents per bushel. Of first loads went in the grain buyer got busy and offered by a private shipper at Clear Lake., and when the first loads went in the grain buyer got ^asy and offeredme 67 cents two, pounds off.

Of course, my neighbors were interested. The Advocate also gave it as an item of news.

We discussed it at our next Alliance meeting, but no one had a carload, or teams to load a car in the time allowed, and I then suggested thatthey unite and load a car at a time, but with the difference in grades and dockage it seemed impracticable.

10 DEVELOPMENT OF CO-OPERATIOX

When I attended the Territorial Allance meeting in TTatertown the following January. I was surprised to learn that there were 35 co-operative farmers' warehouses in the Territory.

Quoting from the Deuel County Advocate's report of the meeting in re co-operation :

"There were no bitter denunciations of any combinations or monopolies, but plain business propositions whereby a corporation of farmers by combining their mutual interests were prepared to demand and receive attention and concessions on a business basis. This is the keynote of success to the entire alliance movement. Mutual combination of mutual business, conducted on a business basis."

THE EVOLUTION OF A CONSERVATIVE.

When we entered the hall President Carlisle was delivering his address. It was a straight plea for the farmers to organize for independent political action. I said in surprise to my neighbor, '""Why, that is all wrong, the farmers should not meddle in politics ': and I was sincere in my belief then. I had eschewed politics to attend strictly to business, when I came to the United States. I was a firm believer in gold as the one unchangeable standard of value. The bankers had always been very kind to me. and I believed that they should understand the money question better than a layman. That was their business.

I thought the railroad system was all right. I had been doing a very large business with them as a .contractor, and had been unusually well treated by them.

I mention these facts in justice to many men whose environment is and has been the same as mine had been.

AVith a new environment, and official reponsibility as the representative of a class, it was my duty to study and investigate the problems of my class with an open mind, seeking the truth, and gave my reasons

THE EVOLUTION OF A CONSERVATIVE 11

for a change of opinion frankly, without abuse of those who still thought as I had.

I eoneeded that they might be just as honest as I had been, and the best way to reach them was to start them thinking, by appealing to their reason, instead of ridiculing them, or charging them with ignorance, dishonesty or servility.

There is always hope for the man or woman who will read and think with an open mind.

After election as president of the Dakota Farmers Alliance in January, 1886, it became my duty to study our farm problems "with an eye single". I saw an interview in the St. Paul Pioneer Press, early in April, by Capt. Griggs, chairman of the Dakota Railway Commission, which at first amused and then interested me sufficiently that I answered it. On advice of Mr. Gatchell, editor of the Advocate, copies were sent to all the papers in the territory, and it was largely reprinted.

To my very great surprise it resulted in more than 100 Alliances being organized by correspondence in less tha ntwo months ; one in Jamestown with 200 members which furnished North Daota with its first governor, F. B. Fancher.

Within a week of publication Mr. Evans, of Milbank, a member of the Board of Railroad Commissioners, came to see me. It was all Greek to him, but I convinced him that I was right, and he promptly went to Chicago and the result was a reduction of 25 per cent in freight rates and a reduction of passenger rates from four and five cents per mile to three cents.

Not for its literary merit — it was my first official production — and no one was more surprised than myself with its result, but as a turning point in the Alliance movement, the letter should be preserved, and is herewith given to the public a second time.

For effective and prompt results I doubt if it has ever been duplicated by any farmers' organization. The effort was strictly nonpartisan.

The Alliance members at that time paid no dues. The only charge was $2.50 for a charter. The presi-

12 DEVELOPMENT OF CO-OPEEATIOX

dent received no salary, and paid Ms own expenses. The reduction of six cents per 100 pounds on grain to Minneapolis from Eastern Dakota points was secured in less than 60 days, and was a permanent reduction. I wish our State Historian would figure up just how much that has meant to the farmers of Dakota, North and South, since 1886, and give the good old Farmers Alliance credit for it.

President's Office, Territorial Farmers' Alliance.

Clear Lake. Deuel Co.. Dak.. April 30. 1886. (^From the Deuel County Advocate.) To the Honorable R. R. Commissioners of Dakota. Gentlemen:

Lntil I saw the above item in the Pioneer Press. I had forgotten that we had any R. R. Commissioners in Dakota, and it occurred to me that your extreme modesty was doing you an injusice in keeping your light hid under a bushel and that I would be doing a charitable thing to unveil such wonderful modesty. I was under the impression that the R. R. Commissioners were appointed to consider the interests of shippers and not those of the R. R. Companies. I was innocent enough to think that the railroads employed the very best talent in the country to look after their interests. In this I seem to have been mistaken and that is the special mission of our R. R. Commissioners to guard the prosperity and increase the surpluses of the R. R. Companies. I am sure the R .R. Companies must appreciate your thoughtfulness in not *' wishing to embarrass them."" Have you ever thought of the very embarrassing position in which a large number of the farmers of Dakota are placed, and which might have been relieved by a reasonable reduction of freight rates? Before encouraging the railroads to accumulate surpluses, would it not be advisable to learn the amount of surplus the farmers are able to lay up under existing rates and prices? You admit that we are not getting a living price within 10 to 15 per cent for our wheat. You estimate a saving by your proposed reduction of rates of $33 per every 10 acres of wheat grown.

AN OPEN LETTER TO GAPT. GRIGGS 13

You assure us, "I am certain that I can secure anything within reason from them," the R. R. Companies. You think the above reasonable; then why in the name

of common sense and suffering' humanity should you allow your modesty to prevent you pushing- this matter at once. In a ease so plain, with the R. R. Companies so anxious to comply, why "wait until fall when we see what the crop is likely to be?" Surely your great modesty will not prevent your saying* the word and securing us just a little relief out of j^our abundant store! You cannot secure it too soon, and then you know while you are waiting and watching the growing crops the R. R. Companies may change their minds if they think you mean business. "Waiting to see how the crops will yield/' will, I fear, result in the old game, "heads I win, tails you lose." If the crops are good your warm interests in the R. R. Companies may induce 3 r ou to think that the farmers could afford to pay present rates which would enable the R .R. Companies to add to their surplus, etc. If the crops are poor, why of course they cannot afford to reduce their rates when there is likely to be a falling oif in freight. Then as to incoming freights. You think there should be a reduction. You are certain you can secure it. You estimate a saving of $3 on groceries, etc. If you add farm implements, lumber and twine you could, no doubt, raise that estimate several times. Are you aware that the bulk of such necessities will be needed before fall? If not I hope you will forget your modesty long enough to investigate and push for a reduction at once, you cannot do it too soon for your reputation and our pockets.

There is another subject to which I would like to call your attention, viz. : The rate on wheat to Chicago to which, or a corresponding point, we are compelled to pay freight on all shipments of wheat. Take for instance the rate from AYatertown to Chicago is 33 cents. That was the rate when transit from Minneapolis to Chicago sold for 15 cents and was protected at that by the R. R. Companies interested . Transit has lately fallen as low as 9 cents. We used to figure the freight to Minneapolis at 18 cents, thence to Chicago at 15 cents. Now we must figure from Minneapolis to Chiacgo 9 cents and from AVatertown to Minneapolis 24 cents, or a discrimination against Dakota of 6 cents per cwt. I understand the R. R. Commissioners of Minnesota secured a flat rate to Minneapolis or made it optional with shippers to ship in transit, and then when rates were reduced from Minneapolis to Chicago induced the R. R. Companies to pro-rate from points to Chicago. Result : just across the line in Minnesota wheat is worth 6 cents per cwt.. more than in Dakota. The Minnesota R. R. Commissioners seem to think that it is their duty to look after the interests of shippers. They are living for the present generation. They do not wait and watch the growing crops. They do not "proceed in a modest sort of way." They mean business "and get there." Please do not let your precious modesty prevent your pushing these matters just a little now. I hope you are not too modest to draw your salary while waiting and watching. By the way. don't you think that the farmers of Dakota will soon think you are quite too modest for the position of Railroad Commissioners? I have no doubt that the R. R. Managers just dote on R. R. Commissioners who "proceed in a modest sort of way." It is a virtue so rare in their ranks that I am sure they consider it a "jewel of the first water."

Yours truly.

H. L. Loucks, Pres. Dakota Farmers' Alliance.

Note. — The policy of watchful waiting was not original with President Wilson.

SPECIAL SESSION TO CONSIDER POLITICAL SITUATION.

The rapid growth of, and increased interest in, the Alliance caused a very general request for a special session "to consider the political situation," and

SPECIAL SESSION FARMERS ALLIANCE 15

,-i special session was called to meet in Aberdeen July 7th . The Knights of Labor were invited to participate.

The meeting was a large and an enthusiastic one. and open to the general public.

The two most prominent features Avas the report of the committee on transportation which read in part : "Regarding the railroad commissioners of Dakota, created by act of the last legislature, your committee beg to report : Until a very recent date their usefulness and efficiency is a matter of grave doubt. Within the last ten days, however, they have given evidence of a desire to try and merit the approval of the people whom they were appointed to serve. Chairman Evans has stated to one of your committee within that period that he has a written agreement with the managers of the Manitoba and Northern Pacific railroads to reduce their general freight rates at least 25 per cent. and their passenger rates from four and five cents to three cents per mile for round trip tickets. This agreement to take effect August 1st. He further says that he expects other roads doing business in the Territory will make the same agreement. ' '

Col. Smedley, chairman of the committee, was a member of the Legislative Counsel and was largely instrumental in securing the passage of the law providing for the Board of Railroad Commissioners.

DECLARES FOR INDEPENDENT POLITICAL AC- TION.

The committee on platform reported in part as follows :

"Whereas, It is a matter of prime importance that the next legislature of this Territory should be controlled by men who are thoroughly in sympathy with the Alliance movement, its aims and purposes, and

"Whereas In the past the farmers have left the management of political affairs almost entirely in the hands of professional politicians and ,

"Whereas, They have generally ignored the wishes and interests of the agricultural classes, legislating in their own interests until the burdens upon the agricultural interests have become too grievous to be borne : the profits of our labor are absorbed by the manipulations of monopolies already gorged to plethora from the unjust extortions wrung from honest toil through .the machinery of such legislation, and.

"Whereas, Our only hope of relief from these evils is by securing members of the next legislature, why by ties of personal interests are in full sympathy with our movement; therefore be it

■ Resolved. As the sense of this convention thai every member of the Alliance and. all practical operative farmers, mechanics and laboring men should consider it their duty to attend the primaries in hitrict and use all their influence to put in nomination men who represent our views, and also to pledge every nominee upon the following point- :

•'1st. To favor a Territorial railroad commit elected by the people.

"2nd. To favor giving to the railroad commission full power to fix maximum rates of fare and freights, provided that such rates be not reduced below a to yield a reasonable dividend on actual investment in such roads when rates are equitably divided over the full length of said road.

* "Resolved. That any person nominated for a 1-^ illative office who shall refuse to subscribe to these pledges is unworthy of the suffrages of any member of this order or the laboring and producing classes of this Territory.

"Resolved, That we are in favor of such legislation as will secure us a free market for our produce. * '

THE 1886 CAMPAIGN.

We had no expense money, and made no assessments for campaign purposes. ~We made a general appeal to the voters, and the press being more than friendly it was widely printed.

ANOTHER STEP FORWARD 17

The President was too busy on his farm to do more than write letters after the day's work was done and we had no paid organizers.

The result was an agreeable surprise. "We elected the House by a large majority, and had a small majority in the Council. That is. we captured both branches of the Legislature.

Our bill "To secure a free market for our produce" although strongly opposed by the railroad and grain exchange lobby, was passed by the House and would have passed the Council, had it not been for a trick of a member of the Council, who got possession of the bill by stealth and it was reported lost, when it was too late to prepare and rush another bill through both houses. He had the shameless bravado to exhibit it as a legislative trophy on the train next morning. a ft e r a djournment .

At that time our idea of "a free market, '* was permission to build elevators, or flat warehouses on side tracks, or be furnished cars to load on side track.

There was no material change made in program at the annual session held at Mitchell December 22 1886. I w T as urged to attend the legislative session at Bismarck, and on the eve of leaving home wrote to all the Alliances, in part, as f ollow- s : "The legislation we are aside ~ for, intelligently carried out, should make a difference to us of twelve cents per bushel on every bushel of wdieat w T e have to sell. That much is being taken from us unjustly now. Is it any winder that Ave can scarcely make both ends meet?

The 1887 session of the Territorial Legislature demonstrated very clearly the close community of interests between the railroads and our grain exchanges.

ANOTHER STEP FORWARD.

My experiences at Bismarck convinced me of th< very great difficulty if not impossibility of regulating, or controlling, either our transportation system, or our then system of marketing our grain. They had grown to be monopolies, and w T ere wielded together by a comnranitv of interests. At that time we were supposed to have legislative control of our railroads in the Territory. And could, if we would, by securing control of the legislature compel permission of erecting grain warehouses -at all stations, and thus ship our own grain : but we could not control inter-state rates.

At the request of the Northwestern Farmer on the eve of an organizing tour in the Red River Valley, North Dakota, in the summer of 1887 I wrote in part as follows: "In my dreams for the future I see The Farmers Alliance the most powerful of organizations. MUTUAL PROTECTION OUR AIM, EQUAL AND EXACT JUSTICE TO ALL MANKIND OUR MOTTO.

"In Dakota I see every county thoroughly organized. I see the railroad problem solved by the Territory building a railroad of our own running from Pembina to Yankton at the actual cost of labor and material. No watered stocks. A water outlet to the South via Yankton and an air line to Duluth, or Sault Ste. Marie, giving us a water outlet to the East.

"I see a Legislature assembled that will not depend on Interstate Commerce Commissioners, nor on state railroad commissioners to regulate rates ,but will absolutely fix such rates as are just and reasonable on what the railroads should have cost and no more.

"I see a line of elevators along our railroad to which all the vast millions of bushels of the world famous Dakota wheat will be consigned from all points in Dakota. I see an Agent of the Alliance at New York, or Montreal, accepting bids from the millers of Europe at a price that will yield us a handsome profit on our labor, and all will be peace and prosperity.