This Royal Commission accordingly was appointed on October 7th, 1899, and consisted of three Manitoba farmers—W. F. Sirett, of Glendale; William Lothian, of Pipestone, and Charles C. Castle, of Foxton—with His Honor E. J. Senkler, of St. Catharines, Ontario, as Chairman; Charles N. Bell, of Winnipeg, acted as Secretary. Owing to the illness and death of Judge Senkler, Albert Elswood Richards (afterwards the late Hon. Mr. Justice Richards, of Winnipeg), succeeded as Chairman in February, 1900.
Sittings were held at many places throughout Manitoba and the North-West Territories and much evidence was taken as to the grievances complained of, these being mainly: (1) That vendors of grain were being subjected to unfair and excessive dockage at the time of sale; (2) That doubt existed as to the fairness of the weights allowed or used by owners of elevators; (3) That the owners of elevators enjoyed a monopoly in the purchase of grain by refusing to permit the erection of flat warehouses where standard elevators were situated and were thus able to keep prices of grain below true value to their own benefit and the disadvantage of the public generally as well as others who were specially interested in the grain trade.
Meanwhile the railway companies had hastened to announce that they would furnish cars to farmers who wished to ship direct and do their own loading. This concession, made in 1898-9, resulted in somewhat better prices and better treatment from the elevator operators. But farmers who lived more than four or five miles from the shipping points could not draw in their grain fast enough to load a car within the time allowed by the railway; so that the situation, so far as these farmers were concerned, remained practically unchanged.
In March, 1900, the Royal Commission made a complete report. They had done their work thoroughly. They found that so long as any farmer was hampered in shipping to terminal markets himself he would be more or less at the mercy of elevator operators and that the only proper relief from the possibility of undue dockage and price depression was to be found in the utmost freedom of shipping and selling. To this end they considered that the railroads should be compelled by law to furnish farmers with cars for shipping their own grain and that flat warehouses should be allowed so that the farmer could have a bin in which to accumulate a carload of grain, if he so wished. This, the commissioners thought, should be the farmer's legal right rather than his privilege. Loading platforms for the free use of shippers were also recommended.
It was the further opinion of the Commission that the law should compel elevator and warehouse owners to guarantee the grades and weights of a farmer's grain and to do this the adoption of a uniform grain ticket system was suggested. At the same time, the commissioners pointed out, these guarantees might lead to such careful grading and docking by the elevator operator as might appear to the farmer to be undergrading or overdocking; so that the farmer's right to load direct on cars was a necessary supplementary protection.
The annual shortage of cars during the rush season following harvest was found to be a direct cause of depression in prices. When cars were not available for immediate shipments the grain soon piled up on the elevator companies who were thereby forced to miss the cheaper transportation by boat from the head of the lakes or assume the risk of carrying over the grain until the following spring; in buying, therefore, they naturally allowed a wide margin to cover all possible contingencies. Increase of transportation facilities during October and November accordingly was imperative.
With no rules to regulate the grain trade except those laid down by the railways and the elevator owners, the need was great for definite legislation similar to that which obtained in the State of Minnesota and, as a result of the Royal Commission's recommendations, the Manitoba Grain Act was placed upon the statutes and became operative in 1900. To supervise the carrying out of the law in connection with the grain trade a Warehouse Commissioner was appointed, Mr. C. C. Castle who acted on the Royal Commission being selected for this responsible office.
A sigh of relief went up from many intelligent farmers who had begun to worry over the conditions developing; for they looked upon the Manitoba Grain Act as a sort of Magna Charta. With the grain trade under official control and supervision along the lines laid down by the Royal Commission, they felt that everything would be alright now. It was like calling in a policeman to investigate suspicious noises in the house; like welcoming the doctor's arrival upon an occasion of sudden and severe illness. Unfortunately, the patient's alarming symptoms sometimes continue; sometimes the thief makes a clean get-away; King John had no sooner left Runnymede than he proceeded to ignore the Great Charter and plan new and heavier scutages upon the people!
Up till now the elevator owners had been operating with nothing more definite than a fellowship of interests to hold them together; but upon appearance of the Grain Act they proceeded to organize the North West Elevator Association, afterwards called the North West Grain Dealers' Association. By agreeing on the prices which they would pay for wheat out in the country and by pooling receipts the members of such an organization, the farmers suspected, would be in a position to strangle competition in buying.
The new Act was aiming point blank at these very things by affording the farmer an opportunity of loading his grain direct into cars through flat warehouses, if he chose, and shipping where he liked. But because many farmers did not know with just what the new weapon was loaded or how to pull the trigger, the railways and elevators merely stepped up and smilingly brushed the whole thing aside as something which were better hanging on a high peg out of harm's way.