The Grain Growers' Movement in Western Canada now had attained potential proportions. In Saskatchewan, Manitoba and Alberta the Provincial Associations with their many Locals were in a flourishing condition. Each province was headquarters for a powerful farmers' trading organization to market grain and provide co-operative supplies. Unlike the Saskatchewan Co-Operative Elevator Company and the Alberta Farmers' Co-Operative Elevator Company, however, the pioneer business organization of the Grain Growers—the Grain Growers' Grain Company—was not provincial in scope but had a large number of shareholders in each of the three Prairie Provinces, in British Columbia and Ontario. Altogether, in 1916 the farmers owned and operated over 500 country elevators as well as terminal elevators to a capacity of three million bushels. The farmer shareholders in the three business concerns numbered more than 45,000. During 1916 the farmers handled over ninety million bushels of their own grain.
With this remarkable growth the danger of rivalries and jealousies developing between their business organizations was a possibility upon which the farmers were keeping an eye. A certain amount of friendly competition was unavoidable. For some time, therefore, the necessity of closer union of their various organizations had been a serious topic among the leaders of the Grain Growers in all three provinces. It was the logical preparation for future achievements.
At its regular meetings in 1915 the Canadian Council of Agriculture—comprising officials representing the whole Grain Growers' Movement—had agreed that definite action would be desirable. A meeting of representatives from the respective Associations and companies interested accordingly was held in the offices of the Saskatchewan Co-Operative Elevator Company at Regina. The plan discussed was the formation of one large business concern, similar in a general way to the Wholesale Co-Operative Societies in the Old Country.
The idea was that this wholesale company should market and export grain, control terminal elevators and any manufacturing that might be done later on as well as importing supplies when necessary. This would leave each provincial company with its own organization to look after collection and distribution of supplies and to operate along the lines already existing in Saskatchewan and Alberta. The provincial companies would be in absolute control of the central or wholesale company.
A difference of opinion arose in regard to the method of selling grain. The representatives from the United Farmers of Alberta, the Alberta Farmers' Co-Operative Elevator Company, the Manitoba Grain Growers' Association and the Grain Growers' Grain Company were unanimous in agreeing that it would be unwise to divide the marketing strength of the farmers into three parts instead of concentrating for fullest buying and selling power in the interest of the farmers in all three provinces. With the individual organizations each having a voice in the control of the central company there did not seem to them to be justification for carrying provincial divisions into the marketing machinery, thereby weakening it. With this view the Saskatchewan representatives could not agree, holding out for a separate selling channel for Saskatchewan grain.
A committee was appointed to try to work out some other solution to the problem of federating all three farmers' companies and a new proposal was submitted at a meeting of the Canadian Council of Agriculture, held in Winnipeg in July, 1916. This second attempt to get together was along the line of joint ownership of subsidiary concerns which would look after certain phases of the work—an export company, a terminal elevator company, the Public Press, Limited, and so on. However, the plan did not work out satisfactorily.
The feeling of the Alberta officials after the Regina meeting was that even if Saskatchewan were not ready at the present time to consider federation on a basis acceptable to the other provinces, this should not overthrow all idea of federation. In short, the Alberta directors were strongly of the opinion that, failing complete affiliation of the farmers' business organizations at this time, the organization in Alberta and the Grain Growers' Grain Company should get together nevertheless, and this suggestion they presented at the meeting of the Canadian Council of Agriculture in Winnipeg.
As this was approved by the Grain Growers' Grain Company and the Manitoba Association officials steps were taken to go into the matter in detail, the Saskatchewan organization having signified its intention of withdrawing from present action. President C. Rice-Jones, of the Alberta Farmers' Co-Operative Elevator Company, and President T. A. Crerar, of the Grain Growers' Grain Company, were asked to give the matter careful thought and make their recommendations to their respective boards of directors.
There followed a joint meeting of all those interested. It was held at Winnipeg and the result was a recommendation that the Alberta Farmers' Co-Operative Elevator Company and the Grain Growers' Grain Company be amalgamated under the name "United Grain Growers, Limited." [1] When the matter finally came before the farmers concerned—at their annual meetings in 1916—it was decided unanimously to go ahead with the amalgamation of these two farmers' business organizations.
Accordingly application was made for necessary changes in the charter of the Grain Growers' Grain Company and these changes were granted by Act of the Dominion Parliament in June, 1917. The authorized capital stock of United Grain Growers is five million dollars. Its annual meetings are to be held in the different provinces alternately. The shareholders are formed into local groups, each represented by delegates at annual meetings, these delegates alone doing the voting. Proxy voting is not allowed. The charter is designed, in brief, to introduce the system of internal government that has been in practice by the Alberta Farmers' Co-Operative Elevator Company and the Saskatchewan Co-Operative Elevator Company and has proved so satisfactory in every way.