Agriculture -- Canada; Agriculture -- Canada -- Societies, etc.
The farmers who shipped their grain to the new company were expecting
to receive seventy-five per cent. of an advance from the bank on their
bills of lading and a prompt remittance of the balance when the
Inspection Certificate and Outturn were in the hands of the Company.
With the grain piling up on their company day by day, it was not long
before the overdraft at the bank began to assume alarming proportions.
Luckily the Assistant Manager succeeded in making several sales in the
East, which eased away from the crisis which was shaping. It was quite
patent that it would have been suicide for the young trading
organization to notify the farmers to stop sending in business. They
dare not do that.
In desperation the President and Vice-President went to the Manitoba
Government and laid their case in full before the cabinet. Premier R.
P. Roblin (now Sir Rodmond Roblin) was very much surprised to learn the
facts.
"The Government certainly cannot countenance any such action on the
part of the grain dealers," he declared emphatically. "We cannot allow
them to boycott a company composed of farmers who have as much right to
sell grain as any other body of men."
Accordingly the Government set a time limit within which the Exchange
had the option of removing the ban against the farmers' company or of
losing their Provincial charter. In the meantime, however, this did
not obtain restoration of trading privileges, without which the
farmers' company could not do business with Exchange members except by
paying them the full commission of one cent per bushel.
The situation, therefore, was approaching a crisis rapidly. The
company was fortunate in having the friendship of their local bank
manager; but even he could not go on forever making advances on
consigned grain and there was some suspicion that letters were reaching
the head office of the bank in Montreal, advising that the quicker this
particular account was closed out the better off the bank would be.
Then one morning the local manager called on the Executive and his face
was grave.
"This is not the first time I've heard from the Head Office about this
account, as you know," he began at once, "but I'm afraid it's the last
call, gentlemen." He handed a letter to the President. "As you see, I
am instructed to close out your account at once unless further security
is forthcoming. I'm sorry; for I believe you've merely run into hard
luck in getting squared away. But--I'm not the bank, you understand."
"What do you want us to do? What can we do?" asked Partridge
anxiously. "This thing will straighten out, Mr. Machaffie. We're
getting the business. You know that. We're going to get back our
trading privileges and everything will be alright."
The banker shook his head slowly.
"I'm sorry, gentlemen. But do you know what your overdraft amounts to
now?"
"Three hundred and fifty-six thousand dollars," murmured the
Secretary-Treasurer.
"Exactly."
"What are we to do?"
Public-domain text, read in full here on John Shaqi.
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