CHAPTER XXII.

BUSINESS EFFORTS OF THE ALLIANCE.

THE term "business," as now understood, contains numberless factors within its meaning that did not obtain in ancient times. These increased and kept pace with the advancement of civilization, and will so continue as long as intellectual advancement is made. Primitive business was nearly, if not quite, a sort of limited barter, in which nothing but labor values were considered. It was a simple exchange of the product of one individual for the product of another, in which the amounts of patience and manual labor were the only factors, aside from desirability for use.

Under these conditions the products of individuals and tribes were exchanged. The fur of one tribe, for instance, was exchanged for the fish of another tribe in a different section. It soon became apparent that, in making these exchanges, one party or the other gained an advantage, as there was no method of dividing the different products so as to represent the exact divisions of labor values. In this dilemma resort was had to an expedient which proved so successful as to be accepted as an additional factor in all exchanges. By common consent certain shells, or beads made from shells or other materials, were endowed with the function of representing certain divisions of labor values. By this means, when a piece of fur was worth more in labor value than two fish, and not quite as much as three, the difference was evened up through the medium of these shells or beads. As exchanges multiplied, the demand for these shells and beads increased, until, most unfortunately for the human race, some one accumulated a sufficient number to make an exchange without the aid of barter. Then began the difficulty between currency and labor, which has come down to us under the modern term of a "war between capital and labor." The shells and beads of primitive business are the prototypes of the dollars and cents of the present generation. And the same desire which actuated the furclad possessor of these shells and beads, in demanding as much fur and fish for them as possible, is seen to-day in his modern imitator, the money-owner, who is seeking by all means, fair or otherwise, to obtain as much of the fruits of labor in production as he can, in exchange for his dollars and cents. Through the introduction of this medium of

exchange, by which the necessity of barter was eliminated, an endless number of elements, conditions, methods, and factors has been added. to the term now known as business.

In the evolution which time has brought about since the days of barter, many other materials have been used in the place of shells and beads, but the functions have remained the same. Usury soon made its appearance, and, as now, became a flourishing and remunerative occupation. Banks were operated with the usual results. Bank bills, or paper money, were invented, and the fine art of appropriating the substance of the people, without due course of law, has been carefully and successfully systematized. In all ages of the world the producer and consumer have protested against the demands and intrigues of capital. Sometimes these attempts have been successful, but as a rule they have resulted in failure. It would be both interesting and instructive to trace these different attempts, at different periods in the world's history, but space will not permit.

One of the most important parts of the declaration of principles of the Farmers' Alliance is the one that gives sanction to the idea that the membership are to strive for financial improvement. A belief seems to have prevailed in the order, from its earliest history, that direct financial improvement might be expected, as a result of co-operation in a business system by the membership. An outline of the effort made to secure this important result by that method, will be sufficient to show the principles involved and the lessons to be learned.

The first Farmers' Alliance was organized for business, and the entire order has been a business organization, for business purposes, from that day to the present; but the methods of co-operation to secure that end have been many, and often conflicting and expensive. The first effort at co-operation, to develop the business feature of the Alliance, seems to have been in the establishment of Trade Committees, as a part of the various County Alliances in the State of Texas. They usually consisted of five of the best men, chosen from different sections of the county. They were expected to meet the merchants and dealers in the county, and to receive, consider, and act upon any trade arrangement that might be offered. The idea upon which the system was based was that often a country town contained six or eight stores and dealers, where two or three could transact all the business, without an increase of force or investment, and that, could the trade be concentrated so as to employ a less number of men and less capital, the saving thus made should accrue to the purchaser, in the shape of lower prices on the commodities purchased. The Trade Committees, therefore, sought to get one or two

merchants in a town to make a written proposition to sell merchandise to members of the Alliance in good standing, who held "trade cards " stating that fact, at a specified rate of profit, which was to be much less than the average rate of profit current at the time in that locality; and in exchange for such concessions on the part of the merchant, the Trade Committee, if they decided to accept the proposition, had full authority, and would agree that the trade of the entire membership would be concentrated and placed with such merchant. All complaints of overcharge or any violation of agreement, were made to the Trade Committee. This committee also had access to the merchant's books, and were in possession of his cost mark, and had access to his invoices; and it was their duty to frequently examine into his business, and see that he was complying with the contract. As a further precaution, it was generally stipulated and agreed to, that the merchant should employ at least one Alliance clerk, who should be at liberty to report any violations of the contract to the Trade Committee.

While this trade contract system was being extensively tried, an effort was also made to co-operate in the sale of the products of the farm, and in some counties Alliance cotton yards were established. This feature was thoroughly discussed at the annual meeting of the State Alliance in Cleburne, Texas, in August, 1886, and the membership were advised to bulk their cotton and have sale days, to which buyers from the cities should be invited, to compete for the purchase; and when practicable, the Alliance was advised to establish their own cotton yards, for receiving, weighing, sampling, grading, and shipping that product.

The plan of bulking large lots of cotton, so as to secure buyers from a distance to compete in the purchase, was not successful. For a while it acted as a spur to local buyers, and kept up prices; but after several lots had been bulked, and all buyers had combined against it, the sale was sometimes made at a loss, and the plan as a whole, after two years' experience, was gradually abandoned. While the bulking system has been abandoned, the Alliance cotton yards have largely been developed into Alliance warehouses, and they have stood the test, and will remain as an important and permanent feature of the business effort.

In January, 1887, the National Farmers' Alliance and Co-operative Union was organized. No national business system was provided for; but the State Alliance of Texas, which met at the same time, modified its constitution so as to provide for a State business agent, to be elected by the Executive Committee, and to be under the control of that committee. This is the first record of any attempt at State co-operation inbusiness by the order. All previous action by the State Alliance had

tended to produce co-operation in county efforts, but the establishment of a State agency was calculated to secure co-operation between the counties in a State effort. C. W. Macune of Milam County was chosen by the Executive Committee to fill the important position of State agent, and to devise and put into active operation co-operation between the devise counties. He received the appointment about March 1, 1887, and immediately issued a circular letter to the different County Alliances, calling on them to select a county business agent, place him under bond, provide for his expenses, and empower him to represent the county business effort. He then visited Boston and Fall River, to try to make arrangements for the sale of the next cotton crop. It was found that the agency could handle cotton and sell direct to the factories, provided it had sufficient capital behind it to be responsible for its contracts. This was reported to the State Alliance, which convened in August of that year, and was one of the causes that led to the formation of the State Exchange.

After the report of the State business agent was received by the State Alliance of Texas, in 1887, the following action was taken, authorizing the establishment of the Farmers' Alliance Exchange of Texas.

Committee on Dr. Macune's plan of the Alliance Exchange was composed of the following gentlemen: Harrison, McLellan County; Mathes, Coryell County; Rogers, Anderson County; Cagle, Montague County; Eddleman, Denton County; Binford, Kaufman County; who reported as follows:

:

"BY-LAWS.

"This corporation shall be known as THE FARMERS' ALLIANCE EXCHANGE OF TEXAS.

"The object of this corporation is to negotiate the sale of the cotton and other products, and stock, and such other property, personal, real, or mixed, as may be desired by the members of the Farmers' State Alliance of Texas; also, the purchase of all such commodities, machinery, and other things as may be desired; also, to erect suitable buildings, storehouses, and appliances for conducting such business, and furnishing the necessary hall room and offices for the officers of the said Farmers' State Alliance, and such other purposes as may be desired by the said order.

"The capital stock of this corporation shall be $500,000, divided into twenty-five shares of $20,000 each, and one-tenth of one per cent shall be paid on the subscription of the stock. The twenty-five stockholders of this corporation shall be elected by the Farmers' State Alliance of Texas, as follows: At this present August session of said State Alliance, of 1887, there shall be two elected from each congressional district in the State, and three from the State at large; and immediately after election, their names shall be placed in a hat and drawn one at a time: the first nine drawn shall hold office one year, the next eight shall hold office two years, and the last eight shall hold office for three years; and the term of office for each stockholder

shall hereafter be three years, and the said State Alliance shall, at each regular annual session, elect stockholders to fill all vacancies.

"Each stockholder shall hold one share of stock in this association, in trust for the benefit of the members of the Farmers' State Alliance, and shall discharge his duties as owner in trust of said stock, to the best interest of his constituents, and turn over all stock and every privilege accruing therefrom to his successor in office. The stockholders of this corporation shall elect from among their number an Executive Board of three members, who shall be the Board of Trustees, and who shall have the general supervision and management of all the business, and shall procure such charter or charters from the State of Texas as may be necessary to carry on the work and business desired to be done. They shall be governed by such general by-laws as the stockholders may from time to time adopt.

"In order to raise the capital stock above entrusted to the stockholders, for the benefit of the members of the Farmers' Alliance in the State of Texas, each Farmers' Alliance in the State of Texas is hereby called upon to vote an assessment of one dollar per member, both male and female, due and payable October 15, 1887; and one dollar per member, both male and female, due and payable December 1, 1887; and those voting in favor of said proposition shall immediately notify the State business agent of the fact; and the money on such assessment, when received, shall be sent to the secretary of this corporation, and a notice of the remittance sent to the secretary of the State Alliance.

"It is understood that, when as much as $50,000 have been paid to the secretary, each share of stock will be credited with ten per cent paid in, and for each subsequent payment of that amount a like credit will be made.

66

Unanimously adopted at regular session, in Waco, Texas, August 12, 1887.

"H. G. MOORE, Secretary."

"EVAN JONES, President.

The Trustee-Stockholders met and organized, by adopting by-laws and electing officers and a Board of Directors. C. W. Macune, as State business agent, presented a proposition from the business men of Dallas, which he, in connection with R. J. Sledge, had secured after much negotiation.

This proposition was adopted by the Trustee-Stockholders, and the Executive Board was instructed to go to Dallas and close the contract, according to the terms of the proposition, and locate the headquarters in that city.

As we have now seen, the Alliance membership of the State were to pay in the capital stock by an equal assessment of two dollars each, and the State Alliance was to elect twenty-five Trustee-Stockholders, who should represent the stockholders in all meetings, and elect from their number a Board of Directors, composed of seven men, who should control and operate the business. In organizing the business, the Board of Directors found it necessary to have a business manager, and they selected and employed for that purpose Brother C. W. Macune, paying