ernment loan. That is, the farmers surrounding a
point where an elevator was needed would subscribe the total amount of
capital necessary to build it, paying fifteen per cent. in cash, the
crop acreage of the shareholders at that point to total not less than
2,000 acres for each 10,000 bushels capacity of the proposed elevator;
these conditions fulfilled, the government would advance the remaining
eighty-five per cent. of the subscribed capital in the form of a loan,
repayable in twenty equal annual instalments of principal and interest,
first mortgage security. The commission also suggested that the
responsibility of preliminary organization be thrown upon the farmers
themselves by appointing the executive of the Saskatchewan Grain
Growers' Association as provisional directors of the new grain handling
organization.

When the matter came before the Saskatchewan Legislature the annual
convention of the Saskatchewan Association was being held at Regina and
the farmers declared themselves ready to assume responsibility and go
ahead. A bill was introduced by the Government, embodying the
recommendations of the Commission, and the Act incorporating The
Saskatchewan Co-Operative Elevator Company, Limited, was assented to on
March 14th, 1911.

Because of the unusual financial arrangements with the Provincial
Government the capital stock was not set at a fixed amount but left
subject to change from time to time by the Government. In order to
protect the credit of the Province the Government thus was able to
control the amount of stock the company could issue and thereby the
amount of money the Government might be called upon to advance for the
construction or purchase of elevators. Shares were placed at $50 each,
available for farmers only, and a limit was set upon individual
holdings.

It was provided that each local unit would have a local board of
management and appoint delegates to an annual meeting where a Central
Board of Management would be elected. The company was empowered not
only to own and operate elevators and buy and sell grain, but to own
and operate lumber yards, deal in coal and other commodities and "do
all things incidental to the production, storing and marketing of
grain."

By June 16th, 1911, the Provisional Directors[1] were able to call the
first annual meeting of the new organization, having fulfilled the
requirement of the Act that twenty-five "locals" be first organized,
and by July 6th--