thanks for his untiring work and
loyalty was tendered Mr. Crerar. The debate was over. The following
morning the officers for the ensuing year were chosen and only one of
the four directors who had resigned from the old Board was re-elected.
He withdrew and the whole incident was closed.

But the real test was yet to come. The withdrawal of the four
directors had left but five to cope with the difficult situation of the
Export Company. It had found itself with a large amount of ocean
freight on its hands--freight which had been secured on favorable terms
from shipping agents for use later in transporting grain which the
farmers' agency expected to sell in the Old Country. It was decided to
cut off the export business entirely for the time being and to re-let
the ocean shipping space to other exporters. The price of ocean
freight fluctuated to such an extent, however, that rather than accept
an immediate loss it was thought better to use the freight, after all,
making shipment to fill.

At the time of the sixth annual meeting the Export Company had stood
about level on the books; but during the two succeeding months the
grain shipped from Fort William went out of condition while crossing
the ocean and when it arrived in port the Old Country buyers refused to
look at it. Heavy charges had to be met in treating to bring it to
sale condition and very heavy losses were incurred. Before the matter
was cleaned up finally these losses totalled more than $230,000.

When a quarter of a million dollars has been expended in a direction
where tangible results have not been in evidence--when it has been
sacrificed apparently for the sake of a principle--then does the manner
in which such a loss is accepted become significant. The exporting of
grain had begun to receive particular attention from the shareholders
of the Grain Growers' Grain Company following the season of 1907-8 when
they discovered the apparent margin of profit in the export business
during much of the season to be from eight to twelve cents per bushel.
This had been due, no doubt, to the fact that it was a time of
financial stringency and only a few exporting firms could get the money
necessary to carry on the business. The export value of grain, the
farmers had figured, should be its value in the world's markets, less
the cost of delivering it. By engaging in the export business,
obtaining their cable offers regularly from the Old Country, they felt
t