One of the biggest steps forward ever recorded in the livestock history of the United States was taken Aug. 1, 1918, when the Equity Co-operative Exchange was established as a selling agency at Chicago, Illinois.

The July 11, 1918, edition of the Bottineau Courant, told the story of the founding of the Equity Exchange and North Dakota rancher U.L. Burdick, who questioned conditions of the South St. Paul, Minnesota, stockyards.

According to the Courant:

The founding of the livestock department of the Equity Exchange at Chicago meant that thousands of farmers, who were discouraged in raising cattle because so much of their profits had gone into speculators’ pockets at the terminal markets, were inspired with an increase to their livestock business.

The opening of the Chicago office by the Equity Exchange was not only a success and growth of the Equity Exchange proper, but also that of the livestock selling department at the South St. Paul stockyards. This department was opened on Oct. 1,1916. At that time, the South St. Paul stockyards were being operated under the usual system whereby the speculator and the commission men were getting most of the profits.

With the establishment of the Equity department, it went on record as the only one of its kind in the world at a terminal livestock market and the beginning of a similar department at Chicago marked the founding of the second department of its kind to push forward the cooperative movement. Conditions at the South St. Paul market were typical of those at other markets where the farmers had to stand being “fleeced” by speculators or quit shipping their cattle.

U. L. Burdick, one of the biggest stockmen of North Dakota, sent a letter of conditions as he found them at South St. Paul, relating how he lost $2,000 on one bunch of cattle. Mr. Burdick’s experience was addressed to Mr. F. B. Wood, Manager, Livestock Department, Equity Co-operative Exchange, South St. Paul, MN.

“Dear Sir: Referring to the report that I shipped to you 130 head of steers last September and that I lost approximately $2.000.00 on them, I wish to state that this is not true as to the first part of the proposition. I have never shipped you any cattle at any time. The second part of the proposition is true, and the facts are as follows: On or about the first day of September 1917, I shipped to South St Paul 130 head of steers, all branded with a U bar on the right shoulder, same being a brand I use in Williams County, North Dakota.”

“In making up my mind where to ship these cattle I, at once, decided to send them to an old friend of mine at South St. Paul. The steers averaged about 900 lbs. on the first 75 head. At the South St. Paul stockyards at 9:30 a. m. on the day the cattle were sold, and I went to the yard of the commission company. I arrived there before the general market had opened up. When I came, I was informed by my friend that he had sold the cattle to whom I did not know. That he had sold them at 6.75 for the top end and 6.25 for the poor end, I was, of course, surprised at the sale, but as I had consigned them to him, I did not think at the time that I could stop the sale. I investigated the market and found on that day that the general run of prices for the top end of my bunch was 8c.”

“I then investigated to find out where the cattle were and discovered my friend had sold them to a speculator. In company with Peter Knutson of Williston, N.D., I then went to the speculators yard and as he did not know me, I looked over my own cattle and asked him what he would take for them. He indicated he had just sold them to a party in Iowa for 8c. I remarked that was pretty good business. I just got 6.75 for the same bunch. He explained that he had to mix them with other cattle to bring the grade up. I examined the bunch and found that every single steer in the pens had the U bar brand on them.”

“I told him he lied when he said he had to mix the bunch because you couldn’t brand them and have the brands heal up on them within one hour. I then discovered that the speculators make a regular business of making the rounds of the stockyards early on market days and buying up all the cattle they can buy, taking them over to their pens and re-selling them on the same day. I presume, while I don’t know, that I am not the only victim of the speculators who operate on the South St. Paul stock market.

Yours truly, (Signed) U. L. Burdick”

Such was the condition at the stockyards and the Equity Exchange, true to its fighting history, went into the field to combat and conquer to a great extent.

North Dakota, not being a dairy state at the time and producing cattle of a beef type and not producing corn to feed them, marketed the best class of feeders on the South St Paul market that were marketed in the United States and those were handled through the Chicago department managed by A. E. Dann. He was a well-known stock raiser and grain grower from Centerville, South Dakota.

Every farmer working through the Equity Co-operative Exchange was a profit sharer in the business. It was the first time in the history of those enormous stockyards, farmers came into their own full rights to buy and sell cattle without being victims of the speculators.