i 



lune 1,1923 ¥ June 1. 1923 



The Illinots Agricalturai Aasodation Record 



! 



ISTRICT 

 PUN IS 

 AT MEET 



f A. F. B. F., 



littee Fop 

 )eration 



the milk pro- ' 

 committee of : 

 trict, lield at 

 !. B. Heaton, 

 Marketing for 

 , was elected 

 K. Richardson 

 ther members 

 re: .^ 



cretary of the 

 1 Association; 

 ■esident ot the 

 !au Federation; 

 resident of the 

 ilillt Producers" 



ented the fol- 



I basis for re- ! 

 •ict for the co- H 

 ion of dairy 



rty standing of 

 •i Co-operative 

 pany be main- 

 - of preferred 



II tors. 



>rs of the mar- 

 nit their resig-- 

 ittee. 

 itry receiving 

 the marketing "jt 

 local co-opera- f* 



Fanizer be em- i 



eting company | 



rop-?rty ot the ( 



1st in the for- I 



^Ktiona, etc. \ 



'rrt be Immedl- ' 



g forward to ' 

 ion-stock, non- 



igency for the 1 



ind that this .' 



;eed along the • 



1 of local CO- I 

 nd non-profit ' 

 ipping points 

 " a minimum 

 ids of mlk 



associations 

 " purchase a 

 of sufficient 

 emergencies j 

 -- members | 



oclatlon sliall I 

 to finance lo- I 



Ir 



iclatlons shall 

 eers as mem- 

 able contract. 

 In which shall 



hat when 75 

 al milk pro- 

 ns district is 

 r associations 

 ts the title to 

 and thfe milk 

 ral non-stock 

 iatlon to be 



so that when I 



on begins to I 



al association I 



building and } 



ntral associa- > 



'iatlon to own I 



at a commit- i 



the farm ad- l". 



nta of the St. ■'. 



termlne when »' 



al milk In the ] 



t by contracts i 



B. " 



irkcting asso- 

 Southern Illl- 

 I Association 

 »e dealers for 

 n the district, 

 marketing aa- 

 t shall *nter 

 ? Illinoja-Mls- 

 ilk Marketlns 

 le property of 

 understand- 

 Tnay be ab- 

 npany or mada 



this Depart- 

 eneflt to the 



ot the bulle- 

 V. Live Stock 

 nt. "It you 

 lend them in. 



cannot help 

 may be pos- 



contact with 

 :an be ot aa- 



all the lire 

 :he State to 

 te that this 

 1 created for 

 assisting the 

 ly with h' 



MANY MEMBERSHIP 

 CAMPAIGNS UNDER 

 WAY DURING 1923 



Thirteen Counties Complete 



.Drives; Wabash County 



Signs 1+9.4% 



Thirteen Illinois county farm 

 bureaus have completed mem- 

 be r s h i p reorganization cain- 

 paifrns since the firetjjf Janu- 

 ao', 1923. The.se counties -in- 

 clude DuPapre, Fulton, Kendall, 

 Lawrence, Marshall - 'Putnam, 

 Mason, Pike, Sangamon; Union. 

 Wabash, Will, Williamson, and 

 Woodford. 



Hieh Record 



Of this number, Wabash county 

 made the best record, 149.4 per 

 cent of the old membership hav 

 Ing been signed up. J. P. Lyons, 

 Livingston county,' was manager 

 ot the campaign. 



Counties that started cam- 

 paigns between January 1 and 

 May 1, but which have not made 

 final reports, are McDonough, 

 Hancoclc, Pike, Mason, Menard, 

 Cass, DeWitt, Morgan. Mason, 

 Boone, Lee, Madison, Ogle, Ad- 

 ams and Cook. 



Four schools of instruction pre- 

 paratory to campaigns, were held 

 In May. These were held In Bu- 

 reau, LaSalle, Douglas, and Ford 

 counties. 



June Campaigns 



Stark, Winnebago, Carroll and 

 Marion county farm bureaus will 

 start campaigns in June, while 

 Jackson, Franklin, Pulaski, St. 

 Clair, Scott, Richland, and John- 

 son counties have schools plan- 

 ned for later in the season. Sev- 

 eral other counties will probably 

 be added to this list when they 

 complete plans. 



$100,000 Plant, $102,000 

 860 Members— that's 



Business, 

 Co-operation! 



*'Co-op" Marketing 

 Highly Commended 

 By Henry Wallace 



"When we get down to the 

 principles of co-operative market- 

 ing," said Secretary of Agricul- 

 ture Henry C. Wallace recently, 

 after an extensive trip into the 

 South to study late developments 

 in commodity co-operative mar- 

 keting, "it is simply a matter of 

 applied Christianity." 



"In years past, we have had in 

 operation a number of what we 

 call co-operative marketing or- 

 ganizations. We started out in 

 the old days with creamery as- 

 soclations, etc., but we have 

 learned by the experience ot the 

 past two years that these old 

 fashioned organizations were 

 founded on the wrong principles 

 ot marketing. 



"We know now that we must 

 improve the economics ot mar- 

 keting. Where the old-fashioned 

 organizations saved pennies, the 

 present organizations are saving 

 dimes and dollars. 



"It is through this kind ot co- 

 operative marketing that the 

 farmers of America are to get an 

 a sound economic footing and en- 

 Joy a standard of living equal to 

 that ot workers of other indus- 

 tries." 



Page 3 



rrs VALUABLE! 



DONT misc the K A. A. 

 State Picnic to ba held at 

 Urban*. June 29. It is more 

 than a mere outing. It Is in- 

 structional and educatlonad. 



Fof it offers a chance to 

 take In 4he University Open 

 House and see what the Col- 

 lege of Agriculture Is doing 

 for the advancement fef far?n- 

 ing. It presents addresses by 

 speakers who have a neat mes- 

 sage for farmers. \ 



It was almost twelve years ago — the summer of 1911, to be 

 exact — that housewives in the south side of the city of Wau- 

 ke^an went on the war-path against private milk dealers, claim- 

 ing that tht product was of poor quality and too high in price. 

 Today, as a result of that action, Waukegan has a producers- 

 consumers eo-oporative association that did a business of over 

 $102,000 in dairj- products alone in 1922, supplies milk to over 

 1,200 Waukegan families, handles one-fourth of the fluid milk 

 trade of the city, and has property valued at nearly $100,000. 

 The name ot the organization is the Co-operative Trading Com- 

 pany, one of the best examples of true co-operation in Illinois. It 

 has nearly 800 consumers and about 60 farmer shareholders at pres- 

 ent. Organizers of the co-operative were Finns, but the majority ot 

 the membership is now composed of other nationalities. 



-J 



A survey made of over 6,000 

 representative farms by the De- 

 partment ot Agriculture shows 

 that a return of $917 was made 

 for the use ot $16,400 ot capital 

 and the labor of his family during 

 the year 1922. 



The growth of the company 

 has been slow but steady. When 

 organized in 1911 with 120 con- 

 sumer - shareholders, its begin- 

 nings were very modest. Milk 

 was first distributed from the 

 basement of a residence on Cum- 

 mings avenue, Waukegan, for 

 about a year, /when a building 

 was erected ' on McAllister ave- 

 nue. A co-operative grocery 

 store of the company was estab- 

 lished on the ground floor of the 

 structure and the milk business 

 was handled in the basement. 



Enlarge .-Accommodations 



The addition of a meat depart- 

 ment and the growth ot business 

 during the years that followed 

 the establishment of the co-oper- 

 ative made an enlargement of ac 

 commodations essential. For this 

 reason, a $30,000 addition' was 

 completed in April, 1922, to 

 bouse the dairy equipment and 

 sales department. 



Dairy fixtures and machinery 

 were added to the new addition 

 at a cost of over $21,000, and 

 comprise the most up-to-date and 

 sanitary equipment for the effi- 

 cient handling of dairy products. 

 The equipment Includes a refrig- 

 eration plant, pasteurization and 

 clarification machinery, bottle fil- 

 ler and capper, churn, and other 

 necessities of a modern dairy 

 plant 



I. A. A. Helps 



With the enlargement in the 

 spring of 1922, the consumer co- 

 operators decided to sell shares 

 of stock to farmers who supplied 

 milk to the cOmpany to allow 

 them to secure the benefits of 

 co^)peration. The Dairy Market- 

 ing Department of the I. A. A. 

 was secured to serve in an ad- 

 visory capacity when this step 

 was taken. A satisfactory agree- 

 ment was reached between pro- 

 ducers and consumers. 

 The Plan 



The agreement reached stipu- 

 lated that the farmers should 

 subscribe tor sufficient capital 

 stock to cover the dairy invest- 



ment. It guaranteed the farmer 

 a satisfactory basic price for his 

 milk. It was further agreed that 

 the profits from the dairj- de- 

 partment should be pro-rated 

 back to the producprs and con- 

 sumers In proportion to the price 

 received by the producers and 

 paid by the consumers for milk, 

 respectively. 



The association is capitalized 

 at $30,000. Members may pur- 

 chase shares costing $10. No in- 

 dividual may hold over 10 shares 

 of company stock. Six per cent 

 interest was paid on all shares in 

 1922. Prior to that, five per 

 cent was the dividend paid. The 

 present, prosperous condition of 

 the company indicates that the 

 higher rat^ ot dividend will pre- 

 vail henceforth. 



*In addition to the dividend, 

 consumer-shareholders receive a 

 five per cent rebate on all pur- 

 chases. For example, if a .mem- 

 ber purchases goods to the value 

 of $1,000 during the year, he re- 

 ceives $50 rebate at the end of 

 the year. At the present time, 

 this rebate is given in shares to 

 members who own less than 10 

 shares of stock. This is done in 

 order to provide the company 

 with sufiicient working capital to 

 allow expansion. 



It is interesting to note that 

 comparatively little capital stock 

 has actually been sold to mem- 

 bers, most of it having l)een pur- 

 chased through dividing members' 

 profits into shares. ' : 



The general plan of the Co-op- 

 erative Trading Company is 

 based upon the Rochdale system 

 which originated in England 



nearly a hundred years ago. 



t ■ 

 Farmers* Share 



Producer-members who supply 

 the company with milk receive a 

 pro rata share in the dairy prof- 

 its besides their stock dividends. 

 In 1922, this sum amounted to 

 $1,000, which, when divided 

 among the thirty farmer-mem- 

 bers of last year, added five cents 

 per hundred pounds of milk sold 



np HIS picture shows the head- 

 * quarters of the Co-operative 

 Trading Company at Waukegan — 

 the only producer-consumer concern 

 in lllinoiB. When first formed in 

 1911 it was a co-operative buying 

 association for consumers only. 

 Last year milk producers in the 

 Waukegan district were admitted 

 to share in the benefits of the com- 

 pany and the Dairy Marketing De- 

 partment of the I. A. A. helped to 

 work out the plans for thia.<new 

 feature of the organization. The 

 building contains the grocery, meat 

 market, and modern' dairy plant of 

 the Co-operative, 



during the year. Some rfeceived 

 as high Its $9 5 in rebate. 



In addition to the profit-shat-- 

 Ing- benefits of the company, 

 farmer-raembers found it to their 

 advantage to sell to the co-oper- 

 ative during 1922 because they 

 were paSfl from 10 to" 15 cents 

 per, hundred pounds more for 

 their milk than private dealers of 

 Waukegan w^re payiBg. 



At present the company is pay- 

 ing five cents more per hundred 

 than other dealers. At the same 

 time the retail price for milk is 

 standard for all dealers in tht 

 city. The price paid to farmer^ 

 marketing in Waukegan averages 

 about 50 cents more per hundred 

 than that paid when delivered at 

 nearby country bottling works of 

 Chicago dealers. This higher 

 prioe in IWaukegan is attributed 



in 1921. 

 pdint to 

 in 1923 



i.irgely to the pros»-nc ' «f the 

 I'o-oporative Tradinc Company. 



nesijlps the fluid milk sold and 

 cream [ retailed, the co o|i4l'atii'e 

 soils blatter, cottage chi ese. but- 

 termilk, and chocolat-d milk 

 from i|s dairy. Only ah>ut T,,n«0 

 pound^ bf butter is malce month- 

 ly, ^ jtbare is little pr[>flt in it 

 with tlje high fluid milk prices. 



Durilif: 1922 the sali;« of tfie 

 orgahiiation were as fallows: 

 Dairy department. $102,619.19; 

 grocerj department, $68,422.99; 

 and meat department, $! 4,778.81. 

 The surplus tor the reat was 

 $8,605.95. The iQcrea8< in dairy 

 sales from year to yeari is mani- 

 fest by the sales of 1920 vhieb 

 were , $72, 631. 38, and 

 $76,108.94. Indications 

 a still' greater Increase 

 dairy s^les, as they promise to 

 total $70,000 "for the Irst. half- 

 year alone. | 



The co-operative has a b«w ga- 

 rage and barn for trucks, wag- 

 ons, and horses under {construc- 

 tion al this time. It |wlU coat 

 $7.U*0. 



The manager. Jack LItikku, re- 

 ports a generally optimistic buU- 

 look for the company. Its.steaily 

 growth in busipess is' bfTBgiUf. 

 about- a gradual expaiisi(>n. More 

 milk t>roducer8 are |>«cbming 

 shareholders as the increase in 

 sales warrants a large^ supply. 

 Both producers and consumers 

 seem well satisfied witb the co- 

 operative company. Mr. Liukku 

 has been manager for nearly flv<- 

 yeara, having charge of all tli»- 

 departments ot the "co-« >." jTheM 

 are 20 employes in all. 



Officers and director i 'of the 

 company selected from ihe ranks 

 of proHucer and consutner-mera- 

 bers are as- follows for 1923: 

 president. Vaino F. I>ekto; vic<> 

 president, Lincoln Egbert; secre- 

 tary, J. N. Hautala; Elmjer Erick- 

 son, Richard Maki. P^rt kik 

 kinen. Mike livarinen, latt Mar- 

 ti la ant Karl Helander. 



J 'I ^ It 



Tliki to think of the work of tbe^Farm Bureau Fm- 



■* eration as a national undertaking. — as a natioi^l 



bletsing. I hortestly believe that by giving agrict^- 



ture ne-u; hope and new z'igor we are regenerating tpe 



republic. Our work restores the fair trade^balance 



between the country and city an4 they prosper po-, 



getter. But, most important, perbafyf. from a nattoiial^ 



point of i'iew, is the 'putting of agriculture on fiiw 



business foundations and improxitg the standards 



of farm life and thereby insuring the perpetuity of\a 



strong and happy rural population in .America. Tve 



country will forever feed the city; and the sort pf 



people tlte country sends to the city determines life 



.kind of a city life we are to have. So, m reviving ai^ 



invigorating American farm life vie are regeneraiiig 



and preserving the Sation. Tbettfore. our watcl 



word should be organisation and service. 



. ■ — Oray Silver. Fann Bureau repre«^ativ« I 

 ■ - - Washinston, In report to Executive (""oip- 

 ' ^ iTiittee of American Farm Bureau Fed.e 

 tion. 



J. 



