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./ 16, 1923 



TIm DEnow Agricultanl AModation Record 



P«««S 



You Can^t Tell Stephenson Co. Fatmers 

 That Dairy Co-operation Doesn't Pay! 



AmoHg the co-opCTative dairy 

 marketing associations, which 

 the I. A. A. has assisted in or- 

 ganizing, there is none that 

 ha^ served the~ district in which 

 it is located ' to better 'advan- 

 \^' tage than has the Stephenson 

 :iV County Co-operative Marketing 

 '^ Company. ,' * 



When producers can point to 

 the fact that a Freeport con- 

 dfinsary is paying one dollar per 

 hijpdted for milk over what it 

 paid before the "co-op" was well 

 established with the price of 

 condensed milli at practically the 

 same level, you can't tell them 

 that co-operation doesn't pay. 



Likewise when farmers living 

 near the marketing company lo- 

 cal unit of Dakota consider that 

 they were paid $.90 per hundred 

 for milk at that point by a local 

 dealer in February, 1922, while 

 one year later they received 

 $2.10 from their marketing com- 

 pany, they are -willing to "stick" 

 to co-operative marketing. 

 Serves Conunnnlty 



The Stephenson county "co- 

 op" has proved, among other 

 things, that the big idea in co- 

 operative marketing is not espe- 

 cially to allow producers to get 

 stock dividends or a share of the 

 profits, but it has shown that the 

 big thing in farmer marketing is 

 to create a market which the 

 farmers themselves control, to 

 serve a community by assem- 

 bling a large quantity of a com- 

 modity, grading it, standardizing 

 it, and putting a pr9duct on the 

 market that the public wants at 

 the time that it wants it. 

 ■' wSere there was a poor mar- 

 ket for .milk and cream, the 

 Freeport co-operative has manu- 

 ( factured the surplus into butter, 

 sweet cream, cheese, casein, and 

 other dairy products. Its fa- 

 mous "Vita Gold" butter, scor- 

 ing 90 and better, commands a 

 premium of at least one cent 

 over the Chicago market, simply 

 because the company makes 

 enough butter — and makes it 

 good enough — to create a de- 

 mand for it. 



Organization 



The Stephenson County Co- 

 operative ^Marketing Company 

 was formed by yie Stephenson 

 County Farm Bureau and the 

 Dairy Marketing Department of 

 the I. A. A., February 3, 1921, 

 after several preliminary meet- 

 ings. It opened (or business on 

 August 15, 1921. 



Building and equipment of the 

 company are valued at over $70,- 

 000. It is capitalized at $75,- 

 000 and shares have a par value 

 of $50. No member may hold 

 more than five shares. At pres- 

 ent there are nearly 1,000 stock- 

 holders in the co-operative. At 

 the close of 1922 business, a div- 

 idend of six percent was declared 

 on all stock. ~ 



1922 Statement 



A brief statement of the 1922 

 business of the company follows: 



SALES 



Butter J253.661.75 



Milk 145.929.25 



Cheese 46.082.49 



Cream (sweet) 51.5^2,69 



Butter and. Sklmmllk 4.693.47 



Miscellaneous 16.474.90 



111 518.364.55 



! i \ DISBVRSEMENVS 



Total ttiald patrons $411,164.56 



Buttei\ and Cream pur- , 



chas^ 21.483.34 



Runnint expenses ...... 61.742.57 



Pv'\f Miscellatieous purchases . 11,268.36 

 V .'I Sinking Yund 12.705.72 



$518.364.5, 



The avd^age monthly (lusiness 

 for 1924 whs $43,197.05. A to- 

 ial of 13,12^^766 pounds of milk 



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TELLING THE WORLD ABOUT "VITA GOLD" 



HERE'S one of the illuminated signs of the Stephenson County Co- 

 operative Marketing Company on display at Rockford. This "co- 

 op" made 631,597 pounds of butter in 1922, which sold for $253,661.75. 

 A large part of this was print butter, advertised and sold under the 

 brand name "Vita Gold." They're making nearly twice as much this 

 year. - , 



was handled, together with 1,- 

 7M,606 pounds of cream. The 

 total amount of butter made was 

 631,595 pounds out of 518,948 

 pounds of fat. The overrun, 

 which amounted to 112,649 

 pounds, represents $42,919.26 at 

 38.1 cents per pound. The aver- 

 age overrun was 21.7 per cent. 



The average price paid for tat 

 was 40.4 cents per pound and for 

 milk- was $1,627 per hundred. 

 The plant manufactured 169,626 

 pounds of cheese from 1,865,886 

 pounds of milk, receiving an 

 average of 22% cents per pound 

 tor the product. 



Volume Increasing r 



May, 1923, saw the biggest 

 volume of business transacted by 

 the company in any one month, 

 when $62,818.42 in sales came 

 to the organization. With this 

 big volume the expeese was. only 

 9 per cent of the total sales, the 

 lowest Tet secured by the co-op- 

 erative. 



In May, also, 88,542 pounds of 

 butter were made, an increase 

 of 15 per cent over the corre- 

 sponding month of last year and 

 68 per cent over the 52.633 

 pounds average monthly produc- 

 tion of 1922. The last report 

 from the plant shows that over 

 108,000 pounds of butter was 

 made in June. From these fig- 

 ures it can be seen that the com- 

 pany is doing a greater business 

 with longer establishment. 



Equipment for manufacturing 

 the skimmilk prodijct, casein, 

 has been added this year. There 

 is a good market for casein at 

 present and an average of about 

 $1,200 worth is being sold 

 monthly. 



Has Ten Locals 



The Stephenson County Co-op- 

 erative Marketing Company, with 

 its main plant at Freeport, has 

 local units at Dakota, Damascus, 

 German Valley, Egan, Bailey- 

 yille, Pearl City. Lena, and Wad- 

 dam^ Qrove in Stephenson coun- 

 ty; at Shannon, in Carroll coun 

 ty; and Forreston in Ogle coun- 

 ty. 



Producers bring their cream 

 to these locals, where it is col- 

 lected before shipping to Free- 

 port. Each plant has its branch 

 manager. Steps have been taken 

 this summer to organize the lo- 

 cal units more strongly on a 



business basis. Advisory coun- 

 cilmen from the locals are elect- 

 ed to represent them at each 

 meeting of the board of directors 

 of the company. 



Dakota, Pearl City, and Egan 

 have already organized 09^ the 

 strong unit basis. ■ - H 



Officers n 



The officers of the company for 

 1923 are, Wm. F. Brown, presi- 

 dent; Wm. Frank, vice presi- 

 dent; J. A. Phillips, secretery- 

 treasurer, who with C. Maize, T. 

 F. Ellis, D. M. Brubaker, Wm. 

 Sieferman, H. M. Phillips, and 

 John Kachelhoffer, constitute the 

 board of directors. 



The directors' board is on the 

 rotating plan, and the term of of- 

 fice is three years. The officers 

 are selected within Aie board. 

 Directors are chosen at the an- 

 nual meetings from the mem- 

 bership-at-large. 



Manaeement 



"the general management of 

 the marketing company is under 

 A. V. Ahrentzen, a man with 

 many years experience in the 

 creamery business. The com- 

 pany, in addition to its regular 

 staff, has a fieldman who spends 

 most of his time visiting locals, 

 instructing in tlie care o{ milk 

 and cream, and otherwise adding 

 to the efficiency of the concern. 



A monthly house organ, "The 

 Co-op." is published to inform 

 the membership concerning the 

 affairs of tlteir company. 



Until recently the co-operative 

 has maintained a warehouse to 

 handle feeds, tankage, seed, bin- 

 der twine, etc., at a small mar- 

 gin of profit to the membership. 

 However, it was -found that with 

 the greatly increased volume of 

 dairy products handled, the cap- 

 italization of the isompany would 

 not permit the financing of this 

 subsidiary, so'Jt was disposed of 

 in June. 



REPORT OF 0. S. 

 GRAIN GROWERS, 

 MC^MITTED 



/ (Continued from v&ge 2) 

 matters InvolvecHn connectioa with 

 grain ^ exc'hange reprp8enw.tion. 

 Among- others was incorporated 

 specifically the three proposed 

 methods of qualifying as to finan- 

 cial respohsibility contained in the 

 letter to President Stream. The fol- 

 lowing paragraph from the letter 

 of Mr. GherfTcir Morrill to Mr. Mehl 

 under date of June 18 is In specific 

 reply to the questions staited: 



"The Solicitor is of the opinion 

 that your suggestion as to the dif- 

 ferent methods hy which •ort-stock 

 membership corporations 'm&y meet 

 the requirements -of the Act .are 

 sound and that the Board of Trade 

 would not be justified l« denying 

 membership to an association 

 which had adopted any one of said 

 methods; that is to say. the ideas 

 set forth in paragraphs (a), (b), 

 (c). and (d) just preceding the last 

 paragraph of your letter." 



Sert-ire KarfUtlrw, We also re- 

 j)ort informairV for your proper In- 

 formation that resillts of the. sev- 

 eral conferences held with Mr. G. 

 ^V. Hales of Hales a^d Hunter. 

 Chicago. Id which have* l^een out- 

 lined in detail arrangements for 

 financing and handling any part 

 or all of the grain of our members. 

 This, large and successful ^concern, 

 friendly to the co-operattfre move- 

 ment, controls a large jrmount of 

 surplus capital in additfon to ele- 

 vators and plants whereby it wlU 

 assume to underwrite our contracts 

 made oo tire Chicago Board of 

 Trade aad will furnish all the fi- 

 nances needed in the movement of 

 grain. This financial asslgtance 

 will carry with it certain account- 

 ing service enabling ua. with the 

 employment of one man to actu- 

 ally sell our grain on the floor, to 

 carry on our grain selling opera- 

 tions at a nominal cost per bushel, 

 thus avoiding the necessity for 

 building immediately an office per- 

 sonnel and force of our o**n. but 

 leaving us free to use our own cap- 

 ital to the extent that we have to 

 do our own financing and handle 

 our own force as soon as we are 

 In a. ^Bitlon to do mt. The ar- 

 rangement carries with it the use 

 of ^11 classes of terminal elevator 

 service, including storage space, 

 and for which service we will pay 

 certain Stipulated and agreed per 

 bushel charges. The services de- 

 ferred to are offered without limi- 

 tations — if or our immediate needs, 

 and are available in a manner simi- 

 lar %o the service offered by , a 

 bank or trust company. Neither 

 would our business be restricted 

 exclusively to the acceptance and 

 employment of the services ofTered. 



It seems possible to commence 

 operation in tlie Chicago .market 

 almost at once — if desired. 



KtateMMit ^ C€mdltl»», We also, 

 report for your proper informatiprL 

 and purposes herein set forth 8 

 general statement of conditiops -*f 

 the corporation's- finances. The U. 

 S. Grain Growers. Inc.. at the pres- 

 ent time is owing cre<lilor% of all 

 classes approximately $350. oOO, in- 

 cluding interest accrued on note 

 obligations. Of this amount ap- 

 proximately $8«.000 is due solici- 

 tors and about $42,000 due old di- 

 rectors and others; $191,000 with 

 about $30,000 in accrued interest Is 

 due note creditors, most of whom 

 are Farm Bureaus and Farm Bu- 

 reau members. It is estimated that 

 $100,000 In new capital will be ad- 

 equate to start operation in at least 

 five of the principal markets. This 

 capital may not be 'immediately 

 necessary. It is Estimated that 

 about $10,000 should be provided 

 immediately and budgeted for the 

 special purpose of consuming and 

 setting in operation the present 

 proposed plans. 



Fonda Rvqalred. In order to 

 carry odt and put into execution 

 the plans, contemplated, it becomes 

 absolutely necessary that some 

 -funds be made Immediately and 

 definitely available for the purposes 



ist. Carrying on=**fhe ordinary 

 affairs of the corporation. 



2nd. Arranging the contem- 

 plated changes looking to the fund- 

 ing of its debts. 



Place of I. A. A. 

 .^jnnual Meeting 

 VU To Be Chosen 



Cboll«e of the place at wbiek 

 the 1933 annual meeting of the 

 lUiQOiB Agricultural As80Ci»tiOft 

 will be held will be deeded at 

 the next meeting of the Sfeca- 

 tive Committee on Pr!d«y7 illi>N 

 nst 3. : The annual n^eet is datad 

 for tbQ third week in January, 

 1924. 



3ntl, ; Securing and ^ecomplish- 

 ing the funding of its debts. 



4th. ' Securing subscription of 

 nocessaipr funds to proviaci initial 

 capital, r -■ 



6th. Organizing the ' marketlMC 

 of graia 



y two, iiave in tke pH^ 

 _jd V. 8. Grain Orowerft. 

 Ifrbm. putting Into effect lt» 



1*mmmtmrj, Two principal va. 

 and only two, have In 

 prevented V. S. Grain Orowi 

 Inc. frbn 

 marketing plan 



Ist. Dts form of organ txatloq— 

 having [membership contracts and 

 providing' for patronage dividends 

 has fseniished the excuse to bar 

 Hie corpoiratlon from the grain ex- 

 change« of the country and there- 

 by deptived the corporation from 

 marketing any part of its grata 

 desired, .through that outlet. 



2nd. Its financial condition — 

 lacking t 8dequ«4.e finances origin- 

 ally t« function as a going con- 

 cern, aid finally becoming tnsolT- 

 ^nt-~ha< rendered the corporation 

 dormant for the time being. 



The irst obstacle has been re- 

 moved ty legislative act. * 



The second obstacle is going to 

 he remioved tl. rough your actWo 

 financial 'support and indorsement 

 — if jiour Federations are ao 

 pleased. 



The (Jrain Grower Plan ki Itself 

 has not defeated the puttina of tho 

 plan into, operation. The plan has 

 never had a fair trial. It aeems It 

 would pe unsound to repudiate It 

 before teivlng it a fair trial be- 

 cause of repealed indorsements by 

 the FaiTm Bureau and other farm- 

 era' oraanizations. The Farm Bu- 

 reau olrrthe leadership of the 

 Bureau i cannot repudiate this plan 

 and evtr hope to make good on 

 another grain marketing plan. 



The present Board of U. S. Oraln 

 Growers. Inc.. In accepting theiK re- 

 spective positions to which tnfly 

 were fli-afted on that Board sdo* 

 scribed to a solemn oath of oflloe 

 to faitWfuUy and well, and to the 

 best ofltheir ability carry out. the 

 tfTust aad confidence so reposed m 

 them by the membership of the cor- 

 poration — and by your committee. 

 They haK-e kept faith with the mem- 

 bership, of U. S. Grain Growers, to 

 the b*«t of their ability. 



NeeJeB finances iw>d active united 

 .^supporctis now our lloroediate pixttfic)' 

 lem. . " . 



Your ' substantial |b«d definite 

 financial support to thisNpro^ram la 

 required at once and most earnestlir 

 solicite4- 



"Thenei Is needed, accordltrg to tbe 

 estimates of the Executlva Com- 

 -mittee ef the Corporation: , 



For carrying on the otdinMjt^ nf- 

 fairs of the Corporation. "^ 



For arranging the contemplated 

 chb-ngesr looking to tlte fundiniKVaf |. \> 

 its debtfe. I ■ V ■ ^- 1^ ' 



For securing mtd accompnab 

 the- fuh^lDg of Us deHts. \ 



For ksecuring suhscMptionQ 

 necessary funds to provide ifil^ 

 capital. Land 



For organizing fhe marketing 

 grain. tjh« sunt of twenty-thoua 

 ($20.noin) DoJIars. or as much there- 

 of las may be made available at the 

 pr^aent [time and immediate futn're. 



Said fund to be administercNt 

 througli! and with the advice of a. 

 properljf constituted Finance Com- 

 mittee. \ - - 



The sums that may be pledg«d 

 and'paia by the Farm Bureau Fed- 

 eratlorta for any or. all of tihe sev- 

 eral put-poses above set forth are 

 lo be rtec^ved 4>y the Corporation 

 as adva lOies and be later secured, by 

 bonds ar/debentures in the several 

 amount! of the (same class as con - 

 templajt >d to be issued to the cred- 

 itors cf the corporation whoae 

 claizns j ,re proposed to be funded^ 

 VefT f' respectfully submitted.: 

 U.I i. GRAIN GROWERS. IXC. 

 By its Bpard of Dlr«ctoT«, 



ifitt^l 



ng.df 



usand 



Secretary. 



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An increase of nine tenths of 

 one per cent in tlie number of 

 pigs saved from farrowings in the 

 six montliB €nded June 1, 1923. 

 as compared with the number 

 saved during the same period last 

 year, is indicated in reports gath- 

 ered by rural mail^ carriers for 

 the U. S. Department ~ of Agri- 

 culture from 14ft,000 hog""raiser8 

 in all parts <rf the country.. 



Phosphate Insures You 



Highest Quality Grain 

 Maximum Crop Production 

 Surest and Greatest Profits <l> 



We Insure You 



Prompt Setarice 

 Accurate Weight 

 '^^Dependable Qualit] 



Order through your Fann Burean. 



4-: 



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■^, Phosphate-Limestone Department, 

 '! niinoU Agricultural Association. 



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