P«C4 4 



The DlinoU Agricultural Attociation Record 



Nor. 5. 1923 



Here^Jire Youyt Answers ^To * The 

 I' Problems of Illinois Agriculture 



To begin with, it was the first time the Illinois Agricultural 

 Association and county farm bureaus have deliberately faced 

 their troubles. At every one of the thirteen district conferences, 

 a large part of the day was spent in digging into the troubles of 

 farm bureaus and cooperative marketing associations. 



Next comes the fact that our greatest problem is with market- 

 ing and distribution of crops. Cooperative marketing was the 

 taajor subject at every conference. This question was discussed 

 up to the very last hour of the day, and even then it was hard 

 to get away from it. 



Not once In any one of the conferences was there an expression 

 of doubt about cooperative marlceting being the way to solve the 

 problems of selling and distribution. At four of the meetings, the 

 questions of political action, tariff, and price-fi.\ing were introduced, 

 but with very little discussion or support. Over and over there was 

 very defiuite e-xpression showing that you are expecting to go for- 

 ward on a program of cooperative marketing. 



The whole question was recog- 

 nized very definitely as an eco- 

 nomic problem which must be 

 solved by an economic remedy, 

 -and by farmers themselves if it 

 is to bt solved at all. 



Uve Stock Marketing 



Cooperative live stock shipping 

 associations and producers coop- 

 erative commission companies 

 were discussed at every meeting. 

 The sum-up of the evidence on 

 shipping associations points 

 straiglit to the conclusion that 

 where there is a board of direc- 

 tors wko are meeting regularly, a 

 good manager has been employed, 

 and all work together on the job, 

 at that point the shipping aaso- 

 ciation is successful and growing. 

 The only exception to this is 

 where there is not suflScient busi- 

 ness to support an association or 

 trucking has taken the place of 

 ■hipping by rail. 



Let's take a look at some of 

 the admissions made. Some testi- 

 monials were made that boards of 

 directors do not meet more often 

 thaa once a year, some not more 

 than two or three .imes, and 

 some Just when they have to. 



Some of you stated that your 

 managers, the men you hired, are 

 not sold on cooperative market- 

 ing. 



Many of you declared that old 

 line commission companies and 

 local stock buyers are fighting 

 you and a few said that not much 

 is being done to overcome this 

 opposition. 



Many of you stated that your 

 association is not incorporated. 



Practically all shipping asi 

 ciations were organized by farm 

 bureaus. In the majority of 

 cases the farm bureau has a re- 

 lation to the association and is 

 h-elping to work out its problems, 

 but in. a few txutances this is not 

 true. 



Cooperative Commission 

 Companies 



Not all associations are con- 

 signing all of their shipments to 

 Producers' cooperative commis- 

 sion companies at Chicago, East 

 St. Louis, Peoria, and Indianapo- 

 lis, but all of them are hoping 

 that the commission companies 

 will grow to such an extent that 

 they will be the dominating factor 

 and can stabilize live stock prices. 



After all, the manager of the 

 association has more Influence in 

 determining the place where 

 stock shall be shipped than any 

 other person, according to all of 

 the evidence presented. In a few 

 cases the boards of directors have 

 passed a resolution to the effect 

 that all stock is to be shipped to 

 the Producers' companies. 



If there was one outstanding 

 criticism of the Producers' Com- 

 panies, it was that there is need 

 of % field service to go into the 

 country and explain the whole 



thing. All evidence pointed to 

 the fact that the confidence of 

 shippers in the Producers' com- 

 panies is growing and a larger 

 percentage of shipments are going 

 to them. Several times it was 

 said that farmers want the Pro- 

 ducers' companies to have the 

 most expert salesmen there are 

 to be found. 



Grain Marketing 

 A discussion of farmers' ele- 

 vators in several districts revealed 

 the fact that many concerns are 



There Is a Bright Side 



Y««, thrrr la n woaderfal 

 mtorj •( achlevemrnt of tke 

 work of oncaolsed aarlcnltare 

 ■■ IlllBOla, bnf at this partic- 

 ular aerlea of roBfereBcra, th* 

 w««k llBka wore belnx kaat- 

 «l, 



Joat keep la Mind f kat omlj 

 12 7rara afro the flrat faraa 

 biLrr«u ^na orjcanliedt tkat 

 todar there are 05 of the 103 

 ronntlea that have orfraniaa- 

 tloBa and that all have eoai- 

 hlned toaether In a bnalBeaa 

 orvaalsatlOB. 



DoB't fonret tkat tke live 

 atoek niarketlna plan - |ltarted 

 leaa thaa two years aao. and 

 that today there are 535 co- 

 operatleve ahlpplnff asaocla- 

 tloaa In the atate haadilBjr 

 approximately ISO.OOO car- 

 loada of live atockt that the 

 ProdDcera Co-operatWc Coat- 

 mlaaloB compaalea on tke 

 foor Biarketa to whlck vre 

 aklp are anbataatlal, aobljr 

 eoBcema. 



There la a briaht aide, bat 

 looklas at tke brlsbt aide all 

 of tke time will Bever make 

 botk aldea brickt, wUI Itf 



stock companies rather than co- 

 operative elevators. Several ele- 

 vators paid dividends in the face 

 of the fact that they had not 

 earned the money. An outstand- 

 ing weakness, according to many 

 men, is that they do not have an 

 analyzed statement of the finan- 

 cial affairs of the elevator oftener 

 than once a year. Mistakes usu- 

 ally happen because they do not 

 have the facts. 



At all of the conferedces in the 

 grain section, Robert Cowles, 

 Treasurer of the I. A. A., speak- 

 ing tor the U. S. Grain Growers, 

 Inc., explained that every effort 

 is being made to get the financial 

 affairs of the organization in 

 shape so it can sell grain on the 

 Exchange. 



It w^as explained that officers 

 of mid-west State Farm Bureaus 

 requested the Marketiug Depart- 

 ment of the American Farm Bu- 

 reau to form a national grain 

 marketing plan based on con- 

 tracts with growers and pooling 

 by grade. In the same resolution 

 the officers approved the plan of 

 the U. S. Grain Growers. Inc., to 

 sell through the Grain Exchange, 

 with the idea of later merging 

 the U. S. Grain Growers, Inc., 

 with the national plan when it 

 was approved. 



Walton Peteet, Marketing Dir- 

 ector of the American Farm Bu- 

 reau Federation, stated that the 

 new national wheat marketing 

 plan recently announced waa in- 



tended to fulfill the first clause 

 of the mid-west resolution. 



The new national wheat mar- 

 keting plan has not yet been sub- 

 mitted to the I. A. A. 



The Fruit Exchange 



The Texico unit of the Illinois 

 Fruit Exchange is functioning 

 one hundred per cent and grow- 

 ers are well satisfied. The Alma 

 unit is handling about 50 per 

 cent of the produce of the dis- 

 trict. There, many growers have 

 not kept their contracts. Repre- 

 sentatives of locals said they are 

 well pleased with the sales work 

 of -the exchange, but more mem- 

 bers are needed and there are 

 several production centers that 

 want organization. It is proba- 

 blt that the Exchange will carry 

 on. a campaign this winter to in 

 crease membership and organize 

 new local associations. 



Confidence In Co-ops 



"The confidence of men of ma 

 ture judgment in cooperative mar 

 keting is the thing that im- 

 presses me," President S. H 

 Thompson says about the district 

 conferences. "Poor management 

 and the lack of an accounting 

 system has caused more failures 

 than any other thing. No, the 

 directors can not blame the man- 

 ager, it is their own fault." 



"The need of leadership is ap- 

 parent," Mr. Thompson says. 

 "There is too much of the 'let 

 George do it,' idea in our orga- 

 nization after they are started." 



The Next Step 



"The time has come for the 

 next step in live stock market- 

 ing," said Mr. Peteet in summing 

 up the conferences. "Shipping 

 association do not have the feel- 

 ing of ownership of the commis- 

 sion companies, which they must 

 have. After all it is their com- 

 mission company. Our organiza- 

 tion is too loose. 



"Where the board is active, 

 the organization is uniformly 

 good and growing. Where the 

 whole thing is left to the man- 

 ager, it may be good and it may 

 be bad." 



THE UTEST DEVELOP- 

 MENTS IN TAXATION 



Greene County 

 Man Tells What 

 Bureau Means 



"What is the Farm Bureau?" 

 asks L. R. Lee, Roodhouse, 111., 

 in the Green county newspaper 

 Farm Bureau special edition. "It 

 is not our office at Carrollton. It 

 is not our farm adviser. It is not 

 our executive board. It is an 

 organization of farmers, tor farm- 

 ers, and run by farmers. It has 

 saved the farmers money directly 

 through their taxes, shipping as- 

 sociations, farm loan associations, 

 legislation, and in many other 

 ways. 



"But its greatest good is done 

 Indirectly, which we can see if we 

 look deep into the very points 

 that I have mentioned. Every 

 other industry seems to realize 

 what the Farm Bureau does 

 better than the farmers does him- 

 self," concludes Mr. Lee. 



Mr- Lee is president of the 

 Greene County Farm Bureau. 



Since the letters on page 2 

 were put in type, the press has 

 carried an account of the resig- 

 nation of Col. Percy B. Coffin, 

 Chairman of the Illinois Tax 

 Commission. In some quarters 

 his resignation has been ascribed 

 to charges brought against him 

 by the Illinois Agricultural As- 

 sociation. Whatever the reason 

 for Colonel Coffin's resignation, 

 the Association wishes it under- 

 stood that it has made no charges 

 against any individual on the Tax 

 Commission. It has charged the 

 Tax Commission with breaking 

 its promise and with failure to 

 do its lawful duty. Before 

 Colonel Griffin's resignation the 

 Illinois Tax Commission was -on 

 trial before the farmers of Illi- 

 nois. The resignation of the 

 chairman of the Commission, and 

 the appointment of a new mem- 

 ber have not changed the situa- 

 tion in the slightest degree. The 

 Tax Commission is still on trial 

 before the farmers of Illinois. 

 One member of the Commission 

 has declared himself ready to 

 carry out his promise and per- 

 form the duty laid upon the Com- 

 mission by the law which created 

 it. What are the other members 

 of the Commission going to do? 



FOORFONDAMENTALS 

 FOR COOPERATIVES 

 BY SECRETARY FOX 



Correct Organization-Proper 



Finance- Good Management 



and Accounting 



A. F. B. F. Research 



The Knox CovBty Farm Bnrcan 



reports the strongest demand for 

 limeBtone in the history of the 

 county bureau. Several elevators 

 and shipping associations are now 

 handling the product at the request 

 of the farm bureau. 



Under date of October 23, out 

 of 24 farm commodities, 9 are 

 above a year ago in price and 15 

 are below. Compared with last 

 month, 13 are higher. 9 are lower, 

 and 2 remain unchanged. Cattle, 

 bogs, and sheep are under last 

 month and last year. Corn is the 

 only grain above a year ago. 

 Dairy and poultry products are 

 running about the same. 



Com Higher 



Corn production is forecast at 

 a trifie over three billion bushels. 

 About one-fifth will be sold as 

 corn. Price at Chicago is now 

 14 cents higher than last month 

 and 31 cents above the same date 

 last year. The average price for 

 this crop year . promises to be 

 enough above last year to yield 

 at least ^100,000,000 additional 

 income. 



>VIieat Situation 



Wheat is six cents higher at 

 Chicago than a month ago and 

 10 cents above three month ago, 

 but five cents under one year 

 ago. Wheat shipments abroad 

 since July 1, have been 40 per 

 cent less than the same period in 

 1922. Foreign demand yet to be 

 exerted, coupled with low supply 

 east of the Rockies, and the 

 thirty cent tariff give hope for a 

 rising wheat market. 



"There are four fundamentals 

 that we must carry out in our co- 

 operative marketing associations," 

 said Mr. Fox. "The first one Is 

 to be organized right. The direc- 

 tors have a proper function in 

 the management of the organiza- 

 tion that can not be carried on 

 in any other way. The manager 

 can not afford to do without the 

 judgment of the directors. 



"The second point is that you 

 must be properly financed. Better 

 not start until yoa are financed 

 right. 



"You must have good manage- 

 ment and that means the direc- 

 tors of the association as well as 

 the hired manager. 



"Next comes a good accounting 

 system. If at the end of every 

 month your board of directors 

 could have a financial statement 

 analyzed so that it shows the 

 profit or loss of each department 

 of work, I would trust their 

 judgment in directing the affairs 

 of the association. But the trou- 

 ble is that the Boards of direc- 

 tors do not have such a state- 

 ment. 



"We consulted one of the fore- 

 most accountants in Chicago and 

 he told us how the books of 127 

 elevators in Minnesota are kept 

 in one office. Every night that 

 office knows the exact standing of 

 every association. Cooperative 

 associations are not now getting 

 that kind of service, but they 

 must get it. We are studying a 

 plan to do that thing now." 



Big Gain Shown 

 In Receipts and 

 Profits of Agency 



The Indianapolis Producers 

 Commission Association received 

 3,217 cars of live stock during 

 June, July and August, 1923, as 

 compared with 1,682 cars for the 

 same period last year. This is an 

 increase of 91 per cenl. 



At the same time, the profits 

 for the period showed an increase 

 of 170 per cent this year over 

 1922. Profits for June, July and 

 August, 1922, were $7,449.81; 

 for the same months this year, 

 $20,480.84. 



This example illustrates how 

 handling costs are reduced with 

 volume of business and larger 

 refund is assured to member ship- 

 pers. 



TRANSPORTATION DEPARTMENT 



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We Take An Active Part 

 In All R,ate Changes On 

 Fai?m Products. 



Co- 



