iry 24, 1925 



January 24, 192S 



The niinou Agricultural A»»oci«tion Record 



Page S 



1924 NATIONAL PRECEDENT ESTABLISHED IN FORMATION OF L A. C. A. 



ERS 

 SAVED 

 IN TAXES 



AssewmenU 

 te Secured; 

 lefonn Seen 



ion, including 

 lalysis of pub- 



J. C. WatiOB 



Btigations dls- 

 counties. farm 

 1 at a higher 



selling value 

 own and city 



valuations of 

 ^ted in several 

 declares that 

 oubt that, on 

 classes of real 

 e nearly on a 

 iluations than 

 3 great fall in 

 nets and farm 

 I." 



n in Taxes 



ed ^2, 000, 000 

 er what they 

 harged if as- 

 3ased on 1922 

 apartment be- 

 all the saving 

 5 likely to be 



m is antiquat- 

 says Watson. 

 IS has been 

 tion, however, 

 !r jepresenta- 

 ant organiza- 

 effort to Im- 



;ational Com- 

 appointed^n 



f 19 persons 

 organization^ 



irector of the 



t, and J. L. 



e committee- 

 district, also 



hool commis- 



were appoint- 

 represent the 



Amendment 



ht out the be- 

 1 parties con- 

 ment of the 

 the state con- 

 y before any 

 can be made 

 1 of the state, 

 inue until the 

 ;anizations in 

 ur with the 

 npaign to im- 

 stem through 



e department 

 problems of 

 nber of meet- 

 es, including 

 1' Week, the 

 !nt Congress 

 inual conven- 

 farm Bureau 

 bus. He also 

 taxation over 



9 Progmin 

 oposes to con- 

 discover the 

 equalization 

 jnties having 

 It proposes 

 ysis of taxes 

 It will under- 

 Qt of work in 

 es where de- 

 loses to give 

 a consldera- 

 matters, and 

 ork with the 

 Watson, rep- 

 \. is a mem- 

 mmendatlons 

 Iment of the 

 lie State Con- 



URGES CLOSER UNION 

 OF FARM BUREAU AND 

 UVE STOCK CO-OPS 



Survey Shows Illinou Shipping 

 Problem* Similar to Those 

 Prevailing in Other States 



Advisory service for the bene- 

 fit of live stock producers of Illi- 

 nois, and pro- 

 motion of the 

 co-opera 1 1 v e 

 marketing o f 

 live stock 

 through the 

 shipping associ- 

 ations and Pro- 

 ducers commis- 

 si o n associa- 

 tions located on 

 the terminal 

 markets, make 

 up the work of 

 wm. E. Bedccock the live' stock 

 marketing d e- 

 \ partment, o f 



which Wm. E. Hedgcock is direc- 

 tor. This work was divided into 

 the following branches: Live 

 stock co-operative shippihg asso- 

 ciations, producers commission as- 

 sociations, field service, ^ool pool, 

 blankets, tuberculosis eradication, 

 Illinois Farm Bureau Serum Asso- 

 ciation, and stockers and feeders. 

 Shipping associations number- 

 ing 626, well distributed over Illi- 

 nois, are members of the Illinois 

 Agricultural Association. The de- 

 partment's service lies in strength- 

 ening these and developing the 

 service which they should be able 

 to render to their various commu- 

 nities. 



A survey was conducted by the 

 department during the year to 

 learn the status of live stock ship- 

 ping associations and their activi- 

 ties in the states of Iowa, Minne- 

 sota, Ohio, and Indiana, as well 

 as Illinois. It was found that ship- 

 ping problems in Illinois are sim- 

 ilar in most respects to those in 

 other states. 



In all the states visited it wsis 

 the consensus of those Interested 

 in" the co-operative marketing of 

 live stock that the shipping asso- 

 ciations should be organized on a 

 strong, efficient business basis and 

 should keep accurate accounts; 

 that they should be Incorporated 

 and the managers bonded; that 

 the board of directors should des- 

 ignate the policies of the shipping 

 association and instruct the mana- 

 ger in regard to the consigning of 

 the live stock; also that it was a 

 mistake to permit a shipping asso- 

 ciation manager to purchase and 

 ship live stock in his own name, 

 and that no one should be em- 

 ployed as manager of a shipping 

 association who was not in hearty 

 accord with the co-operative mar- 

 keting plan. The lack of proper 

 records is surprising. Indications 

 are that a large number of ship- 

 ping associations do not keep any 

 record of their year's business. 



Farm Bureaus Active 



"The Farm Bu^aus of Illinois 

 have been very active in promot- 

 ing the organization of shipping 

 associations," states Hedgcock. 

 "The department has found the 

 Farm Bureaus to be of great as- 

 .sistance in promoting the educa- 

 tional campaign, to build up and 

 strengthen the shipping associa- 

 tions and the co-operative mar- 

 keting of live stock. 



"It is our firm conviction that 

 there must be a definite relation- 

 ship existing between the Farm 

 Bureau and the shipping associa- 

 tion. The department has co-op- 

 erated with the extension depart- 

 ment of the University of Illinois 

 in conducting nine shipping asso- 

 ciation schools in different sec- 

 tions of the state, and due to the 

 interest taken in these schools It 

 is planned to hold a larger number 

 of schools In 1925. Through the 

 co-operation of the extension de- 

 partment we find it is possible to 

 promote the accounting work and 

 develop the business efficiency of 

 the shipping associations of the 

 state with greater rapidity." 



Three Producers' assocations 

 and nine shipping associations 

 now receive the auditing service 

 of the I. A. C. A. 



The low spread obtaining be- 

 tween the price of feed and of 

 live stock through the year just 



past has kept the outlook from 

 being very hopeful, the director's 

 report points out. It is his belief, 

 however, that the situation "can 

 be aided materially by helping de- 

 velop a more orderly system of 

 marketing. 



Want System in Marketing 



"We are convinced that any 

 program which includes a more 

 orderly system of marketing re- 

 quires that the live stock be han- 

 dled by the producer from the 

 farm to the packer. The most 

 satisfactory method will be to 

 strengthen and develop our co-op- 

 erative live stock shipping associa- 

 tions and our co-operative live 

 stock marketing agencies (the 

 Producers Commission Associa- 

 tions) and educate the live stock 

 producer to patronize his own co- 

 operative marketing agencies. 



"In planning our 1925 program 

 of work we desire to build upon 

 the work that the department has 

 been conducting in the past. In 

 order to strengthen our shipping 

 associations and co-operative mar- 

 keting agencies it will be neces- 

 sary to conduct an educational 

 campaign in order that our ship- 

 ping associations may handle a 

 larger bulk of the live stock pro- 

 duced in the various communities. 

 We must encourage the home 

 grading of live stock by the ship- 

 ping associations in order to re- 

 duce the cost and confusion of 

 marketing. We must encourage 

 the associations using efficient 

 business methods, which will in- 

 clude: Accounting systems; closer 

 attention given to the shipping 

 associations by the boards of di- 

 rectors; incorporating of the asso- 

 ciations and bonding the man- 

 ager; and the emt>loying of effi- 

 cient, co-operatlve-minded mana- 

 gers. The program of work also 

 includes the promoting of the 

 wool pool ; the locating of stockers 

 and feeders; co-operating with ex- 

 isting agencies in the eradication 

 of tuberculosis; encouraging boys 

 and girls club work; aiding our 

 Farm Bureaus in purchasing a 

 good quality of serum at a reason- 

 able price through the Illinois 

 Farm Bureau Serum Association; 

 and the co-operating with other 

 agencies promoting better live 

 stock marketing conditions in the 

 state." 



"TELL THE WORLD" 

 IS INFORMATION 

 BUREAU SLOGAN 



H. C Butcher 



Facts, and Not Propaganda, 

 Is Department Watchword; 

 Clippings Show the Results 



Publication of the I. A. A. Rec- 

 ord, information service to the 

 press, advertis- 

 ing and public- 

 ity service to 

 co-op erative 

 marketing or- 

 ganizations, and 

 arrangement of 

 radio talks, 

 make up the 

 work of the de- 

 partment of in- 

 formation, o f 

 which H. C. 

 Butcher is di- 

 rector. This de- 

 partment Is 

 charged with 

 the responsibility of keeping the 

 work of the I. A. A. before 63,000 

 farmer members, as well as all 

 Illinois and more remotely, the 

 United States. 



The Recobd circulates among all 

 Farm Bureau members in Illinois 

 and is designed to give the news 

 of the association to its readers, 

 and to record trends which may 

 affect the association's policies. 



Information service concerning 

 the activities and developments of 

 the 1. A. A. goes to the United 

 Press, Associated Press, United 

 News, and International News 

 Service; the farm papers in this 

 and surrounding states; and farm 

 pages of dally newspapers. E>ach 

 week several news stories about 

 the association's progress are 

 mailed to each of the 92 Farm 

 Bureaus in Illinois. These stories 

 are used with additional local 

 angles In Farm Bureau bulletins 

 and house organs, as well as In 

 the local press. 



Grrnld Jennr 



The department also edits the 

 Illinois Fruit Exchange News for 

 the IlHnois Fruit Growers' Ex- 

 change, published at Centralis. 



F. E. Charles resigned as as- 

 sistant director at the end of the 

 year to take up 

 a paper in Re- 

 public county, 

 Kansas. He 

 was succeeded 

 on Jan. 1 by 

 . :^^B Gerald Jenny. 



^\ -I^W In 1922, 5,- 



lytm^^m 155 clippings 

 concerning the 

 I. A. A. were re- 

 ceived from a 

 bureau which 

 covers practi- 

 cally all of the 

 daily and week- 

 I y newspapers 

 in the state and about one-half 

 the dailies and weeklies In the 

 United States. In 1923, there 

 were 2.813, and in 1924 over 

 three times as many were re- 

 turned as in 1923. These -8.582 

 clippings accumulating in 1924 

 represent 777,380 stories about 

 the Illinois Agricultural Associa- 

 tion which were actually printed. 

 This increase Indicates that the 

 I. A. A. is climbing the ladder 

 into the nation's news and ^hat 

 its great program of work Is 

 therefore coming to the attention 

 of more people more often than 

 ever before. 



The director makes the follow- 

 ing recommendations for work in 

 1925: 



1. Continually improve the 

 Record with a view toward making 

 It a stronger and more Interesting 

 connecting link between members 

 and the association. 



2. Give county Farm Bureaus 

 specific help in publicity problems. 



3. Assist co-operative market- 

 ing organizations In publicity and 

 advertising problems on a cost 

 basis. 



4. .Keep pace with radio devel- 

 opment. 



5. Make the Illinois Agricul- 

 tural Association the best known 

 and most admired farm organiza- 

 tion in the United States, both to 

 farm and pity people. 



FRUIT PROGRAM SEES 

 GROWER AIDS IF IT IS 

 PROPERLY HANDLED 



Survey Made Last Year Shows 

 Illinois in Favorable Position ; 

 also Room for Improvement 



A. B. Leeper, director of the 

 fruit and vegetable marketing de- 

 partment, locat- 

 ed at Centralla, 

 Illinois, opened 

 up both guns on 

 the year's work 

 by developing a 

 plan for co-op- 

 erative market- 

 1 n g of fruits 

 and vegetables 

 in Illinois. A 

 plan which is 

 believed sound 

 and workable 

 was devised 

 with the help of 

 leading growers 

 and the horticultural department 

 of the College of Agriculture. 



The Illinois Fruit Growers' Ex- 

 change was incorporated under 

 the new Co-operative Marketing 

 Act of Illinois on February 29. 

 1924. This farmer organization 

 has marketed products from 24 

 shipping points in 16 Illinois coun- 

 ties in 1924. 



Much time was spent by this 

 department in making a survey of 

 the fruit and vegetable producing 

 counties, with the purpose of de- 

 termining where marketing asso- 

 ciations should be organized. 

 What Survey Showed 

 The survey disclosed among 

 other things the following: 



1. Illinois is near the center of 

 population and has better trans- 

 port facilities than any other sec- 

 tion producing these crops. 



2. Favorable climatic conditions 

 obtain over almost the entire 

 state. 



3. If proper crops are grown, 

 the harvest season comes when 

 there is less competition than in 

 most other producing sections. 



4. Illinois farmers are not tak- 

 ing advantage of this condition. 



5. Perishable crops for local 

 trade .are produced In every coun- 

 ty- 



A. B. Lecpcr 



6. Many sections In the state 

 produce a surplus, which, however, 

 is not produced in sufficient quan- 

 tities to market in carlots. The 

 grower loses. 



7. In such sections farmers 

 should either reduce their produc- 

 tion to a local consumption basis, 

 or increase it to provide for a vol- 

 ume of business which will insure 

 proper handling, moving and re- 

 frigerating. 



8. In some sections the crops 

 are not of the best marketable va- 

 riety. In others the harvest sea- 

 son does not correspond with the 

 seasonal demand for the crops 

 grown. 



Products in Demand 

 General observations on the 

 tree fruit status, as revealed by 

 the same sur\'ey, show that as a 

 whole, the country is not produc- 

 ing enough fruits and green vege- 

 tables to meet the demand. But 

 no matter what the crop, market 

 conditions and demands must be 

 considered if it is to be grown at 

 a profit. Only eight of the 30 

 counties surveyed' are producing 

 small fruits and vegetables in 

 quantities sufficient to market 

 them properly. Where the state's 

 hard-road building program is 

 working to the disadvantage of 

 producers, marketing methods 

 should be changed to meet the 

 nei» conditions. 



^- Keconimendations 

 Leeper recommends the follow^- 

 ing program for 1925: 



1. Re-organlzatlon of all exist- 

 ing organizations under the stan- 

 dard type recommended by the 

 I. A. A. 



2. Organization of other ship- 

 ping points which can meet the 

 I. A. A. requirements. 



3. Proper supervision of such 

 new marketing organizations by 

 the I. A. A. 



4. Completion of the sun-ey be- 

 gun last year. 



5. Special attention to roadside 

 and truck marketing. 



6. Greater use of the Informa- 

 tion and advice coming from the 

 department, on the part of the 

 fruit and vegetable growers. 



DAIRY INDUSTRY IN 

 NEED OF ADJUSTMENT 

 FOR BEST EFHCIENCY 



Lynch Sajrs Federate, Watch 

 Cost of Dairy Production; 

 Outlines Plans for 1925 



The department of dairy mar- 

 keting has had much grist to 

 grind, but A. D. 

 Lynch, the di- 

 rector, has it 

 a, 1 1 processed 

 and packaged 

 properly. Here's 

 his program: 

 1. MARKET- 

 ING SERVICE. 



a. Field serv- 

 ice. 



(1) Investi- 

 g a t i onal. 

 Use surveys 

 to determine a. d. I^jTick 

 marketing 



needs of communities. 



( 2 ) Educational. Acquaint 

 dairymen with the possibilitlee 

 of co-operative marketing; 

 formulate policies. 



b. Organization. 



( 1 ) Work out best possible 

 plans for prospective institu- 

 tions. 



( 2 ) Assist in acquiring suitable 

 site. 



(3) Assist board in choosing 

 machinery, equipment, sup- 

 plies. 



« (4) Help locate personnel: 

 managers, accountants, e m- 

 ployees. 



c. Merchandising. 



(1) Particular attention to 

 grading and to efficient qual- 

 ity production. 



( 2 ) Sales service at terminals, 

 including the location of mar- 

 kets and the development of 

 outlets for dairy products. 



(3) Advertising; outline pub- 

 licity campaigns. 



Better marketing methods 

 is the need for most farmer- 

 owned Illinois cheese factories. 



SUCCESS MARKS WORK 

 OF CO-OP AUDIT BODY; 

 NEAR HRST MILESTONE 



Member Organizations Get 

 Books Audited ; Special Help 

 b Given on Tax Returns 



G*». ». Wlckrr 



The department of co-operative 

 accounting. George R. Wicker, di- 

 rector, was es- 

 tablished 1 n L 



May of 1924, tol 



meet a definite | 



and general de- L 



mand on t h e I 



part of co-oper-[ 



a t i V e associa- 1 



tions in Illinois 



for improved 



accounting! 



methods and ] 



better business | 



practices. 



The work of ' 



the department 



includes the au- 

 diting of ttooks of member organ- 

 izations; recommendations for the 

 improvement of accounting s.vs- 

 tems; appraisals of real estate, 

 buildings, and equipment; inven- 

 tories of stock; special ser\-ice as 

 to income tax returns, capital 

 stock tax returns, state corpora- 

 tion tax assessments, and commer- 

 cial reports; ser^-ice as to federal 

 income tax exemptions and claims 

 for abatement and refund; statis- 

 tics and comparative analysis; 

 and business advisory 8er>ice. 

 Any agricultural organization. 

 Farm Bureau, or co-operative as- 

 sociation may acquire membership 

 in the Illinois Agricultural Co-op- 

 eratives Association Tipon applica- 

 tion of its officers and the accept- 

 ance thereof by the properly elect- 

 ed officers of this association. 



The department actively en- 

 gaged in its work on June 1. 1924, 

 and so far has completed the ex- 

 amination of 4 3 co-operative as- 

 sociations and Farm Bureaus. It 

 has extended Its services to Illi- 

 nois Farm Bureaus with respect 

 to filing returns for income tax 

 and capital stock tax. and has pre- 

 sented applications for exemption 

 in all cases where the necessary 

 information has been supplied. 



Wicker wishes to extend the fa- 

 cilities of the new department to 

 the affiliated Farm Bureaus and 

 Invites their co-operation. The 

 staff members will be glad to at- 

 tend district conferences and other 

 meetings of a general character 

 when appointments can properly 

 be made. 



In September, 1924, a brancli 

 office was opened at Springfield In 

 the offices of the Sangamon county 

 Farm Bureau. J. W. King was 

 appointed as resident district ex- 

 aminer. Branch offices at other 

 centrally located points are con- 

 templated as soon as sufficient 

 membership warrants further ex- 

 tensions. Closer contact thus •will 

 be assured. 



"Improved accounting systems, 

 better bookkeeping procedure, 

 more uniformity, and the recogni- 

 tion and adoption of more efficient 

 business methods will do much to 

 raise the general business stand- 

 ard of co-operative associations," 

 says Wicker in his report. "Along 

 this line of advance, we propose 

 to introduce and conform co-op- 

 erative associations to the clearing 

 house plan employed by banks 

 for the protection of their depos- 

 itors and for mutual benefits. 



"We are looking aliead to the 

 time when co-operative associa- 

 tions will work together to ad- 

 vance their common interests." 



The problem of marketing Il- 

 linois cheese Is growing, and 

 the state now ranks third in ' 

 cheese production. 

 2. STATISTICAL.: ] 



a. Accounting. 



( 1 ) Proride uniform accounting 

 systems. 



(2) Formulate summaries and 

 reports for directors and mana- 

 gers. 



( 3 ) Interpretation, analysis, and 

 advice on financial statements. 



b. Marketing information on but- 

 terfat, fluid milk, condensed 

 milk. Including adrtce on which 

 products are likely to show 

 largest earnings. 



(Continued on p«sr« 7, coL i) 



