Page 2 



The niJBOtt Agric ul t ur al Aj«oci«tion Record 



Febrwary 14, 1925 Fefcraar 





I LiLilIMOIS 



CCTLTUBAL, ASSOCIAI 



RECORD- 



PubHshecl every other Saturday by (he Illinois Agrleultural 

 Association. 608 South Dearborn Street. Chicago. Illinois. Ed- 

 ited by department of Information. H. C- Butcher. Director. 



Entered as second class matter Oct. l4, 1921. at the poit office 

 at ChicaKb. Illinois, under the act of March 3. 1879. Acceptance 

 for itiailiits at special rates of postage provided for in Section 

 1103.; Act iof October 3. 1917. authorise* Oct. 31. 1921. 



1 1 



The Individual membership 

 soclaition is live dollars a > 

 fifty, cents for subscription 

 ciatlfn Rbcokd. 



embership fee of the Illinois Agricultutal As- 



year. The fee includes payrhent of 



to the Illinois Agricultural Asso- 



Post^astfr: In returning an uncall*d-for or misseni copy, 

 pleaae Inc icate key number on address as is required by law. 



11th 

 12th 

 13th 

 14th. 

 15th. 

 16th. 

 17th. 

 18th. 

 19th. 

 20th. 

 21st. 

 22nd 

 23rd 

 24th 

 25th 



OFFH-KKS 

 President, S. H. Thoiiipsim, Quincr. 

 Vice-President, H. K. tioembel, Hooppolcj 

 Treasurer, K. A. Cimies, Blooniington. 

 Secretary-, (ieo. .\. Fox, Kycaniore. 

 E.XEOUTIVE COMMITTKE 



Ity CnneresMlonal Dlstrict-s ■ 



William Webb, L*ckport 



6. F. Tullock, Rockford 



C. E. Bamborough, Polo 



W. H. Moody, Port Byron 



B. H. Taylor, Rapatee 



A. R. Wright, Varna 



., F. D. Barton. Cornell 



., ....R. F. Karr, Iroquois 



.1 .J. L. Whisnand, Charleston 



Earl C. Smith, Detroit 



Samuel Sorrells, Raymond 



Stanley Castle, Alton 



W. L. Cope, Salem 



Curt Anderson,! Xenia 



R. K. Loomis, Makanda 



Directors of Departments 

 I. .\. A. Offlce 



General Office and Assistant to Secretary, J. H. Kelker; Or- 

 ganization, G. E. Met2ger: Information, H. C. Butcher: Trans- 

 portation, L. J. Quasey: Taxation and Statistics, J. C. Watson; 

 Finance, R. A. Cowles; Fruit and Vegetable Marketing^ A. B. 

 Leeptr; Live Stock Marketing, Wm. E. Hedgcock; Dairy 

 Marketing, A. O. Lynch; Phosphate-Limestone, J. R. Bent; 

 in charge Poultry and Egg Marketing, F. A. Gougler; special 

 representative on Tuberculosis Eradication, M. H. Petersen; 



gal Counsel, Donald Kirkpatrick; Oo-operatlve Accounting, 



0. R. Wicker. 



PLAThX>K.M ' 



4dpance\ the purpose for which the Farm Bureau was orMuiized, 

 .mely, to promote, protect and represent the business, economic, 

 ciai and educational interests of the farmers of Illinois and the 

 lion, an4 to develop agriculture. 



lO^i 



Ano^hmr Advantage of Working Togethwr 



Eight ♦erum salesmen waited outside the door to the 

 Aj A. executive eommittee's nieetiiifr room on I'ebru- 

 y 2. Inside sat the board of directors of the Illinois 

 ini Bureau Serum Association representing 48 riounty 

 : irm Bureaus which were in the market for serum for 

 . e df th;ir members. 



' Oqe by one the representatives of the scrum t'om])anies 

 Were call !d into conference with the hoard. Eacli sub- 

 mitted a written bid for his company anil si<riied i con- 

 tract! bini ling his company to stay with the bid. Three 

 otbeij companies bid by mail. 



The boird of directors, after making necessary inves- 

 tigations,: will report the bids to the interested counties. 

 Fron^ thej companies reconimeiided, the county Far ii Bu- 

 reaus can choose the serum which they think will serve 

 their farjn bureau members best in the preveiitilon of 

 hog <)holera. 



Quite 4 contrast to the olden days, isn't it? 

 It'b anbther argument for farmers getting together — 

 and ^ticking. 



Bit of Modern Agrarian History 



'Farmers E.\port Bill." which is really a redraft 

 ! original Mc-Xary-Haiigen bill which was del eat ed 

 steri and southern opponents in the previois ses- 

 if Cdngress, has been introduced in both the f-enati 

 the riouse. Quite possibly farm bureau menbers 

 I net d of some explanation of the development 



n the 

 Hau- 



he McNary-Haugen campaign last year. 



Mc^t ol us know that the legislation introduced 

 ast slessidn of Congress and known as the McNary 

 .:en bill ^as a measure that had its inception in nd par- 

 ficulir falrm organization. It was proposed by individ- 

 uals fvhoThad a sincere interest in improving the agri- 

 ultural situation in America. 



The uKft'eme'nt rapidly gained support of various farm 

 rgai izations as its purpose became recognized. Among 

 •hese was'the Illinois Agricultural Association whieh be- 

 ime a recognized leader in the fight thatfoUowec . 

 Farm Bureau members in Illinois were largely respon- 

 sible for the strength of public opinion in the Middle 

 West which favored the bill even though certain inter- 

 ests lyere] strongly against it. Meetings were held in 

 sever»l sections of Illinois which gave first-hand knowl- 

 edge of the situation. Then a huge petition bearing 

 some 50,000 names of all classes of Illinois citizenii was 

 taken! by fPresident Thompson doWn to President Coo- 

 lidge [as aj sample of the sentiment. 



In the ^neantime the Illinois Agricultural Association 

 had sjent ft representative down to Washington — 11. A. 

 Cowl^_. T her^ were representative* of other states and 

 orgaaizatipns there, too. They were fighting fo- the 



same" thing, but were not bound together in any regular 

 form other than through the bond of common purpose. 

 The bill failed to pass in the House of Representatives in 

 the closing days of that session. 



Before adjournment of Congress, the men who had 

 worked shoulder to shoulder at Washington in this ef- 

 fort and had done so at all times with complete unanim- 

 ity, pledged themselves to meet at St. Paul soon there- 

 after for the purpose of creating a body to deal with 

 this single subject. 



The meeting at St. Paul was well attended. Repre- 

 sentatives were there from many national and state or- 

 ganizations. Illinois was represented by several County 

 Farm Bureau delegations as well as by ofiBcial represen- 

 tatives of the Illinois Agricultural Association. I. A. A. 

 men took active participation in the organization of the 

 Council. A charter member of the Rock Island County 

 Farm Bureau, George N. Peek of Moline, was elected 

 president and R. A. Cowles, I. A. A. treasurer, became 

 secretary of the Council. 



The institution was set up in unique form and merely 

 as a Council representing the farm organizations asso- 

 ciated and to be associated with it. The American Coun- 

 cil of Agriculture was deliberately created as a single- 

 purpose organization. That purpose was to secure na- 

 tional legislation to bring about the practical disposal 

 of the problem of surpluses of major agricultural com- 

 modities — to secure equality for agriculture with In- 

 dustry and Labor. The Council was given ofBce space 

 by the I. A. A. and it made its headquarters here. 



The Council occupies the field in a political sense, but 

 is strictly non-partisan. The securing of legislation of 

 such importance is in itself an undertaking of political 

 nature. 



Perhaps the major project of the Council has been 

 its educational-publicity effort. The McNary-Haugen 

 campaign in itself was well worth all the money farm 

 organizations and individuals spent on it because it 

 brought public attention to the unfortunately low value 

 of the farmer's dollar. Considerable work was done by 

 the Council during the campaign last fall to secure 

 pledges from candidates for Congress supporting the 

 spirit of the McNary-Haugen bill. 



On December 1, 1924, the Council held an open meet- 

 ing in Chicago at which many farm org:anizations were 

 represented which were sincerely interested in its pro- 

 gram. The meeting was well attended and free inter- 

 change of ideas and provisions to be incorporated into a 

 new bill which would embody the spirit of the McNary- 

 Haugen bill was had by all present. The executive com- 

 mittee of the Council was instructed to prepare such 

 legislation as had been suggested at the meeting and to 

 submit the proposal properly supported by brief and 

 argument first to the President's Agricultural Confer- 

 ence and through it to Congress. 



On December 17, the Council submitted its prepared 

 memorandum to the members of the President 's Agricul- 

 tural Conference and later at the request of the chair- 

 man, Robert D. Carey, submitted a tentative draft of 

 the proposed legislation. 



January 20 was set as a date for a meeting with the 

 President's Agricultural Conference at Washington. 

 The following representatives of the Council, and also 

 of their respective farm organizations, appeared before 

 the Conference and presented "the case of agriculture" 

 in a joint program: Geo. N. Peek, Moline, 111., president 

 of the Council; Frank W. Murphy, Wheaton, Minn., 

 chairman of the Council's executive committee; R. A. 

 Cowles, treasurer of the I. A. A. and secretary of the 

 Council ; Charles E. Hearst, presidept of the Iowa Farm 

 Bureau Federation and chairman of the legislative com- 

 mittee of the American Farm Bureau Federation; Thom- 

 as Cashman, member of the executive committee of the 

 Miunesota Farm Bureau Federation; William Hirth, 

 member of the executive committee of the Missouri 

 Farmers Association; William Settle, president of the 

 Indiana Farm Bureau Federation and of the Indiana 

 Wheat Growers' Association; S. H. Thompson, president 

 of the Illinois Agricultural Association; Clifford N. 

 Strawman, general manager of the American Wheat 

 Growers Associated, Inc., and Newton Jenkins, legal 

 counsel of the American Wheat Growers Associated, Inc. 



The presentation required the forenoon and afternoon 

 of the day and, as reported by Mr. Cowles, it is believed 

 that all statements made were well supported and war- 

 ranted by facts available and that opportunity was given 

 the President's Agricultural Conference to have thor- 

 oughly studied and analyzed the merits of the proposal 

 presented. 



The group also appeared before the committees on 

 agriculture of both the Senate and House in a joint 

 evening meeting of these two committees. It is reported 

 that certain ones of the Senators and Representatives 

 who were at first critical came to see the merit of the 

 proposal. The presentation was received with extraor- 

 dinary interest and lasted well into the night. 



The proposal which had been presented was then 

 drawn up into a bill and became known as "The Farm- 

 ers Export Bill." On Pebruarj' 3, it was introduced 

 in the Senate by Senator Chas. L. McNary, a member of 

 the Senate conimittee on agriculture (S. B. 4185). It 

 was headed : "To prevent recurrence of agricultural 

 depression; to place agricultural commodities upon an 

 equality under the Tariff Laws with other commodities; 



to place agriculture on equality with Industry and La- 

 bor ; and for other purposes. ' ' 



On the same day the companion bill was introduced 

 in the House by Congressman G. N. Haugen (H. R. 

 12127). The outline of the proposed bill as submitted 

 to the President's Conference and the agricultural com- 

 mittees of the Senate and House, contained the follow- 

 ing principal points : 



(a) The creating of a Farm Export Corporation with 

 powers to divert a surplus above domestic needs to the 

 world market so that co-operative marketing associations, 

 assisted by the buying activities of the farmers' export 

 corporation, may be able to make the protective tariff ef- 

 fective In equalizing differences in cost of production or 

 major farm commodities in the United States and In com- 

 peting foreign countries. 



(b) Power to collect from each unit of each commodity 

 handled In this manner as It moves In trade an amount 

 sufHcient to prevent Impairment of working capital. 



(c) The corporation to be composed of 15 Individuals, the 

 Secretary of the Treasury, the Secretary of Agriculture, and 

 the Secretary of Commerce, to represent the public interest; 

 and twelve Individuals appointed by the President, one 

 from each of the twelve Federal Land Bank districts, from 

 nominations made In each district by bona flde farm or- 

 ganizations. The life of the corporation to extend to June 

 30. 1930. 



(d) Fifty million dollars to be advanced from the funds 

 of the War Finance Corporation (this represents practi- 

 cally the earnings of this Corporation), returnable out of 

 the equalization fees which will be collected In the manner 

 prescribed in (b). 



(e) The corporation would have a broad grant of gen- 

 eral and special powers. Is directed to do business through 

 existing agencies, but authorized to deal directly. Powers 

 would Include authority to operate with a premium .or 

 bounty on exports If desired. 



(f) Miscellaneous provisions including power of restric- 

 tion of imports by proclamation of the President, utiliza- 

 tion of services of government agencies In collection of 

 equalization fees, and In other ways: penalty clauses, etc. 



We are advised by the Council that the present short 

 session of Congress, which automatically adjoyims March 

 4, and all pending measures undisposed of in the ses- 

 sion die with it, that there is little opportunity in the 

 short time now available, with the many other measures 

 pressing for attention, to get the bill passed in this ses- 

 sion. It lies wholly within the discretion and pleasure of 

 the administration's "steering committee" to give right 

 of way or definite schedule to pending measures. 



The Farmers Export Bill has sufficient individual 

 support to secure its passage in this session, we are ad- 

 vised. The steering committee may or may not elect 

 to exercise its powers to expedite enactment. The Coun- 

 cil believes "not." 



Representatives of the Council are now in Washington 

 exerting their utmost effort to properly advance the bill. 

 In case nothing is secured in this session, the Council 

 has set as its purpose the preservation and maintenance 

 of its present support, and be ready to carry the issue 

 to the next Congress which convenes December 1, 1925. 



Cletka At Firtt Feared Cath Regittere' 



Modem business practice recognizes the vital need 

 for accounting records which will accurately and readily 

 reveal the financial facts of a business enterprise. The 

 cash register plays an important part in the business of 

 today. It provides a simplified system of accounting for 

 many businesses and is a part of a much more complete 

 accounting system in m^ny others. 



However, when the cash register was first introduced 

 clerks organized against it. They considered it a re- 

 flection on their honesty to be required to punch a ma- 

 chine to record the sales. They considered that it had 

 been invented just to check up on them. The cash regis- 

 ter is now considered necessary equipment in many busi- 

 ness institutions. 



Improvements are continually being made in systems 

 of accounting just as there are improvements in radio 

 and automobiles'. Any system must be adapted to the 

 business and not the. business to the system. The sys- 

 tem of accounting must not only be efficient from the 

 standpoint of giving all the information necessary to 

 the welfare of the business but from the standpoint of 

 reducing the bookkeeping and auditing expense to a min- 

 imum. 



There are two theories in regard to auditing. One is 

 that an audit should simply certify to the correctness 

 of the accounts and that the correct entries are made 

 and the accounts properly classified. 



Another theorj* is that an audit not only should in- 

 clude the above but should give facts, based on figures, 

 relative to the general policies that should be adopted, 

 point out where the leaks are in the business and also 

 where improvements can be made. 



It used to be that . an auditor was n.ever called in 

 unless it was thought that somebody had gotten away 

 with some money or when the business was in a bad con- 

 dition. Now auditing is considered aS essential for the 

 protection of the manager and the board of directors. It 

 has been said that a pedigree is not worth any more 

 than the man that makes it. Likewise an audit does not 

 stand for any more than the individual or organization 

 that makes it. 



Directors of farmers' co-operative associations are de- 

 manding the best in accounting and auditing service. 

 They are interpreting auditing in the broadest sense. 



They want an audit service that will give them the 

 truth, the whole truth and nothing but the truth and 

 also one that will not only protect the board of directors 

 and the manager but will increase the confidence and 

 loj'alty of the stockholders. 



Such is the service being rendered by the auditing 

 and business advisory subsidiary of the Illinois Agricul- 

 tural Association — the I. A. C. A. — which functions as 

 the I. A. A. department of co-operative accounting. 



cmcA 



Ito Stor 

 Ute 



P«« 

 Gr« 



The 



story xv} 



merger 



) is recogi 



The art 



I' reau me 

 Sinct 

 Kane co 

 investigi 

 has pnn 

 to the n 

 after th 

 doubt 

 tvas app 

 compan 

 The 

 now as 

 I attitude 

 J A seal 

 I Illinois ' 

 ' the oper 



jooo.ooo 



jtion bas 

 ( Agriculti 

 farmers' 

 learned 1 

 1 The Ol 

 I is awalt( 

 I officers 

 'who haV' 

 jpeatedly 

 sponse, 1 

 jvator me 

 • The G 

 ' was orgi 

 ' as a co-o] 

 I for the 

 farmers, 

 the propi 

 company, 

 company, 

 the Davii 

 pany. Si 

 erations 

 the high 

 made re 

 West Vi 

 other ofll 

 I have beei 

 'those in 

 [grain slti 

 Began 

 I Stock 1 

 I for the ni 

 its organ 

 of the mi 

 stock, wl 

 share, mi 

 year in o 

 that amc 

 capital. 



The st( 

 with var: 

 Indiana, 

 ers' orga) 

 the corpi 

 nlte Info 

 status of 

 panics. I 

 inclined, 

 stock-sell 

 in Illinoii 

 Plan 

 The pi 

 corporati 

 briefly as 

 ■The fo 

 their ele\ 

 beginnini 



(lease the 

 business 

 proximat 

 jbasis of I 

 lin progr 

 jonly now 

 l The CO 



! merger a 

 of manag 

 ing capil 

 erations. 

 tMeann 

 .corporati 

 000.000 

 purchase 

 land furn 

 ital. As 

 »4,000.0( 

 posed of 

 Busine 

 the past, 

 invested 

 (bat flgu 

 eratlng < 

 members 

 Hi 

 i From 

 foperativt 

 (the new 



