Page 4, 



The Illinois AgricultunJ Association Record 



August 29, ld2S 



THREE CO-OPERATIVE 

 PHASES DISCUSSED AT 

 TAYLORVILLE MEETING 



Over 60 Members From Four 

 Counties Attend 21st ENst- 

 trict L [A. A. Conference 



., Co-operatiie oil and gas 

 iiution, Diutaal automobile 



Sum Sorrrlln 



distri- 



insur- 



ance and srain 



t marketing were 

 the three princi- 

 pal subjects of 

 discussion at tli> 

 third conference 

 otthf! 21st I. A. A. 

 district, held at 

 TaylorvHle. Au- 

 gust 26. 

 It is estimated 

 that there were 

 at least 60 repre- 

 sentative farm 

 bureau members 

 present at the 

 meeting from 

 Sangamon, Christian, Montgomery 

 and Macoupin counties, according 

 to Samuel Sorrells, executive com- 

 mitteeman for the district, who 

 took particular note of the desires 

 of the farm bureau leaders in order 

 to reflect them later to the rest of 

 the I. A. A. executive committee. 

 Dwight Hart, secretary of the 

 Christian County Farm Bureau, pre- 

 sided at the meeting. 



Following the opening of the 

 conference, Wiley Jones, manager 

 of the Farmers' Elevator. Company, 

 and the Farmers' Co-operative Sup- 

 ply Coinpany of Willeys. addressed 

 the meeting on the consideration of 

 the co-operative distribution of oil 

 and gas. Mr. Jones stated that his 

 association has handled this prod- 

 uct for some time with worthwhile 

 success and saving for the organ- 

 ization and its members. Many of 

 the members present showed con- 

 siderable interest in the discussion 

 that followed, although no definite 

 action was taken at this meeting. 



Ralph E. Amett. farm adviser of 

 Tazewell county, then told of the 

 farmers' mutual automobile insur- 

 ance cwnpaay that was created and 

 has bcaa managed by the Farm 

 Bureau in his county. According 

 to Mr. Amett, the members of the 

 Tazewell County Farm Bureau are 

 well pleased with the saving in in- 

 surance costs that the company has 

 made. From the interest shown 

 at this meeting it is possible that 

 mutual automobile insurance may 

 be considered as a new project of 

 the Farm Bureaus of the 21st dis- 

 trict at some future time. , 



The grain marketing problem 

 was discussed by C. H. Bonnell of 

 Rosemond, vice-president of the 

 Farmers' Grain Dealers Association 

 of Illinois, and Chester C. Davis, 

 director of the grain marketing de- 

 partment ot the I. A. A. These ad- 

 dresses explained the principal 

 phases of the project of joint action 

 between the farmers' elevators and 

 Farm Bureaus of the state. In his 

 talk. Director Davis told of the Illi- 

 nois plan for marketing grain and 

 of the Sural Grain Marketing Com- 

 pany that has been incorporated 

 recently to handle the sale of the 

 grain produced by the members In 

 the Chicago district. The grain 

 program, as reviewed by Davis, in^ 

 eludes three objectives. The I. A. 

 A. aims to assist the already exist- 

 ing 601 farmers' elevators in the 

 formation of a central sales agency 

 for the purpose of disposing of the 

 grain cm aU markets; to develop a 

 program for the farmers of the 

 state who do not have the ad- 

 vantages o£ a co-operative elevator; 

 and to co-operate in the growth and 

 improvement ot the local farmers' 

 elevators and other co-operative 

 grain banidling associations for 

 greater efHciency and harmony. 



"Moiern Methods of Spreading 

 Losses of Farm Mutuals Fire Insur- 

 ance Companies," titles the radio 

 talk to be given over WLS by Ver- 

 non Vaniman, field representative 

 of the Farmers' Mutual Reinsur- 

 ance Company, Tuesday evening, 

 September 1, at 8:30 Central Stand- 

 ard time. 



"Shall the Farmer Market Grain 

 at the Terminal Markets?" This is 

 the title of a radio talk to be given 

 over WLS by Chester C. Davis, di- 

 rector of the I. A. A. grain mar- 

 keting department, Friday, Septem- 

 ber 4 at 12:30. 



Wicker and Lynch 



Tell of Meeting 



Of Co-operators 



The American Institute of Co-op- 

 eration, a summer school for oSl- 

 eers, managers and employees of co- 

 operative organizations and stu- 

 dents of co-operation, which held 

 its first annual session at thb Uni- 

 versity of Pennsylvania, Philadel- 

 phia. July 20 to .Migust 15. enlisted 

 I, A. A. men on its teaching 

 They were George R. Wick- 

 nager of the Illinois Agri- 

 ,1 Cooperatives' Association, 

 D. Lynch, director of the 

 marketing department. 

 During the third week of the In- 

 stitute, the school took up courses 

 tn operating methods and manage- 

 ment of co-operative organizations 

 and on August 3, Mr. Wicker ad- 

 dressed the assembly on "The E^- 

 (•nul Audit as a Guide to Man- 

 aiienent." in which he told the ben- 

 efits Of regular and impersonal aud- 

 its and reviewed the accomplish- 

 ments of the I. A. C. A. 



Tells Reneflt.i of .%u<lil 



"The benefits of an external audit 

 mr.ti guide to management." stated 

 BAmager Wicker, "are 'detection 

 and correction of errors, both in the 

 records and the principles of ac- 

 counting: the preparation of an Op- 

 erating Statement, the results of 

 which will place before the inter- 

 ested parties the net results of their 

 operations; an accurate and imper- 

 sonal review of the records for the 

 purpose of presenting a Balance 

 Sheet which will exhibit the true 

 financial conditions of the company: 

 the preparation of an Operating 

 Statement, the results of which will 

 place before the interested parties 

 the net results of their operations; 

 comparisons with similar exhibits 

 covering the operations of previous 

 years; comparisons with other en- 

 terprises of similar character; and, 

 closer co-operation between co-op- 

 eratives for the purpose of the in- 

 terchange ot ideas and experi- 

 ences." 



In telling of the benefits of reg- 

 ular and impersonal audits, he cited 

 Hlustrations in which certain co-op- 

 erative organizations were saved 

 from failure by having an audit 

 made that showed the present con- 

 dition of the co-operative and 

 pointed the way to improvement. 

 Among the causes of failure of co- 

 operative associations, according to 

 Mr. Wicker's lecture, may be listed: 

 lack of sufficient capital, limited 

 credit rating, incomplete and ineffi- 

 cient accounting records, inexperi- 

 enced managers, lack of information 

 about the business, directors do not 

 realize' their responsibility, no re- 

 serve ■ for depreciation, and over- 

 extension of credit to patrons and 

 members. 



Lynch Tells of New Views 



"The newest Idea In co-opera- 

 tion," states Director Lynch, who 

 led the round-table discussion of 

 dairy marketing during the last 

 week of the institute, "seems to be 

 to select the members instead of 

 signing up everybody in order to 

 pet full control of the product. 

 Some associations require every 

 member to get two members to 

 vouch for him. Instead of enforc- 

 ing the membetphip contracts most 

 associations And that if the organ- 

 ization has the right to kick the of- 

 fending member out, that it often 

 has a better effect than suing for 

 breach of contract. Everybody was 

 against whirlwind membership 

 drives because they get in a lot of 

 people that do not understand what 

 it is all about. 



"The idea ot getting control of 

 all the product is dead forever. 

 However, all agree a volume ot 

 business is essential to success, but 

 it is better to have a reasonable 

 volume from a body ot good co- 

 operators. 



"A separate organization for 

 each commodity is not regarded 

 any more as essential. Sometimes 

 two commodities can use similar 

 facilities which will reduce costs 

 and overhead for both. 



Slow Progress in Buying 



"Co-operative buying is making 

 much slower progress than co-oper- 

 ative selling, but is proving success- 

 ful in a number of cases, especially 

 as an adjunct to co-operative sell- 

 ing. 



"There was quite a bone of con- 

 tention as to which is best — highly 

 centralized business management or 

 democratic control of membership. 

 This issue will work itself out in 

 the form of a division of responsi- 

 bility between the members and the 

 local and the central management. 

 Some decisions need to be made 

 by one and some by the other." 



Key of Co-operation Offered Public 

 by "Uncle Sam" on Farm Float 



■■ ■•■. ■ \ ; 



=Hi^•ft*t-^^i^^^i^tmw 



STAKK COl'NTY FARM BUREAU 

 crystallized an idea into the 

 form of un attractive float and 

 won first prize during the fourtli of 

 July parade at Wyoming. 



Here is a picture of the float 

 that brought forth so much favor- 

 able comment. The color scheme 

 in the decorations was worked out 

 in the farm bureau colors, green 

 and white, with the lettering done 

 in black. During the parade, one 



member, representing "Uncle Sam," 

 stood on the platform and offered 

 the key "co-operation" to the mem- 

 bers and non-members who rode the 

 wagon wheel that was trailing Xte- 

 hind the truck. 



The float was planned by O. I>. 

 Hatch,' county president, and Farm 

 Adviser E. E. Brown. They were 

 assisted in the decorating by Mrs. 

 Harry R. Kerns, office secretary, and 

 Mrs. Brown. 



ST. LOUIS DAIRYMEN 

 LOSE $500,000 DUE 

 TO LACK OF CO-OP 



Estimates Show Southern Illinois 

 Farmers Lose Because of Ab- 

 sence of Co-operative Market 



Shall the farmers have a market- 

 ing organization on the St. Louis 

 milk market? 



I^eaders amo'ig tlie milk produc- 

 ers in the St. Louis territory in 

 Illinois have sa d "yes" with a firm 

 determination. Tiiey want to retain 

 and maintain a farmers" dairy mar- 

 keting organization on this market 

 for they realize the hazard which 

 faces them if they do not Iiave one. 



Expression of their financial sup- 

 port was shown when a group of 

 the former members of the bank- 

 rupt Illinois-Missouri Co-operative 

 Milk -Marketing company got to- 

 gether under a new body, known 

 as the Ill-Mo Co-operative. Inc., 

 and purchased the physical proper- 

 ty when it was placed on sale Au- 

 gust 20 in accordance with the 

 bankruptcy proceedings. The pur- 

 chase price was 120,500 and covers 

 the plant at E. St. Louis, which is 

 strategically located. anS the ex- 

 tensive equipment. The Ill-Mo Co- 

 operative, Inc., is incorporated with 

 5,000 shares of common stock at 

 $90 and 2,000 preferred at $50, 

 making a total authorized capital- 

 ization of $150,000. 



Sufficient funds to make a sub- 

 stantial payment down on the prop- 

 erty was obtained by the Ill-Mo 

 Co-operative. Inc.. through sales of 

 stock at $10 a sliare to milk pro- 

 ducers in the area. The terms ot 

 the sale call for payment of the 

 balance of the purchase price by 

 November 1. 1925. 



Plan Selling StcM-k 



Plans were made immediately 

 after the purchase to extend the 

 stock selling campaign into all parts 

 of St. Clair, Madison, Montgomery, 

 Bond, Macoupin, Monroe and Ran- 

 dolph counties, and in other coun- 

 ties where there is interest. .\ goal 

 was set tor $25,000 by November 1. 

 This will provide tor the balance ot 

 payment and working capital. A. 

 E. Richardson, who has been serv- 

 ing as manager for the lil-Mo Dairy- 

 company, which has been operating 

 the plant to make butter, was made 

 director ot stock sales. 



The Illinois Agricultural Associa- 

 tion was represented at the sale by 

 Earl C. Smith, member ot the I. A. 

 A. finance commttee, R. A. Cowles, 

 treasurer, Donald Kirkpatrick, legal 

 counsel and A. D. Lyncli, director 

 ot dairy marketing. 

 I-Mnds Lack ot OrKanization Costs 

 Half Million Yearl], 



"The dismantled and disorgan- 

 ized condition of the St. Louis milk 

 market which has prevailed, is now 

 prevailing and will continue to pre- 



vail unless the farmers get an ef- 

 fective, conservative organization 

 functioning upon it, is costing dairy- 

 men ot southern Illinois who sup- 

 ply 8 6 per cent ot St. Louis' milk, 

 approximately $500,000 a year," 

 states A. D. Lynch, I. A. A. dairy 

 marketing director. 



"This half million represents the 

 farmers' rightful share which they 

 do not get under present unorgan- 

 ized conditions. 



"If a reasonably effective farm- 

 ers' selling organization ot a con- 

 servative type were now in opera- 

 tion, it would place this halt mil- 

 lion dollars in the farmers' pockets. 



St. Louis and Detroit Coni|)ared 



"Tiiese figures are based upon a 

 comparison between St. I^ouis and 

 Detroit milk markets. At Detroit 

 there is an effective milk market- 

 ing organization* serving the com- 

 munity. The present milk price re- 

 ceived by farmers at Detroit is 40 

 cents a luindred higher than in St. 

 LouiR. The half million quoted 

 above is based on the St. Louis pro- 

 ducers getting 15 cents » hundred 

 more than they are at present, or 

 in other words, 25 cents a hundred 

 less than the Detroit producers are 

 now getting. The leading dairy- 

 men in the St. I.,ouis district are 

 well aware of thij condition and ex- 

 [tress the belief that the IIl-Mo Co- 

 operative, Inc., can be a valuable 

 factor in finding the solution. 



"A 15-cent-per-hundred increase 

 in price is an attractive reward for 

 the farmers in this area to abolish 

 their petty jealousies and rally 

 around the gospel . of co-operation 

 to form an organization that will be 

 of mutual service » farmers, deal- 

 ers and consumersV' 



The Ill-Mo Co-opeMtlve, Inc., has 

 the following board of directors: 



R. T. Isaacs, Gillespie, president; 

 Fred Reis. O'Fallon, vice-president; 

 Frank Oexner, Waterloo, secretary- 

 treasurer; Fred Taleur. Edwards- 

 ville: George Mahlandt, Carlyle; 

 Otto Holle, Okoville; O. C. Lynch, 

 Robertsville, Mo.; Ross Hendon, 

 Greenville; W. S. Blackburn, Cot- 

 teen. 



Officers ('(Uiflilent o^ Future 



The officers are optimistic al)Out 

 producers buying the remainder, 

 tut state that a well-organized, vig- 

 orous campaign will be necessary 

 to carry direct to the producers the 

 full meaning of the need ot the 

 farmers having their own agency 

 on the market. 



In the meantime, the plant will 

 continue manufacturing ILLINI 

 butter until the stockholders decide 

 what course shall be pursued. 



Support the Revenue 



Amendment 



Let Intangibles Pay, Too 



I. A. A. BOOKKEEPING 

 SET IS TIME SAVER 

 FOR CO-OP MANAGER 



Accounting Systems Prepared 

 by I. A. A. Department Now 

 Installed in 34 Counties 



"I find it only takes me from 15 

 to 20 minutes to fill out the com- 

 plete record for the average load of 

 stock, and it is well worth it, for I 

 have the information always at 

 hand with which to talk to some of 

 these doubters on the value of co- 

 operative marketing," writes E. S. 

 Mumma, manager of the Mt. Morris 

 Shipping Association, in discussing 

 the value of the set of account 

 books prepared for co-operative or- 

 ganizations by the I. A. A. account- 

 ing department. 



That Is the concensus of opinion 

 and co-operative organizations are 

 rapidly adopting uniform and effi- 

 cient bookkeeping systems so that 

 they may have l)etter financial rec- 

 ords and more Information, accord- 

 ing to George R. Wicker, director 

 ot the accounting department, when 

 discussing the above letter, 



"It is estimated that there are 

 more than 100 bookkeeping sets 

 prepared by our department now in 

 use by farm organizations and co- 

 operative business associations," 

 states Mr. Wicker, who Is also man- 

 ager ot the Illinois Agricultural 

 Co-operatives' Association. "Dur- 

 ing the past seven months 51 sets 

 ot uniform accounting systems have 

 been Installed for livestock shipping 

 associations located in 34 counties. 

 Xew System Is Complete 



"The old system of bookkeeping 

 used by many co-operatives is gen- 

 erally a single entry system and de- 

 cidedly inadequate. When we are 

 requested to make an audit we are 

 often unable to find the necessary 

 information and very few of the 

 managers or directors know the ex- 

 act financial condition of their as- 

 sociation. 



"The new system ot books pre- 

 pared by the I. A. A. is complete 

 but simple in operation. The sys- 

 tem makes It possible to have 

 monthly financial reports which are 

 necessary to good management of 

 any organization or business. An 

 association with a complete set of 

 accounts will save time and money 

 In auditing expense for their asso- 

 ciations. It usually requires six or 

 seven days to audit an association 

 without proper records, while the 

 operation may be reduced to four 

 or five days under the new uniform 

 system ot bookkeeping." 



Moscow Professor Says 

 Russia Will Export 

 More Wheat This Year 



Valerian Obolensky-Osslnsky, pro- 

 fessor of the agricultural academy 

 ot Moscow, Russia, is on a trip 

 through the United States gathering , 

 information concerning farmers and 

 their organizations. 



While visiting at the I. A. A. 

 office recently, he stated that 

 Russia, in his judgment, will export 

 200 million bushels of wheat this 

 year In addition to storing approxi- 

 mately 180 million bushels to pre- 

 vent a recurrence of famine. His 

 report is based on observations 

 made In June, the time of his leav- 

 ing Russia. Last year Russia's 

 wheat crop was only sufficient for 

 domestic needs. 



McFARLAND WRITES 

 ON REINSURANCE PLAN 



(Continued from page 1. Col. 1.) 

 pointed committees to complete 

 their pledges. 

 t^^harter Meiiibershi|>s Available 



I hope that each Mutual Fire In- 

 surance Company in the state will 

 avail Itself of the privilege of being 

 a charter member and of having the 

 honor of having a part In securing 

 $500,000 in direct fire and light- 

 ning insurance in order to get the 

 charter for the Reinsurance Com- 

 pany. One company has already 

 sent in eight applications amount- 

 ing to $22,650, another seven ap- 

 plications amounting to $13,500 

 and another five applications, 

 amounting to $11,500. 



With all friends of m'utual in- 

 surance lending their assistance, 

 Illinois can take her place in farm 

 Insurance protection alongside ot 

 her sister states, Indiana and Iowa, 

 who have had a reinsurance com- 

 pany for 8 and 15 years respec- , 

 lively-. 



Asking 



"The 

 asking an 

 cent in th 

 an Increa 

 cent wou 

 the roads 

 they are 

 by justice 

 a five per 

 the emerg 

 need add 

 need It n( 

 by asklnf 

 essential 

 obtain mc 

 opposition 

 which we 



"The w 

 operated 

 omy and 

 the one 

 alone, tb< 

 duced eco 

 had they 

 (Coi 



