THE I. A. A. RECORD 



Pnrjr Fir rev 



St. Louis Dairymen Adopt 

 Plan 



(Cdntinut'd from pane 1) 



"The interest from this reserve 

 fund," said Geyer, "nearly pays the 

 expenses of the orpanization." Geyer 

 stated that farmers must revise their 

 estimates of the requirements in 

 money and men needed to oi)erate suc- 

 cessfully a business as large as that 

 represented by the combined milk 

 sales in the St. Louis milk shed. "Real- 

 ize that you're proing into big busi- 

 ness," he said, "when you organize to 

 sell nearly a million pounds of milk 

 daily." 



The status of producers who dojiver 

 to condenseries was considered. I)is- 

 po.sition of the problem was left to the 

 general committee which includes a 

 representative from each of the !!' 

 milk producing counties. It was gen- 

 erally agreed that the new association 

 could not be successfully established 

 on a condensery price and market 

 basis. 



A. U. Lynch, dairy marketing direc- 

 tor, and Secretary Geo. E. Metzger of 

 the I. A. A. explained the plan and 

 membeis' agreement. Both Metzger 

 and (ieyer outlined the essentials of a 

 t.uccessful oiganization canipaign. 

 (ieyer suggested that a provision be 

 made that members j)ay $5 into the 

 organization annually until the check- 

 off system is established. An amend- 

 ment to this etfect was voted down. 



.^ survey of the St. Louis market 

 made by the sjiecial connnittee if- 

 vealed that the average production per 

 dairyman is only 112 pounds of milk 

 daily or less than half of the average 

 production at Chicago. A ,tc checkoff 

 will cause such average dairyman to 

 contribute $20.10 annually to the su))- 

 port of his organization and jirincipal 

 means of livelihood. 



The high-lights in the jiroposed by- 

 laws arc as follows: 



1. J'tir/tosr. To Itc a nnn-i>rofit cooperativ*' 

 as^iuiation without capital stocli iiistiiiitiil 

 for the mutual hf]i> and ht-nofit of its mt-m- 

 h'Ts : to pronioio iIk- ^'ent■ral \v«'lfari' of ii> 

 nu'mlitTs and th»' hnsint-ss r)f dairyintr in th«- 

 St, I,(»uis fhiiil milk rlistrict : to roupuratc 

 with otht-r as-.(iri::tion-i or intliviiiuals t'li- 

 trairorl in similar piiriK>si's ; to have and ox- 

 iTci^o all t lu' powrrs ncco^ary and jiropi-r 

 to carry into iiri<'t the piiri'ose for which 

 such corporation is formcii. and to do any 

 anil all Ihintrs incident to the ahove purpose. 



2. A life mcmhershiii fee t>f $5 i>ayal>Ie 

 in ailvance. 



.'i. Menihership a personal and not a prop- 

 *'rly rii'ht and not Iran-feralde. 



1. I-'itual votin--r power. 



5. Territory diyided into tifteen districts, 

 the division t'ased <m memhership anr! one 

 director den.ocratically elected by the mem- 

 hers of each flistrict. 



<t. I)irecl<)rs to serve for one year. 



7. The usual officers with the usual duties. 



S. Responsible officers and employees to be 

 bonded. 



!». Association must m:ike monthly finan- 

 cial reiHirts to the districts. 



lo. Provides a penalty for non-perform- 

 a!.< e and breach of contract. 



Existing Organizations 



The commitee found that there has 

 been in the past and is today a number 

 of existing organizations of one kind 

 or another in the field. The most re- 

 cent organization was established about 

 two years ago. This organization was 

 set up as a bargaining institution. 



signed a limited membership among 

 the producers of the district, and is' 

 now operating iat a few local milk re- 

 ceiving stations. 



Due to cross currents of thought and 

 probably some misinformation, which 

 seems to exist in the district, the com- 

 mittee after careful consideration de- 

 cided that for the best interests of all 

 former organizations should be dro])- 

 ped from consideration insofar as their 

 corporate setup is concerned and a new 

 oiganization formed, recognizing the 

 fact, however, that the St. Louis Milk 

 Producers Cooperative Association has 

 recently pioneered to a limited extent 

 as a bargaining association in the field 

 and that on some of the smaller mar- 

 kets tributary to St. Louis has rendered 

 some valuable service to its membei'- 

 ship and to the dairymen in general, 

 and that these men who became mem- 

 bers of the said organization have paid 

 their membership fee and submitte<l to 

 a checkoff for the financing of the op- 

 erations of the association, it was felt 

 by the committee that the new organi- 

 zation in recognition of this service 

 and experience would be justified in i 

 admitting the present members of the 

 St. Louis Milk Producers Cooperative 

 .Association into the new organization 

 without jiayment of additional mem- 

 bership fee, providing the members 

 will sign the new marketing agree- 

 ment. 



Organization Setup 



There are several farmers' service 

 organizations in existence in the .St. 

 Louis territory. After careful stutiy 

 and survey of the service organization 

 situation the committee is of the opin-' 

 ion that tlie Farm Bureau could render j 

 most valuable assistance in launching 

 the organization. In some sections of i 

 the district the cooperation of other | 

 existing service organizations .should 

 be invited. The committee jiroposes 

 that if this meeting today accepts the 



Adjustment Satisfactory 



Illinois Agr. Mutual Ins. Co.. 

 608 South Dearborn Street, 

 Chicago, Illinois. 



Your letter and check in full 

 settlement of my claim for col- 

 lision in our recent accident on 

 the Dixie Highway came yester- 

 day. 



I want you to know that I am 

 very much pleased with your set- 

 tlement and that it is such serv- 

 ice as this that makes it worth 

 while for us to have a company 

 which we know deserves our full 

 confidence. Your adjustment is 

 satisfactorv in all respects. 



p:i)Ward karr. 



Ford County, III. 



Mr. Karr is a meml>er of the Ford 

 County Farm Bureau. The accident 

 tM-curred when K:irr and hi- son. Uiihert. 

 were drivini; xn the pavement at iiitiht 

 and smashed into a truck and trailer 

 parkeil on the pavement. A bus was 

 lominc from the opposite direction and 

 to avoid a head-on-collision Karr sid* 

 swiped the trailer attached to the truck 

 causing considerable damage. 



report of the commitee and the pr<% 

 posed plan submited by the committee 

 is to be carried into the field, that an 

 attempt first be made to get the ap- 

 proval and the moral support of the 

 executive committees of the Farm 

 Bureaus in the district. Also that the 

 P'arm Bureaus of the district be aske<i 

 to select from ten to twenty-five dairy- 

 men in their respective counties who 

 will agi-ee to meet lat some central 

 point in the county or in the district. 

 for schooling on this jdan of organiza- 

 tion, such as will enable them to carry 

 the membership agreements into the 

 field and .secure the signatures of a 

 gcodly percentage of the dairymen de- 

 livering milk in their respective coun- 

 ties. In ad<lifion tlu' County Farm 

 Bureaus be asked to provide a meeting 

 place and handle the ;local publicity. 



It is the thought of the conimtitee 

 that a third to half of the member- 

 ship of the proposed organization can 

 be signed by v(duntar>- effort. Follow- 

 ing the voluntary effort other means of 

 securing members should be provided, 

 probably working dojivn to individual 

 solicitation by a paid ;solicitor. 



Condenseries j 



The condensery situation existing 

 in the district presents a real problem. 

 -After carefid .study and consideration 

 your committee recommends that for 

 the present time, at least, members be 

 accepted into the organization who re- 

 side in such territory furnishing milk 

 to plants that deliver to the St. Louis 

 fluid market during all or a sub(<tantial 

 part of the year. 



Wabash Valley Case 



(Continued from i)age 10) 

 result in a reduction in the revenue 

 under the proposed rates (making 

 proper allowance fhr the Federal 

 taxes) of about $C58L Even this 

 would still enable the company to earn 

 7.01 per cent for 1027. r..84 per cent 

 for 1028. or an average of G.!»2 per 

 cent for the two vears, 



"WHEREFORE, we p.ay your hon- 

 orable Commission to deny the advance 

 (in rural residence rates as proposed 

 in the alleged compromise st-hedule of 

 the petitioner. 



(Signed) "ILLIXOI.«j AGRICUL- 

 TCRAL ASSOCIATION". 



"L. .1. Quasey. Transp't. Kepart- 

 menl." 



The Commission's Order 



The Commission's order reclognizes 

 that the Company should have an in- 

 crease in revenue to pay a fair return 

 on the investment a"hd allowed certain 

 increases in rates "to provide a net an- 

 nual incrj'ase in r*\eniie r)f approxi- 

 mately .?0.:100 and will produce a net 

 income of $2.").2.'>7, which is approxi- 

 mately 0.1.5 per cent on the fair value 

 of the property of the petitioner." 



O'Hair and McClain of Paris, and 

 L. C. Durham of Kan.sas City, lawyers, 

 represented the Telephone Company. 

 Wm. Dennis, of the Edgar County 

 Farm Bureau, was appointed locally 

 to work with the I. A. A. 



