V. RECORD 



THE I. A. A. RECORD 



Page Thirteen. 



'29 



jport 



mes in 



Rules Dis- 

 secting, 



mes were played 

 1 Bureau teams 

 George Thiem, 

 n Bureau Base- 

 annual meeting 

 Approximately 

 yers and farm 



e smoothly and 

 ne in its brief 

 em. The few 

 re settled with 

 :tators in most 

 is by the state 

 iposed of the 

 md George L. 

 1 county, 

 im deposited a 

 orfeit paid for 

 mes had a salu- 

 ;ularity and ad- 

 report declared, 

 iring meeting in 



ly 25. All pre- 

 by August 18 



leorge Thiem 



Jarred 



,e is being kept 



and subsidized 



the secretary's 

 t this condition 

 ure for if the 



win overcome 

 to the purposes 



organized, the 

 1 Bureau base- 

 ions like that 

 the Big Ten 

 :ounty baseball 

 will co-operate 



subsidize play- 



their own ad- 



ers must realize 



interest. To 



the rules, keep 



teach honesty 

 oviding whole- 

 important. 

 ars, team man- 

 J7) 



Harrison Fahmkopf 



Grain Marketing Plan 



Unanimously Adopted 



Regional Grain Corporation for Illi- 

 nois to Be Set Up 



THE grain marketing plan of the I. A. 

 A. which was carefully worked out 

 after months of study was unanimously 

 adopted at the business session of the 

 fifteenth annual convention on Friday 

 morning, January 31, 

 at Springfield. 



The plan as ex- 

 plained by Harrison 

 %1 F a h r n k opf , grain 



marketing director, 

 provides for the or- 

 ganization of an Illi- 

 nois grain corpora- 

 tion based upon the 

 principles used in 

 setting up the Farm- 

 ers National Grain 

 Corporation. It will 

 be organized under the co-operative laws 

 of Illinois as a regional marketing agency 

 co-operating with the National Grain Cor- 

 poration. 



The main purpose of the plan is to ac- 

 quire through one of three different ways 

 the largest possible centralized control of 

 grain produced within the state so as to 

 insure at all times its sale through cen- 

 tralized channels in the various nearby 

 grain markets. 



Three Methods 

 The three ways embody: 

 1. Entering into contractual relations 

 with local elevators whereby all grain they 

 handle will be sold through the Illinois 

 grain corporation and the Farmers National 

 Grain Corporation. 



2 and }. Where local elevators do not 

 I desire to contract for the sale of grain 

 •' through these co-operative channeb, efforts 

 might be made by the State Corporation to 

 acquire local elevator facilities through out- 

 right purchase, or lease. 



Local Advisory Council 



Where the present country elevators de- 

 sire to sell their physical properties, it is 

 proposed that the state agency purchase 

 such facilities on an equitable basis; that 

 when such properties be so purchased or 

 leased, a local advisory council be set up 

 and maintained, and at least one share of 

 common stock in the state corporation be 

 sold and issued to each grain producer 

 patron, thus guaranteeing to each grower 

 his right of participation in all earnings or 

 savings brought about through the co-op- 

 erative marketing of his grain. In such 

 case, the patronage dividends would run di- 

 rect from the state grain corporation to 

 the common stock shareholder patron. 

 Where the local country elevator desires 

 i to lease its physical facilities to the state 

 j grain corporation it will be given oppor- 

 tunity to do so. When such properties are 



so leased, the state grain corporation will 

 manage and operate them. 



Must Be Co-operative 



All local farmer-owned country elevators 

 are to be given an opportunity to become 

 members of the state grain corporation, pro- 

 vided that such country elevators which are 

 not strictly co-operative under the Capper- 

 Volstead Act and the Federal Farm Act, 

 agree to reorganize on a co-operative basis. 



Every elevator holding membership in 

 the state grain corporation is to be solicited 

 to purchase or underwrite for sale among its 

 patrons a sufficient and equitable amount of 

 stock in the state corporation for the pur- 

 pose of furnishing needed operating capital 

 and buying capital stock in the National 

 Farmers Grain Corporation. 



Stabilized Control 



The state grain corporation in its au- 

 thorized capital is to provide for a class of 

 stock that will effect a stabilizing and con- 

 tinuing control. Such stock to be held by 

 some agreed organization or organizations 

 that might with the consent of the share- 

 holders of the state grain corporation trans- 

 fer such stabilizing stock control to the 

 National Grain Corporation, when its man- 

 agement and operations will have proven 

 their efficiency and place in a national grain 

 marketing program. 



Business Service Is 



Topic at Conference 



Commercial Projects Help Farmer's 

 Dollar Buy More 



THE Financial Business Service confer- 

 ence on the afternoon of January 30 

 was held in the ball room of the St. Nich- 

 olas hotel in Springfield. One hundred 

 sixty-nine delegates and visitors attended. 

 J. R. Bent discussed the limestone and 

 phosphate agreements 

 with the producing 

 companies and told 

 of the supervisory 

 work carried on by 

 the Limestone-Phos- 

 phate Department of 

 the I. A. A. 



F. E. Ringham, 

 manager of the Illi- 

 nois Agricultural Co- 

 operative Association, 

 reported briefly on the audit service 

 available to Farm Bureaus and co-operatives. 

 This service includes income tax help, cred- 

 its and collections, accounting systems, fi- 

 nancial reorganization, etc. Since the com- 

 pany was organized in 1924 approximately 

 1300 audits have been made. At present 

 there are 233 member companies in the 

 service which includes 62 Farm Bureaus, 3 

 Home Bureaus, 71 farmers elevators, 21 

 live stock co-operatives, 16 dairy and prod- 

 uce associations, 30 farm supply compa- 

 nies, 13 mutual insurance companies, 4 seed 

 associations, 9 mercantile companies and 4 

 miscellaneous. 



Geo. F. TuIIock 



Advantages of Single Control ' 

 V. Vaniman discussed insurance service. 

 He explained the advantages in the present 

 plan of single control in setting up the last 

 two mutual insurance companies. Manager 

 Richardson of the Auto Insurance Company 

 stated that working policies were formu- 

 lated with the idea of fostering and pro- 

 moting the Farm Bureau movement. j' 

 Manager Lawrence A. Williams of Coun- 

 try Life pointed out th^t the present at- 

 tainment which culminated in $24,000,000 

 of life insurance signed in one year's time 

 would have been impossible without the co- 

 operation of the county Farm Bureaus. He 

 stated that the Director of Insurance Serv- 

 ice for the I. A. A. acted as the connecting 

 link between the Country Life Insurance 

 Company and the I. A. A. in carrying out 

 a harmonious program. 



$2,000,000 Business in '29 



E. D. Lawrence, president, and L. R. 

 Marchant, manager, of the Illinois Farm 

 Supply Company, discussed the centralized 

 purchasing of petroleum products for 31 

 Farm Bureau supply companies during the 

 past year. These companies distributed 

 more than $2,000,000 worth of products 

 .during 1929. Net income amounted to 

 approximately $280,000 available for pat- 

 ronage dividends and reserve funds. Divi- 

 dends ranging from four to 12 per cent 

 were paid to Farm Bureau member custom- 

 ers after setting aside funds for reserves. 



Five new companies became members of 

 the organization during 1929. The state 

 supply company like the county service 

 companies pays dividends on the patronage 

 basis. Although the sum of $21,518.8$ was 

 returned to the 21 member companies at 

 the end of the fiscal year, the success of the 

 state company cannot be measured by this 

 dividend since its chief iservice was to pur- 

 chase high quality merdhandise at quantity 

 prices. 



Kirkpatrick Summarizes 



Donald Kirkpatrick, legal counsel summed 

 up the conference, stating that only a 

 beginning had been made in rendering 

 needed commercial service. The Board of 

 Directors of the I. A. A., he stated, favor 

 handling only those commodities used di- 

 rectly in farming operations. The Farm- 

 ers Mutual Reinsurance 'Company, he said, 

 is anxious to co-operate with the local mu- 

 tual companies to the end that all fire, 

 lightning, windstorm, cyclone and tornado, 

 and farm crop hail insurance may be se- 

 cured on a mutual basis. He stated that 

 other forms of insurance undoubtedly 

 would follow; that accident and health in- 

 surance as well as theft Insurance had been 

 requested by a number of members. He 

 asked consideration of the suggestion to 

 change the name of the Illinois Agricultural 

 Mutual Insurance Company to "Country 

 Casualty Company" from the standpoint of 

 having a short name similar to Country 

 Life Insurance Company. 



George F. Tullock presided as chairman 

 of the meeting. 



