Page Four 



THE I. A. A. RECORD 



the national co-operative, it must purchase 

 $250,000 worth of stock. 



lYz Per Bushel 



In the same way, the local farmers eleva- 

 tor must subscribe for $100 par preferred 

 "A" stock in the regional co-operative, the 

 Illinois Grain Corporation, at the rate of 

 1 Yi per bushel on all the grain it markets 

 commercially in a year. Thus, if the local 

 elevator ships 200,000 bu. of grain it will 

 be required to take $3000 worth of stock 

 in the regional. Two thousand dollars of 

 this is used to buy stock in the national, 

 and $1000 is retained for working capital. 



Ten per cent of this stock must be paid 

 in cash; the remainder must be paid in five 

 equal notes, one note due each year for a 

 period of five years. The fact that the 

 stock subscription requirement is very mod- 

 est removes any serious obstacle toward the 

 development of a sound, secure, and definite 

 co-operative grain marketing system in Illi- 

 nois. 



The state-wide grain marketing associa- 

 tion or regional is formed under the Agri- 

 cultural Cooperative Act of 1923 on a capi- 

 tal stock basis with the following classes 

 of stock: 



Preferred "A" stock for capital require- 

 ments 30,000 shares — par value $100.00. 



Preferred "B" stock for stabilizing pur- 

 poses 100,000 shares — no par value. 



Common stock for producer membership 

 70,000 shares — no par value. 



The Preferred "B" stock cannot par- 

 ticipate in the earnings of the cooperative, 

 has no par value and cannot be trans- 

 ferred without authorization from the 

 board of directors of the regional. 



Common Stock No Par 

 The shares of common stock will be of 

 no par 'value and used as the producer- 

 patron stock. It will be issued either di- 

 rect to the producer or to the local co- 

 operative elevator on a basis of approxi- 

 mately the number of producer 'patrons of 

 such local cooperative elevator. 



Plans for establishing the proper rela- 

 tionship with local cooperative elevator 

 companies may include: — 



(a) Contract — The opportunity for 

 contractual relations between the local ele- 

 vator and the Illinois Grain Corporation 

 whereby all grain handled by such local 

 elevators would (low in the channels of 

 trade to the Farmers National Grain Cor- 

 poration. 



(b) Lease — This plan provides for a 

 direct lease of the elevator by the Illinois 

 Grain Corporation. The elevator retains its 

 identity and regular set-up, and has its own 

 board of directors, wlio represent the share- 

 holders in their contacts with the state 

 cooperative. 



Local Advisory Council 



(c) purchase or Build — That the pro- 

 posed state grain cooperative, where the 

 local producers desire it, make an effort to 

 acquire local elevator facilities by buying 



or building same. That when such proper- 

 ties be so acquired, that a local advisory 

 council be maintained. Producers in the 

 community would be required to purchase 

 stock, not in the local elevator but rather 

 in the state-wide cooperative and the latter 

 organization would own the elevator. 

 Patronage dividends would run direct from 

 the state cooperative to the producer. 



In the "Lease" or "Purchase-Build" plan, 

 in all matters such as the employment of 

 the manager, formulation of policies for the 

 local elevator, etc., the wishes of the local 

 advisory council would be complied with as 

 far as practicable. Advantages which all 

 elevators would have in common would be 

 those of group insurance, bonding, auditing 

 and general supervision. 



Must Be Co-ops. 



All local farmer-owned country elevators 

 are to be given an opportunity to become 

 members of the State Grain Corporation, 

 provided that such country elevators which 

 are not cooperative associations under the 

 Capper- Volstead Act and under definition 

 of the Federal Farm Board Act, agree to 

 reorganize on a cooperative basis within a 

 reasonable length of time. 



Every member country elevator of the 

 State Grain Corporation will be required to 

 purchase or underwrite for sale among its 

 patrons a sufficient and equitable amount of 

 stock in the State Grain Corporation for 

 the purpose of furnishing needed operating 

 capital and also capital to buy such an 

 amount of capital stock in the Farmers 

 National Grain Corporation as will fairly 

 represent the regional's share of capital 

 contribution. 



Note that the contract method is men- 

 tioned first. By this method cooperative 

 elevators will be enabled to retain their 

 identity. They will employ their own 

 manager and have their own board of di- 

 rectors, to look after their own business 

 affairs, the same as before the Farm Board 

 program was launched; in other words, this 

 plan, by allowing the elevator to retain its 

 identity, should meet the^ approval of that 

 group of believers in the idea that the 

 local elevator, should, just as far as possible 

 in the program, retain its individuality. 



Red Top Gro'wers Sign 



Advance reports show a 90 per cent sign- 

 up of red top seed growers who have at- 

 tended meetings, and have been interviewed 

 in the membership sign-up of the Egyptian 

 Seed Growers' Exchange, reports C. T. 

 Kibler, farm adviser in Clay county. Nearly 

 J 00 members were signed up during the 

 first 10 days of the drive in February, 

 which was in charge of A. B. Culp and 

 the district organization managers of the 

 Illinois Agricultural Association. 



In spite of mud roads and slow travel 

 the campaign has gone forward in nine 

 counties of southern Illinois, and new mem- 

 bers are being added every week. 



B' 



Butter Campaign Is 



Unnecessary In Texas 



A Few Co-operatives Would 

 Remedy This 



lUTTERFAT is selling here at 28 

 cents a lb.," writes County Agent 

 Parker D. Hanna of Canadian, Texas, 

 "whereas creamery butter on Feb. 19, 1930, 

 was priced at 50 cents per lb. 



"Our farmers are not going to buy 25 

 cent oleomargarine when they can churn 

 their own butterfat," his letter continues. 

 "So the butter campaign is unnecessary as 

 far as the farmer in this section is con- 

 cerned. 



"If the consumer is told to eat more 

 butter as there is a large surplus, he will 

 ask why, if that is the case, he has to pay 

 the same price for his creamery butter with 

 butterfat at 28 cents per lb. as he paid 

 when it was 44 cents. 



Buy Cream Cheap 

 "It strikes me that if the manufacturers 

 would get the retail price of their butter 

 down in line with the price the farmer 

 gets for his butterfat, consumption would 

 take care of the surplus. 



"The manufacturer may say that the 

 butter he is selling today was churned from 

 40 cent butterfat. That may be true, but 

 when production and consumption again 

 become balanced he will probably be selling 

 50 cent butter churned from 25 cent but- 

 terfat, so the account will be evened. 



"It would be foolish for me to push an 

 'Eat More Butter Campaign' locally when 

 there is a spread of 22 cents between a 

 pound of butterfat and a pound of butter." 



Free 4-H Club Trip 



A free educational trip to the Ninth National 

 4-H Club Congress during the week of the In- 

 ternational Live Stock Exposition, which in- 

 cludes a week's visit to places of interest in and 

 about Chicago, will be awarded to 58 county 

 project champions in seven states, according to 

 an announcement from the National Committee 

 on Boys' and Girls' Club Work. 



All 4-H Club members living in counties 

 traversed by the Santa Fe Railway system may 

 compete for these trips. The awards will be 

 made to county champions doing the most out- 

 standing club work In the crop, livestock or 

 poultry projects. Previous winners of trips to 

 the National Boys' and Girls* 4-H Club Con- 

 gress are not eligible to compete in this contest. 



States in which county club champions will 

 be selected are: Arizona, Illinois, Iowa, Kansas, 

 Missouri, Oklahoma and Texas. 



The government of Uruguay recently or- 

 dered 136 educational films from the U. S. 

 Department of Agriculture. 



Members of the Illinois Agricultural As- 

 sociation staff will meet In conference on the 

 Saturday following the second Monday of each 

 month during 1930. 



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