Page Six 



THE I. A. A. RECORD 



#_ I LililNOlS _m 

 RECOR P W 



To advance the purpose for which the Farm Bureau was organited. 

 namely, to promote, protect and represent the business, ecottomic, 

 political, and educational interests of the farmers of Illinois and the 

 tuition, and to develop agriculture. 



Editor. GeorKe Thiem 



Published once a month by the Illinois Agricultural Association, 

 608 So. Dearborn St., Chicago, 111. Entered as second-class matter 

 October 20, 1925. at the post office at Mount Morris, Illinois, under 

 the Act of March 3. 1879. Accepted for mailing at special rate of 

 postage provided for in Section 412, Act of February 28, 1925, author- 

 ized October 27, 1925. The individual membership fee of the Illinois 

 Agricultural Association is five dollars a year. The fee includes pay- 

 ment of fifty cents for subscription to the Illinois Agricultural Record. 

 Postmaster: In returning an uncalled for or missent copy please in- 

 dicate key number on address as is required by law. 



OFFICERS 



President, Earl C. Smith Detroit 



Vice-President, A. R. Wright Varna 



Secretary, Geo. E. Metzger Chicago 



Treasurer, R. A. Cowles Blooinington 



BOARD OF DIRECTORS 

 (By Congressional District) 



1st to Ilth H. C. Vial, Downers Grove 



12th , G. F. Tullock, Rockford 



13th C. E. Bimborough, Polo 



Kth M. G. Lambert, Ferris 



15th A. N. Skinner, Yates City 



16«1> - Geo. B. Muller, Washington 



17th Geo. J. StoII, Chestnut 



1«»1> W. A. Dennis, Paris 



19th C. J. Gross, Atwood 



20th Charles S. BUck, Jacksonville 



21st Samuel Sorrells, Raymond 



22n«i - , Frank Oexner, Waterloo 



23rd W. L. Cope, Salem 



2** Charles L. Scott, Grayville 



2St« Fred Dietz. De Soto 



DEPARTMENT DIRECTORS 



Comptroller J. H. Kelker 



Dairy Marketing A. D. Lynch 



Finance R. A. Cowles 



Fruit and Vegetable Marh3ting A. B. Leeper 



Grain Marketing.... Harrison Fahrnkopf 



Information George Thiem 



Insurance Service V. Vaniman 



Legal Counsel Donald Kirkpatrick 



Limestone-Phosphate J. R. Bent 



Live Stock Marketing '. Ray E. Miller 



2*"" - C. E. Johnston 



Organization „ G. E. Metzger 



Produce Marketing _ F. A. Gougler 



Taxation and Statistics J. C. Watson 



Transportaion L. J. Quasey 



ASSOCIATED ORGANIZATIONS 



Country Life Insurance Co L. A. Williams, Mgr. 



Farmers Mutual Reinsurance Co J. H. Kelker, Mgr. 



Illinois Agricultural Co-operative Ass'n , F. E. Ringham, Mgr. 



Illinois Agricultural Mutual Insurance Co. A. E. Richardson, Mgr. 



Illinois Farm Supply Co L. R. Marchant, Mgr. 



Organization and Bargaining Power 



A MOST convincing testimonial of the value of organ- 

 ized farm bargaining power is contained in a sum- 

 mary of weighted average prices paid producers for 3.5 per 

 cent fluid milk per 100 lbs. (including surplus) during 

 1929. This list, prepared by our dairy marketing director, 

 A. D. Lynch, shows that producers who supply St. Louis 

 with milk are the lowest paid, by far, of any dairymen sup- 

 plying a large city market, in the United States. 



Contrast the $2.18 average price per 100 lbs. for the year 

 paid at country points around St. Louis with Chicago's 

 $2.64, Boston's $2.64 and New York's $2.70. All these 

 prices are F. O. B. country points. Compare the St. Louis 

 price with the F. O. B. city prices paid producers on other 

 large markets as follows: Detroit $2.84; Hartford, Conn., 

 $3.94; Philadelphia $3.4J; Pittsburgh $3.14; Washington 

 $3.45, etc. 



Perhaps the fact that St. Louis dairymen lacked a strong 

 collective bargaining association to sell their milk for some- 

 where near its value last year while at the other cities the 

 producers were well organized, had nothing to do with the 

 unequal milk prices. Perhaps. 



That Price Question 



THE Illinois Grain Corporation is a Capper- Volstead co- 

 operative and a member of the Farmers National Grain 

 Corporation, the national grain sales agency set up under the 

 direction of the Federal Farm Board. 



The Illinois Grain Corporation will be prepared to help 

 the individual farmer and his local farmers' elevator receive 

 any benefits available under the provisions of the Agricul- 

 tural Marketing Act. These benefits include among others, 

 loans to co-operative elevators and money advances to farm- 

 ers on grain in storage. 



Lending the farmer and his co-operative money, however, 

 will not by itself improve the- farmer's position in the mar- 

 ket. The concentration of a large volume of grain in a 

 single selling agency will give the producer bargaining 

 power and influence in getting a price in line with market 

 demands. This he does not always get under the present 

 system. 



No thinking farmer believes that any co-operative or 

 government agency can fix prices arbitrarily regardless of 

 supply and demand. No legislation ever proposed by the 

 Farm Bureau, Mr. CooHdge notwithstanding, advocated price 

 fixing. We do believe a well organized co-operative can 

 exercise some influence on prices. By collective action in 

 marketing farmers can reduce violent price fluctuations, 

 learn more about quality and market demands, own their 

 own terminal elevators and marketing machinery, develop 

 better control over production, cut distribution and seUing 

 costs, reduce wastes in handling, shake off the surplus of 

 sellers under the present system who greatly outnumber the 

 buyers, and thereby divert some of the money which now 

 stays in the city, back to the country. 



On Contracts 



THE -specious arguments used by the grain trade in at- 

 tacking the Federal Farm Board policy in favor of 

 definite contracts between the producer and his co-operative 

 have been answered with characteristic vigor and firmness by 

 Chairman Legge. 



"Some of the private commission companies for years 

 have required co-operatives borrowing money from them 

 to sign a binding marketing agreement," said Mr. Legge. 

 "In one state where some opp>osition has been voiced to 

 signing a marketing agreement with the Farmers' National 

 Grain Corporation a private commission company is boast- 

 ing that it has 50 co-operative elevators tied up under a 

 five-year binding contract to deliver grain to it in return 

 for financing. 



"The marketing agreements between the Farmers' National and the 

 co-operatives and the co-operative's members can be complied with 

 easily," Mr. Legge continued. "The agreements give the farmer the ad- 

 vantage of the competitive market at all times." 



Commission merchants would have farmers believe that many mys- 

 terious evils beset the man who enters into an agreement with his own 

 organization to sell his grain. Who can live and carry on any kind 

 of work or occupation without many agreements, written or otherwise? 

 You can't rent a farm or house, buy or sell anything, ride on the train, 

 go to the movies, or in fact do anything of a business nature without 

 entering a contract spoken or written, or performing your part of an 

 agreement. The world's business is done by contract. It is possible that 

 contracts are only bad when they divert grain into co-operative channels 

 and away from private commission companies. Presumably the contract 

 method of doing business is only virtuous when employed by the trade. 

 It is also possible that pure selfishness and no other reason prompts the 

 antagonism to farmers signing agreements to co-operate with each other. 



