THE I. A. A. RECORD 



Page Siiu 



Farmers National 



Issues Statement 



"• t 



irginia 



•me of 



law. 



laws 



Mis- 



Asks "Who Pays Bills"? for Propa- 

 ganda Attacking Co-Operative 

 Marketing 



ing those activities becomes a pertinent 

 one for grain producers, stockholders 

 and directors of farmers' elevators 

 everywhere." 



4cTlJ' ARMERS' elevator companies of 

 -L middle-western states are being 

 flooded with reprints, paid advertising 

 and letters containing vicious attacks 

 on the Federal Farm Board and Farmers 

 National Grain Corporation grain mar- 

 keting program. Many of these letters 

 are on letterheads of the "Illinois Farm- 

 ers Grain Dealers Association" and are 

 signed by Robert B. Orndorff, as vice- 

 president. Advertisements appearing in 

 journals opposing the Farm Board pro- 

 gram also carry his signature, as do re- 

 prints from unfriendly papers that are 

 being scattered everywhere among farm- 

 ers' elevators. 



"Mr. Orndorff is sailing under false 

 colors and his use of the name of the 

 Illinois elevator association is an eva- 

 sion. The correct name of the Illinois 

 elevator group is Farmers Grain Dealers 

 Association of Illinois, and its presi- 

 dent, Mr. C. H. Bonnell, of Owaneco, 

 III., in a letter addressed to an official 

 of Farmers National Grain Corporation, 

 under date of October 6, 1930, makes 

 clear the actual relationship between 

 Mr. Orndorff and the Farmers Grain 

 Dealers Association of Illinois. His 

 statement is reproduced herewith: 



FARMERS • '--^ 



GRAIN DEALERS ASSOCIATION 

 OF ILLINOIS 



:'.'■' Office of President ' ' 

 .'* ■. October 6, 1930. 



Mr. W. L. Stahl, Vice-Pres., 

 Farmers National Grain Corp., .; si 

 Fisher Bldg., Chicago, III. • ■ >; . 

 Dear Mr. Stahl: ' 



Our association (the Farmers Grain 

 Dealers Association of Illinois) has 

 never authorized nor indorsed any 

 letter or statement criticizing the 

 members or the policies of the Fed- 

 eral Farm Board and we earnestly de- 

 sire that its aims may be realized. 

 (Signed) 



C. H. Bonnell, Pres., 

 Farmers Grain Dealers As- 

 sociation of Illinois. 



"Mr. Orndorff maintains an office in 

 Bloomington, 111., apart from the of- 

 fices of the Farmers Grain Dealers As- 

 sociation of Illinois. His mailing and 

 office expenses, obviously, are heavy. 

 Paid advertising in journals of wide 

 circulation costs money. Mr. Orndorff's 

 activities being neither authorized nor 

 indorsed, as Mr. Bonnell states, by the 

 Farmers Grain Dealers Association of 

 Illinois, the question of who is financ- 



Keviews Income Tax 



{CotilitiueJ from page 8) 

 cent on all net income in excess of 

 $25,000. The tax on corporations is a 

 flat tax of 2 per cent on the entire net 

 taxable income. 



Massachusetts raised its collections 

 from income taxes from $15,000,000 

 in 1918 to $20,240,000 in 1927. The 

 Massachusetts income tax has never been 

 a general income tax. It is levied 

 upon incomes from certain intangibles, 

 upon incomes from annuities, profes- 

 sions, employments and trade and busi- 

 ness, upon excess of gains over losses 

 received from purchase or sales of in- 

 tangible personal property, and upon 

 domestic and foreign business corpora- 

 tions excepting such corporations as 

 commercial banks, savings banks and 

 insurance companies which are taxed 

 separately. This leaves out incomes 

 from real estate, bank deposits, and 

 many corporations. 



Collect $100,000,000 in N. Y*. 

 The total income tax collections in 

 New York now exceed $100,000,000. 

 Of this $57,000,000 was kept for the 

 state's own use, $43,000,000 distrib- 

 uted to the localities. In 1919 the rate 

 for corporations was raised from 3 per 

 cent to 4 per cent and a personal in- 

 come tax law was enacted applying to 

 the net income of residents and non- 

 residents earned within the state rang- 

 ing from 1 per cent on the first $10,000 

 to 3 per cent on all in excess of 

 $50,000. 



Stone Predicts More Direct 

 Purchasing 



ORGANIZATION of consumers for 

 direct purchasing from farmers' 

 co-operative marketing organizations 

 was predicted by James C. Stone, vice- 

 chairman of the Federal Farm Board in 

 a recent address. 



Mr. Stone declared that there is no 

 reason why growers of farm commodi- 

 ties and the consuming public should 

 not develop direct relationships. "The 

 time is coming," he said, "when the 

 consumer will organize and develop 

 these relationships between buyers and 

 producers as to quality and grade as 

 well as discuss prices. There is some 

 development along this line now." 



He cited as an illustration the co- 

 operative purchasing organization of 

 eastern farmers known as the Grange- 

 League-Federation Exchange with ap- 

 proximately 90,000 members in the 



British Co-op>crators 



Buy Grain Corp. Wheat 



The recent meeting of the board of 

 directors of Farmers National Grain 

 Corporation was marked by a visit of 

 three directors of the Co-Operative 

 Wholesale Society of England and 

 Wales. Of even more interest was the 

 fact that through these directors the 

 largest co-operative concern in the 

 world made direct contact with Amer- 

 ican grain producers through their own 

 organization and made its first purchase 

 of wheat from Farmers National Grain 

 Corporation. 



The Co-Operative Wholesale Society 

 is the federal trading organization of 

 the retail co-operative societies of Eng- 

 land and Wales. It is said to be the 

 largest purchaser of wheat in the 

 United Kingdom and has been a big 

 customer of the Canadian Wheat Pool. 

 It has in its employ more than 40,000 

 persons, owns thousands of acres of ag- 

 ricultural lands in many parts of the 

 world, operates factories, mills and 

 banks, and is composed of more than 

 1,100 affiliated societies, with a total 

 membership of consumers exceeding 

 four and one-half million. 



The visit of the directors of the C. 

 W. S. was in line with the program of 

 the organization to go as closely as jX)s- 

 sible for its supplies to the sources of 

 production and to establish direct rela- 

 tions between the organized consumers 

 of the United Kingdom and the co- 

 operative grain producers of the United 

 States. 



states of New York, Pennsylvania and 

 New Jersey. 



The Federation will purchase Ix;- 

 tween $30,000,000 and $3 5,000,000 

 worth of feed this year. During the 

 past year it purchased a trainload of 

 feed a day from soybean processors and 

 feed mixers out of Peoria, Illinois. 

 In addition to its feed purchases it 

 maintains three fertilizer plants. ■>• . • 



Grain Marketing 



The United States is not in a posi- 

 tion to eliminate legitimate markets for 

 the hedging of wheat, and present legis- 

 lation is adequate to care for any situa- 

 tion which might be caused by the al- 

 leged selling of wheat on the Chicago 

 Exchange by Russia to depress prices. 

 Chairman Legge of the Federal Farm 

 Board stated orally on September 22. 



Russell G. Stewart, manager of the 

 Ford County Service Company, has ac- 

 cepted a similar position with the new- 

 ly organized Champ.iign C^ounty Ser- 

 vice Company. 



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