THE I. A. A. RECORD 



Page Eleven 



I 



1929. for the remainder of the year 



1930. The basic allotment for 1931 

 shall be similarly computed from the 

 average pounds of butterfat sold by 

 each respective producer member in 

 August, September, October and No- 

 vember of 1930. 



May Change Bases 



"The basic allotments for calendar 

 years after 1931 shall be re-determined 

 if deemed advisable by the association 

 and dealers jointly in the month of De- 

 cember preceding, after the general 

 method and manner used for 1930 and 



1931. Individual bases, however, shall 

 not be reduced unless the member fails 

 to produce his basic allotment during 

 the base period, or unless the total basic 

 allotments exceed the Class I sales in 

 liionth of lease sales. Individual in- 

 creases of basic allotments shall be 

 limited to a certain uniform percentage 

 of the preceding base, which percentage 

 shall be determined and announced in 

 advance by the association. In no case 

 shall the total allotted base exceed the 

 Class I sales in the month of least sales. 



"New producer members will be ad- 

 mitted to the market if buyers have 

 demand for the milk. Basic allotments 

 will be established by giving a percent- 

 age of the total per cent established for 

 the current year for the first month's 

 shipment. The allotment will be given 

 on a scaled percentage depending on the 

 month new members start and in no 

 case shall the allotment exceed 75 per 

 cent of the market percentage, until the 

 new producer has established a base for 

 himself in the regular manner. 



Surplus Price Plan 



"5. All of the production each 

 month of each producer member in 

 excess of his basic allotment will con- 

 stitute his excess production and will be 

 paid for at an 'excess' price as follows: 

 The excess price shall be determined by 

 adding together the butterfat value of 

 sales in the remaining three classes. The 

 total of the values of these sales di- 

 vided by the total of butterfat sold 

 will be the price of excess milk. : , ; 



"Section 13 of the present contract 

 and rules 1 and 2 of the Rules and 

 Regulations, having been complied 

 with, this amendment is hereby de- 

 clared final and binding upon the Mr- 

 Lean County Producers' Association and 

 all contracting buyers — viz. the Snow 

 Si. Palmer Co., H. H. Bevan Dairy and 

 Ice Cream Co. and Normal Sanitary 

 Dairy, and is hereby ordered to go into 

 effect on November 1, 1930." 



— Mrs. Virgil Loeb. 

 October 27, 1930. 



Bevan Advertises 



Following the arbitrator's report, the 

 H. H. Bevan Company announced in 

 paid advertising in the Bloomington 

 Pantagraph that the change in the pool- 

 ing plan would place this firm in a less 

 favorable position than its competitors 

 not having contracts with the associa- 

 tion; that it would rather not abide by 

 the decision of the arbitration, although 

 its present contract contains an arbi- 

 tration clause; that the arbitration was 

 unwarranted; and that the present 

 agreement, without the supplementary 

 rules and regulations be kept in force 

 until March 1, 1931. •■:■;•;/ 



The new plan differs from the old in 

 that heretofore the average price paid 

 for milk by all contracting dealers was 

 based on the price paid by Snow & 

 Palmer Company which handles about 

 50 to 60 per cent of all the milk dis- 

 tributed on that market. It so hap- 

 pened that Snow & Palmer used large 

 quantities of milk for making butter 

 and other dairy products, whereas the 

 smaller dairies, including the Bevan 

 Company, sold a much larger propor- 

 tion of their milk in bottles and to the 

 wholesale fluid trade. As a result the 

 smaller companies had a decided ad- 

 vantage, and price cutting with conse- 

 quent destructive competition resulted. 



How It Operates ' ' 



Under the new dealer pool plan each 

 dealer will pay the Class I price for all 

 milk or cream going to the wholesale 

 and retail, bottled and bulk trade. Thus, 

 if $2.75 per cwt. is the Class I price, 

 the dealer who sells 80 per cent of his 

 milk receipts in the Class I division will 

 pay such a price for 80 per cent of his 

 receipts; whereas the dealer who sells 

 60 per cent of his milk receipts to Class 

 I trade will pay the $2.75 price for 

 only 60 per cent of his receipts. 



Obviously this plan is fair to all the 

 contract dealers and places each one on 

 the same level. The McLean County 

 Milk Producers takes the position that 

 the Bevan Company will abide by its 

 contract, although the contract has been 

 amended, as was legally provided for in 

 the arbitration clause. Each dealer 

 signing the contract accepted the arbi- 

 tration feature and now legally is bound 

 by the decision of the arbitrator. 



Cheap farm land may prove dear, 

 says the New York College of Agricul- 

 ture in warning prospective buyers. 

 Poor land is almost always over-valued 

 in relation to what it will produce as 

 compared to good land. It is cheaper 

 to buy fertility in the form of rich 

 soil than to buy fertility through fer- 

 tilizer. 



laiKetii^ 



O. C. Fisher recently succeeded Z. T. 

 Storm as manager of the Windsor 

 (Shelby Co.) Shipping Association. 



The Indianapolis Producers handled 

 299 carloads of live stock the week 

 ending October 30, or 21 loads more 

 than the previous week. The percent- 

 age of receipts was 3 1 .94 per cent com- 

 pared with 29.76 per cent the previous 

 week. Approximately 93.47 per cent 

 of producers' receipts came from ship- 

 pings associations. i I •' ' 



Iowa produces approximately one- 

 fourth of the commercial crop of hogs 

 in the U. S. More than one-half of the 

 Iowa hogs are now sold direct to pack- 

 ers who operate plants or patronize or 

 maintain concentration yards in Iowa 

 and southern Minnesota. \ , 



On its opening day the newly or- 

 ganized Vermilion County Live Stock 

 Marketing Association, Danville, han- 

 dled approximately 400 hogs, 3 5 cattle 

 and calves, and 52 sheep. Two double 

 decks of hogs were bought by the Na- 

 tional Order Buying Company, while 

 the balance of the stock was shipped 

 to the Indianapolis Producers. 



Any improvement in industrial con- 

 ditions, which seems likely within the 

 next six months, will be reflected in 

 higher prices for meats and live stock, 

 in the opinion of Mr. Conway, director 

 for the National Live Stock Marketing 

 Association. 



Live stock growers from Ogle county 

 visited the Union Stock Yards, Chi- 

 cago, as guests of the Chicago Pro- 

 ducers' Commission Association on No- 

 vember 14. 



Stock men in Illinois and Missouri 

 had more than a haff million dollars in 

 loans outstanding for the purchase of 

 feed and feeder stock early in October, 

 according to the St. Louis Producers. 

 These loans were obtained through the 

 Producers from the Intermediate Credit 

 Bank. 



• Forty years ago cotton seed was prac- 

 tically worthless. Today it is a highly 

 valuable product yielding cottonseed 

 meal, cottonseed oil and cottonseed hiJls 

 used for turf in miniature golf courses. 

 "Linters," the fiber left on the seed 

 after ginning is removed by a special 

 process and used in making mattresses 

 and other feltings. During the war 

 linters were used largely by the govern- 

 ment in the manufacture of explosives. 



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