terpretation of Executive Order X 131 

 under the code so that any country grain 

 elevator whose retail business amounts 

 to not more than ten per cent of its 

 total business and not more than $10,000 

 will not come under the N. R. A. retail 

 code at all. The Advisory Board further 

 recommends that any elevator whose re- 

 tail business slightly exceeds ten per 

 cent of its total business or is slightly 

 in excess of $10,000 may make applica- 

 tion for exemption upon a showing that 

 it will be competitively disadvantaged 

 in the absence of such exemption, either 

 partial or complete. If this policy is 

 adopted by N. R. A. it will greatly sim- 

 plify the entire code relationship of coun- 

 try elevators and will be a distinct vic- 

 tory for the National Country Elevator 

 C!ode authority, which has all along 

 sou^tt to have exemption for country 

 elevatOFB. 



Commenting on farm organization and 

 cooperation, Mr. Huff declared that there 

 never has been a permanent agrriculture 

 established on a business basis in any 

 country during the past, but that his- 

 torically agn^iculture has merely become 

 a tail to the kite of industrial develop- 

 ment. There must be a living and vital- 

 ized movement in agriculture, he stated, 

 to prevent that thing from happening 

 in this country. 



Referring to the so-called "farmer 

 grain-dealer commission" which many be- 

 lieve was set up to whitewash the grain 

 exchanges and prevent the passage of 

 needed additional regulatory legislation. 

 Mr. Huff said: 



Corners And Tangles 



"In appearing before this Commission 

 I was asked whether I thought it better 

 to have free and open markets or Gov- 

 ernment regulation. I replied that we 

 never have had free and open markets 

 in this country: we have had corners, 

 triangles, rectangles and other tangles 

 with the result that in spite of the rules 

 of the Exchanges the Government has 

 had to intervene in order to maintain 

 any semblance of a free and open mar- 

 ket. It is not a question of whether we 

 shall have free and open markets or 

 Government regulation, but rather 

 whether we shall be able to have suffi- 

 cient regrulation by the Government to 

 keep the present marketing system at all 

 serviceable to the producer." 



D. M. Hardy, president of the St. Louis 

 Bank for Co-operatives, stated that loans 

 had been made to 33 co-operative eleva- 

 tors in Illinois, 19 of which are members 

 of Illinois Grain Corporation. In the past, 

 said Hardy, loans have been made not so 

 much on the resources of the elevator 

 and its ability to pay the money back as 

 on the financial standing of the directors 

 who sign the note. In our loans we're 

 leaving the directors out of it. The re- 

 sult is that some loans are not being 



*. 



I9SS 0FFICEK8 AHD DIRECTOKS ILUITOIS OKAIN COKPOSATIOII 

 Front row left to risht: Eu(ene Curtlt. Frad Somine. O. C. Johnston*, prasident, Walter ThomM. 

 W. B. Witun. 



Center row: H. K. Johnston. Herriion Fehrnkopf. mane^nr, £, £. StoTenaon, Oee. L. Potter. 



E. S. Lawrence. B. L. Balrd, Charles Schmitt, secretary. 



Top raw left to richt: K. P. J07. Kalph Allen, Fred Zimmermaa, A. S. Wrifht, riae-president, and 



F. D. Barton, ield man. Robt. A, Cewlet, tieaanrer, ia ant is the pietnr*. 



made. 

 The following re!<olutions were adopted: 



I. 



Until a hlRh average of industrial pro- 

 duction with consequent lower prices for 

 manufactured goods Is restored In this 

 country and normal foreign markets for 

 agricultural products are reestablished on 

 a sound business basis, we believe it Is to 

 the best Interests of American agricul- 

 ture to keep farm production in adjust- 

 ment with the existing demand at parity 

 prices. To this end we vigorously urge 

 general support of agricultural adjust- 

 ment programs. 



We believe that the best Interests of 

 farmers will be served by aniendment of 

 the Adjustment Act. and modification of 

 administrative rulings In crop adjustment 

 programs to: 



1. Make possible spreading processing 

 taxes for payment of benefits for acreage 

 adjustment over a larger number of farm 

 products, which are directly or Indirectly 

 benefited by such adjustment: 



2. Adjust individual allotments of con- 

 tract signers. In cases where such allot- 

 ments are grossly Inequitable, In con- 

 formance with good farming practice as 

 to percentage of acreage In basic crops 

 In the particular community where the 

 farm is located; 



3. Give county allotment committees 

 wider powers In adjusting individual al- 

 lotments subject to review of the state 

 allotment committee and the Secretary of 

 Agriculture. 



II. 



WHEREAS, the Grain Futures Act, In 

 its present form, does not fully protect the 

 Tights of farmers' cooperative marketing 

 associations operating on the public com- 

 modity exchanges of the country as Cap- 

 per-Volstead cooperatives, so as to guar- 

 antee their continued operation on such 

 exchanges pending litigation and court 

 decision on matters pertaining to alleged 

 violations of rules and regulations, and, 



WHEREAS, we firmly believe that the 

 act should specifically provide and per- 

 mit cooperative associations, with mem- 

 bership In public commodity exchanges 

 to compensate their regional local mem- 

 ber associations upon a commodity unit 

 basis for organization and field services, 

 and, 



WHEREAS. additional powers are 

 needed by the Secretary of Agriculture, 

 under the provisions of this act, to regu- 

 late futures trading, in the Interest of 

 producers of farm products and the pub- 

 lic at large, therefore, 



BE IT RESOLVED, that the Illinois 

 Grain Corporation In annual meeting as- 

 sembled, urge the passage of the so- 

 called Jones bill amending the Grain Fu- 

 tures Act now pendiner before the pres- 

 ent session of Congress, "with appropriate 

 amendments defining cooperative associa- 

 tions as Capper-Volstead associations, and 



allowing such cooperative associations 

 upon public commodity exchanges to 

 compensate their reglonals or local mem- 

 ber associations for services performed 

 upon a commodity unit basis, or other- 

 wise. 



III. 



WHEREAS, The commission launched 

 recently by the Farmers National Grain 

 Dealers Association has been holding 

 hearings in leading terminal grain mar- 

 kets, at a time when the bona fide grain 

 farmers of the nation are urging grain- 

 exchange legislation, to protect their in- 

 terest and the public Interest; and, 



WHEREAS, the feeling that the com- 

 mission Is not a disinterested fact-finding 

 agency, working In behalf of agriculture, 

 prevents many farm leaders from testi- 

 fying who would like to end abuses In 

 futures trading and further safeguard the 

 rights of cooperatives on the exchanges: 

 and. 



WHEREAS, the preponderance of testi- 

 mony at these hearings has come from 

 Krain dealers and processors, all of which 

 has tended toward giving these contract 

 markets a clean bill of health; now. 

 therefore. 



BE IT RESOLVED, that when the lb- 

 port of this commission Is submitted to 

 Congress, that the Illinois delegation In 

 Congress take cognizance of the sponsors 

 and parentage of this commission and Its 

 close relationship with the so-called grain 

 trade, before giving serious consideration 

 to such report. 



A. R. Wright. 

 A. J. OlllflUan. 



, , Eugene Curtis. •> . 



$500,000 Back To Shippers 



Corn-belt' farmers, mostly from Illi- 

 nois, Indiana and Iowa, will receive about 

 $500,000 in commission refunds as a re- 

 sult of a recent court decision upholding 

 the order of Secretary Henry A. Wallace 

 of early last year reducing livestock 

 commissions 20 per cent. 



This amount represents accumulations 

 since April, 1934, which ^ere ordered 

 impounded by the court when a tempo- 

 rary injunction was granted the commis- 

 sion men to prevent the reduction. The 

 Chicago Producers Commission Associa- 

 tion instituted the 20 per cent reduction 

 immediately and has been operating on 

 that basis ever since. 1 ;•■. 



I. A. A. RECORD 



