Achieve New High Records 

 In Organized Buying 



^jii.24. Of this amount $;{1(>,560.18 is in- 

 vested ill llnitfd States securities, the 

 balance use<l for opcratinjr capital. Bro- 

 kerage income for the year was $18(!.- 

 J77.64 — a pain of 25,55 per cent. The 

 •let income totaled $21'.t.l.V.i.r>4, A total 

 .f $180,000 will be distributed to mem- 

 ber companies on a patronaKe basis for 

 pajrinp taxes aiul dividends on preferred 

 stock. 



An analy,sis of the company's audit 

 iver a period of years disdo.ses that this 

 •o-operative ctiterprise has had ii marked 

 influence in reducinjr the margins taken 

 by privalely-ouned companies. Competi- 

 tion is pettinR keener. The buying and 

 ^ellinp spread is narrower, .And this 

 -itoation is showing up in the funds 

 available for patronage dividends to 

 member patr^ms in many counties this 

 .ear. 



It's the old stt>ry agaiti of the co 

 'perative enterprise forcing privatel.\ 

 ■ mtrolled companies to deal with farm 

 ••rs on a more favorable basij. to the 

 producer. Thus, the outsider, the noii 

 member who contributes nothing toward 

 the support of the enterprise benefits by 

 •he efforts of bi~ oijranized neighbors. 



In adcires-i.'i'j "(le annual nieetii.g 

 I'tesident Fred K. Ilernilon p.-iid a glow 

 ng tribute tn organi.£ed efTorl as the 

 -reatest force in the success of the com 

 ouny. "Our iMinpany is thuv the l.-irge-t 

 i!:d best ot It- kind in tlie worlil," lie 

 -aid, "Then- are many reasons or con 

 •nbutiiig fac'i.i- ii, this succ<-<, Ini' 

 tdci- three v.ar- ..i" -tudy and ob-<'rva- 

 •i"n. ] am of ihe tirni belief that tile 

 :;ieste^t inrtiieTu-e, the one that over 

 ■t-.;i.iows all .ithers. is that we are n.>t 

 •ly closely r. late.i to. but ;i part ..f the 

 !'e>t general faiiii organization in the 

 ■v.! Id -the Katn. FJureaii an.) Illinois 

 \i.'i icultural As-^ociation. A'- tiny live 



■ will We li\e: as they go we will g.. 

 -■urely it beliomes us to honor our par 



■ r.t org«nizali<ai that .ur day- may 1" 

 i-ng upon the land." 



Mr, Herndon w'arned against piling 



,!■ heavy ••iccoiiiits receivable. "I -ome 

 iiics wonder," lie said, "if there i- a 



rend toward borrowing imaiey to use as 

 A'Tking capital or for expansion when 

 •here should be more thought an<l effort 

 •o collections. ■" lie e.\presse<l some con- 



■fTTi over the great expansi(m of com- 

 :>any-owned tilling station^ which will 

 jreatly increase the fixed assets, but 



ictually yield a low net income. "We 

 have the Illinois I- ami ,><upply Com- 

 pany." he said, "because there is a need 

 for it. With the advent of motor trans- 

 portation and power farming, the nuality 

 'f lubricating oils, fuels and greases be- 



M, E, Newmlster. Cooksville, Service Com 

 pany salesman, is a real asset in the member- 

 ship acquisition program in McLean county, says 

 A, B. Gulp, organization director. He signed 

 18 new members in 1935, 



iiig sold to farm people, also the wide 

 spread in cost of distribution caused 

 Farm Bureau members to <lemand an 

 organization such as we have today" 



President Farl (' Smith and Itonald 

 Kirkpatrick of the corporate maiuigerial 

 board. |iresenteil several policy reconi 

 iiu^ndatioM> which are incorporated in 

 resolution- later adopted by the di'le 

 ir.'ites. due has reference to capital re 

 'luirements and relationship of fixed a- 

 -ils to outstandiii'g capital stock and net 

 uorth. It is designed tc) steer county 

 ■ ••■nipanic- away from exce>sive borri>\\ 

 iiig and i'Xce--ive m vc-t iiieiit in fixed 

 .i--ets siK'h .'i- retail -er\ ii(' stations. 



Till' .tiler ■.inline- .i j.lar, Li'.wrnin.L' 

 -all- l.\ c..iinl>' cnipanio- t.i farmer- 

 ir-iilin^j- in liorilerliiie ..r fringi- t.rritury. 

 Till reconinien.latii.n i- that when a 

 ...ilnly I'oinpai.v -er\e- number- beyond 

 'i;. c.utitj line with the .-..n^ent of ti;. 

 I'arni Bureau and Service Company in 

 I he ad.i..inin'j- county, that .'in.v patronagi- 



• In idol. li- declared for -iicli nieiiibers 

 -eiM^il. !.!• paid over t.. the C.iunty Serv 

 lie Company in the countv where the 

 t...r.ierlirie p.-it ii.h- -erved reside ;ind ilia! 

 the l-;irii; IJureaci member pairor .-. 

 -erved i.( p.'iiil the dividend declarid by 

 'he Comp;in.\ 't ihe i-onnty ir which he 

 resides. 



The fad Ili;i( -..nie conritv cnipanieH 

 pav hitrliei patronage dividends than 

 ..ther- ha- i reatt-.l a tr..ublesome prob 

 leni ani'.nr bord<rlii.c re-ii|ents who tend 

 to iiatronizi' the c.mipany in the ad- 

 joining countv which p:iy- a higher cash 



• liv ideiid. 



Clifford \. (ireg.iiy, e.litor of I'r;iirie 

 I'arnier, j'.iv.- the |.riiicipal :iddre.-s at 

 the meeting ill I'eoria attended by some 

 700 or more delegates .ind members from 

 the i;i» county comparii<-^ ll.- prai-eil 

 the achievements of the Stat.. Cinipany 



and the affiliated count.v companiefi in 

 settijig a high ,«tan<lard of quality for 

 products handled, and in savinjis, but 

 warned that not too much emphasiu 

 should be jilaced on the payment of divi- 

 dends. The time may come, he said, 

 when patriMiage dividends may be re- 

 duced due to increased competition. 



The success of the Company in pi- 

 oneering the use of a farm product — 

 -ovbean oil in paint-he said, had great 

 implications and indicated how such a 

 co-operative couhl be of outstanding 

 -ervice in developing new industrial use* 

 .iiid markets for farm products 



.A greater opportunity, he said. Irvs 

 ahead of farmers in reiiucing the spread 

 11 the sale and distribution of farm 

 nroducts. .After all. the price the farmer 

 L'-ets for what he rai.ses overshadows any 

 -av ings in buying supplies, and more 

 ittention should be given toward co-op- 

 erative marketing and distribution that 

 the farmer may get a fair price and the 

 consumer m^f.v buy food at a i>rice nearer 

 to that received by the farmer. 



n, W , Hardy, manager of the St, Louis 

 Bank for Co-operatives which has as- 

 -i-.ted in financing a number of county 

 cmpanieT- iliscussed ))ertinent i|uestions 

 inviilved in feileral loans to co-operative 

 .■iiterprises. 



.\n interesting skit was presenteil by 

 tlu' sales force led by Walter Peterson 

 anil Chet Beiker of the State Company 

 following the meeting. Leaders of the 

 four divisions: hiiryptian. Rough Riders, 

 Norsemen and lllini, dressed as football 

 nlayers threw -ilver colored footballs t< 

 'he variou.-, company managers symbolic 

 "( the i|Uota> .•iccepted liy each in the 

 i:t.;.'i-':'.r. future motor oil sales contest. 

 County nian.'iger- and le.'iding truck 

 -ale^men were iionored d ii r i n g the 

 'Meeting, 



Three cbanm- were niade in the Board 

 ••f Director-: ( . II. Buzzard of .Altamont 

 succeed- Harry Kbbert of Montrose. .1. 

 I!. lUdman of Cairo -ucceeds (i. W. Clark 

 of (iolci.nda. .les-e I,, Berry of Cerro 

 • iordo was elected in place of the late ■ 

 I. .M. Kyman of Warrensburg. 



lie I lected were Mr, Herndon; I. ,A 

 Abbott, ,Morri-i.n: H. A, Keele. Chester- 

 field: Fr;ink .1. Ilyni,, .Murrayville: Thos. 

 .1. Penman, ^orkvillc; K, K, Stevenson, 

 Streator, 



The I , S. IMslricI Court at IViiria. 



Illinois, recently held the amended 

 Fra-/ier-Lenike farm mortgage mora- 

 torium law unconstitutional. The deci- 

 -^ion was handed down by .ludges Charles 

 I' Briirgle and .1. Karl Major, 



The Organiiralion Department report* 



that l.;.L';'l new Farm Bureau member,* 

 were signed between .Ian 1, and Oct 10, 



in 



I \ A, KKCORI) 



