A Husky Ten Year Old 



Q^RGANIZED purchasing of farm 

 jr / supplies for Illinois farmers 

 \^^ was revealed as a healthy, 

 growing youngster doing a million dol- 

 lars a month business, at the 10th an- 

 nual meeting of Illinois Farm Supply 

 Company in Peoria, October 15. 



Ten years ago co-operative purchas- 

 ing of farm supplies was considered of 

 minor importance to agriculture. Man- 

 ager L. R. Marchant said in his report. 

 "Today Illinois farmers have come to 

 realize that co-operative purchasing 

 should occupy a substantial place in 

 their economic activities since 20 to 25 

 per cent of their income is required to 

 buy essential supplies used in their pro- 

 duction." 



Serving approximately 90,000 cus- 

 tomers the company continued its rec- 

 ord-making pace with a 25.93 per cent 

 gain in income over 1935, a 29.83 per 

 cent increase in dividends paid to mem- 

 ber companies (|233,701.11), and a 

 21.58 per cent step-up in volume of 

 products handled over the preceding 

 year. Combined dividends and taxes 

 paid by the affiliated county Service 

 Companies during their past fiscal peri- 

 ods ending prior to January 1, 1936 

 exceeded $910,000 after which com- 

 bined accumulated surplus was $1 - 

 195,904.71. This figure equals 121.7 

 per cent of farmers' money invested in 

 the movement. 



The idea that farmer-owned co-oper- 

 atives don't pay taxes received a dis- 

 tinct set-back in the company's annual 

 report. An aggregate of $2,497,675.83 

 was paid out by Illinois Farm Supply 

 Company and the 63 affiliated service 

 companies for state and federal taxes 

 during the past fiscal year. "This 

 should serve as a weapon to combat 

 propaganda to the effect that co-opera- 

 tive companies do not bear their fair 

 share of the tax burden," Marchant 

 said. 



Soy orl paint sales led in percentage 

 gains over other products. The 212,- 

 680 gallons sold were 47 per cent 

 greater than the year before. Gasoline 

 sales were up 27.13 per cent, kerosene 

 and tractor fuels 10.74 per cent, lubri- 

 cating oil 10.88 per cent, and grease 

 18.5 per cent. Patronage dividends 

 paid by affiliated service companies to 



members are expected to reach the one 

 million dollar mark this year. 



The report of the board of directors 

 disclosed that margins on motor fuels 

 have tended to narrow. Major oil in- 

 terests have maneuvered the wholesale 

 markets so as to make refinery opera- 

 tions more profitable at the expense of 

 the retail marketing divisions. The 

 federal government recently returned 

 indictments for illegal and collusive ac- 

 tion against 85 different refineries and 

 their officials. 



F. W. Peck, former chief of the 

 Bank for Co-operatives of the Farm 

 Credit Administration, now director of 

 extension. University of Minnesota, was 

 the principal speaker. In his talk on 

 "Common Sense in Cooperatives" he 

 warned his audience against being 

 carried away by idealism and emotional 

 appeal that is typical of some co-opera- 

 tives. 



"Common sense ordinarily dictates 

 a middle of the road conservatism even 

 though liberal ideas and objectives 

 dominate the co-operative movement," 

 Mr. Peck said. 



He compared the self-satisfied co- 

 operative resting on its past successes 

 to the ostrich with its head buried in 



the sand. "Associations that rest on 

 their laurels and believe they have run 

 the race will awaken some morning to 

 the fact that they have had their heads 

 in the sand and that their competitors 

 have passed them and gone on to 

 greater achievements," he said. "It is 

 as true of a co-operative as of an ostrich 

 that if it has its head in the sand it 

 cannot have its ears knocked down. 

 But there are other vulnerable places 

 awaiting a rather swift kick and it has 

 been my observation that there are 

 plenty of agencies waiting and willing 

 to deliver said kick." 



Peck advised against a "battling psy- 

 chology" and a belligerent, bristling 

 attitude that seems to invite fight. "This 

 attitude carried to excess results in re- 

 taliation, in severe attacks by private 

 business," he said. Strict attention to 

 business and sound business procedure 

 is the best way to meet adverse prop- 

 aganda. 



He cautioned farmers to select com- 

 petent directors for their co-operative 

 enterprises. "The board of directors," 

 he said, "is charged with responsibility 

 of formulating policies, adopting rules 

 and regulations, establishing procedure, 

 employing a manager, passing upon rc- 

 (CoHtinued on page 22} 



TENTH ANNUAL MEETING. OCT. 15, PEORIA 

 "Organited Buying Cuts Farmers' Production Costs." 



NOVEMBER. 1936 



Ifl 



