A Husky Ten Year Old 



(Continued from page 19) 



ports and representing the business side 

 of the co-operative." In measuring 

 competence of a director Peck posed 

 these questions: "What kind of facts 

 does a director bring back to the mem- 

 bership in his district? What general 

 attitude of mind dominates his con- 

 sideration of the many problems with 

 which his association may be faced? 

 Does he use the political method of 

 consideration? Is he dominated by a 

 job consciousness? Does he desire to 

 place relatives and friends in positions 

 of responsibility? Is it his organiza- 

 tion or your organization? Does he 

 seek the facts and attempt to interpret 

 them for the greatest good to the great- 

 est number ? Does he have the courage 

 and conviction to stand on sound prin- 

 ciples rather than upon the adoption of 

 expediencies that may for the time be- 

 ing seem to be the best policies? 



"In your co-operative can the flow 

 of authority be traced from the mem- 

 bers to the board, and from the board 

 to the manager, with a thorough under- 

 standing of the responsibilities of each 

 towards the other and the members 

 being the final resting place of the con- 

 trol? It is too common for ignorance 

 of existing conditions to be used as an 

 alibi and later on the affairs of the as- 

 sociation found to be in such a condi- 

 tion that reorganization and a realign- 

 ment of forces is necessary in order to 

 exercise proper degrees of control." 



Donald Kirkpatrick, legal counsel of 

 the lAA, outlined the provisions of 

 new legislation and tax laws as they af- 

 fect county service companies. 



Heeding the widespread publicity 

 and attention being given consumer co- 

 operation, Mr. Kirkpatrick emphasized 

 the difference between a farmers' co- 

 operative engaged in purchasing farm 

 supplies that lower the farmers' produc- 

 tion costs and the consumer co-opera- 

 tive which buys and distributes goods 

 consumed by the ultimate consumer. 



"In buying farm supplies co-opera- 

 tively," Mr. Kirkpatrick said, "the 

 farmer is doing no different than the 

 industrialist who purchases the raw 

 materials at the lowest possible price 

 so as to cut his production costs. The 

 farmer must buy his petroleum prod- 

 ucts, seed, fertilizer, spray materials, 

 paint, etc. wholesale to make a profit 

 on the sale of his crops. Illinois Farm 

 Supply Company and its 63 county ser- 

 vice companies are helping Illinois 

 farmers do this. 



"The farmer co-operative that pur- 

 chases farm supplies is quite distinct 

 from the consumer co-operative. There 

 is no reason why those engaged in the 

 distribution of farm supplies should 

 take any position one way or another 

 or should become involved in the 

 movement for consumer co-operation 

 among city people. That is something 

 which ought to stand on its own feet, 

 on its own merit, and we farming 

 people would do well not to mix in too 

 much at this time. Our problem is to 

 purchase co-operatively at wholesale 

 rates, materials that enter into produc- 

 tion costs." 



Kirkpatrick asserted that in his opin- 

 ion farm organizations would be jus- 

 tified in insisting on repeal or sub- 

 stantial revision of the Robinson-Pat- 

 man Act if it interferes with wholesale 

 buying of farm supplies at minimum 

 prices. By 1949 he estimated that Il- 

 linois Farm Supply Company and the 

 63 affiliated companies would pay 

 about $75,000 a year in taxes for un- 

 employment insurance and the retire- 

 ment benefit fund provided under the 

 Social Security Act. Companies with 

 eight or more employees come under 

 the Act next year, and will be subject 

 to an initial tax of one per cent of the 

 payroll which in a few years is stepped 

 up to three per cent. This is under the 

 unemployment insurance section. 



Under the retirement benefit fund 



section a tax is levied beginning in 

 1937 on both employer and employee. 

 At age 65 the employee becomes eli- 

 gible for a monthly income ranging 

 from $15 to |85 a month depending 

 upon his wages or salary before retire- 

 ment. 



Substantial changes have been made 

 in the Internal Revenue Act affecting 

 county service companies. At present 

 the tax rate is 13% per cent on the 

 taxable income. Uftder the Revenue 

 Act of 1936 the normal rate is changed 

 and will range from eight to 15 per 

 cent with the low bracket about one- 

 half of the present rate. In addition 

 there is a surtax ranging from seven to 

 27 per cent. This tax is on undistrib- 

 uted net income. 



President Fred Herndon in opening 

 the meeting, said some pertinent things 

 about accounts receivable and continu- 

 ous borrowing. The latter he char- 

 acterized as like the opium habit, it 

 may become chronic and ruin the co- 

 operative by over-indulgence. If the 

 business needs more capital, he sug- 

 gested selling more stock. He chal- 

 lenged boards of directors to study the 

 business of their respective co-opera- 

 tives and keep informed each month as 

 to their financial condition. The larger 

 county service companies, he said, are 

 employing managerial assistants to 

 learn the business and be ready to fill 

 managerial positions when vacancies oc- 

 cur. 



Only two changes were made in the 

 board of directors. George Chappie of 

 Dwight succeeded E. E. Stevenson of 

 Streator, and H. P. Sauer, Murphys- 

 boro, was elected to succeed J. P. Red- 

 man, Cairo. 



PATRONAGE DIVIDENDS TO COUNTY 

 SERVICE COMPANIES 

 CLASS "A" MEMBERS 



Adams Service Co $3,267.16 



Bond CouDty Service Co. — 705.42 



Bureau Service Co. 2,441.35 



Carroll Service Co. - 3.352.89 



Champaign County Service Co 8,576.63 



Christian County Farmers Supply Co 3.045.92 



Clark Service Co. 52.65 



Coles-Douglas Supply Co _ 4,574.70 



Dc Kalb County Agri. Assn. .._ „ 8,915.86 



De Witt County Service Co. 

 Edgar County Supply Co. 



Egyptian Service Co. 



Farm Bureau Supply Co. 



Fayette Service Co 



Ford County Service Co. _ 

 Fruit Belt Service Co. — 

 Fulton Service Co. 



2,387.48 

 4.413.23 

 1.876.09 

 2,860.21 

 909.26 

 4.392.97 

 1.653.92 

 3,838.14 

 2.2C9.77 

 964.81 

 1,308.85 

 5,910.00 

 5,216.80 

 2.446.94 

 2,489.41 



Kane County Service Co 2.324.62 



Kankakee Service Co. 2.075.59 



Greene County Service Co. 



Grundy Service Co. 



Henderson Service Co. 



Henry. Stark Service Co. 



Iroquois Service Co. — 



Jersey County Farm Supply Co. 

 Jo Daviess Service Co. 



Macoupin Service Co. 3, 



Madison Service Co. 2, 



Marshall-Putnam Oil Co. 3, 



McDonou^h Service Co 3, 



McLean County Service Co 10, 



Menard County Farmers Supply Co. _ — J, 



Mercer Service Co _ 1, 



Monroe Service Co -. 1, 



Montgomery County Farmers Oil Co 2, 



Mor^an-Scott Service Co. 5, 



Peoria County Service Co. — 5, 



Pike County Service Co _ 1 



3 

 1 

 2 



, 7 

 5 

 3 

 4 



, 1 

 3, 



Randolph Service Co. 



Rich-Law Service Co. 



Rock Island Service Co 



Schuyler Service Co. -. 



Shelby-Effingham Service Co. 



St. Clair Service Co. 



Stephenson Service Co. 



Tazewell Service Co. 



Twin County Service Co 



Vermilion Service Co. 



Kendall Farmers Oil Co. — 

 Knox County Oil Co. 



Lake. Cook Farm Supply Co. 



LaSalle County Farm Supply Co 



Lee County Service Co. 



Livingston Service Co. 



Logan-Mason Service Co. 



Macon-Piatt Service Co. 



2,409.27 



_ 5.543.75 



5.889.34 



. 5.766.15 

 .. 3.844.09 

 „ 6.635.40 

 .. 6.284.96 

 4.597.81 



Wabash Valley Service Co 7 



Warren County Service Co 2 



Whiteside Service Co 4 



Will-DuPage Service Co _ _ - 6, 



Winnebago Service Co. — 3. 



Woodford County Service Co 4, 



Total Class "A" Members 



CLASS "B" MEMBERS 



CLASS "C" MEMBERS 



SPECIAL 



861.18 

 703.32 

 ,569.01 

 ,663.85 

 ,914.27 

 869.64 

 555.82 

 ,892.66 

 449.63 

 061.05 

 ,597.29 

 ,457.39 

 ,577.06 

 ,985.71 

 ,284.80 

 ,598.50 

 ,052.55 

 ,259.22 

 ,739.09 

 86939 

 ,611.06 

 ,687.77 

 ,112.45 

 ,22992 

 .733.62 

 817.98 

 058.43 

 222.83 



_..«232. 594.67 

 $251.54 



..$797.59 

 $57.51 



Illinois Grain Corporation 



Tout Patronage Refund _....$235.701.11 



22 



L A. A. RECORD 



