"NOW HOW DID HE DO THAT" 

 Fahrnliopf and Eugene Curtis, left, listen in to magi- 

 cian's magic. 



treasurer and such vice-presidents as may 

 be deemed necessary, none of whom shall 

 be a member of the board of directors. 

 The new setup provides for five de- 

 partments, including marketing, secre- 

 tary, treasurer, comptroller and organiza- 

 tion-publicity. It also provides for an 

 association of regionals consisting of one 

 delegate from each stockholder who is 

 not a director or employee of Farmers 

 National. 



The sub-committee also recommended 

 that the Washington legislative office be 

 abolished; that an extensive study be 

 made of financing grain operations. It 

 was recommended that in the employ- 



, ment or dismissal of branch managers, 



the regionals affected be consulted. All 

 recommendations, however, contemplate 

 that Farmers National continue to be the 

 national grain marketing co-operative 

 and that the regional stockholders will 

 not engage in the marketing of grain. 



In the annual report to the stock- 

 holders. President G. C. Johnstone stated 

 that many local elevators are showing 

 unusual net profits for the year due 

 to the consistent advance of grain prices 

 since harvest. He sounded a warning, 



j however, that the same practices which 



were profitable during the past year 



j could be a source of loss with higher 



production and declining prices. He re- 

 ported that the Commodity Exchange 



•; Bill enacted last year strengthens the 



Grain Futures Act and offers additional 

 protection to farm co-operatives holding 

 membership on the Grain Exchange. 

 "Two of the most important features," 

 he said, "was the prevention of squeezes 

 from which the farmer receives no bene- 



' fit, and the other is the escrowing of 



margins, money which in the past has 

 been used by grain operators to finance 

 their own business in many cases to the 

 disadvantage of the public." The bill 



. also provides that grain exchanges can- 



not dictate to grain co-operatives the 

 kind of contracts they should have be- 

 tween themselves as to service rendered 

 by the regional. Co-operatives now have 

 every right on the terminal markets 



lAA PRESIDENT 

 "Reporters wanted a story.' 



which Other concerns enjoy. 



Volume buying of poultry and live- 

 stock feeds, twine, wire fence, etc., has 

 been arranged for through Illinois Farm 

 Supply Company to be handled by mem- 

 ber elevators. F. M. Becker, former 

 elevator manager at Marseilles was em- 

 ployed by the Corporation to handle this 

 end of the business. L. R. Marchant, 

 manager of Illinois Farm Supply Co. 

 in a brief address asserted that "quality" 

 would be the watchword in developing 

 this business. 



Mr. Johnstone reported on the re- 

 financing program under which the 

 Farm Credit Administration has loaned 

 the regional stockholders cash on a long 

 term basis with which to buy stock in 

 the Farmers National. The regionals 

 are to pay for this stock by a "retain" 

 out of each bushel of grain marketed 

 through the co-operative. The Farm 

 Credit Administration in turn took over 

 the facilities and assets of Farmers Na- 

 tional. 



The "retains" to be deducted are 

 one-eight cent per bushel on all grain 

 the first two years, one-fourth cent the 

 next three years, and one-half cent on 

 wheat and flax, three-eights cent on corn, 

 soybeans and barley and other grain ex- 

 cept oats at one-fourth cent for the last 

 five years. The "retains" went into effect 

 July 15, 1936. 



Illinois Grain Corporation handled 

 nearly one million bushels more grain 

 during the last six months of 1936, 

 than during the same period in 1935, 

 which indicates that the "retain" plan 

 has been accepted by a large majority of 

 the member elevators. 



All member elevators of Illinois Grain 

 received their original investment plus 

 that stock earned through patronage divi- 

 dends and plus seven per cent interest. 

 Many elevators which have not invested 

 anything received substantial cash returns 

 in the form of dividends. Some $80,000 

 in cash was returned to members. 



Chief speaker at the afternoon session 

 was Earl C. Smith, president of the Illi- 

 nois Agricultural Association who re- 



JUST LOOKIN' 'EM OVER 

 Henry Marshall, Serena, left, and Chas. P. "Charlie" 

 Cummings of Farmers National. 



ported that the principles of the farm 

 program recently adopted by farm leaders 

 at Washington coincides with action ta- 

 ken at the annual meeting of the lAA in 

 January. 



Resolutions were adopted supporting 

 farm price parity and other policies of 

 the general farm organizations; endors- 

 ing the ever-normal granary, security of 

 income and parity purchasing power for 

 farmers; supporting the National Grain 

 marketing program; pledging co-opera- 

 tion; to co-operatives handling other 

 commodities and reaffirming "our faith 

 in the American form of government 

 and its free institutions and their adap- 

 tability to changing conditions." 



Branch manager Charles P. Cummings 

 of the Farmers National at Peoria ar- 

 ranged the entertainment — a local ma- 

 gician — which was much enjoyed. J. 

 H. Checkley of Logan county led com- 

 munity singing. 



Potter a Pioneer in Co-op. 

 Movement 



George L. Potter, newly elected president 

 of Illinois Grain Corporation, is 67 years 

 old and a native of Livingston county. He 

 has been a director of the Graymont Elevator 

 since it was organized in 1904, president 

 during the past ten years. When the Farm 

 Bureau was organized in that county in 1912, 

 Mr. Potter became a charter member. He 

 was president seven years of his County 

 Farm Bureau and is at present a member of 

 • the Livingston Service Company board. Mr. 

 Potter worked for the lAA Organization 

 Department as a part-time membership solici- 

 tor back in 1921-22. 



He operates a 199 acre grain and livestock 

 farm. Mr. and Mrs. Potter have five sons 

 and three daughters. Two boys are at home 

 carrying on the operation of the farm, one 

 son manages the farmers elevator at Putnam. 



The Graymont Elevator led all others in 

 the state in volume of grain marketed through 

 the Illinois Grain Corporation, and largely 

 because of its splendid record Livingston 

 county led all others in volume of grain 

 marketed co-operatively. 



Mr. Johnstone, retiring president, who 

 served Illinois Grain Corporation faithfully 

 during its organization and formative period 

 expects to devote his full energies to the 

 operation of his fertile grain and livestock 

 farm near Bloomington in McLean county. 



14 



L A. A. RECORD 



