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MISS EVELYN CONNELLY 

 Peoria Milk Producers' oHice secretary. 

 Members like her loyalty, praise her ef- 

 ficiency. 



In the skirmishes before 1926, dealers 

 occasionally bested producers. A predic- 

 tion made in 1923 by Dean Larsen, 

 South Dakota Agricultural College and 

 former director of milk marketing with 

 the I A A, came true. Prof. Larsen had 

 advised: 



"Cooperative milk marketing in the 

 Chicago and St. Louis territories is go- 

 ing to be diflficult as long as the large 

 dealers in these cities choose to fight 

 farmers' organizations. We cannot get 

 away from the fact that they are skill- 

 ful, that they have the money and that 

 they have the best of talent for help. 

 But the farmers in Illinois and in this 

 country must make up their minds to 

 discipline themselves according to con 

 ditions actually existing." 



After 1926, producers in market 

 after market united and fought. Each 

 group faced its own problems "accord- 

 ing to conditions actually existing" 

 just as Dean Larsen had said they 

 should. 



What happened on the Peoria mar- 

 ket was typical of organization work 

 on other markets. Organization work 

 started in 1925 under the guidance of 

 the Peoria, Tazewell and Woodford 

 County Farm Bureaus. Farm Advisers 

 Wilfred Shaw, Ralph Arnett and H. 

 A. deWerff were prime movers in 

 the work. A. D. Lynch, lAA milk 

 marketing director, was an organization 

 adviser and worked hand in hand with 

 producers. 



Producers' committees studied milk 

 bargaining cooperatives on the Pitts- 

 burgh, Philadelphia, Detroit and Balti- 

 more markets. Many of the good points 

 of these Eastern co-ops were incorpor- 

 ated in the Peoria Milk Producers' 

 Association. 



When the cooperative was organized 

 and a majority of producers had signed 



ilk bought for \ 



s should be pur- J 



lilk that was to " 'y. 



ilk. This prin- \ 



contracts to sell their milk through 

 the Association, leaders found it neces- 

 sary to take dealers and processors to 

 visit the same Eastern markets to learn 

 how dealers fared in those cooperative 

 plans. 



It was not until October 1, 1926, 

 that dealers started to buy milk through 

 the Producers on a flat rate contract. 

 In September of that year, milk sold 

 for $2.20 per hundred weight. October 

 milk brought |2.26 which was the first 

 gain made by the Producers. 



In one respect the situation on the 

 Peoria market had been unique. The 

 largest buyer of milk was a processor 

 who believed that milk 

 manufacturing purposes 

 chased cheaper than mil 

 be retailed as fluid mil' 

 cipal buyer had been a factor in hold- 

 ing the fluid milk price down in the 

 area. 



When the Producers' agency had been 

 operating a year it was found advisable 

 to change from a flat rate to a base 

 and surplus plan to help control vol- 

 ume, to keep surpluses at a minimum. 

 Both Producers and dealers were rea- 

 sonably satisfied with the plan during 

 the next six years. 



Near the end of 1927, however, pro- 

 ducers and the dairies wanted to clear 

 up the controversial matter of weights 

 and tests. Both groups demanded a 

 voice in measuring the product. After 

 some arbitration a testing commission 

 was established with an equal number 

 of directors from both producers and 

 dealers. Expense of operating the com- 

 mission including the salary of the 

 tester hired by the directors was shared 

 equally by the two groups. 



In 1932, the Producers decided to 

 take some of the surplus milk off the 

 market. They bought a small separat- 

 ing plant, sold cream, casein and turned 



SMPA CHECK-TESTEB 

 About $80,000 was collected last year by 

 Sanitary Milk Producers Assn. on adjust- 

 ments ior wrong weights and tests. Check- 

 testing is one of the outstanding services 

 that milk marketing co-ops can perform 

 (or their members. 



excess skim milk back to cooperators 

 to feed. 



Affairs ran smoothly until 1933 

 From 1927 until 1933 a large dairy 

 company had consolidated several small 

 dairies in Peoria. At the same time, it 

 was alleged, the company had financed 

 numerous dairymen in the milk shed and 

 had given them special price contracts. 



The Producers believed that the milk 

 taken in at special prices was reducing 

 the amount of base the big dairy was 

 buying from them. They asked the 

 company to adjust their special con- 

 tracts in line with prices other dealers 

 were paying. The situation grew tense 

 but neither side would concede a f)oint. 



On September 1, 1933, the Peoria 

 Milk Producers Association cancelled 



(Continued on page 24) 



«2.000.000 WORTH OF MILK A MONTHI 

 The sales committee oi Pure Milk Association which sold more than $26,OOO.0OOJX) 

 oi milk at wholesale in 1937 takes time to study market conditions. Lett to right are 

 Otto Wennlund. Howard Klett, Charles M. Cosgrove, secy.. Leo Mullooley, lohn P. Case, 

 general manager, E. E. Powell and Ole Stalheim. 



MARCH, 1938 



Id 



