Page Six 



THE I. A. A. RECORD 



April, 1931 



^^_ ILiLilISIOIS 



A^HCCLTIJRAL ASSOCIA' 



'RBCORir 



To advance the purpose for which the Farm Bureau was organhed, 

 namely, to promote, protect and represent the business, economic, political, 

 and educational interests of the farmers of Illinois and the nation, 

 and to develop agriculture. 



George Thiem, Editor 



Published monthly by the Illinois Agricultural Association at 166 So. 

 Main St., Spencer, Jnd. Editorial Offlces, 608 So. Dearborn St., Chicago, 

 111. Application for transfer of second class entry from Marshall, 111., to 

 Spencer, Ind., pending. Acceptance for mailing at special rate of postage 

 provided in Section 412, Act of Feb. 28. 1925, authorized Oct. 27. 1925. 

 Address all communications for publication to Editorial Offices, Illinois 

 Agricultural Association Record, 608 So. Dearborn St., Chicago. The in- 

 dividual membership fee of the Illinois Agricultural Association is five 

 dollars a year. The fee includes payment of fifty cents for subscription 

 to the Illinois Agricultural Association Record. Postmaster: In returning 

 an uncalled for missent copy please indicate key number on address as is 

 required by law. 



OFFICERS 



Preeident, Earl C. Smith _ - Detroit 



Vice-President, A. R. Wright --/*a''"* 



Secretary, Geo. E. Metzger Chicago 



Treasurer, R. A. Cowles - Bloomington 



BOARD OF DIRECTORS 



(By Congressional District) 



1st to 11th H. C. Vial, Downers Grove 



12th G. F. TuUock, Rockford 



13th C. E. BamboTough, Polo 



14th! _ M. G. Lambert, Ferris 



15th Charles Bates, Browning 



16th! _ Geo. B. MuUer, Washington 



17th A. B. Schofield, Paxton 



18th...„ _ W. A. Dennis, Paris 



1 9th C. J. Gross, Atwood 



20th Charles S. Black, Jacksonville 



21st Samuel Sorrells, Raymond 



22nd _ Frank Oexner, Waterloo 



23rd W. L. Cope, Salem 



24th Charles Marshall, Belknap 



25th— Fred Dietz, De Soto 



DEPARTMENT DIRECTORS 



Comptroller J. H. Kelker 



Finance R. A. Cowles 



Fruit and Veeetable Marketing A. B. Leeper 



Grain Marketing Harrison Fahrnkopf 



Information George Thiem 



Insurance Service J- V. Vaniman 



Legal Counsel Donald Kirkpatrick 



Limestone-Phosphate J. R. Bent 



Live Stock Marketing Ray E. Miller 



Office C. E. Johnston 



Organization G. E. Metzger 



Produce Marketing F. A. Gougler 



Taxation and Statistics J. C. Watson 



Transportation L. J. Quasey 



ASSOCIATED ORGANIZATIONS 



Country Life Insurance Co _ L. A. Williams, Mgr. 



Farmers Mutual Reinsurance Co J. H. Kelker, Mgr. 



Illinois Agricultural Co-operative Ass'n F. E. Ringham, Mgr. 



Illinois Agricultural Mutual Insurance Co A. E. Richardson, Mgr. 



Illinois Farm Supply Co L. R. Marchant, Mgr. 



Illinois Grain Corp Harrison Fahrnkopf, Mgr. 



Mid-west Grain Corp Chas. P. Cummings, Gen'l. Mgr. 



Soybean Marketing Ass'n J. H. Lloyd, Mgr. 



Pass the Income Tax 



"XT 7"ITH the legislatures of Vermont, Massachusetts, 

 ' " Oklahoma, Georgia, Iowa, Indiana, Missouri, 

 Utah, Pennsylvania, and other states making more 

 effective, passing, or now seriously considering income 

 tax legislation, this just and equitable method of rais- 

 ing revenue for government purposes is fast gaining 

 the recognition it deserves. 



The antiquated property tax, largely a real estate 

 tax, is on the run. It is breaking down under the 

 crushing load of ever-increasing government expense. 

 Property tax delinquencies are mounting everywhere 

 because property in itself does not represent tax-paying 

 power. Fair-minded citizens, and statesmen charged 

 with the responsibility of administering government 

 affairs see the necessity of developing sources of reve- 

 nue based on ability to pay. 



The Lantz state income bill (S. B. 138) now before 

 the Illinois General Assembly offers the legislature an 

 opportunity to take a constructive step toward correct- 



ing an unfair taxing system under which more than 

 half the population of the state pays nothing directly 

 to support government. The proposed measure is not 

 an additional tax. It is a lieu or replacement tax de- 

 signed to defray nearly all the costs of state govern- 

 ment and relieve property to that extent. No person 

 can object to the measure on the ground that it adds 

 to the tax burden. It merely distributes the present 

 load more evenly over the people having ability to pay. 

 Spreading the taxes over a larger number of voters 

 is bound to exert a wholesome influence on future 

 government. With more tax consciousness on the part 

 of those who now pay nothing, there will be more 

 interest and attention by voters to state, county, and 

 municipal bond issues, appropriations, and expendi- 

 tures. Good government demands that each voter 

 make some direct contribution no matter how small 

 the amount in return for the rights, benefits, and 

 privileges of citizenship. The enactment of Senate 

 Bill 138 will help bring about this desired result. 



Under False Colors 



AMONG the statutes of Illinois is a law popularly known 

 as the "Co-operative Act of 1915" under which a 

 number of farmers' elevators are organized. As amended 

 in 1923, this Act is co-operative in name only. Corporations 

 organized under it may or may not be co-operative. There., 

 is nothing in the Act limiting the return of companies so 

 organized on capital, nothing to compel a distribution of 

 excess profits to patrons after reserves and a maximum of 

 8 per cent is paid on capital stock. 



Under it i co-operative association may be owned by 

 comparatively few stockholders, the business of the associa- 

 tion may be thriving, the profits large, but the farmers who 

 patronize it and make possible its success may share no 

 more in its profits than they do In the earnings of any 

 private corporation. ' ' 



House Bill 466 before the Illinois legislature, which has 

 the support of the Illinois Agricultural Association, seeks to 

 amend the 1915 Act so as to make It truly co-operative, 

 limit return on capital stock, make mandatory the distribu- 

 tion to patrons of excess earnings, when and If distributed, 

 on the basis of business done with the company. 



There Is nothing illegitimate about a company owned by 

 one, two, or a half dozen stockholders retaining all the earn- 

 ings for the benefit of the owners. Private corporations do 

 this and no one objects. The objection lies In associations 

 that parade under false colors, basking In the sunlight of 

 favor and partiality which most farmers rightfully show 

 toward real co-operative enterprises. 



House Bill 466 seeks to strip away the sham and camou- 

 flage, and require associations organized under this Act to 

 be truly co-operative. 



ABOLITION of the Farm Board Is advocated by Senator 

 Reed of Pennsylvania, hlgh-tariff-protectlon-for-Indus- 

 try champion. The senator objects to the Grain Stabilization 

 Corporation maintaining a higher than world price for the 

 American farmers' grain, deplores the $500,000,000 revolv- 

 ing fund appropriation. 



On the other hand, Senator Couzens of Michigan has discovered that 

 the steel companies are charging the railroads the same price for rails, 

 that rail prices have not come down. Price stabilization of steel, 

 aluminum, and other products of organized industry will not be de- 

 nounced by Senator Reed and other eastern industrialists. Only price 

 stabilization and protection for agriculture, in their estimation, is eco- 

 nomically unsound. 



