Page Six 



THE I. A. A. RECORD 



April, 19 i 2 



at country elevators. Some processors are re- 

 sponding and dealing with co-operatives, and 

 others are not. By holding our forces intact and 

 making a saving on procurement costs, I believe 

 eventually the others will do business with us." 



Use Soybean Oilmeal 



Mr. Smith urged that Illinois farmers use 

 soybean oil meal rather than other concentrates 

 in supplementing grains fed to livestock. "Why 

 don't we use our own home-grown feed," he 

 said, "instead of paying freight for shipping in 

 cotton seed meal, linseed meal, and other im- 

 ported concentrates? Let's help ourselves and 

 use what we have." He quoted Harold C. Vial 

 who operates a large dairy herd in DuPage 

 county, who has found soybean oil meal supe- 

 rior to any other concentrate for milk pro- 

 duction. 



At the conclusion of Mr. Smith's talk Frank 

 J. Goodwine, soybean grower of Warren county, 

 Indiana, who attended the meeting, arose and 

 said: "I wish we Indiana farmers could get 

 into your association. You got a better deal 

 than we had. This is a better proposition than 

 I ever thought farmers could get." 



The meeting attended by 3 JO to 400 growers 

 went on record by a unanimous rising vote 

 giving their complete approval to the principles 

 followed in the sale of the 1931 crop by the 

 management. 



Dr. Burlison Speaks 



Dr. W. L. Burlison, chief of the Agronomy 

 Department, College of Agriculture, Urbana, 

 gave a highly interesting illustrated talk on the 

 development of soybean production in America 

 during the past 15 years. He discussed imports 

 and exports of soybeans and soybean products 

 as well as other vegetable oils, the domestic pro- 

 duction of cotton seed, linseed, peanut, and 

 corn oils, and the uses now being made of soy- 

 bean oil in commercial products. 



"Since 1922 the soybean acreage in Illinois 

 has increased five-fold," he said. "Illinois leads 

 all states in production, but there have been 

 great increases also in other states. The poten- 

 tial production of soybeans in Illinois since 

 1922 based on acreage in this crop has jumped 

 from 4,250,000 bushels to more than 11,000,000 

 bushels." 



Imports of soybean oil, he showed, greatly 

 decreased during the past decade. The same is 

 true of soybean cake and the whole beans. The 

 biggest drop came since 1929 when the new 

 and higher tariff became effective. 



"There are great possibilities in the further 

 use of soybean oil," he said. "Soybean oil com- 

 prises only a small percentage of the total 

 volume of vegetable oil produced in America." 

 In 1929, Dr. Burlison showed, approximate- 

 ly 56 per cent of the soybean acreage in 

 the U. S. was devoted to hay, 16 per cent 

 grazed, and 28 per cent were harvested for beans. 

 Of the 28 per cent, 9 per cent went for seed 

 and 12 per cent for feed, the balance for com- 

 mercial asd other uses. 



Dr. Burlison's slide pictures, showing the re- 

 sults of using soybean oil paints at the Uni- 

 versity of Illinois, excited much interest. Tests 

 were made of paints using 100 per cent soybean 

 oil down to a comparatively small percentage 

 of soybean oil mixed with linseed oil. He <aid 

 that the soybean oil paint is standing up very 

 well in nearly every case, and that many who 

 have examined the results prefer paints contain- 

 ing soybean oil because of their luster. 



D. W. McMillen's Address 



D. W. McMillen, president of Allied Mills, 

 discussed soybean market conditions during the 

 past year. "If we had known six months ago 

 that a war between China and Japan would 

 bring about a substantial demand for soybeans 

 abroad we would have shipped most of our 

 supply to New Orleans for export," he said. 

 "But without that knowledge large quantities 



of beans were processed here where the market 

 for soybean products was so low as to bring 

 about a low price for the beans. 



"Processing soybeans has been no more profit- 

 able than growing them," he continued. "We 

 are not counting on making any money on 

 processing this year. We are attempting to 

 build good will and to avoid losing too much 

 money. 



"When representatives' came to us last fall 

 the market was so poor that we said 30 cents 

 a bushel looks like all we can pay. We hated 

 to even offer so low a price. But other com- 

 panies at that time offered only 25 cents a 

 bushel. When we found the other companies 

 were offering only 25 cents we thought we 

 could pay the same, but your representatives 

 held us to the 30 cents offered. We agreed to 

 split the profits, if any, from the sale of oil 

 and meal after being allowed the cost of pro- 

 cessing." 



Absorbs the Shock 



"Think back a few months to the beginning 

 of the harvesting of the 1931 crop and what 

 the condition of the soybean market was at 

 that time," President Armstrong said in his 

 annual address. "Then picture in your mind 

 what would have been added to the distressed 

 condition had there been no co-operative to 

 absorb the shock of the 1,500,000 bushels of 

 soybeans dumped on the 20-cent per bushel 

 market then in existence. You will be told in 

 the various reports today what was done and 

 what caused the soybean market to rise from 

 20 cents to 35 cents per bushel and more. You 

 will also realize that none of these things could 

 have been accomplished by growers acting indi- 

 vidually. Some members have complained that 

 the non-member benefits from our efforts and 

 still bears no portion of the expense of operating 

 our association. 



"In fact a non-member if he be fortunate in 

 selling at the highest peak of the market may 

 realize more net for his crop than a member 

 and very likely this non-member will boast of 

 his astuteness and make himself very obnoxious. 

 This condition must be recognized as one of 

 the problems of co-operative marketing but is 

 the same problem that has existed since civil 

 government was set up. When you pay taxes 

 or make contributions to any public welfare, 

 the arrogant and loud-mouthed citizen who 

 shuns his obligations to his comuunity enjoys 

 all the benefits of your contributions and he is 

 the fellow who usually has the most to say 

 about how the country should be run. 



The Opposition Propaganda 



"We have also the organized opposition to 

 all efforts toward co-operative marketing. It 

 was to be expected that middlemen and those 

 who profit from low prices to the producers, 

 would resist our efforts, but it is surprising how 

 successful they have been, in some cases, in 

 poisoning the minds of uninformed producers 

 against their own best interests. 



"A few weeks before our bean crop began 

 moving to market last fall there were a few 

 cars of beans contracted at 3 5 cents to 45 cents 

 per bushel. Prices of meal and oil justified such 

 a price at that time, but a rapid decline in the 

 value of both these commodities left the con- 

 tracting party facing a loss on his transaction. 

 Yet the prices of those few carloads have been 

 referred to many more times than have the 

 sales of many more carloads at 20 to 21 cents 

 by non-members who were not fortunate enough 

 to have contracted their crop when values were 

 higher. 



"Our plan of marketing does not contem- 

 plate selling at a price which will ruin the 

 purchaser but does contemplate selling at a 

 price at which the buyer will come out with 

 a reasonable profit and yet the grower will 

 receive on the average better prices than the 

 average between the lucky fellow who did con- 



tract on higher values and the unfortunate 

 grower who had to sell on a market made by 

 the fellow who>^rpfits from low prices. 



Mutual Confidence 



"Relations with processors with whom we 

 are now dealing are that of mutual respect and 

 confidence. From an unknown group of grow- 

 ers venturing out on the uncertain road of 

 co-operation in 1929 your association has 

 rapidly gained recognition as a very important 

 factor in the soybean industry of today. 



"Indications too numerous to mention in this 

 brief address point to rapid growth in the im- 

 portance of our association. Expansion in our 

 membership to the extent of reaching out into 

 other states is not without probability. 



"You loyal members have sacrificed both 

 time and money to build up this organization. 

 You have proved that producers will stand by 

 their organization and deliver their product to 

 be sold through their own marketing facilities. 



"You have proved sound the theory of co- 

 operation between producers and processors." 



The board of directors chosen for the coming 

 year is as follows: Burton King, Hancock 

 county; Dan Smith, Shelby county; W. J. San- 

 dusky, Vermilion county; J. F. Probst, Macon 

 county; John W. Armstrong, Champaign county; 

 A. M. Piatt, Piatt county; L. A. Reed, Morgan 

 county; Parke Kerbaugh, McLean county; Sam 

 Sorrells, Montgomery county; Dwight Hart, 

 Christian county; W. J. McCormick, Douglas 

 county; T. H. Lloyd, Macoupin county; Edgar 

 Boynton, Sangamon county; M. D. Tomlin, 

 Mason county, and John Albright, Moultrie 

 county. 



At the board meeting foUoging the annual 

 session of members all officers were re-elected as 

 follows: John W. Armstrong, Champaign, presi- 

 dent; Dwight Hart, Sharpsburg, vice-president; 

 W. G. McCormick, Oakland, secretary; R. A. 

 Cowles, treasurer, and W. H. Coultas, Chicago, 

 assistant secretary. 



The executive committee in addition to the 

 officers includes Samuel Sorrells, Raymond, and 

 W. J. Sandusky, Georgetown. 



The board voted to change the annual meet- 

 ing time to the fall. The next annual meeting 

 will be held sometime between October 1 and 

 January 1. 



The Macoupin Service Company, or- 

 ganized in June last year, reports 1,100 

 customers after eight months of opera- 

 tion. 



Seven per cent preferred stock divi- 

 dends were paid at the end of the fiscal 

 year and a 5 per cent patronage divi- 

 dend was declared after funds equal to 

 25 per cent of the paid in capital stock 

 were added to surplus. Patronage divi- 

 dend checks were distributed to 448 

 Farm Bureau members at the annual 

 meeting at Carlinville March 5. The 

 company operates a station at Carlin- 

 ville and six trucks serve farmers of 

 Macoupin county. 



More than 30,000 refund checks 

 have been mailed out by the St. Louis 

 Producers representing approximately 

 $48,000. The Adams County Shipping 

 Association received a check for $1,759, 

 the largest received by any county ship- 

 ping association selling livestock on the 

 St. Louis market. John Pine of Scott 

 county was the largest truck shipper 

 selling through the Producers. He re- 

 ceived a check for $70.21. 



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