August, 1932 



THE I. A. A. RECORD 



Page Seventeen 



Story of Illinois Grain 



Told In New Booklet 



Sketches Development of Co- 

 operative Grain Marketing 

 In Illinois and Nation 



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The story of the Illinois Grain 

 Corp., the earlier development of 

 co-operative grain marketing in 

 Illinois, and a short sketch of the 

 Farmers National Grain Corp , to- 

 gether with statements by officials 

 in each organization are contained 

 in a 20-page booklet recently pub- 

 lished under the title "We're Pay- 

 ing For Our Marketing Machinery — 

 Now Let's Own It." The booklet was 

 published by the Illinois Grain 

 Corp. and is amply illustrated with 

 pictures, charts, and drawings. 



"The founders of farmers' co-op- 

 erative elevators in the United 

 States," declares the booklet in its 

 , opening statement, "learned more 

 than 50 years ago that the way 

 to a better price for grain is 

 through organized selling." They 

 knew that their grain and their 

 patronage paid for the local ele- 

 vator and its grain handling facil- 

 ities, besides frequently returning 

 the operator handsome profits. 



These early leaders of co-oper- 

 ative thought did the logical and 

 sensible thing. They said: "Let's all 

 get together, market our own grain, 

 run our own business." The co-op- 

 erative elevator which blazed the 

 trail for co-operation in America 

 was the result. 



Many Had Monopolies 



At many shipping points private 

 elevators had monopolies. Here the 

 toll paid by farmer's grain was fre- 

 quently large. 

 The courage 

 and intelli- 

 gence of the 

 CO - operative 

 pioneers in 

 such cases was 

 rewarded by an 

 immediate in- 

 crease of from 

 two to six cents 

 or more per 

 bushel. 

 The first co- 

 operative elevators were met with 

 hostility and opposition. Old line 

 commission men in the terminal 

 markets refused to handle their 

 grain. Railroads in league with the 

 middlemen would not furnish cars. 

 Discriminatory rules were adopted 

 by the exchanges outlawing "co- 

 operative" grain. Much the same 

 crowd that fought the early farm- 

 er's elevator is now fighting co-op- 

 erative selling agencies in the ter- 

 minal markets. 



The farmer's elevator is an im- 

 portant unit in a farmer-owned 



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RETTJNDS TO THE 

 PRODUCER 



REFUNDS TO THE LOCAL 

 ELEVATOR 



and farmer-controlled grain mar- 

 keting system. It is not a co-op- 

 erative marketing system in itself. 

 It IS an important part of the sys- 

 tem. The founders of the early ele- 

 vators knew this. The need for 

 getting into the terminal markets 

 and carrying their grain co-oper- 

 atively all the way to the processor, 

 exporter, and consumer was as ap- 

 parent then as now. And so in the 

 face of extreme difficulties, bitter 

 opposition from the "trade," and 

 discriminatory rules and regula- 

 tions against farmers elevators, co- 

 operative terminal agencies were 

 established. Some of these fell by 

 the wayside, others succeeded and 

 are going concerns today. 



The Illinois Grain Corporation 

 with a membership at this writing 



approa c h- 

 i n g 100 

 local e 1 e- 

 vators and 

 associa- 

 tions is 

 one of the 

 you n g e s t 

 re g i o n a 1 

 c o o p - 

 er a t i V e s, 

 yet it has 

 leaped in- 

 to prominence as the third largest 

 affiliated with nation-wide farmer- 

 owned sales agency, the Farmers 

 National Grain Corporation. 



Terminal Co-ops Object 



The co-operative in the terminal 

 market serves the local farmer's 

 elevator as the local elevator serves 

 the producer. Its object is to pay 

 the highest possible price to the 

 farmer for his grain. Private com- 

 mission men and other handlers of 

 grain thrive by maintaining a wide 

 margin of profit for themselves. Co- 

 operatives thrive by reducing this 

 spread to pay the farmer more. 



The private handler is interested 

 in margins, the larger the better. 

 The co-operative sales agency is in- 

 terested in getting a high price for 

 the farmer — the more the better. 

 The old-line system of distribution 

 with its excessive toll and waste 

 was developed by private handlers 

 of farm products. Naturally it 

 favors them. Co-operative mar- 

 keting has been developed by pro- 

 ducers to favor the growers. That's 

 the difference. Which system do 

 you want to support? 



Other Statements 



The organization and develop- 

 ment of Illinois Grain Corp. is set 

 forth briefly. Then follows a state- 

 ment by G. C. Johnstone, president, 

 under the title "Illinois Grain 

 Corporation On a Sound Basis." A 

 statement by General Manager C. 

 P. Cummings, "It's a Long-Time 

 Program," gives the viewpoint of a 

 man with 25 years' experience in 



the grain business regarding the 

 problems and possibilities of co-op- 

 erative grain marketing in the 

 terminal markets. 



Statements by C. E. Huff, presi- 

 dent, and Geo. S. Milnor, general 

 manager of the Farmers Grain 

 Corp., follow a brief history of the 

 development of the big co-oper- 

 ative. 



"The operations of the Corpo- 

 ration's facilities," declares Mr. Huff, 

 "result not only in substantial sav- 

 ings to producers in the physical 

 handling of grain, but enable the 

 corporation to secure the most ad- 

 vantageous outlets and prices, as 

 well as to control to a degree the 

 flow of grain into consumihg chan- 

 nels. 



Here to Succeed 



"Grain exchanges must adjust 

 themselves to the new facts and 

 factors in marketing. Co-operative 

 marketing is here to render serv- 

 ice and to succeed. Farmers will 

 not be misled, nor can their mar- 

 keting program be defeated. We 

 shall move steadily forward." 



A brief statement by Manager 

 Geo. S. Milnor who at the age of 

 19 found his first job in the ele- 

 vator of the Sparks Milling Co. at 

 Alton says: "Heretofore the farmer 

 in many sections had only his local 

 co-operative elevator. In some 

 states he had district and state- 

 wide co-operatives operating on 

 one or two markets. All these lacked 

 co-ordination. Now for the first 

 time the farmer has a local, dis- 

 trict, and nation-wide agency all 

 working together which enables 

 him to maintain his interest in the 

 grain he delivers at the local ship- 

 ping point until it reaches the pro- 

 cessor or foreign buyer. The picture 

 is now complete." 



Contains Agrreement 



Short biographical sketches of 

 Farmers National grain men serv- 

 ing Illinois producers, a description 

 of the uniform marketing agree- 

 ment, and a copy of the marketing 

 agreement operating between the 

 Illinois Grain Corp. and the local 

 elevator complete the booklet. Pic- 

 tures of representative elevators 

 holding membership in the Illinois 

 Grain Corp., of officers and direc- 

 tors, pictures of facilities owned or 

 controlled by the Farmers National, 

 and maps of the United States and 

 Illinois showing member elevators 

 of Illinois Grain and branch offices 

 of the Farmers National give the 

 reader a fairly good understanding 

 of this farmer-owned and farmer- 

 controlled grain marketing system. 



Penny post cards are coming into 

 use since the recent boost in postage 

 rates. 



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Automobile production fell more 

 than half during the past two years. 



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