Page Twelve 



THE 1. A. A. RECORD 



November, 1932 



Farm Supply Meeting^ Bloomington 



More Than 500 Delegates, Managers, and Farnn Bureau Leaders Attend 



Enthusiastic Session 





L. R. KARCHANT 



A RECORD breaking year in the 

 sale of petroleum products 

 through the 52 county service com- 

 panies associated with Illinois Farm 

 Supply Co. was reported at the an- 

 nual meeting of the state-wide or- 

 ganization at Bloomington, Oct. 12. 

 More than 500 delegates and visitors, 

 most of them leaders in the Farm 

 Bureau movement in Illinois, attend- 



ed the enthusias- 



t i c convention 

 held in the Y. W. 

 C. A. auditorium. 

 In spite of the 

 decline in most 

 industries the 

 State Supply Co. 

 handled 35,500,000 

 gallons of petrole- 

 um products, a 

 larger quantity 

 than in any pre- 

 vious year, during 

 the 12 month pe- 

 riod ending 

 August 31. 



Manager L, R. Marchant reported 

 that the Illinois Farm Supply Co. 

 and its associated companies now 

 ranks as the largest association of 

 its kind handling petroleum products 

 and farm supplies in the United 

 States. 



"Our distribution of petroleum 

 products exceeds that of any other 

 group of farmer-owned and operated 

 companies," he said. "This fine record 

 of achievement has not taken place 

 of its own free will. Close observation 

 of the membership contract, splendid 

 co-op>eration, and co-ordination of 

 member companies and their increas- 

 ing tendency to bind themselves to- 

 gether for their mutual protection 

 and advancement have been the key- 

 note to success. ' 



:/^j Pay As You Go ^ 



"The financial strength of the com- 

 pany is frequently expressed by the 

 manner in which it meets obliga- 

 tions. It is up to every local company 

 to keep its own house in order. It 

 should institute into the minds of its 

 patrons the 'pay as you go' plan, and 

 conquer the credit problem from its 

 best means of approach. Experience 

 shows that the chief cause of busi- 

 ness failures is the result of inability 

 to do this and farmer-owned and 

 controlled companies are no excep- 

 tion to the rule." 



A statistical report of operations 

 in the 12 month period ending Au- 

 gust 31 was published in the October 

 issue of the RECORD. 



One of the principal addresses of 

 the afternoon was made by J* Frank 

 Grimes, president of the Independent 



Grocers' Alliance. "From the looks 

 of the financial statement of your 

 company which shows increasing 

 dividends for six consecutive years, 

 your company should be an institute 

 or example for all America to see," 

 said Mr. Grimes. 



A Sleeping Giant 



"Have you the slightest conception 

 of the enormous power that lies in 

 the hands of agriculture that it does 

 not even attempt to use? There is 

 an enormous power lying sound 

 asleep, and through sensible and 

 powerful methods of merchandizing 

 and advertising that great sleeping 

 power can be awakened. Organiza- 

 tion can accomplish almost anything 

 it goes after, anything that is reason- 

 able, that is proper, that is right. It 

 is wonderful to see an organization 

 built up of men who know what they 

 are going after. There are sensible, 

 practical, scientific ways of doing 

 things if we will study them out and 

 put them into practice." 



"This thing called credit trouble 

 can be diagnosed as the principal 

 disease of the world today," declared 

 J. N. Moylan, credit manager of the 

 American Steel and Wire Company, 

 Chicago. "A sale is never complete 

 until the money for that sale is de- 

 posited by the seller. There is no 

 glory in putting a volume of business 

 on the books and waiting for the 

 money to come back. There is no 

 business wisdom having to do with 

 credits, that can be swallowed in 

 capsules. There is only one way you 

 can control the credit problem and 

 keep yourself out of trouble. Do busi- 

 ness for cash as nearly as possible 

 especially in handling consumption 

 articles such as petroleum products. 



Troubles Within Hurt 



"In every co-operative organiza- 

 tion of any form the troubles from 

 within are the troubles that really 

 hurt. Frequently those who sit in 

 places of authority are inclined to 

 ask for special privileges on the terms 

 of sales, etc. Directors should have 

 no reason to expect favoritism wh'ch 

 may lead to further violation of the 

 company's policies and break down 

 sound business principles." 



Referring to the fundamentals of 

 a business organization Moylan com- 



pared it to the wheels of a wagon. 

 The right front wheel he said might 

 represent the stock of merchandise 

 which should turn over quickly. Mer- 

 chandise which is slow in selling will 

 pull the wheel out of line. 



"The left front wheel, accounts re- 

 ceivable. Too many accounts receiv- 

 able will make the going lopsided. 

 The right rear wheel, the cash or 

 working capital, is a very important 

 part of a business. The left rear 

 wheel, the plant investment, the 

 tanks, trucks, etc. These must all be 

 kept up to keep the wagon running 

 smoothly. All four wheels should be 

 the proper size and stay well bal- 

 anced to go along over all kinds of 

 roads in good order. We are travel- 

 ing the dirt roads today and if the 

 wheels are out of line it is almost 

 impossible to travel." 



Great Accomplishment 



"Business in no line can show the 

 accomplishments of this cooperative 

 endeavor," said Donald Kirkpatrick 

 of the I. A. A. Referring to the un- 

 organized territory of the state he 

 said: "Fill up those white spaces, 

 improve your merchandizing meth- 

 ods, tie the organization together in 

 such a way as to present a united 

 front." 



Answering the question "Who 

 should be entitled to the rights and 

 privileges of the local companies?" 

 Kirkpatrick said: "The County Farm 

 Bureaus should furnish the county 

 supply companies with a certified 

 list of all members in good standing 

 prior to the declaration of any pat- 

 ronage refund. Failure on the part 

 of the service company to strike from 

 its records all Farm Bureau members 

 who are not in good standing at the 

 time the patronage refund is de- 

 clared, might lead to legal difficul- 

 ties." 



Adoption of a resolution pertain- 

 ing to the definition of membership 

 in good standing as approved by the 

 Illinois Agricultural Association at 

 its annual meeting last winter was 

 recommended. This resolution in 

 part is as follows: ,,;•>: 



Who Is a Member? 



In all matters relating to af- 

 filiated or subsidiary organiza- 

 tions connected with the Illinois 

 Agricultural Association and 

 County Farm Bureaus wherein .' 

 the term "membership in good 

 standing" or a term similar is 

 used involving the right to serv- > 

 ice or distribution of savings or 

 earnings, membership in good 

 standing be allowed, if such 

 (Continued on page 18) 



4 t » 



,'i -■■ !:■-',:*.■.*■ 



i> -^ f 



v-,-: 



H i * 



4 



