1933 



February, 1933 



THE I. A. A. RECORD 



Page Seven 



Pres. Smith Reviews Year's Work 



Discusses State And National Problems And Solutions, Charts Course For Future In 



Annual Address At Peoria 



WE ASSEMBLE for the 18th 

 Annual Meeting of the Illinois 

 Agricultural Association for the 

 purpose of reviewing the develop- 

 ments of the past year and to bet- 

 ter define the program of the or- 

 ganization for 1933. Certainly every- 

 one in this audience recognizes that 

 we have passed through the most 

 trying year of the present century 

 and possibly in the history of this 

 country. 



"People engaged in all walks of 

 life and institutions representing 

 every phase of business and in- 

 dustry have been seriously affected. 

 Associations and membership groups 

 throughout the country have been 

 undermined and in many cases 

 forced to give up some, if not all, 

 of their former activities. The de- 

 pression has continued its heaviest 

 toll in agriculture. We have wit- 

 nessed on every hand most heart- 

 rending scenes and all this largely 

 brought upon us as a result of the 

 neglect of America in recognizing 

 and meeting the farm problem 

 which has increased in magnitude 

 and complexities for more than a 

 decade. 



"Under such conditions, it is with 

 Just pride that we meet this morn- 

 ing with the knowledge that our 

 Association has withstood the eco- 

 nomic storm of the past year prov- 

 ing again the soundness of the 

 foundation laid for it in this city 

 14 years ago. ... 



"As we meet today and look back 

 over the record we can justly feel 

 some measure of satisfaction in our 

 achievements. We know more today 

 about the possibilities and limita- 

 tions of organization. We have 

 learned that farmers by working 

 together can do many things to 

 help themselves. 



"We have brought much con- 

 structive influence to bear in the 

 field of legislation and before ad- 

 ministrative tribunals of various 

 kinds, even with only a minority co- 

 operating in organization. That in- 

 fluence would be decidedly greater 

 did the farmers of this state show 

 more unity thru membership in 

 standing together for the best in- 

 terests of agriculture. 



Direct Sayings Large 

 "In the year 1932 every member 

 of this organization who made use 

 of the services available for his 

 benefit can show actual cash sav- 

 ings much in excess of his annual 

 membership dues. And yet these 

 direct savings, large as they loom in 

 this year of depression when farm 

 income is at its lowest point due to 



conditions beyond our control, fade 

 into insignificance when c o m- 

 pared with the indirect, less tan- 

 gible, yet genuine benefits made 

 possible by organization. 



"Early last year your officers and 

 directors adopted a budget of ex- 

 penditures substantially lower than 

 that of the previous year. As time 

 advanced, and continued deflation 

 forced farm prices to new low levels, 

 further economy measures were 

 adopted which could be effected 

 without abolishing any of the serv- 

 ices which time and experience 

 have proved most valuable to the 

 membership. While these economies 

 resulted in reducing expenditures 

 nearly $30,000, for the first time in 

 seven years we were forced to use 

 approximately $13,000 of our cash 

 reserve. Few business institutions, 

 and I feel sure no membership or- 

 ganization such as ours, can equal 

 that record — a record that stands 

 as a tribute to the men who 

 pioneered in establishing and set- 

 ting the course of this organiza- 

 tion, and to the effectiveness of 

 the service program developed 

 throughout the years. 



Successful Year 



"Notwithstanding the very diffi- 

 cult conditions prevailing during 

 the year 1932, the organized farmers 

 of Illinois again proved their ability 

 to own, control and successfully di- 

 rect business service corporations. 



"While we have witnessed all 

 types of business failures and re- 

 sultant bankruptcies from the 

 smallest to the largest corporate in- 

 stitutions, without a single excep- 

 tion the ten business service cor- 

 porations, owned, controlled and di- 

 rected by the Farm Bureau move- 

 ment of Illinois have provided for 

 all dividend obligations on the 

 stocks of the various companies and 

 in nearly every case have added 

 substantially to their respective sur- 

 pluses. Savings in dollars and cents 

 accruing from these efforts, to say 

 nothing of the much more impor- 

 tant and valued services thus made 

 available, amount to more than the 

 total of all county, state and na- 

 tional Farm Bureau membership 

 dues in Illinois. It would seem that 

 such outstanding achievement 

 would cause every thinking farmer 

 to seek membership in a farm or- 

 ganization with such a record. 



Service Company 



"Throughout the year, the guid- 

 ance and direction of these corpo- 



rate services have continued under 

 the Illinois Agricultural Service 

 Company. 



"Because of the seriousness of 

 present day conditions, much more 

 time than formerly has been re- 

 quired by the Service Company's 

 board of directors to properly safe- 

 guard these various business insti- 

 tutions. 



$12,000,000 Turnover ' 



"You may be surprised to know 

 that the I. A. A. with its associated 

 companies now constitutes the 

 largest business or trade associa- 

 tion west of the Alleghany moun- 

 tains. Taken together, the busi- 

 ness turnover approximates $12,- 

 000,000 annually, which is equiva- 

 lent to $40,000 per working day. Our 

 auditor advised me that it required 

 3,592 deposits to the accounts of 

 these various companies, and the 

 issuance of 44,656 checks that the 

 affairs of these corporations might 

 be carried out in an orderly and 

 effective manner. 



"We particularly invite your at- 

 tention to the financial statements 

 of each of these organizations, 

 which appear in the annual report. 

 Recognizing the very natural state 

 of unrest by many who hold 

 equities in financial institutions and 

 particularly insurance companies, 

 the board of directors of Country 

 Life Insurance Company and Illi- 

 nois Agricultural Mutual Insurance 

 Company authorized the inclusion 

 in this report of an itemized list of 

 the security holdings of these two 

 large insurance companies. You will 

 be glad to know that, without ex- 

 ception, not a single security held 

 by either one of these companies, 

 has defaulted, either as to principal 

 or interest, and the total holdings 

 of each company show only a 

 nominal depreciation in market 

 values as of December 31st. This 

 record is most outstanding, es- 

 pecially if one considers conditions 

 prevailing within the security mar- 

 kets during the year. 



"In each case these business 

 corporations have been set up and 

 developed along lines that guar- 

 antee their perpetuity of control by 

 the Illinois Farm Bureaus and Illi- 

 nois Agricultural Association and 

 the return of all earnings to those 

 participating in the services pro- 

 vided by each organization. 



"In reporting very briefly on their 

 condition, I am taking them up in 

 the order in which they were or- 

 ganized. 



(Continued on page 11) 



