Page Twenty-four 



THE I. A. A. RECORD 



February, 1933 



I. A. A. Business Service 

 Real Aid To Members 



Speakers Tell About Achieve- 

 ments and Outline Plans For 

 Greater Growth in '33 



O. F. TULLOCK 



ONE of the best methods of es- 

 tablishing and maintaining 

 confidence of membership is to au- 

 dit books and accounts periodically, 

 Fred E. Ringham, manager of the 

 Illinois Agricultural Auditing Asso- 

 ciation, said in the business serv- 

 ice conference at the recent an- 

 nual meeting in Peoria. Approxi- 

 mately 240 attended. Geo. F. Tul- 

 lock acted as chairman. 



The audit 

 serves to offset 

 suspicion and 

 counteracts 

 whispering cam- 

 paigns that may 

 exist, he said. 

 Careful a u d i ts 

 enable the board 

 of directors to 

 plan effectively 

 i n overcoming 

 their difficulties 

 and in restoring 

 their business to 

 a profitable 

 basis. The Auditing Association, he 

 said, completed 366 audits for its 

 member companies during 1932. 



L. R. Marchant pointed out that 

 the 52 companies associated with 

 the Illinois Farm Supply Company 

 did a business last year in excess of 

 $5,000,000 which places the organ- 

 ization in a prominent position 

 among the leading co-operative 

 purchasing organizations in the 

 United States. 



f EflSciency The Key 



Marchant reported the results of 

 a comparative study of local com- 

 pany operations which clearly in- 

 dicated that the benefits to be 

 derived in purchasing organiza- 

 tions depends largely upon the effi- 

 ciency of the company handling the 

 business. It was generally agreed 

 that the State Supply Company and 

 associated companies are rendering 

 an excellent service to farmers over 

 the state and that the Farm Bureau 

 differential maintained was highly 

 commendable. 



It was stated that the limestone 

 contract now in force between the 

 Farm Bureaus and certain com- 

 panies maintains the principle of 

 the cash dividend to purchaser and 

 the differential to Farm Bureau 

 members. It also provides a small 

 fee to be paid by the limestone 

 company to County Farm Bureaus 

 to partially offset the money out- 

 lay for soil testing service and 

 equipment. 



J. H. Kelker, manager Farmers 

 Mutual Reinsurance Company, 



stated that the outstanding problem 

 in the fire and lightning insurance 

 field is determining the insurable 

 value of buildings. Three points 

 must be taken into consideration: 

 (1) Actual value, that is, cost less 

 depreciation; (2) Use value of 

 building; (3) Moral hazard. 



Interest More Members 



Plans for a concerted effort in 

 1933 to interest every member in 

 the casualty insurance program of 

 the Association were outlined by A. 

 E. Richardson, manager of the Illi- 

 nois Agricultural Mutual Insurance 

 Company. He further suggested that 

 special attention and study be given 

 to encouraging increased Farm Bu- 

 reau membership by enlightening 

 non-members about the benefits 

 they can secure through affiliation 

 with the organization. 



L. A. Williams pointed out the 

 need for interesting more County 

 Farm Bureaus to become active in 

 the life insurance program because 

 of the opportunity to provide a 

 beneficial money-saving service to 

 members and for the 10 percent 

 overwriting income received. Mr. 

 Williams stated that Country Life 

 and its. agency system will return 

 $146,000 in 1933 to policyholders as 

 dividends and refunds. 



V. Vaniman, director of insurance 

 service, stated that the present 

 agency system is working out satis- 

 factorily and that 100 per cent co- 

 operation between the county 

 agency, general agent, special 

 agents, and the company is the 

 ideal to be obtained. . - 



Butterfat Producers Set 

 Five Year Marketing Goal 



Change Name To Illinois Pro- 

 ducers Creameries, Reor- 

 ganize For New Year 



THE year 1930 is going to mark 

 the beginning of a new plan for 

 marketing our dairy products. Our 

 producers are going to undertake to 

 process the butterfat produced on 

 their farm through their own 

 plants. Frank Gougler, manager of 

 the Illinois Produce Marketing Asso- 

 cation, stated the annual meeting 

 was attended by more than 300, in 

 Peoria, Jan. 25. 



"Shall we not say that by 1937 we 

 will make 35,000,000 pounds of but- 

 ter co-operatively in farmer-owned 

 and farmer-controlled plants," he 

 continued. "Indiana started operat- 

 ing co-operative creameries five 

 years ago and now they are making 

 nearly 15,000,000 pounds of butter 

 annually in these plants. We can 

 surpass that record In the next five 



years. Are you ready to assist in 

 putting it over?" 



Opportunities Ahead 



Gougler pointed out that the op- 

 portunities are attractive to cream 

 producers in the co-operative field. 

 First, the present method of assem- 

 bling butterfat can be greatly im- 

 proved, he said. The station method 

 whereby approximately 2,000 sta- 

 tions in Illinois assemble cream, is 

 wasteful and uneconomic. Most 

 towns have from four to eight cream 

 buyers. The volume handled by 

 each station in a given town, for 

 example, averaged only 15,625 

 pounds for the year. 



"In establishing our own co-op- 

 erative creameries we propose to 

 replace the station idea with the 

 trucking system. Cream will be 

 trucked direct from farm to plant." 

 Gougler expressed the belief that 

 higher quality butter eventually 

 would be made in co-operative 

 plants because farmers would have 

 a money incentive for delivering 

 high grade cream. He emphasized 

 the necessity of delivering a large 

 volume of cream to each plant so as 

 to reduce the cost of processing. 



Figures were presented showing 

 that plants manufacturing 100,000 

 pounds of butter or less did so at 

 a cost of 3.5 cents per pound, 

 whereas plants manufacturing 500,- 

 000 pounds or more reduced the cost 

 to 2.4 cents per pound. 



C. R. George, manager of the 

 Producers Creamery, Marion, Indi- 

 ana, gave an interesting talk in 

 which he reviewed the progress 

 made by organized farmers in that 

 section of Indiana in manufactur- 

 ing and selling their cream co-op- 

 eratively. 



Elect Directors 



At the organization meeting 

 which followed the reports and 

 speaking program the following di- 

 rectors were elected: Wm. Krause, 

 Lincoln; Ryland Capron, Peoria; 

 Elery Leefers, Carlinville; Tom 

 Jackson, Timewell; A. B. Schofield, 

 Paxton; Herb Klowan, Rock Island; 

 Harold Enns, Bloomington; Burton 

 Leamon, Olney; and Talmage De- 

 Frees, Smithboro. 



The delegates and members voted 

 unanimously to change the name of 

 the organization to "Illinois Pro- 

 ducers Creameries." The indivi- 

 dual units will be known as 



Producers' Creamery, each organ- 

 ization to carry the name of the 

 town or city in which the creamery 

 is located. 



At the directors' organization 

 meeting Wm. Krause was elected 

 president, Ryland Capron, vice- 

 president, and Elery Leefers, secre- 

 tary-treasurer. Frank Gougler was 

 re-elected manager. 



The directors adopted a budget 

 for 1933 and voted to employ the 

 Illinois Agricultural Service Com- 

 pany as corporate manager. 



