March, 1933 



THE I. A. A. R E C O R D 



■ '-X' 



Page Seven 



Plan Co-op. Creameries 

 At Several New Points 



Directors of Illinois Producers 

 Creameries Meet To Con- 

 sider Marketing Problems 



Establishment at an early date of 

 additional co-operative creamery 

 plants in the Olney, Quincy, and 

 Champaign districts was considered 

 at the first meeting of the board of 

 directors of Illinois Producers 

 Creameries, Inc., in Chicago, Feb. 

 16. 



Stock is being sold both in the 

 Olney and Quincy districts in pro- 

 posed manufacturing plants, and 

 mass meeting of cream pro- 

 ducers was held in Champaign Feb. 

 18 where plans were laid for es- 

 tablishing a creamery there. 



C. R. George, manager of the 

 Producers Creamery, Marion, In- 

 diana, a successful co-operative, 

 spoke at the meeting of cream pro- 

 ducers in Champaign. 



At a meeting in Peoria, Feb. 15 

 representatives of co-operative 

 cream pools in that territory ap- 

 pointed a committee and voted 

 unanimous approval of plans for 

 membership work. 



Seven directors were chosen for 

 the proposed creamery in the Olney 

 district at a meeting Feb. 22 at 

 Sumner in Lawrence county. The 

 directors chosen were Burton Lea- 

 mon, Richland county; L. R. Gantz, 

 Wayne county; Luke Crouse, Clay 

 county; Silas Andrus, Wabash 

 county; J. C. Piper, Lawrence 

 county; Raymond Kegley, Edwards 

 county; S. M. Austin, White county. 

 This board of directors will serve 

 until the annual meeting of stock- 

 holders when the latter will elect 

 new directors. 



Following an explanation of the 

 stock setup by Frank Gougler, 

 produce marketing director, applica- 

 tion for incorporation was made 

 and it was voted that counties 

 shall raise their quotas of stock 

 subscriptions by April 1. The name 

 of the new organization will be 

 "Producers Creamery of Olney," 



Butter will be marketed by the 

 chain of co-operative creameries, 

 all of which are to be affiliated 

 with Illinois Producers Creameries, 

 under the trade name "Illini." A 

 central agency will be set up to 

 sell butter direct to stores, hotels, 

 and other distributors. A superior 

 butter made only from sweet cream 

 and grade A sour cream will be 

 manufactured and sold when pres- 

 ent plans are in operation. 



Truck routes will be established 

 and cream picked up several times 

 a week. This plan, it Is believed, 

 will reduce the cost of assembling, 

 result in a higher quality product, 

 and increase the farmers' returns 

 from butterfat. 



ILLINOIS PRODIJCKRS CKIi:.\ME:KIE:S BOARD OF DIRECTORS 



Left to rlsht, seated: Tom Jackson, Tlmewell; Frank GouKler. manager and 

 director produce marketing;; IVm. Kranae, Lincoln, president t Elery Leefers, 

 Carllnvllle, secretary-treas.; Ryland Capron, Peoria, vice-president; Herb Klow- 

 ann. Rock Island; J. B. Countlss, director dairy marketing;. 



Standing, left to rlghti Burton Leamon, Olney; Harold Bnns, BloomlnKtont 

 A. B. Schofleld, Paxton; Talmage DeFrees, Smlthboro. 



Baruch Outlines Plans 



To Restore Agriculture 



New York Financier Tells Sen- 

 ate Committee How He 

 Would End Depression 



"Inflation will precipitate general 

 starvation, and Congress is trifling 

 with disaster by allowing the treas- 

 ury deficit to continue to mount," 

 Bernard M. Baruch of New York, 

 prominent business leader and close 

 friend and adviser of President- 

 elect Roosevelt, testified before the 

 Senate Finance Committee recently. 

 Baruch who served as chairman of 

 the War Industries Board during 

 the Wilson administration told his 

 senatorial listeners that they must 

 balance the budget, asserting that 

 the only defense between this coun- 

 try and ruin are these government 

 securities which are dependent 

 upon government credit. Baruch 

 was prominently mentioned as a 

 possible appointee to the President's 

 cabinet. 



"Every bank, every insurance 

 policy, the solvency and continued 

 operation of every corporation em- 

 ploying men — the wages of labor, 

 the wherewithal to pay wages and 

 above all the resources to feed the 

 hungry and relieve distress, all 

 hang by a single thread, the credit 

 of the United States," Baruch 

 testified. 



Will Attract Money 



"Balance the budget," he con- 

 tinued, "and money will flow here 

 from all the world and the people 

 will find the means to earn their 

 daily bread with great rapidity." 



He suggested an international 

 agreement on silver, revision of the 

 Versailles Treaty to speed disarma- 

 nent, increase the profits of farm 

 crops by decreasing output, aids to 

 rapid liquidation of debts, encour- 

 agement of rapid consumption of 



commodity surpluses and control 

 of productive capacity. 



Four causes of the depression he 

 said were "Inflation due to the 

 war, debts and taxes, failure on the 

 part of the United States to main- 

 tain friendly trade relations with 

 other countries, and excess produc- 

 tive capacity. 



Farm Mortgage Plan 



Dealing at length with the farm 

 problem, Baruch proposed a farm 

 mortgage plan suggesting a cor- 

 poration to issue three per cent tax 

 exempt thirty-year bonds with in- 

 terest unconditionally guaranteed 

 by the government. 



The bonds would be exchanged 

 for existing farm mortgages or for 

 the title of foreclosed farms, but 

 not to exceed 60 per cent of par of 

 such mortgages. 



Mortgages would be revised on 

 the basis of 3.V4 per cent interest 

 on a scaled down principal, the ef- 

 fect being to write down the prin- 

 cipal of existing mortgages by one- 

 half and the interest rate by two- 

 thirds. 



Baruch's second proposal for 

 farm relief was to have a govern- 

 mental agency rent land from 

 farmers to be taken out of produc- 

 tion. This, he said, was an exact 

 reversal of the principle now pro- 

 posed for bounties on production. 



Mr. Baruch would raise $200,000,- 

 000 to be used for renting land to 

 reduce acreage by levying an excise 

 tax on the processing of crops whose 

 production is reduced by the gov- 

 ernment leasing program. He sug- 

 gested a one-half cent tax on all 

 meats. An average rental of $3 

 per acre would be paid to provide 

 for taxes and make it attractive for 

 farmers to reduce acreage. 



The financier opposed cancella- 

 tion of war debts, urged a beer tax 

 and repeal of the 18th amendment 

 and asserted that the world's hope 

 is to revive commerce and give 

 men a chance to work for a living. 



