FRIDAY, OCT. 6, 193S 



THE ILLINOIS AGRICULTIrAL f 



T 



RAI[, CLAIM AND 

 UTILITY SERVICE 



Powerful Organization Farm- 

 ers Only Hope In Fight For 

 Lower Transportation, 

 Power And Telephone 

 . Costs. 



The transportation department 

 of th« IllinoiB Agricultural Asso- 

 ciation haM been serving Farm Bu- 

 reau members since 1920. Through 

 these yonrs there have been 

 booms and dcpresBlons. The after- 

 math of the vorlrt war and g»>v- 

 ernmrnt ad»iiinintratinn of the 

 rallroad.H hrouRht almul many 

 Kenoral increases In frolRht ratep. 

 Through organized Farm Bureau 

 effort many of these high rales 

 have been lowered. 



It Is the purpose of this I. A. A. 

 service to see that the Illinois 

 farmer does not pay more than his 

 fair share of transportation costs; 

 that he may meet the competition 

 of producers of the same com- 

 modities In other states to the 

 same markets; that he Is given 

 the benefit of his advantage of 

 physical location with reference to 

 markets; that he be accorded the 

 same consideration in every phase 

 of transportation. 



The association has as.sembled, 

 over a period of years, a file of 

 over one thousand rate tariffs. We 

 are, therefore, in a position to 

 quote and check rates on all farm 

 products of members. 



Advance data is received which 

 enables us to determine all pro- 

 posed rate Increases and public 

 hearings involving matters in 

 vhlch farm interests should be 

 represented. 



Coii.staiit VIkII Necessary. 



Illinois has for many years 

 been a "buffer" state between 

 eastern or official classification 

 territory and the western territory. 

 The Illinois classification govcrn- 

 IniT state traffic generally re- 

 flected the lower of the two clas- 

 Kifications depending upon com- 

 petitive conditions. Naturally, 

 each freight association seeks to 

 include Illinois in its territory and 

 efforts of the Illinois Agricultural 

 Association in opposing rate in- 

 creases has resulted in saving the 

 Illinois farmer thousands of dol- 

 lars In his transportation costs. 



Continual study and rate sur- 

 veys are necessary in order to keep 

 Informed of existing rate changes. 

 A number of hearings have been 

 attended before the Jllim.ls Com- 

 merce Commission and the Inter- 

 state Commerce Commission on 

 matters involving rates on agri- 

 cultural products. 



Personal Contacts Made. 

 Personal contacts have been 

 made with railroad traffic execu- 

 tives over a period of years and 

 the aim and purpose of this or- 

 ganitation has been sold to them, 

 8 making the work of the de- 

 ffectlve. We want 

 feel free to ca^l 

 on our organization for Informa- 

 tion and cooperation. Their under- 

 standing of our program Is help- 

 ful to them in making decisions on 

 our requests. 



In the interest jor economy, the 

 railroads have in many cases pe- 

 titioned the Illinois Commerce 

 Commission for permission to 

 close local railroad stations; take 

 off trains and abandon portions 

 of their lines. There are some 

 cases of this kind pending. Where 

 local Interest is shown, this de- 

 partment has assisted Fnrm Bu- 

 reau committees in maintaining 

 needed services. 



Railroads are required by law 

 to maintain adequate fences along 

 their right-of-way«. and to cut 

 obnoxious weeds. As a result of 

 defective fences live stock gets out 

 on the right-of-way and is some- 

 time« killed or Injured. Fire start- 

 ed by railroad locomotives or sec- 

 tion employes Vometimes spreads 

 to adjoining fl'elds causing con- 

 sidera.ble damage. If a member 

 has the misfortune to suffer losses 

 of this kind, all he has to do is 

 give the facts to his organization 

 for handling. 



Considerable servicf has been 

 given members in the past on 

 matters involving private farm 

 crossings, drainage, and repairs to 

 railroad stock yards. 



.Aid Live .Slock Grower. 

 Large numbers of stockcr and 

 feeder crfttle, calves, sheep a n iit 

 hogs are purcha.sed by Illinois 

 farmers in the range territory of 

 the west and southwest. A high 

 freight rate may mean a lo.ss to 

 the feeder. The association has 

 used its Influence to keep tliese 

 rates on feeder stock down to a 

 minimum. Feed-in-tran.sit rates 

 have been secured by organized 

 farm effort. Members should 

 avail themselves of this I. A. A. 

 service before making shipment 

 to determine the actual transpor- 

 tation expense. 



Claims for loss or damage In 

 transit, such as <lpad and crippled 

 animals while tn railroad cars; de- 

 lay In transit, such as missing the 

 market for which it is Intended, 

 and shortages are also handled h>' 

 the assrkciation. 



Since 1920 we have collected 

 over $204,000.00 in claims against 

 rajiroads and public utility com- 

 panies. We also assist and repie- 

 sent various affiliated coopera- 

 tives in quoting rates, giving as- 

 sistance on leases, routing ship- 

 meots, auditing freight bills, and 

 various other matters Involving 



and the rates charged for the en- 

 ergy used. 



The I. A. A. has secured some 

 reductions in rates and minimuin.>t 

 during the past year and i8 now 

 aeeking others. complaints on 

 which will be heard in the near 

 future. 



Transmission lines have some- 

 times l)een proposed over farm 

 lands without regard to rights of 

 property owners. In numerous In- 

 stances the I. A. A. has collab- 

 orated with cjounty farm bureaus 

 in protecting the interests of mem- 

 bers. Routes have been changed, 

 contracts made more equitable for 

 the landowner and compensation 

 for damages increased as a re- 

 sult of this organized effort. 



Pipe lines to serve the large ci- 

 ties with natural gas have been 

 built across farm lands in various 

 parts of the state. In several In- 

 stances tho I. A. A. has secured 

 highly important changes in ease' 

 ment contracts to assure the prop- 

 erty owner of adequate compen- 

 sation for damage to farm crops. 

 Kxtcnslons to pipe line laterals are 

 being proposed for the near fu- 

 ture in several i)arts of Illinois. 

 •Members should consult this de- 

 partment beiQPC signing any ea.se- 

 mont contracts. 



PLAN THOUSAND 



582_ Livestock Growers At- 

 tend Five Short Courses 

 In September. 



Five hundred and eighty-two 

 leaders from 85 counties through- 

 out Illinois recently attended a 

 series of live stock marketing 

 short courses just completed. The 

 meetings were arranged by Ray E. 

 Miller, director of live stock mar- 

 keting, aided by producer agencies 

 on the terminal markets. The at- 

 tendance was as follows: 



Counties 

 Place Represented Attendance 



Charleston 9 41 



Chicago 2 2 99 



Monmouth 8 7S 



St. Louis 34 195 



Peoria 12 174 



It was agreed by those who at- 

 tended the conferences that live 

 stock producers generally have 

 given little serious thought to ac- 

 tual jiroblems involved in market- 

 ing their products. They have not 

 paid much attention to the under- 

 lying factors which determine 

 prices. It was the consensus of 

 opinion that the major problem 

 in carrying forward a cooperative 

 program was one of information. 

 Information Is Need. 



In order to meet this need a 

 plan for a state-wide live stock 

 marketing program of Information 

 was adopted. One meeting is to 

 be held In each county to which 

 a selected committee of live stock 

 producers from each township or 

 community of the county is to be 

 Invlterf. ' ... 



This county meeting is to be fol- 

 lowed by local meetings held in 

 various townships or committees 

 throughout the country all on the 

 same night. The series of local 

 meetings in all the participating 

 counties is to be c«rried out si- 

 multaneously. It is e.xpected that 

 there will be from 1.000 to 1,500 

 local meetings held on the same 

 night throughout the state. 



As a part of the program for 

 local and community meetings ar- 

 rangements are being made for a 

 special radio broadcast. 



At each of the live stock mar- 

 keting short courses four major 

 subjects were presented and dis- 

 cussed. Profes.<*or R. C. Ashby of 

 the University of Illinois, pre- 

 sented results of studies which he 

 has made in live stock marketing, 

 particularly those factors which 

 are Important from the standpoint 

 of price determination. The man- 

 ager of the producer agency serv- 

 ing the territory in each Instance 

 presented recent developments In 

 connection with the operations of 

 that agency and of the market on 

 which located. A representative of 

 the National Live .Stock Market- 

 ing Association discussed the na- 

 tional program In live stock mar- 

 keting as it is being carried out 

 by that organization. 



Corn-Hog Program. 



Ray K. Miller, director of live 

 stock marketing for the I. A. A. 

 presented the Illinois program 

 and led the discu.ssion as to meth- 

 ods of extending the service of the 

 cooperatives to more Illinois farm- 

 ers. The emergency corn-hog pro- 

 gram as well as the wide variety 

 of other subjects were presented 

 and discussed at the various meet- 

 ings. 



There has never been a time in 

 which Illinois live stock producers 

 were more intensely Interested in 

 the cooperative program. It is 

 generally recognized that through 

 the establishment and operation of 

 cooperative sales agencies some of 

 the things can be done for the live 

 stock producers which are being 

 done by the NRA for the various 

 Industrial and labor groups. 



A3K PRESIDENT 

 RDOSEVELTTO 

 SPEED EAl AID 



Farm Bureau Leader Heads 

 Delegation In Call At 

 • White House. 



to President 

 25 to speed 



They called on 

 submitted to 



Led by Edward A. O'Neal, presi- 

 dent of the American Farm 

 Bureau Federation, leaders repre- 

 senting farm organizations and 

 publications made three definite 

 recommendations 

 Roosevelt on .Mept 

 agricultural relief, 

 the president and 

 him resolutions adopted at a meet- 

 ing called by the American Farm 

 Hureau Federation, Sept. IS and 

 10 at Chicago which was attended 

 by 16 representatives of general 

 farm organizations, cooperatives 

 and farm papers. 



Embodied in the recommenda- 

 tions were these tliree principal 

 propositions: 



"1 — Harmonizing the NRA and 

 AA.V so that progress of the for- 

 mer will not result in too rapid in- 

 crease of farm costs of operation 

 prior to the effects of the latter in 

 increasing prices of farm prod- 

 uces. <'ontrollcd inflation will un- 

 doubtedly be very effective in 

 speeding up the effects Of the 

 AAA on farm prices. 



"2 — More effective and quicker 

 service in regard to the farm 

 mortgage debt of the nation by 

 Farm Credit Administration. 



"3 — A more definite recognition 

 of organized agriculture, both in 

 regard to general farm organiza- 

 tions and farmers' cooperative as- 

 sociations." 



NRA Boostjv Costs. 



The resolutions presented to the 

 president were emphatic in point- 

 ing out that the first step In any 

 program of national recovery is to 

 restore farm i^iirchasing power, 

 according to Mr. O'Neal. They 

 pointed out that this opinion Is 

 al.so shared by many leaders of in- 

 dustry as well. "While entirely 

 sympathetic to the objectives of 

 the NRA act, farm people are 

 convinced that Its operations to- 

 day have worked to the disadvan- 

 tage of agriculture, in that the 

 disparity which h.is for years ex- 

 isted between the exchange value 

 of farm commodities and the 

 goods and services that farmers 

 must buy has actually been in- 

 creassed," said a resolution. , 



It was pointed out that restora- 

 tion of price parity, which is the 

 objective of the AAA. would prove 

 the .salvation of agriculture In this 

 time of emergency and would like- 

 wise he of trememlous benefit to 

 the nation as a whole, "if this 

 restoration of price parity or 

 proper exchange value of farm 

 products is not accomplished at an 

 early date, it is the opinion of this 

 group of farm representatives that 

 the entire recovery program Is In 

 grave danger," the resolution 

 warned. 



"It is easily possible to secure 

 immediate action in applying the 

 rules and regulations of the NRA. 

 The application of the AAA In- 

 volves greater <llff>riiltle« Hpoh uju 



railroad transportation. 



The Illinois Agricultural Asso- 

 ciation and affiliated companies 

 represent one of the largest users 

 of railroad transportation in the 

 state of Illinois and control the 

 routing of thousands of carloads 

 of farm and other products, which 

 places this organization on a pari- 

 ty with other Industries In .seeking 

 fair and equitable rates for Its 

 members. Without organization, 

 the Individual farmer would re- 

 ceive little or no consideration. 

 Public I'tlllties. 



High ten.olon lines have been 

 steadily extended until they form 

 almost a complete network over 

 the entire state. 



Elecfilcltv on the farm has been 

 urged and experimented with by 

 power companies and educational 

 Institution". As a result, a large 

 number of farms are using elec- 

 tricity. We find, however, 

 »!»•?» Is lack of tinifonnity 

 ss to conditions under which 

 for farm disuibulion were 



GET HOGS IN EARLY 



IS EXPERTS ADVICE 



that 

 Jir.th 

 lines 

 built 



Sharp seasonal reduction in hog 

 receipts has strengthened the mar- 

 ket and prices are expected to hold 

 steady to strong well Into October, 

 according to H. M. Conway of 

 the National Livestock Marketing 

 Association. .storage stocks, the 

 market analyst says, arc particu- 

 larly heavy so it seems ad^^sable 

 to keep hogs well topped out and 

 crowd the early supply of spring 

 pigs for October or ^arly Novem- 

 ber. 



Lower prices seem likely In 

 December but a sharp come-back 

 Is expected in the late winter. The 

 fall pig crop has been greatly re- 

 duced and similar reduction which 

 is unofficially reported, will take 

 place in the pig crop thus making 

 for a sharp downward swing In 

 hog production. 



Despite relatively high corn 

 prices the situation Is becoming 

 more favorable for live stock feed- 

 ers, particularly so in the c.ise of 

 cattle. Short supplies are now in 

 sight and it Is a year when It will 

 pay to emphasize quality and fin- 

 ish. Rather wide price v.iriations 

 are expected thus making for 

 more attractive margins. 



of the nature of the farming busi- 

 ness. This fact explains why 

 wages can be quickly increased 

 and the price of non-agricultural 

 commodities quickly raised, both 

 to the great disadvantage of the 

 farmer until such time as the price 

 level of farm products can l>c 

 brought to a proper price parity." 

 Afk Inflation. 



The farm lenders explained that 

 the president has the power to 

 harmonize and unify the advan- 

 tages of l)Olh a«ts and urged as 

 the quickest and easiest way to 

 bring about this action, that the 

 president immediately launch a 

 program of inflation along the 

 lines which have been repeatedly 

 suggested by farm organizations. 

 "Further delay. ' they said, 

 "threatens the success of the re- 

 covery program and destroys the 

 hope which has been the sus- 

 taining force In agriculture dur- 

 ing the past three years." 



The group expressed approval 

 ««f the steps taken \>\ the Faini 

 Credit Administration but felt 

 that progress in ndministering the 

 l>cneflts of the farm credit act has 

 be«'n rather halting to date. "In 

 the endeavor to establish perfectly 

 safe methods of financing, the 

 Farm Credit Administration may 

 feel Ju.stified in nia><ing progress 

 slowly," it was stated, "ilowcvcr, 

 it is our opinion that the critical 

 condition of agriculture at this 

 time justifies great tolerance in 

 the formulation of credit rctiuire- 

 ments and justifies all possible 

 speed In relieving a very acute 

 situation." 



It was recommended by the 

 group headed by the Farm Bu- 

 reau's national |)residcnt that the 

 Farm Credit Administration and 

 federal land banl<s l)ase their 

 policy of the pro1>abllity of price 

 recovery and so insure that the 

 benefits of recovery shall accrue 

 to present owners of farm land in- 

 stead of to those money lenders 

 who are rapidly acquiring farms 

 through foreclosures. 



"The term "normal" as applied to 

 appraised values should be rede- 

 fined on a much more liberal 

 basis." a resolution explained. 

 "X'aluations and loans must be 

 high enough to prevent the ma- 

 Jnritx of good farmers from being 

 dlspo.s.sesaed. I'nless farm prices 

 are quickly restored to • parity, 

 the whole e<<)nomic structure will 

 collap.se. The Farm *"redlt» Ad- 

 ministration should do its full part 

 to avert that collapse." 



The resolutions declared that In- 

 asmuch as farmer cooperatives arc 

 the only agencies engaged in dis- 

 tributing farm products which are 

 sincerely striving to increase com- 

 modity price levels, these associ- 

 ations should be given special con- 

 sideration in determining credit 

 policies. 



Adequate credit accommodations 

 were particularly recommended 

 for the sound cooperative organi- 

 zations. 



"It is our observation," said the 

 third resolution, "that under the 

 NRA the government is giving full 

 recognition to organized lal)or 

 through insisting that all indtis- 

 trial codes shall recognize the 

 right of labor to organize and en- 

 gage In collective bargaining. 



"We urge and insist that the 

 officials of our federal govern- 

 ment now |»roceed to give the 

 same degree of approval and re- 

 cognition to organized agriculture, 

 both to general farm orffanlzati«>ns 

 and the farmers' cooperathe asso- 

 ciations, that i.i now being given 

 to organiied labor. " 



FARM CREDIT EOl 



) 



(Continued from Page 1) 



place for a hearing, at which ai y 

 creditors opposing confirmation 

 may state their opposition. 



"If the Judge does not confirjn 

 the proposal he may dismiss tl e 

 ]>roceedlng8 or r«fer the specific 

 tlons to the commissioner for tes' i- 

 mony and report, and then mi 

 confirm the proposal or dismiss tl 

 proceedings. 



"After a settlement or extension 

 has been confirmed, the judge mfy 

 set It aside and reinstate the caie 

 if fraud has been discovered. 



"The filing of a petition pleadli g 

 for relief under the new la ^r 

 places the farmer and his proper jy 

 In the exchifive jurisdiction of tl 

 court, and he can not be put In r 

 Involuntai-y bankruptcy or sued 

 any debt. 



"So execution can be levied on n. 

 judgment of foreclosure nor aty 

 writ to oust the farmer even undi r 

 a tax sale. 



"No levy can be had touchir< 

 his home without consent of ttj 



e 



» 



4i 



ij 



Humed the duties and responslblllt r 

 of the office of President of th^ 

 I'nited States, and a Special Sef. 

 sion of Congress has been cqii. 

 vened and adjourned, giving 

 farmers the "EMERGENCY RI 

 LIEF AND PRICE LNFLATIO 

 ACT," and the "FARM CREDlJr 

 ACT." proposed by the Congress 

 directly address our basic problenL 

 In agriculture, together with othtf 

 major legislations needed In th 

 j)rosent day grave emergent sit. 

 uation. 



Through enactment of the law 

 mentioned, the Congress Intende 

 to provide adequately and expedl 

 tiously for nil reasonable need i 

 of funding farm debts. 



Through the Farm Credit Ac 

 the Congress intended to mak 

 available to farmer cooperati\r 

 and farmers. coo|>eratlve eredi 

 and funds needed to carry on farm 

 ing and marketing operations 

 lower rates of inierest and accord 

 ing to reasonable needs. "Farn 

 Credits" are now centralired b 

 legislation under the "FAR^ 

 C R EDIT AD.MIXLSTRATI 

 with Its (Sovernor. Deputy O' 

 ernor and Commissioners, and w 

 twelve regional divisions, 

 have tl>e banks for cooperatives — s 

 "Central Bank for cooperatives 

 and twelve regional "Banks for Co 

 operatives." We have twelve re. 

 gional "Production Credit Corpora 

 tlons," and "Production Credit As- 

 sociations." as and when chartered 

 by the Oovernor of the Farm 

 Credit Administration. The.se new 

 institutions are in addition to th^ 

 Federal Land Banks now "liberal- 

 ized" by authority of Congress anr 

 intended to be so administered In 

 reason, and also the Intermedial 

 Credit Banks. Other emergency 

 credit agencies, heretofore created 

 are continued for the present, tc 

 which h«s been added new emer- 

 gency financing, "LAND BANK 

 COMMI.SSIONEK'.S LOANS 



Congress Intended, through First 

 Mortgage Federal Land Bank 

 Loans and Lynd Bank Commls.sion 

 er's Loans, at lower rates of, in 



the worthy debt-ridden farmer 

 might fund his indebtedness, sub 

 ject to reasonable requirements of 

 rules and regulations protectin;; 

 and assuring the permanency o 

 these institutions. 



Congress Intended that Prodiie 

 tion Credit should be freely avail 

 able, in reason, to farmers, throug 

 "Production Credit Associations, 

 and at reasonable rates of interest; 

 particularly In the absence of many 

 country banks and by reason of 

 light deposits and present day re 

 quirements on banks with respect 

 to keeping assets liquid. 



We appreciate the iinprecedent 

 ed demands made on Federal Land 

 Banks and National Farm Loan 

 Associations, immediately on en 

 actment of the legislation by the 

 ("ongress in a Special Session, put 

 ting the Land Banks in funds and 

 actively in operation again, with no 

 other .source of funds available foi 

 farm loans. Normal valuations ol 

 farms for loans were to be de 

 termlned on a new basis, "the val 

 lie of the land for agricultural pur- 

 pose.'* shall he the basis of ap 

 pral.<«l and the earning power of 

 ."sald land shall he a principal fac- 

 tor." The Land Banks were with- 

 out trained personnel In number 

 to take care of applications: result- 

 ing in delays, discouragements, dis 

 appointments and criticLsm. 



Farm l^oan Commissioner"s Lofln 

 were well "advertised" bv tho 

 Pre.ss .Service of the Farm Credit 

 Administration and literature on 

 the subject distributed, encourag- 

 ing and leading many distressed 

 farmers to believe such loan' 

 would he freely available; result- 

 ing In disappointments and criti- 

 cism. 



We are now witnessing the for-l 

 matlon of the first Productlo 

 Credit Assofiations in our Stat 

 These institutions are Intended tdt 

 permanent, providing coopera, 

 credit for farmers, and arf 

 needed, particularly at the preseni 

 time. The Association has offered 

 ts .services intending, within it 

 Ilmitation.>., to be helpful to the 

 Deputy Governor, of the Far 

 Credit Administration. In connec 

 tion with the setting up of the Pro 

 duciion Credit Corporation of .St 

 Louis and local production Credl 

 Association.-, in this connection it 

 was stflted l>y your officers tha 

 we regard if as essentially im- 

 portant, if the Production Credit 

 » orporatlon and local 

 Credit Association 



"4 



be 

 the 



Prodiictlor 

 are really t( 



serve farm people, that the region 

 al admlnLstration Is free to formu 



tale 

 tion 



rea.sonahle rules and rcgula 

 thit «re suitable, and an 

 sound, for the guidance or limila 

 tion of local Production Credit As 

 social ions. Equally important li 

 our judgment is the selection o 

 properly qualified and informal 

 personnel that is both wise an/ 

 sympnfhetic, to conduct the bus! 

 ne.ss of the local A#«oclatlon. Th 

 services of the A.ssociatlon wer 

 proffered in the Interests of 

 farm people in Illinois, which f 

 lows the established policy of t 

 Association In such matters. 



Congress Intended that the f 

 benefits available through 

 credit institutions 

 worthy farmers, 

 of these acts, as 

 perfected in the 

 will determine the 

 th?.-e Institutions 

 us. fulness to farmers. Our far 

 eis in Illinois through orgnni 

 tion, their As.soclation. should 

 operate In developing the full va 

 of the.oe Institutions, as Inten 

 by the Congress. 



the! 

 should real 

 Admlnl.stratlt 

 organization 

 Administiatic 

 permanency 

 and their r( 



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