I. A, A. Aids In Getting ' ^ 

 Lower Utility Rates 



Believes There Should Be Stand- 

 ard Charge For Light And 

 Power Service 



REDUCTIONS in light and power 

 rates recently announced by a 

 number of utility companies 

 operating in Illinois follow efforts over 

 a period of several years by the Illi- 

 nois Acn^icultural Association and va- 

 rious County Farm Bureaus to secure 

 reductions for rural users. 



Early last year the Illinois Com- 

 merce Commission cited many public 

 utility companies to show cause why 

 the rates charged for electricity should 

 not be reduced, states G. W. Baxter, 

 director of transportation. Hearings 

 have been held in connection with va- 

 rious companies and this department, 

 working through the Illinois Com- 

 merce Commission, has assisted in fur- 

 nishing data and other information in 

 connection with rural rates. The com- 

 panies making rate reductions are as 

 follows: 



^^^^^' ^^^^ F^ $9 to $6 



Central Illinois Public Service Comr 

 pany reduced the minimum from $9 to 

 |6 for a period of two years and 

 thereafter $3 based on a rate of 9c per 

 kilowatt hour for all electrical energy 

 used in each month for 3 kilowatt 

 hours per room; 8c per kilowatt 

 for the next 4 kilowatt hours 

 used per room per month; 6c 

 per kilowatt hour for the next 6 kilo- 

 watt hours used per room per month; 

 and 3c per kilowatt hour for all addi- 

 tional used. This is the rate used in 

 cities. It is beneficial to the small 

 user. An additional 3c block is also 

 added where heretofore it was 5c. 



The present $9 per month minimum, 

 which includes 150 kilowatt hours per 

 month and all over 150 kilowatt hours 

 3c per kilowatt hour, is continued in 

 effect because that basis, where actual 

 energy is used, will produce a lower 

 charge than based on the other rate. 



The Central Illinois Electric and 

 Gas Company after conferences with 

 the I. A. A. and the Illinois Commerce 

 Commission reduced their minimum 

 from |9 to |5 per month. 



The Illinois Power and Light Cor- 

 poration reduced the minimum on com- 

 pany financed lines from $9.00 to 

 $6.00, and customer financed lines to 

 $4.00 with a rate of 9^^c per kilowatt 

 hour for the first 50 kilowatt hours 

 and S-l/lOc for all over 50 kilowatt 

 hours. :/ . 



The Sherrard Power System (Henry 

 and Rock Island counties) reduced 

 their rates after several conferences 



"I will join with farmers in 

 fighting to the last ditch any at- 

 tempt that will be made to crip- 

 ple the principle and practice of 

 co-operative marketing. We of 

 the farm belt should stand shoul- 

 der to shoulder against all such 

 attempts; we should not allow 

 ourselves to be turned aside 

 from the goal by arguments, 

 nor even by possible failure of 

 some co-operative movements 

 and some co-operative associa- 

 tions, to accomplish that goal." 

 — Senator Arthur Capper of 

 Kansas..;-../: ■ --■ .f.- ^:^'w;-^-.'.-r.. - k-. 



Land Bank News 



from 15c for the first 60 kilowatt 

 hours to 10c for the first 50 kilowatt 

 hours; from 10c for the second 60 

 kilowatt hours to 5c for the next 40 

 kilowatt hours, and from 5c for all 

 over the first 120 kilowatt hours to 

 3c for all over 90 kilowatt hours. U 



There are other companies yet in- 

 volved, such as Public Service Com- 

 pany of Northern Illinois; Illinois 

 Northern Utilities, and Western 

 United Gas and Electric Company, on 

 which hearings are either in process 

 or yet to be heard. These companies 

 are making a determined fight to pre- 

 vent any reductions in their present 

 revenues, ^'-'v. ... , .,. ■•"-•;■■-:■■•:;•■■.■-.;••■- --...o 



'■;';';• V Absorb Tax '^^ /■ ^^ .!\. ;•:•'.. ■ 



Effective September 1, 1933, the 

 three percent government tax which 

 had been paid by the customer was 

 absorbed by the utility companies, and 

 the two percent state sales tax which 

 is to be absorbed or paid by the com- 

 panies is now under litigation to deter- 

 mine the legality df this charge. If 

 they are required to pay that, it will 

 mean an additional five percent which 

 the companies will have to assume. 

 They claim they will not be able to 

 operate at a profit if any further re- 

 ductions are made, .i^ ' . 



The Illinois Commerce Commission 

 has employed expert utility account- 

 ants to assemble data to present at 

 these hearings. It will be noted that 

 there are various rates and minimums 

 applied in connection with the various 

 companies. The I. A. A. believes there 

 should be a standard rate and mini- 

 mum for rural electrification. 



As a result of a recent swapping 

 agreement between the United States 

 and France the latter country took 

 one million barrels of apples from 

 the United States in exchange for an 

 increase in the quota of French wine 

 imported into this country; 



<* a > 



The Farm Credit Administration of 

 St. Louis recently came out with the 

 first issue of its new official organ 

 the "St. Louis Farm Credit Adminis- 

 tration Record." 



The publication follows closely the; 

 editorial make-up of the I. A. A. Rec- 

 ord. 



Interesting news published in the 

 opening number states that the Land 

 Bank had loaned $40,650,100 in the ten 

 months ending Feb. 28, 1934. This in- 

 cludes 14,028 land bank and com- 

 missioner loans. 



On March 17 Production Credit As-, 

 sociations now organized in Illinois, 

 Arkansas and Missouri have approved 

 2,302 loans for $1,297,949.23. These- 

 loans are discounted through the in- 

 termediate credit bank. The loans ap- 

 proved represented 72 per cent of the 

 applications submitted. :• • v. 

 ^ The interest rate on short-term 

 piroduction loans obtained through the 

 Production Credit Associations was 

 recently reduced from six to five and 

 one-half per cent, but the borrower 

 must subscribe for stock equal to five 

 per cent of the amount of money bor- 

 rowed, also pay inspection and record- 

 ing fees on the chattel mortgage. 



Co-operative associations eligible 

 for loans may borrow from the St. 

 Louis bank for co-operatives at three 

 and one-half per cent interest on 

 working capital loans and four and 

 one-half per cent on facility loans. 



During 1933 the Federal Land Bank, 

 of St. Louis sold 632 farms for a little 

 over $1,600,000. Fifty-one per cent of 

 these farms were purchased by city 

 and town residents. The farms are of- 

 fered on terms of 25 per cent cash 

 and the balance in a 20-year amortized 

 loan. Last year 83 farms were sold for 

 all cash, one investor paying $72,000 

 in cash for several farms. - / 



Peoria Buys Building 



The Peoria County Farm Bureau re- 

 cently bought a two-story brick build- 

 ing at Madison and Fayette streets in 

 Peoria to be used as an office and 

 headquarters. The building is a sub- 

 stantial brick structure and was 

 erected in 1915 by the Peoria Musical 

 College. 



John C. Watson, director of tax- 

 ation, addressed property owners on 

 Chicago's northwest side recently on 

 ''Fundamentals of the Tax Situation 

 in Illinois." The meeting was spon- 

 sored by the Northwest Real Estate 

 Board. ^ ^■■'^■'\- ■'■<■'. -■'■'■ :'r);r.: ■■■■ 



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L A. A. RECORD 



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