' ■ ..'. 



Not A Dollar Lost 



; On Bond Investments 



; -f 





• Constant change is the rule of life, 

 particularly in investments. Conserv- 

 ing tbs $4,064,000 of invested funds, 

 all bonds, representing assets of the 

 I. A. A. and associated companies is an 

 important job to which Vice-President 

 and Finance 

 Committee Chair- 

 man A. R. Wright 

 of Varna is giv- 

 ing much of his 

 time. 



. Country Life 



I n s u ranee Co.'s 



bond account at 



a p p r oximately 



$2,372,000 ranks 



first; second is 



Illinois Agricul- 

 tural Mutual 



with $1,006,300 



invested in securities. Illinois Farm 

 Supply has $250,170; Farmers Mutual 

 Reinsurance $164,600; I.A.A. $149,- 

 000; Illinois Grain Corp. $63,800; Illi- 

 nois Agricultural Service Co. $25,300; 

 Serum Ass'n. $21,400; Auditing Ass'n. 

 $10,000; Illinois Livestock Marketing 

 $1,000; Illinois Producers Creameries 



Federal government holdings 

 amount to nearly three-fourths of 

 the total at $2,892,273. Municipal 

 bonds (including state governments) 

 total close to $877,000. Corporation 

 bonds (railroads and utilities) make 

 up the balance. ••''^^•' ■';>-• -.-^ ■■■•;■- '•^-; - '■ ■':^ ''■■'■..:■ 



A. R. WEIGHT 



For several years, the policy of the 

 companies has been to invest in gov- 

 ernments. This practice is now being 

 followed by most large fiduciary com- 

 panies because of the uncertain out- 

 look of business conditions which may 

 seriously affect other securities. v 



A card record system and file with 

 up-to-date information is maintained 

 on every security issue of which there 

 are more than 150. Moody's, Stand- 

 ard Statistics, and several financial 

 papers are studied and checked for 

 trends of earnings and cash position 

 of the issuing corporations. Expendi- 

 tures and attitude of city and state 

 officials toward meeting obligations 

 are watched in case of municipals. 



The conservative investment policy 

 of these farmer-owned and farmer- 

 controlled enterprises has kept each 

 company in a strong financial posi- 

 tion throughout the depression. While 

 interest earnings are moderate, not a 

 dollar invested in bonds has been lost. 

 Not a single bond is in default as to 

 interest or principal.* 



* One possible exception is a municipal (De- 

 troit) which paid two-thirds of interest due in 

 cash, issued refunding bonds to cover the balance. 



The Cover 



Hard-headedness, intelligence and 

 character, typical of the Farm Bureau 

 leadership in Illinois, are written on 

 the faces of Knox County Farm Bu- 

 reau directors who recently erected a 

 monument, a splendid Farm Bureau 

 building, to the constructiveness and 

 permanency of the organization in 

 this state. 



Early leaders in Knox county look- 

 ing ahead started a building fund, 

 added something to it each year. The 

 structure and equipment costing in 

 excess of $17,500 is now paid for out of 

 funds saved over a period of more 

 than 15 years. 



The Farm Bureau office is a gen- 

 eral meeting place for farm families 

 who are members, says A. R. Kemp, 

 farm adviser. The ladies can wait 

 for their husbands, or husbands for 

 their wives in the waiting room. 

 "Several members have told us that 

 the large parki* ^ yard in the rear of 

 the building, now graveled and fenced, 

 is worth the price of their member- 

 ship annually as they now know 

 where they can park and where their 

 cars will be safe." 



Calls Direct Buying An 



Unhealthy Condition 



Quad Cities Producers 

 Doing Better Under License 



V Average price for June milk at the 

 Quad Cities (3^% test) was $1.26 

 per cwt. After paying a check-off of 

 six cents (administrator 2c, associa- 

 tion 4c), hauling 16 cents, net price 

 at the farm was $1.04. For each one- 

 tenth per cent butterfat above and 

 below 3.5%, three cents is added or 

 subtracted. ' ''' -•' "''' '";"?'••=■' '''''^'''.aV-. •■--'"'" 



This price compares with a tange 

 of 80 to 90 cents per cwt. minus 16 

 cents hauling, received by farmers 

 before the marketing agreement went 

 into effect. ; . • .. : . - ^ 



Dealers jumped the retail price 

 from six to nine cents per quart. 

 Several threatened to go back to 8 or 

 7 cents when consumer demand fell 

 off, later changed their minds as de- 

 mand picked up after the shock of a 

 50 per cent raise. - 



"The new price makes a difference 

 of about $20 a month in my milk 

 check (10 cows)," reports Herb 

 Klawonn, director in Quality Milk As- 

 sociation. 



Most dealers are delivering milk 

 testing 3.8 per cent or better, skim- 

 ming part of their supply and adding 

 cream to the balance to raise the test. 

 Class 4 milk selling on a butterfat 

 basis, plus 10 per cent, is being boot- 

 legged into the Quad City area in 

 violation of the agreement, reports 

 state. Base price at Quad Cities is 

 $1.60, lower prices for other classes. 



' Terminal markets should be the 

 basis of a livestock marketing struc- 

 ture, according to C. G. Randell, live- 

 stock market specialist of the Farm 

 Credit Administration. 



"Those markets," he declared while 

 addressing a livestock conference at 

 Madison recently, "must be supported 

 by packers. The terminal markets 

 are the price-making and price-regis- 

 tering points in this country. The 

 withdrawal of support from terminal 

 markets and the consignment of large 

 numbers of low-grade animals to the 

 central markets has a tendency, in my 

 opinion, to lower price levels and to 

 reflect undue fluctuations in day-to- 

 day prices." ^ . ., , 



Commenting upon direct buying he 

 said: "It is an unhealthy condition 

 where the packer is the bargainer, 

 the grader, and the weigher, all in 

 one. Independent agencies perform 

 these services at central markets and 

 the same condition should prevail at 



country points. "■■'-■^:''v:;^:^:vH.K^: iS'^^ 

 "Farmers selling direct should have 

 a co-operative association, a bargain- 

 ing association of some character, to 

 protect their interests. This type of 

 association should assemble and grade 

 livestock and sell it through capable, 

 experienced, and efficient manage- 

 ment. Such associations would be of 

 material assistance in protecting the 

 interests of farmers located near 

 packing companies who are frequent- 

 ly discriminated against in favor of 

 farmers living more remotely from 

 the plant." ■:'■ :; ■:V;'■■^■ •-'^' ''-^ '•■•.?' •'''''■■^"^V.•' 



. * "• 



Plan Federal Inspection 



Prairie Farms Butter 



The board of directors of Illinois 

 Producers Creameries met in Chicago 

 July 14, approved the employment of 

 a government butter inspector at 

 member plants, heard progress re- 

 ports from Frank Gougler and Jack 

 Countiss. Government certificates will 

 be inserted in cartons carrying 

 Prairie Farms butter certifying that 

 the contents score 92 or better. C. 

 O. Tuttle has been assigned to the 

 Illinois co-operative creameries. 



Germany recently suspended all 

 imports of vegetable oils and ole- 

 aginous raw materials except copra 

 (cocoanut). German farmers are be- 

 ing paid minimum guaranteed prices 

 for flaxseed and rapeseed. 





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I. A. A. RECORD 



