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Farm Supply Company Contin- 

 ues Record-Breaking Pace 



L. R. MARCHANT 



Continued record - smashing progress 

 was reported at the annual meeting of 

 Illinois Farm Supply Company in Deca- 

 tur, October 18. 



The power of collective effort in buy- 

 ing and distributing nearly 80,000,000 

 gallons of petroleum products during the 

 fiscal year ending August 31, 1934 is 

 seen in the report of Manager L. R. 

 Marchant that the 58 affiliated County 



Service Companies 

 at their last fiscal 

 closing declared pat- 

 ronage dividends of 

 1523,179.64 for the 

 year. After paying 

 these refunds, plus 

 $58,410.65 in capital 

 stock dividends, and 

 federal income taxes 

 of $31,480.17, the 

 total surplus of the 

 58 companies was 

 $969,354 or equiva- 

 lent to 103.72 per 

 cent of the Farm Bureau members' 

 original investment. 



This remarkable showing after less 

 than eight years of operation for most 

 companies was made notwithstanding the 

 fact that approximately $2,200,000 has 

 been paid back by the county companies 

 in annual patronage dividends io mem- 

 bers of the Farm Bureau who patronize 

 them. 



79% On Investment 



The Illinois Farm Supply Company 

 itself, which buys for the county com- 

 panies, greatly exceeded all previous rec- 

 ords both in volume of products handled 

 and profits of operation. Net income for 

 the year was $170,900.97 or 79.82 per 

 cent of the grross operating income be- 

 fore deducting patronage dividends and 

 federal income tax. This compares with 

 $128,287.31 for the preceding year. It 

 represents a profit of 171.31 per cent on 

 the investment compared with 85 per 

 cent, five years ago and 127.96 per cent 

 last year. 



The Board of Directors of Illinois 

 Farm Supply declared a patronage divi- 

 dend to member companies of $135,868.61 

 after providing for dividends on pre- 

 ferred stock amounting to $7,072.33, 

 setting aside $23,976.81 to surplus, and 

 paying $3,983.22 in federal income taxes. 



The state company during its brief 

 period of operation has paid in cash 

 to member companies a total of $492,- 

 565.28, or approximately five times the 

 par value of preferred stock. > / \ . 



NOVEMBER, 1934 ^^^i v:'' .i3^■^•'■■'■:■^"■i-^.^^ 



Substantial gains were made in the 

 volume of all products handled. For ex- 

 ample, the gain in petroleum products 

 was 19.2 per cent; in soy oil paint 73.53 

 per cent; in tires and tubes 33 1-3 per 

 cent, etc. 



In his annual report to directors, stock- 

 holders and patrons, Mr. Marchant said: 

 "Co-operative purchasing of farm sup- 

 plies has found an important and perma- 

 nent place in the business system of this 

 state. It has become firmly entrenched, 

 and farmers are not unduly concerned 

 with criticisms and antagonistic attacks. 

 The state company handles 87.4 per cent 

 of the business transacted by co-opera- 

 tive purchasing organizations in Illinois. 

 This is based on figures released by the 

 Federal Intermediate Credit Bank of 

 St. Louis early this year, covering 64 

 Illinois co-operative purchasing organiza- 

 tions." 



Wide Margins Gone 



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The report expressed the belief that 

 the days of wide margins on motor 

 fuels are gone. The time for more diver- 

 sified selling of Illinois Farm Supply's 

 full line of products and for greater 

 economy of operation, is here. 



"Several thousand more farmers in 

 this state will be found ready and wait- 

 ing to accept this service when every 

 member company has advanced to the 

 same degree in covering its territory 

 that a few companies have in the past. 

 A $10,000,000 business annually with 

 150,000 farmer customers is within our 

 reach if we will only set our stakes to 

 provide this enlarged service to the farm- 

 ers of Illinois. With this amount of 

 business our slogan 'A Million Dollar 

 Patronage Dividend in 1940' can be made 

 a reality. 



Encouraging Signs 



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"There are many encouraging signs. 

 For the first time in history the full 

 power of the federal government is be- 

 ing directed to restore agricultural prices. 

 The government is friendly toward the 

 co-operative movement. Agriculture has 

 gone far in the past two years toward 

 freeing itself of burdensome surpluses. 

 Higher prices and benefit payments have 

 opened the way for a more prosperous 

 and satisfying agriculture. This trend 

 toward restoration of farm purchasing 

 power represents a fundamental change 

 in national policy. The opportunities 

 ahead for effective united action by 

 farmers were never greater." 



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Pike And Rock Island 



Companies Organized 



With practically every county now be- 

 ing served by a county service company 

 affiliated with Illinois Farm Supply Com- 

 pany, the period of unit growth is prac- 

 tically at an end. Pike County Service 

 Company and Rock Island Service Com- 

 pany were the only two new county com- 

 panies set up during the past year. The 

 58 associated county companies operate 

 in some 90 counties and serve around 

 75,000 farmers. 



Besides nearly 50 million gallons of 

 petroleum products the companies sold 

 $170,000 worth of Brunswick tires and 

 tubes, more than 500,000 gallons of 

 chinch bug oil or at least 75 per cent 

 of that sold in the state; more than 87,- 

 000 gallons of SOYOIL paint, 33,723 

 gallons of fly spray, 272 tons of fer- 

 tilizers and substantial quantities of al- 

 cohol, radiator solutions, cod liver oil, 

 stock dips, mange oil, and other products. 



Sales Promotion And 



Advertising Important 



Continuous sales promotion, and ad- 

 vertising in the I. A. A. RECORD, 

 Prairie Farmer and County Farm Bu- 

 reau papers are given much credit for 

 the remarkable gains in the co-operative 

 purchasing and distribution of petroleum 

 products and farm supplies during the 

 past eight years. 



Weekly promotional letters to some 

 550 truck salesmen, station operators 

 and attendants have stimulated extra 

 sales' effort. Consistent advertising each 

 month in the I. A. A. RECORD, going 

 to a list today of more than 64,000 Illi- 

 nois farmers each month, has told the 

 story of the company's efforts to con- 

 tinually improve quality of products, and 

 serve patrons at a saving in cost. This 

 publicity has been effective in winning 

 public acceptance of I. F. S. products and 

 has paved the way for increased sales. 



The 1934 IlHnois state corn husking 



contest will be held Nov. 1 on the farm 

 of Wilbur Stockley, three miles north- 

 west of Earlville in LiaSalle county, an- 

 nounces Floyd Keepers of Prairie Farm- 

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Larry Williams dedicated Hancock's 



Service Company's new filling station at 

 La Harpe October 6. The Hancock com- 

 pany was the first co-operative oil com- 

 pany to be organized in Illinois. ' 



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E. H. Walworth, former county ad- 

 viser in Macon county, was recently em- 

 ployed as farm adviser in Warren coun- 

 ty. He succeeds A. A. Olsen who re- 

 signed. :'.■;•■;■'.,'.... -v. '. ■'.' ^-.'y ''■■".:''''■' ij-'- '' 







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