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Grain Meeting at Morris 



' Dedicate New Farmers National Elevator on Illinois River 



DEDICATION of the new 60,000 

 bushel elevator of the Farmers Na- 

 tional Grain Corporation on the 

 Illinois river bank at Morris, November 

 12, was the occasion for a get-together 

 and dinner which brought out nearly 100 

 farmers' elevator managers and direc- 

 tors. Farmers National and Illinois Grain 



Corporation officials, 

 and their friends. 

 Seventeen member 

 elevators and seyen 

 non - members were 

 represented. 



The dinner was 



HARRISON 

 FAHRNXOPF 



held in the evening 

 in the club house of 

 the Morris Country 

 Club, and was ar- 

 ranged by Ray Wat- 

 son of the Grundy 

 County Farm Bu- 

 reau and Harrison 

 Fahrnkopf, manager of Illinois Grain 

 Corporation. 



D. M. Hardy, president of the St. Louis 

 Bank for Co-operatives, was a guest 

 speaker. Among the Farmers National 

 officials who attended were G. C. John- 

 stone, vice-president who is also presi- 

 dent of Illinois Grain Corporation; J. O. 

 McClintock, James Cole, Paul Kelly, 

 John Anderson, and Jack Powers of the 

 Chicago office. Charles P. Cununings, 

 Peoria manager, and managers of branch 

 offices at Pontiac and Mendota attended. 



'i-!;^.:V--'- "'v^-'. '^ 30 Terminals ■•■':.:'x'^""::V"?'- } ; 



Mr. Cole, manager of the Farmers Na- 

 tional Warehouse Corporation, whose job 

 is to see that the co-operative has proper 

 facilities, said that the Grain Corporation 

 is operating 30 terminals with a capacity 

 of 30,000,000 bushels in addition to 

 more than 400 country elevators, giving 

 a combined capacity of 56,000,000 bushels 

 of grain. .-:. - : . *. 



"I am glad to say that all our terminals 

 are now operating in the black," he said. 

 "Illinois Grain Corporation, we believe, 

 is getting its share of facilities, although 

 at the present rate of growth it will not 

 be long until it outgrows present 

 capacity." 



Mr. McClintock who is in charge of 

 developing outlets for grain, showed the 

 close relationship between transporta- 

 tion rates and net returns on grain to 

 farmers. Speaking of corn, he said that 

 the Nebraska situation affects the price 

 of grain at Illinois river points; that with 

 water transportation grain from Illinois 

 can be shipped to the Pacific coast for 

 about half the rail cost from Lincoln, 



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i%v-/-.-i 



DECEMBER, 1934 



Nebraska. He predicted even lower water 

 rates for short hauls. 



"When river business has been fully 

 developed it will affect prices of grain 

 throughout the country," he said. "The 

 Chicago market is the pulse of the grain 

 business in America. If we can take 

 some of the pressure off of the Chicago 

 market on corn, I am satisfied we can 

 influence the price level higher. It will 

 be a market factor if we can take 25,000,- 

 000 bushels of corn out of the Mississippi 

 valley by river. It is possible to ship 

 corn from Morris to Memphis for less 

 than half the rail rate. And you can 

 move grain from Peoria to New Orleans 

 by water for about the same rate by rail 

 from Peoria to Chicago* > 



"The grain business is shifting and it 

 is necessary to be alert and change our 

 methods with the times. Right now there 

 is discussion of building a 14 foot chan- 

 nel from Peoria to Chicago to make pos- 

 sible the loading of lake steamers and 

 going direct through the Great Lakes 

 and the Erie Canal to New York. Every 

 reduction in transportation is reflected 

 in a higher price to the farmer." : v r 

 /••\:^:- .;■■'.■■ ■-.< ••.•■.•?"•;•;' •'•■";.. 



: ' : ■ Truck Competition ■■'■■'■'■ ■^■'■■Ai^-': 



:; Speaking of the new competition to 

 farmers' elevators from truckers, Charles 

 Cummings advised elevator managers to 

 get out and handle this situation if nec- 

 essary by leasing trucks and beating the 

 competitor at his own game. "It may be 

 necessary to go direct to the farmer to 

 get the grain," he said. "We don't know 

 how long this kind of competition will be 

 with us. It probably will not last because 

 trucks are now hauling grain below cost 

 of operation. But while it is here you 

 might as well face the situation and do 

 everything possible to minimize its 

 damaging effects on elevator business." 

 . Jack Powers told how the Farmers Na- 

 tional handled financed accounts, while 

 Mr. Anderson discussed the details of 

 handling bids and orders on the floor of 

 the Chicago Exchange. Explaining the 

 so-called "intimated price," he said that 

 the grain firm must be able to sell the 

 grain offered before it could bid above 

 the standard call price. Anderson has 

 been on the Chicago market for 30 years. 

 He perhaps knows as many buyers, if not 

 more than any other floor man. "We are 

 doing our best to get the most for your 

 grain," he said. 



Mr. Kelly explained operations of the 

 seed division and told how it was work- 

 ing to bring together the seed producer 

 and the consumer. He called attention 

 to the shortage of grass seed this year. 



particularly of alfalfa and the clovers. 



In passing on loans the Bank for Co- 

 operatives considers (1) the purpose for 

 which they are to be used, (2) value of 

 collateral, (3) ability to repay, Mr. Hardy 

 explained. "Our loans bear 4.5 per cent 

 interest," he said. "They are made only ; 

 if we feel confident that the money will 

 be permanently helpful. We avoid loans 

 which possibly might help the co-opera- 

 tive to meet a crisis, but would not solve 

 or overcome an inherent weakness." 



President Johnstone emphasized that 

 the aim of the whole movement is to re- 

 turn the farmer a better price for his 

 grain; and it was this reason which 

 prompted Farmers National and Illinois 

 Grain Corporation to support balanced 

 production and surplus control. 



Vice President A. R. Wright, and Di- 

 rectors Geo. L. Potter and Walter 

 Thomas, of Illinois Grain Corp., and 

 Henry T. Marshall of LaSalle county, 

 former I. A. A. director, spoke briefly 

 about the development of their local 

 elevators and their relationship with 

 Illinois Grain Corp. Geo. E. Mellen, 

 manager of Mazon elevator, the young- 

 est member, spoke briefly for the man- 

 agers. Harrison Fahrnkopf ably presided 

 as toastmaster. .•.-••■^-.;- :::• ■^;•••: .-.-v'''- ^-y. ■:-:• ; 



J. S. Sproul of the Public Service Com- 

 pany generated much enthusiasm and 

 good fellowship by leading community 

 singing. . :■^'^'■•••^■I'^^":?...;^■'?'■r?/•'■.■'"^^ 



;>>> Ussons Of 1934 i^' 



.< (Continued from page 6) ;^ v, 



that developed in parts of Illinois and in 

 entire states farther north and west 

 should teach us that future farm plans 

 must include preparations for such emer- 

 gencies. Our helplessness against the 

 many ruinous effects of the drouth 

 should teach us that not all the problems 

 of agriculture and food production are 

 solved nor are they ever likely to be. 

 Our experiences with the corn-hog plan 

 and other AAA programs should teach 

 us that farm relief and farm progress 

 can not come without close and sincere 

 cooperation between farmers^, \^ - ; 



Indeed, 1934 has not been without its 

 lessons. How well we have learned them 

 remains for future years to prove. 



inois 4-H Members 



At Fat Stock Show 



Illinois farm boys and girls will be 

 well represented in the junior classes of 

 the 1934 International Live Stock Exposi- 

 tion, to be held in Chicago December 1 



Approximately 125 youngsters from 37 

 Illinois counties have listed entries of 

 their prize baby-beeves, lambs, and pigs 

 for the Exposition's Junior Live Stock 

 Feeding Contest. ^ ' - 



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