in patronage dividends, $25,000 of 

 which was in cash and |1 1,300 in stock. 

 This covered a six-year period 1937-1942 

 inclusive. The elevator reorganized on a 

 strictly cooperative basis in 1934 and 

 has long been a member of Illinois 

 Grain Corporation. 



There were some interesting reactions 

 from a few patrons when the first patron- 

 age dividend was declared. They wanted 

 to know why they were getting dividend 

 checks. After the cooperative setup was 

 explained to them they naturally were 

 enthusiastic about this type of marketing. 



When some of the first patronage divi- 

 dends were paid in the form of capital 

 stock credits to those who did not hold 

 a share of stock, there were some who 

 were a little skeptical about owning such 

 stock. They thought it might make them 

 liable in case the elevator needed money. 

 Their reluctance disappeared when they 

 received the second patronage dividend in 

 the form of cash, and interest on their 

 capital stock. 



These few and isolated examples were 

 not at all typical of the general member- 

 ship, but they do demonstrate that the 

 story of cooperative marketing still needs 

 to be told over and over again. 



It also demonstrates that a successful 

 cooperative like the Newark elevator 

 doesn't bloom over night, or that large 

 groups of farmers suddenly decide they 

 want to market their products coopera- 

 tively. It usually starts with a few men 

 who have an idea. These pioneers then 

 have to sell the idea to their neighbors. 

 In many cases this turns out to be a 

 hard selling job. In addition the pio- 

 neers often have to dig down into their 

 own pockets even after the original stock 

 is sold to keep the venture going during 

 the early years. 



The Newark elevator was started in 

 1916, shortly after the Illinois-Midland 

 railroad built the two-mile line from 

 Newark to Millington. Some 19000 in 

 stock was sold to build an elevator and 

 during the early years the elevator paid 

 the railroad $15 per car for hauling grain. 



In 1922 the elevator signed a 20-year 

 lease on the railroad. About a year or 

 so ago the elevator bought out the stock 

 of the railroad and became sole owner. 

 It is undoubtedly one of the few rail sys- 

 tems owned by farmers. Used to trading 

 horses, these farmer board members have 

 learned considerably about the business 

 of railroading and selling and trading 

 locomotives. 



Along in 1923 the Newark elevator 

 bought an adjacent lumber and coal yard 

 for $9000. Some $6000 additional stock 

 was sold at that time. 



Today the Newark elevator board can 

 look back on the lean years and be thank- 

 ful they were not easily discouraged. Vol- 

 ume of grain handled has been increas- 



'Hera crre the men who not only run an 

 elevator, but a railroad as well. Left to 

 right are: Harvey Notem. H. B. Peterson. 



ing every year and the list of patrons 

 has been growing steadily. The 754,836 

 bushels of grain handled in 1943 

 represents a gain over 1942 of 110,370 

 bushels. Merchandise sales of lumber, 

 fencing, coal, feed, salt, and seed 

 amounted to nearly $62,000 in 1943. 

 This was a slight decrease from 1942 

 and is accounted for by a drop of $19,000 

 in the sale of lumber and fencing due 

 to wartime conditions. All other mer- 

 chandise departments showed gains. 



Oscar Thompson. Vemie Anderson. Arthur 

 Hanson, Clair lohnson, E. E. Anderson, 

 and Manager Boy Holverson. 



President of the Newark cooperative 

 is Harvey Norem, who has served on the 

 board for 24 years and as president for 

 1 5. He is also on the board of the Pure 

 Milk Association. E. E. Anderson, sec- 

 retary, has served since 1926; H. B. 

 Peterson, vice-president, since 1933; Os- 

 car Thompson since 1931; Arthur Han- 

 son since 1939, and Vemie Anderson for 

 the last several years. Roy Holverson 

 has served as an able and efficient man- 

 ager since 1926. 



Farm Earnings 

 But Trail 



j ATEST official government reports 

 ^ show that prices paid to farmers for 

 farm products advanced 2 per cent dur- 

 ing the twelve months ending with 

 March 1944, according to the research 

 department of the Illinois Agricultural 

 Association. 



During the same time prices paid by 

 farmers for farm and home supplies in- 

 creased 8 per cent. Farm wage rates 

 increased about 22 per cent in the last 

 12 months for which figures are avail- 

 able. 



The cost of living in urban areas 

 advanced about one per cent during 

 the 12 month period, according to the 

 U. S. Department of Labor. 



Notwithstanding the fact that many 

 inexperienced workers were added to 

 factory pay rolls during the year, the 

 average weekly earnings of factory work- 

 ers increased by 11 per cent. During the 

 same time the total non-agricultural 

 income increased by 17 per cent. 



This indicates that the incomes of 

 the non-factory worker groups, which 

 includes many white collar workers, 

 have had income increases in excess of 

 those granted to factory workers dur- 

 ing the last year. 



Up 2 Percent 

 Factory Wages 



Pay rolls in bituminous (soft) coal 

 mining show an increase of 25 per 

 cent, and pay rolls in anthracite (hard) 

 coal mining an increased 22 per cent. 

 Coal output, as indicated by coal car 

 loadings, increased 11 per cent during 

 the same time. 



It is interesting to compare recent 

 prices and cost with those prevailing 

 in 1929, the most prosperous year on 

 record for industry and labor gener- 

 ally. 



The cost of living in urban areas is 

 now about one per cent higher than in 

 1929. The index of retail food prices 

 is also up one per cent. Factory em- 

 ployment, however, is 57 per cent 

 greater and factory pay rolls are 172 

 per cent greater than in 1929. 



The total income of all industrial 

 workers (including railroad, mine and 

 factory workers) is about 136 per cent 

 higher than in 1929. 



Prices paid by farmers for farm and 

 home supplies are 13 per cent above 

 1929 levels while prices received by 

 farmers for agricultural products are 32 

 per cent above the 1929 figure. Ag- 

 ricultural production in 1943 was 29 

 per cent higher than in 1929. 



MAY. 1944 



If 



