the Company, which now equals sixty- 

 two percent (62^f) of its total out- 

 standing capital stock. 



Illinois Producers' Creameries 



During the past year the ten members 

 of Illinois Producers' Creameries pro- 

 duced 6,484,383 pounds of Prairie Farms 

 butter, 2,577,083 pounds of powdered 

 milk, and 233,740 pounds of cheese. 

 Its operations were substantially larger 

 than those of any previous year. From 

 its net earnings, the Company paid $1,- 

 943.04 in dividends on its outstanding 

 capital stock, $20,061.47 as quality pre- 

 miums and patronage dividends, and $5,- 

 800.59 was added to the surplus of the 

 Company. Records disclose that Illinois 

 farmers have an investment in .stock of 

 Illinois Producer's Creameries and mem- 

 ber companies now amounting to $471,- 

 092.00, and that this investment is now 

 supported by a surplus equaling sixty- 

 seven percent (67%) of total outstand- 

 ing capital stock. 



Illinois Grain Corporation 



Illinois Grain Corporation handled 

 20,600,000 bushels of grain during the 

 twelve nnonth period ending September 

 30, which was an increase of fifty-four 

 percent (54%) over that handled the 

 previous year. A substantial fxjrtion of 

 this increase came from the Farmers 

 Grain Dealers' Association of Iowa, 

 which during the year became a member 

 of the Illinois Grain Corporation. The 

 Illinois Grain Corporation had net earn- 

 ings amounting to $147,392.25, which 

 is more than four times the earnings of 

 the previous year. Again is witnessed 

 the importance of volume for the suc- 

 cessful operation of an institution of this 

 character. After the payment of $5,- 

 952.00 in dividends upon its outstanding 

 capital stock, and the payment of cash 

 patronage dividends amounting to $91,- 

 348.28, the surplus of the Company at 

 the close of its fiscal year, June 30, 1944, 

 amounted to $91,874.00, which is $31,- 

 086.00 in excess of the surplus of a year 

 previous. 



Illinois Wool Marketing Association 



The volume of wool handled by Illi- 

 nois Wool Marketing Association was 

 much less than that of the previous year. 

 This was largely occasioned by the static 

 market resulting from stipulated prices 

 by the government. However, the serv- 

 ices of the Association were valuable to 

 farmers in holding a definite floor under 

 the market in all sections of the state. 

 Although showing loss in volume han- 

 dled, the Association's earnings war- 

 ranted the payment of the full dividends 

 on its outstanding capital stock. 



The operations of all of the business 

 corporations, on which I have reported 

 very briefly, continue under the manage- 

 ment of Illinois Agricultural Service 

 Company. The relationships existing be- 

 tween these organizations and the co- 

 ordination of their activities with the 

 general program of the Farm Bureau 

 of Illinois were never better. The pur- 

 pose of these service organizations is to 

 serve Farm Bureau members, and that 

 they are measuring up fully to these re- 

 sponsibilities, is proven by their steady 

 and healthy growth in volume, in earn- 

 ings and in the improvement of their 

 financial positions. It is only fair to 

 say that the valued service they are per- 

 forming is gaining attractiveness and is 

 contributing materially to the steady in- 

 crease in the membership of the county 

 Farm Bureaus and the Illinois Agri- 

 cultural Association. 



Illinois Milk Producers Association 



Illinois Fruit Growers Exchange and 



Illinois Cooperative Locker Service 



Relationships with the Illinois Milk 

 Producers Association, the Illinois Fruit 

 Growers Exchange, and the Illinois Co- 

 operative Locker Service continue on a 

 very cooperative and satisfactory basis. 

 While these organizations are not oper- 

 ated or managed by the Management 

 Service provided by the Illinois Agricul- 

 tural Association, their interests and ac- 

 tivities are closely associated with those 

 of the Illinois Agricultural Association 

 and are generally regarded as being a 

 definite part of the Farm Bureau program 

 in Illinois. Reports on their respective 

 activities during the year appear to be 

 very satisfactory to those they serve, and 

 I could not ask for more cordial under- 

 standing and relationships than those 

 existing between them and the Illinois 

 Agricultural A.ssociation. 



Plan Program Expansion 



While all Farm Bureau members in Il- 

 linois should be, and I believe are, right- 

 fully proud of the outstanding success 

 the Farm Bureau service organizations 

 have made, and I find great satisfaction 

 in their outstanding achie\'ements, yet 

 I feel deeply that an expanding member- 

 ship requires improving, expanding and 

 strengthening of the general Farm Bu- 

 reau program. 



Thoughtful people are laying plans 

 so as to best meet the problems that will 

 be confronted in the readjustment era. 

 This is equally true of foreseeing institu- 

 tions. The Illinois Agricultural Asso- 

 ciation is laying plans for further devel- 

 opments in the field of marketing, par- 

 ticularly grain and livestock. It also has 

 well developed plans for a substantial in- 

 crease and improvement in its various 



lines of publicity and in the field of pub- 

 lic relations. Your organization has the 

 necessary capital for these needed addi- 

 tions to the present program, and will be 

 prepared to move forward to the full 

 extent the membership may desire just 

 as soon as lirrJitations of manpower and 

 materials are removed. 



State Legislation Discussed 



The Sixty-Fourth General Assembly 

 will conven^early in January, and as in 

 former sessions," many hundreds of bills 

 will be introduced having indirect, if not 

 direct, effect upon farm and rural inter- 

 ests. I cannot, of course, anticipate the 

 subject matter of such proposed legisla- 

 tion, but there are a few matters of wide- 

 spread interest and importance to farm 

 people that I feel I should discuss briefly. 

 Undoubtedly, there will be many bills 

 introduced having to do with our school 

 system. This has been repeatedly true 

 throughout many recent sessions of the 

 General Assembly. While always trj-ing 

 to be constructive, the Association has 

 been forced to oppose many of the bills 

 having to do with the readjustment of 

 our rural school structure. It is not my 

 purpose to criticize or to question the 

 motives of those initiating much of this 

 legislation, but I do not hesitate to say 

 that, with limited exception, proposals 

 heretofore considered have come from 

 people who had only limited understand- 

 ing of the underlying school problems in 

 our rural areas, some from those having 

 selfish interests to ser\'e, and very few, if 

 any, of such proposals were the result of 

 mature thinking and recommendation bv 

 the parents of children or those responsi- 

 ble for the maintenance of rural schools. 

 I refer particularly to proposed legislation 

 that would have forced consolidation of 

 rural schools, that would have provided 

 a statewide school board with widespread 

 powers for the determination of local 

 problems, and prof>osaIs of varied char- 

 acter, which in differing degrees, would 

 strip from those most interested within 

 the districts, rightful authority in direct- 

 ing the affairs of their respective schools. 



lAA Committee Studies Schools 



It was because of these continuing ex- 

 periences that the Board of Directors a 

 year ago last March authorized the selec- 

 tion of a statewide school committee for 

 the purjx>se of reviewing the many prob- 

 lems connected with our rural schools, 

 and to make recommendations for con- 

 sideration at this annual meeting. 



The leaders of the county Farm Bu- 

 reaus from each of the fifteen congres- 

 sional districts downstate were requested 

 to select two interested and informed 

 people, and these, together with the Pub- 

 lic Relations Committee of the Illinois 



8 



L A. A. RECORD 



