HD1484 \S2.\e. SIW pi; \)r^. X * % ,»)« Cornell University Library HD 1484.A4 1921e Farm organizations.Hearing before the Co 3 1924 013 716 422 ARM ORGANIZATIONS HEARING BEFORE THE COMMITTEE ON BANKING AND CUEEENCY OE THE HOUSE OF EEPEESENTATIYES FRIDAY, JANUARY 21, 1921 STATEMENT OP MR. GRAY SILVER Washington representative of the American Farm Bureau Federation, Washington, D. 0. %«J^ WASHINGTON GOVERNMENT PRINTING OPPICB 33920 1921 COMMITTEE ON BANKING AND CURRENCY. House of Representatives. sixty-sixth congebss, third session. LOUIS T. McFADDEN, PORTER H. DALE, Vermont. RoscoE 'c. Mcculloch, owo. EDWARD J. laNG, Illinois. FRANK D. SCOTT, Michigan. ADOLPHUS P. NELSON, Wisconsin. JAMES G. STRONG, Kansas. L. S. ECHOLS, West Virginia. EDWARD S. BROOKS, Pennsylvania. WILLIAM H. HILL, New York. ROBERT LUCE, Massachusetts. CLARK BURDICK, Rhode Island. Pennsylvania, Chairman. MICHAEL F. PHELAN, Massachusetts JOE H. EAGLE, Texas. OTIS WINGO, Arkansas. HENRY B. STEAGALL, Alabama. JAMES A. HAMILL, New Jersey. AUGUSTINE LONERGAN, Connecticut CHARLES H. BRAND, Georgia. W. F. STEVENSON, South Carolina. Fkederic H. Blackford Clerk. FARM ORGANIZATION. Committee on Banking and Currency, House of Representatives, Friday, January 21, 1921. The committee met at 10.30 o'clock a. m., Hon. Louis T. McFadden (chairman) presiding. The Chairman. Mr. Silver, the committee will now be glad to hear you in connection with what the American Farm Bureau Fed- eration is, along the lines of the suggestions made by Mr. Marsh, who was before the committee the other day, and the conversation I had with you. The committee, of course, is aware of the fact you ap- peared before the investigating committee of war expenditures, and we have before us a copy of your testimony given before that com- mittee. There are a few questions I would like to propound to you in connection with the American Farm Bureau Federation. Do you wish to make a preliminary statement before I present these ques- tions ? STATEMENT OF MR. GEAY SILVER, WASHINGTON REPRESENTA- TIVE OF THE AMERICAN FARM BUREAU FEDERATION AND MEMBER OF THE EXECUTIVE COMMITTEE. Mr. Silver. I might rather make it after having the questions and having the thought that you have in mind. I might then better understand what is in your mind. The Chairman. The first question is. What is the American Farm Bureau Federation? Mr. SiL\'ER. It is a volunteer organization of farmers with local clubs of less than a county unit, of county unit bureaus, county unit bureaus federated into State bureaus, and State bureaus federated into the American Farm Bureau Federation, the national association. The fees, or membership contributions, naturally vary in different States, running from $5 to $15, in the main, per member. The Chairman. How many States are members of the federation? Mr. Silver. I think it is 40. There were 38 reported at our last meeting, but there have been a few added since then, and I think at this time it is 40. The Chairman. What is your total membership ? Mr. Silver. The total membership is something beyond a million and a half. The Chairman. The American Farm Bureau Federation, then, represents the farmer interests in much the same way as the Ameri- can Federation of Labor represents labor and the United States Chamber of Commerce represents business? Mr. Silver. I do not know just the details of the workings, but I would say that in the main our national life seems to be divided into three groups. Capital is represented by the United States Chamber of Commerce, labor is represented by organized labor, and the farmer is represented by organized farmers. The federation, as I said a moment since, is a volunteer organization and is endeavoring to represent the farmers' wishes and welfare in things pertaining to agriculture. 38 FAEM ORGANIZATIONS. The Chairman. For the beneJ&t of the committee, will you tell us what the function of a county farm bureau is ? Mr. Silver. The function of a county farm bureau is to aid with things educational and economic — in greater crop production, better methods of crop production — varying the different crops so that they would maintain soil fertility and make the maximum yield from the acres of land involved, and in developing better marketing methods — cooperative marketing. The Chairman. Is the county agent the nucleus around which the county organization is built ? Mr. Silver. The county agent has no official connection with the farm bureau. The farm; bureau is an organization separate unto itself. They do close work in supporting the work of the county agent. The county agent is a representative of the Government and spreads or teaches the newest and best methods that have been devised by the experts in the Department of Agriculture. The Chairman. As a matter of fact, is he not the Johnny-on-the- spot, so to speak, and he assists in planning and carrying out the membership campaigns within the county? Mr. Silver. No ; Ihave never known of a county agent — I refer to the agent as recognized under that name — to be the membership man or in any way identified, other than he might take out a member- ship the same as any other citizen in the county, so far as the farm bureau direct is concerned. The Chairman. Who employs the county agent, and who directs his work? Mr. Silver. The county court, usually, along with the Federal Government. The Chairman. The county court ? Mr. Silver. The county court contributes to the fund and the Fed- eral Government contributes to the fund. It is a joint arrangement. When I say " county court," I mean that county finances contribute to it. I do not mean to convey the idea it is the court itself. The Chairman. So that he is within the joint employ of the United States Department of Agriculture, through the land-grant colleges, ^Yhere they have them — in Pennsylvania, of course, they have the Pennsylvania State college extension department Mr. Silver. Yes. The Chairman. And then it is supported locally by appropria- tions from the counties ? Mr. Silver. Yes. In some places there are personal contributions to it. I Imow of different States where the counties did not see fit to contribute and individuals have contributed the necessary money to make up the funds. The Chairman. This control by the different interests — is that of a paper control or is it an actual control of the county agent ? Mr. Silver. I do not loiow that I quite catch what you mean. The Chairman. Is the county agent entirely under the control and domination of the United States Department of Agriculture Mr. Silver. Yes. The Chairman. And the extension department of the colleges and the counties? Mr. Silver. He gets all his instructions from them and obeys those orders; that is his principal duty. Of course he works with the FARM ORGANIZATIONS. 39 members of the county farm bureaus or other local farm organiza- tion, as the case may be, in putting on test plats of corn, wheat, rye, barley, or whatever the crop may be, and teaching them the best methods as to the preparation of the soil, as to cultivation, as to fer- tilization, as to harvesting— all the things that have to do with better farming. The Chairman. Now, this county organization is composed of leading farmers in each county who have joined the county farm bureau, as I understand it? Mr. Silver. Yes. The Chairman-. And they elect their boards of directors and officers the same as any other business organization? Mr. SiLTOR. President, secretary, and board of directors; yes. The Chairman. Those meetings are usually held in the office of the local county agent, are they not ? Mr. Silver. I would reverse that; more often they give office room to the county agent without cost. The Chairman. In many of the counties, I think, the county agent is located in the county office. Mr. SiL^-ER. Often in the courthouse. The Chairman. And there is usually provided by county officials office space in the courthouse? Mr. Silver. That is often the case, and where that is not the case it is usually contributed by the farmers. The Chairman. And no expense is entailed to the bureau on ac- count of that office ? Mr. Silver. No. The Chairman. When this membership was originally obtained the organization of the county farm bureaus was a subsequent opera- tion of the installation of the county agent, was it not ? Mr. Silver. The inability of the county agent to successfully func- tion by having some way to disseminate this information, or people to properly cooperate or do teamwork in the extension work and this educational phase, and the necessity in some way, some helpful way, of getting to the groups the information that the county agent had, brought about a desire for teamwork, and that teamwork comes in an organization way. In fact, you can scarcely do teamwork except in an organized way. The Chairman. Do the members of the local farm bureau organi- zation pay annual dues to the local organization ? Mr. Silver. Yes ; in case they are members of the local club. The local club is separately financed from the county farm bureau. The county farm bureau is our unit. The Chairman. The county farm bureau is your unit? Mr. Silver. Is our unit ; yes. The Chairman. How is that local farm bureau financed ? Mr. Silver. By membership fees. The Chairman. By fees from the members ? Mr. Silver. From the members. The Chairman. In that county ? Mr. Silver. In that club. Are you talking about the county club ? The Chairman. I am talking about the county farm bureau. Mr. Silver. By the membership fees of the farmers of that county. The Chairman. What is the usual membership fee? 40 FARM ORGANIZATIONS. Mr. Silver. It varies from $5 to $15, and some of them less than that ; $15 is the maximum. The Chairman. And that fund is entirely under the control of the local county farm bureau and is used and spent for their own local work and advancement. Mr. Silver. Not wholly, because the basis of the State farm bureau is in that same membership and the Federal organization. The Chairman. So that the local county farm bureaus, then, con- tribute financially to the State federation of farm bureaus? Mr. Silver. Yes. The Chairman. And then the State and the county farm bureaus contribute to the national farm organization or to your organiza- tion? Mr. Silver. Yes. This is not a fact in every instance but as a whole there is from $1 to $2.50 going to the State federation treasury and 50 cents per membership goes into the American Farm Bureau Federation's treasury. In other words, the American Farm Bureau 1 ederation, while it recognizes the federation of the States, recog- nizes the county bureau, its income is based on the individual unit. The Chairman. So that every individual member who belongs to a county organization where it is affiliated with the State organiza- tion and the national organization contributes a certain amount to the State organization Mr. Silver. Yes. The Chairman. And to the national organization? Mr. Silver. Yes. The Chairman. Fifty cents per member to the national organiza- tion? Mr. Silver. Yes ; that is uniform throughout. The Chairman. Then it is a fact that these local members have fixed annual dues? Mr. Silver. Oh, yes. The Chairman. From $5 to $15 ? Mr. Silver. Yes. The Chairman. That is fixed ? Mr. Silver. In different amounts ; yes. The Chairman. Now, is the farm bureau a governmental agency or is it not, Mr. Silver ? Mr. Silver. No ; it is a voluntary organization. The Chairman. Is it proper that an institution supported by the Government should become the representative of a class of people in legislative and other matters ? Mr. SiL^'ER. Would you mind stating that again, Mr. Chairman? The Chairman. Is it proper that an institution supported by the Government should become a representative of the people in lecisla- tive and other matters ? '^ Mr. Silver. No ; I should not think so. The Chairman. Do you think the Smith-Lever funds and Govern- ment funds in general should be used for the specific purpose for which they were intended ? l f ^ ^ x^i. Mr. Silver. Yes. The Chairman. Do you think such funds should practically be turned over to some outside agency to administer ? FARM ORGANIZATIONS. 41 Mr. Silver. I do not. The Chairman. Would you or would you not approve of limiting the way in which Smith-Lever and other funds, to be expended for the purposes intended by that act, could be spent, so that the exten- sion work would be entirely separate and apart from any organiza- tion representing the farmers as a class ? Mr. Silver. I would scarcely know how they are to accomplish the purposes set forth to be carried out by the Smith-Lever fund unless you had the cooperation of the farmers. I do not mean by that the money should go to the farmers' organization or to the indi- vidual farmers, but without a close working arrangement between the agent and your farmer you would defeat your purpose. In other words, why have a lecturer if you have no audience ? The Chairman. That is your complete answer? Mr. Silver. I think so. The Chairman. Under the plan that you are operating the incum- bent of a governmental office is, as such, a member of your executive committee without a vote, is he not ? Mr. Silver. I beg your pardon. The Chairman. In the way you are operating now the incumbent of a governmental office is, as such, a member of your executive com- mittee without a vote — the executive committee of the American Farm Bureau Federation, or the county agent, whether it be a club or the county agent? Mr. Silver. 1 do not know that I quite understand the question. The Chairman. Does the county agent, in other words, have a vote in the deliberations of the meetings of the county farm bureau ? Mr. Silver. Not as such. In some instances the county agent joins just as other citizens. The Chairman. He is a member, really, without a vote, of the local farm bureau unit? Mr. Silver. In such cases where he subscribes ; but in many cases he is not a member at all. The county agent in many instances is not a member of the farm bureau at all. The Chairman. But he is largely the controlling factor? In other words, the county farm bureau could not function if it were not for the establishment, under the Smith-Lever law, of this system of county agents throughout the country ? Mr. Silver. I would not say for a minute, nor do I think, the county farm bureau could not function without an agent, because we have many of them functioning where there is no agent. The Chairman. I know, in my own county, that the county farm bureau was practically organized by the county agent, and he looks upon that as a board of directors, and the organization is intended to keep up the interest of the farmers in what the county agent is doing. Mr. Silver. I grant you that. The Chairman. And is that place and the administration of the work he is doing entirely under the direction of the county agent? Mr. Silver. In every instance all that experimental work is under his direction ; yes. The Chairman. If you represent a class of people, and if you are not a governmental agency, why this official relationship ? 1 would be glad to have you tell the committee that. 42 FARM OKGANIZATIONS. Mr. Silver. The official relationship between the county agent and the farm bureau ? The Chairman. Yes ; and the American Farm Bureau Federation. Mr. Silver. There is no official relationship between the county agent and the American Farm Bureau Federation. The only contact with the county agent is between the county agent of the county and the farm bureau of the county. There is no contact between The Chairman. And that connection is direct with the members in the county, or is it through the organization of the local farm bureau ? Mr. Silver. He comes in direct connection with the members as an individual and also sits in at their meetings when they discuss their plans for the coming season or the result of the past season's work. The Chairman. I have a circular here issued from your head- quarters, No. 5 South Wabash Avenue, Chicago, under date of Janu- ary T, 1921, which indicates that the American Farm Bureau Fed- eration is engaged now in an active campaign to secure members. Are you familiar with that ? Mr. Silver. That the farm bureau is? The Chairman. That the Farm Bureau Federation itself is en- gaged in a campaign to increase its membership. Mr. Silver. Right. The Chairman. And in that connection I understand you have had campaigns on in Illinois, Iowa, Ohio, Michigan, etc. ? Mr. Silver. And other States ; yes. The Chairman. Can you tell us what your membership campaign in Illinois cost? Mr. Silver. I can not; I do not have those figures. The Chairman. Who can furnish us with that information? Mr. Silver. Mr. J. W. Coverdale has direct charge of that. The Chairman. Where is he located? Mr. Silver. At that same address. The Chairman. You can not give us information concerning that part of it? Mr. SIL^'ER. I am not familiar with it. I know in a general way, but have nothing to do with the organization end. The Chairman. Does your organization aim to become the organi- zation representing the farmers as a class ? Mr. Silver. I should think that is a pardonable pride, and that is our feeling, keeping in mind we would like to be a big representative organization — not exclusive, because we work with and cooperate with all other actual farmers' organizations. The Chairman. Are any other farm organizations, national or otherwise, members of your organization? Mr. Silver. I am not right sure I have your meaning on that, but I would say that such otheT organizations as the grange and the farmers' unions have their own organization. While we do team work, we are not tied in with each other except as an individual member of the farm bureau may be a member of both the grange and the farmers' union. The Chairman. There is no overlapping ? Mr. Silver. Absolutely not ; no. FAEH ORGANIZATIONS. 43 The Chairman. There is no direct affiliation except as vou state? Mr. Silver. No. The Chairman. Then you are not a part of any other national organization ? Mr. Silver. No. The Chairman. Have you a statistical bureau or department — your organization? Mr. Silver. Yes ; we have one known as the bureau of economics and statistics, also one each for transportation, marketing, organiza- tion, and education and publicity. The Chairman. Where is the bureau of economics and statistics located ? Mr. Silver. It is just being organized, and its headquarters will be recognized as Chicago. The Chairman. Who will be at the head of that organization ? Mr. Silver. I do not know as yet. We have a committee named. I have no definite information. Mr. WiNGO. Have you any political organization ? Mr. Silver. Just what do you mean in that way ? Mr. WiNGO. Why, men who represent you in different States or different counties looking after your political interests. Mr. Silver. No; except you might say our Representatives here before Congress. Mr. WiNGO. That is not what I mean. I am not asking an an- tagonistic question, but I just want to find out to what extent you followed modern conditions and had political agents in different States and different counties. Mr. Silver. No. We have, as I said before you came in, a full organization in counties and in States. Mr. WiNGO. Have you been furnished, and do you have over here in your office, or in some other office, a list of the men who are sup- posed to make reports to the Department of Agriculture — their township and county representatives? Mr. Silver. No ; my office does not have that. Mr. WiNGO. Does your organization, or any part of it, any branch of it, have furnished to it a list of the county and community repre- sentatives of the Department of Agriculture who report to it on crops and other things? Mr. Silver. Of course, in our county connection we are in touch with each county agent, if that answers your question. Mr. WiNGO. No; the question is this: There are certain people in the country selected by the DejDartment of Agriculture who are sup- posed to be on a confidential, private list Mr. Silver. Oh, no ; those reporters — we do not have those. Mr. WiNGO. I do not mean to say the Department of Agriculture furnishes you with it, but have you not gathered up this list and know who they are ? Mr. Silver. No ; we do not know those reporting individuals — that confidential list. Mr. WiNGO. And any representation made to that effect, then, is made without authority, is it ? Mr. Silver. Yes. Mr. WiNGO. And any threat made upon that is not inspired by you or your associates ? 44 FARM ORGANIZATIONS. Mr. Silver. No. The Chairman. In connection with this campaign for member- ships, what inducement do vour canvassers hold out to prospective members in your organization; can you tell me that? What ad- vantages has he to offer in securing memberships ? Mr. Silver. In a general way — while I will repeat again, I have no connection with the organization end — he holds out the advantages to be had by the doing of teamwork in the things that are beneficial to the farmer group. The Chairman. What is your total membership ? Mr. Silver. Something in excess of a million and a half ; I do not know exactly. I have nothing to do with the organization end. The Chairman. So that your net income, at 50 cents per head, would bring you in about $750,000 per year? Mr. Silver. That is what it should show. The Chairman. Is if the idea to use a part of this money for the promotion of legislation affecting the farmers as a class ? Mr. Silver. Of course, that is the money that supports the Wash- ington office. That is the source of our funds. The Chairman. What portion of that is assigned to the Washing- ton office ? Mr. Silver. Last year's budget for the Washington office was $30,000. This year it will be larger. The Chairman. The Washington office consists of what ? Mr. Silver. Of the Washington representative, his assistant, and the stenographers. The Chairman. You are the directing head of the Washington office? Mr. Silver. Yes. The Chairman. And your assistant ? Mr. Silver. Yes. The Chairman. And two stenographers? Mr. Silver. Three. The Chairman. There are three stenographers ? Mr. Silver. Yes. The Chairman. That is the entire force ? Mr. Silver. At this time ; yes. The Chairman. Where is your office located ? Mr. Silver. At 1411 Pennsylvania Avenue. The Chairman. Is it not true that the farmers are thinking almost entirely in terms of legislative advantages and of representing the farmers' interests in connection Avith your organization? Mr. SiLATER. The farmers are human and think of their own wel- fare ; but, to their mind, and to my mind, you can not distinguish the farmers' welfare and the country's welfare. The questions of the production of raw materials, food, and clothing, are so closely allied to the welfare of the consuming public — that is, each person who wears clothes and eats food — that we feel our interests are in common. The Chairsian. I do not mean to infer we are objecting to your organization. I think you have the same right to organize as the American Federation of Labor and the United States Chamber of Commerce. I was just trying to find out what your function is. Mr. Silver. I did not infer at all you were" objecting, but I was just trying to make it plain. FAEM ORGANIZATIONS. 45 The Chairman. Have members or officers of other organizations been offered or ^iven positions in your organization with the idea of gradual absorption of these other organizations? Mr. Silver. No. The Chairman. And if so what are the other organizations? Mr. Silver. I would say no ; I have no such information. The Chairman. You do not think your organization, then, is reaching out and getting into the other organizations for the purpose of obtaining your heart's desire to become the organiza-tion ? Mr. Silver. Naturally, we get all the members we can, and our organization is based on the individual membership. The only way we can function is by getting individual members, which means big- ger dues and which results in a bigger and better organization. The Chairman. Is not that a pretty expensive method to increase your membership? Mr. SiL\'ER. That may be, but that is our best judgment at this time. The Chairman. What is your idea of increasing your member- ship — to get other funds with which to operate or to bring more farmers in touch with your organization? Mr. Silver. To better serve the purpose of our organization. We feel, when we speak, whether it be on a legislative matter or some other matter, we are not only reflecting the welfare of the farm- bureau members, but we feel we are reflecting the welfare of the farmer who is not a farm-bureau member. So that we believe we have more force and effect and are a better organization if we can have the counsel and advice and distribute the educational viewpoint of our group by having as many farmers as possible within our organization. The Chairman. You then take members into your organization that are not members of the county farm bureaus ; that is, do you take in members not affiliated with the county farm bureaus of your organization ? Mr. Silver. No ; that is the only way they have of coming into our organization. The Chairman. As an actual fact, if the farm-bureau activities be separated from those of the county agent, can you still continue the American Farm Bureau Federation? Mr. SiL'S'ER. Yes. The Chairman. Is it not necessarily true that what one is doing the other is doing? Mr. SiL^R. Oh, yes; they are working in very close relation with the individual farmos which make up our membership, and in some counties practically every farmer is a member. That is the place that the county agent gets his support to do the work he is expected to do by working closely with the farmer. The Chairman. Have not the county agents, as such, been respon- sible to a considerable extent for the promotion and development of State farm bureau federations and of the national federation? Mr. Silver. No ; I have no such information. The Chairman. Then you do not render service to any farmers except those who are members of the county farm bureau and, as sucli, are affiliated with your organization ? 46 FARM OKGANIZATIONS. Mr. Silver. Yes; we render service — I tried to make that plain a minute ago that we render the service, but only render it indirectly ; the thing that is helpful to the member is helpful to every farmer. The Chairman. What is your method of distribution of the in- formation which you have ? Mr. Silver. We have two general ways. One is the assembling of our county farm bureau and discussing those questions, and the other is by referendum and communicating the results of a referendum. We submit referendums on any broad questions that may arise be- fore Congress and before our organization, and we refer that back to a vote of our people, and then we give by letter the results of those referendums on the different subjects. The Chairman. In any of the States where you are operating, is the avowed object political in any sense in your organization? Mr. Silver. You mean as to party politics or Government politics ? The Chairman. Yes. Mr. Silver. No. This is a nonpolitical organization. Keep in mind it would be impossible for us to hold together a group of people with as many different political views as we have in our organization if we took any part in party politics, and we especially do not take any part, locally or otherwise, in party politics. The Chairman. In your national organization, your headquarters are at Chicago ? Mr. Silver. Yes. The Chairman. And Mr. J. R. Howard is president of the fed- eration ? Mr. Silver. Yes. The Chairman. And you have other officers there and a board of directors ? Mr. Silver. We have a board of directors composed of one director from each State, and an executive committee, which is the active part of our board. The Chairman. Mr. Howard testified the other day his salary is $15,000. Mr. Silver. Correct. The Chairman. And then you testified your salary was $12,000. Mr. Silver. Correct. The Chairman. And your local assistant's salary was $5,000. Mr. Silver. Correct. The Chairman. What other national officers draw salaries ? Mr. Silver. The vice president last year was paid per diem for work he did in organizing. We have a different vice president this year, and my understanding is— I do not know that it is definite and whether I ought to testify to it— that he will be on a regular salary, instead of just being paid for the time he puts into organizing. The Chairman. What will that salary be ? Mr. Silver. I do not know. The Chairman. Are the members of the executive committee paid a salary or per diem ? Mr. Silver. They are paid a per diem for such time as they attend to the work. The Chairman. What is that per diem? Mr. Silver. $10. The Chairman. $10 per day ? FARM ORGANIZATIONS. 47 Mr. Silver. $10 per day and traveling expenses; yes. The Chairman. You have connected with you, in this capacity ot getting new memberships, a Mr. Heaton and a Mr. Pollock? Mr. Silver. Yes. The Chairman. Can you tell me what salaries these men draw and whether you have others doing the same kind of work through- out the country ? Mr. Silver. I do not know the salary they get. We have others; yes. The Chairman. How expensive an organization have you in seek- ing new memberships ? Mr. Silver. I am not able to answer that, Mr. Chairman. The Chairman. Mr. Howard could answer these questions? Mr. Silver. Mr. Cloverdale could answer them, I expect, better than anyone else. The Chairman. You have not, of course, a copy of their financial statement as of December 31, 1920, showing their receipts and ex- penditures ? Mr. Silver. No ; I do not believe so. The Chairman. Who could furnish this committee with that in- formation ? Mr. Silver. Mr. Howard, I expect, would have to furnish that. The Chairman. Is Mr. Howard now in the city? Mr. Silver. Mr. Howard is not in the city at this time. The Chairman. When will he be over here ? Mr. Silver. I am unable to say. He is in New York at this time in conference and might be here in a few days, but I do not know that definitely. He is apt to come this way when he leaves New York. Mr. King. I will say, Mr. Silver, that I am heartily in accord with an organization of the farmers. I think it is time for them to or- ganize. I come from an agricultural section and I know the need for it. But there are one or two matters I want to clear up. In or- ganizing your federation of farm bureaus, was that movement in- itiated in the bureaus themselves or was it initiated from the outside ? In other words, did the movement come from the farmers themselves or was there some one on the outside that prepared the organization for them ? Mr. Silver. No; this is the farmers' movement and strictly the farmers' movement. And in our constitution it practically requires that the officers be actual farmers and in our discussion we defined what an actual farmer must be, and it is one whose principal source of income and activities are directly connected with the farm. Mr. King. Is there any purpose on the part of the Federation of Farm Bureaus to assist this large Edge corporation which has been organized in New York to dispose of European stocks and bonds among the farmers and the American people. Do they advocate that plan ? Mr. Silver. The farmers have been invited to participate in the organization by becoming members of the board of directors and subscribing for stock, both of which I understand they are doing. Mr. King. Are you a member of that organization ? Mr. Silver. I am not. 48 FARM ORGANIZATIONS. Mr. King. Is that organization going to have an influence with the farmers' organizations throughout the country ? Mr. Silver. That is a right hard question to answer. Mr. King. In other words, have the influences back of the organiza- tion of these Edge organizations — are they going to control the move- ment and the thought to any extent of these farmers' organizations? Mr. Silver. No ; absolutely not, from that viewpoint. Mr. King. On what theory do the organizers of the Edge company justify their position in asking the farmers of the country to assist them in unloading their European stocks on the American public, if any ? Mr. Silver. I do not know. You are asking me a question that I know so little about, except I know we were invited to become mem- bers of the board of directors and to subscribe for stock. Mr. King. Have they accepted the invitation, any of them ? Mr. Silver. I do not know that — I am not answering you right ; I do not know that any of them have accepted it, is what I mean to say. Mr. King. Is it the purpose of your organization to send out any propaganda on behalf of the sale of this foreign stock ? Mr. Silver. No ; we are not in that business. Mr. King. You are not even going to lend your moral aid to it, are you? Mr. Silver. We might speak kindly of it and still not conduct propaganda in favor of it. Mr. King. Do you believe in it, as one of the heads of this new organization ? Mr. Silver. I would like to say, in that connection, that, taking a long look ahead, we believe it will be useful in exporting our crops, the exportable surplus. Mr. King. Do you believe our Illinois farmers and people ought to buy stock in foreign factories, or to buy stock in foreign railroads, and stock in foreign Governments, and to internationalize themselves, as it were ? Mr. Silver. I do not say that, sir. Mr. King. And really pay themselves for their grain out of their own pockets. Mr. Silver. No ; I have not said that. I said I believe this organi- zation, when it gets to functioning, will be helpful in exporting our exportable surplus. Mr. King. What I want to get at is this : When I get a commu- nication from your organization in my district, I want to know whether it comes from the farmers in Illinois down in Knox County, or whether it is manufactured down in New York somewhere and then rehashed and sent to me. Mr. Silver. You are right about that and I think I can give you any reasonable assurance we will not be conducting any propaganda such as you have in mind, either in favor of that or any other cor- poration or business. Mr. King. You are receiving no contributions from those inter- ests, whatever? Mr. Silver. In our official way? Mr. King. In any way whatever. TAEM OEGANIZATIONS. 49 Mr. Silver. In an organization way, no. I do not mean the farm- ers may not have subscribed to stock, but in an organization way, absolutely not. Mr. Scott. What relationship have the consolidated stores in the various States to your organization? Mr. Silver. I do not know that I just catch what you mean by consolidated stores. You mean cooperative stores? Mr. Scott. Cooperative buying and selling stores. Are they under your supervision? Mr. Silver. Under the supervision of the organization? Mr. Scott. Yes. Ml-. Silver. The farmers of our organization do have cooperative organizations — that is, separate from the farm bureau — and the work conducted by them is conducted with a separate board of directors, and so forth. Mr. Scott. Independently? Mr. Silver. Yes. Mr. Scott. Do they make any report to you? Mr. Silver. No. Mr. Scott. So whatever dividends they may earn or whatever loss they may sustain Mr. Silver. Is separate. Mr. Scott. Is their own business? Mr. Silver. Yes. Mr. Scott. Then they are independent of your organization? Mr. Silver. Yes. Mr. Scott. But the boards of directors of those separate organiza- tions are taken from your membership? Mr. Silver. Oh, often that is true ; yes. Mr. Scott. But is it necessarily true? Mr. Silver. Oh, no ; that is a local business organization. The Chairman. Many of those are under the local farm bureau organizations like the local boys' and girls' pig clubs ? Mr. SiLY'ER. We do not look on that— that is a local organization, but not a business organization. Mr. Scott. I noticed recently a number of cooperative stores throughout the rural district. Who are operating these stores ; these boards of directors or representatives of the national organization? Mr. Silver. Not knowing who may operate them, I can say defi- nitely no official of the national association has any direct connec- tion with them. Mr. Scott. Then each one of these cooperative stores is run by a local board of directors made up of the membership- Mr. SiLA-ER. Of local people. Mr. Scott. And they make return of their stewardship of the busi- ness to the local organization ? Mr. Silver. To their board of directors and to their members, who- ever may contribute. You see, the 'contribution there is a contribu- tion of goods. Mr. Scott. Your organization does not participate in any divi- dends that they may make or in any loss that they may sustain ? Mr. Silver. No. Mr. Strong. Mr. Silver, do I understand that the county farm bureaus organized throughout the counties of Kansas, particularly 50 FARM ORGANIZATIONS. • for the purpose of assisting in the maintenance of the county agents, are members of your organization? Mr. SiLVEE. For bettering their farm life, and that is one of their activities. Mr. Stkong. Are they members of your organization ? Mr. Silver. The Kansas farmers — yes, indeed. Mr. Strong. Then, speaking as one of your members and as a pri- vate in the ranks, I want to ask you if the association of farmers with the Edge corporation is not upon the belief that the Edge cor- porations will facilitate the exportation of farm products rather than the taking of stock in foreign factories. Mr. Silver. Certainly. I said a moment since for the exporting of our exportable surplus of what we produce. Mr. King. How will these people get the money to pay for it if they do not sell stocks and bonds over here ? Mr. Silver. I do not know how they will get the money to pay for it, but we can not well export our goods unless they do get the money. Mr. WiNGO. You do not know of any business organization that does not require money in the financing of business, do you? Mr. Silver. No. Mr. Strong. The object of the farmers is to increase the exports of their products ? Mr. Silver. Yes. Either through the Edge corporation or other channels, we are seeking a way for their movement. Mr. Strong. The revival of the War Finance Corporation was looked upon as being a help along that line ? Mr. Silver. Yes. Mr. Strong. And anything that does so assist has the backing and support of the farmers? Mr. Silver. Yes. The Chairman. I notice in the organization of the committee of this Foreign Finance Corporation, more commonly known as the $100,000,000 corporation, Mr. J. K. Howard is one of that commit- tee. Is this the same gentleman who is president of this American Farm Bureau Federation? Mr. Silver. Mr. Howard was invited to sit in with the commit- tee of the Foreign Finance Corporation, and did sit in. The Chairman. Is he doing that in his official capacity as presi- dent of the American Farm Bureau Federation, looking toward the organization of this company for the benefit of the farmers, or is he doing that in his individual capacity ? Mr. Silver. I think and believe he is sitting in in his individual capacity, but Mr. Howard could better answer that question than I can. Mr. Stevenson. I have heard questions propounded to you about the propaganda for selling foreign stocks and things of that kind. Have you seen any of those things going around? Mr. Silver. No. Mr. Stevenson. Is there anybody that you know of connected with your organization who has seen any propaganda of that kind? Mr. Silver. Not to my knowledge. The only suggestion at all was, as I said a few moments since, we have been invited to serve FAEM ORGANIZATIONS. 51 as directors on the board and to subscribe for stock but have not been elected. Mr. Stevenson. You have not seen nor heard of any of this for- eign stocks which have been mentioned as a menace here ? Mr. SiLVEE. No. Mr. Phelan. If a farmer were to buy his own products by the' purchase of stocks in foreign corporations as suggested, he could not either buy or sell very long, could he? Mr. Silver. He would be out of business when the next planting time ariived. Mr. Strong. Are the farmers' unions of Kansas associated with your organization? Mr. Silver. No ; they have their separate organization. Mr. Strong. It is entirely a separate organization ? Mr. Silver. Yes. Mr. Brand. Are they friendly or antagonistic to each other ? Mr. Silver. In the main, they are friendly. Sometimes they are antagcmistic — some individuals, you know. Farmers, like others, sometimes are not the best of neighbors, as they shoulcl be. Mr. Strong. Do you know who W. W. Brauer is ? Mr. Silver. Yes. Mr. Strong. Who is he — William Wallace Brauer ? Mr. Silver. He introduced himself to me and he tells me he rep- resents the German Government. In fact, he showed me a contract in part, which he said was a contract with the German Government for securing a loan in this country for buying supplies here. Mr. Strong. He sent to all the Members of Congress yesterday a 4-page letter propaganding Congress, and in the letter he charges that, "Mr. Howard, the president of a great agricultural organiza- tion claiming a membership of approximately 2,000,000 tillers of the soil, as I am reliably informed, pledged the support of those farmers in his organization to this project," referring to the billion dollar Edge corporation. In the propaganda he takes the position that it is the plan to fleece the American farmers, and says that any propa- ganda or any organization that tries to encourage exports except by his plan will be a failure and a fake. Mr. Silver. That may be his personal opinion. However, I have no information that Mr. Howard has attempted to pledge the federa- tion to that. Mr. Strong. It is just that the farmers individually are taking stock to encourage what they believe will result in the export of their products ? Mr. Silver. If they feel justified to invest ; yes. The Chairman. In connection with the question Mr. Strong has raised, I did not intend to interject this, but I have a communication from Mr. Brauer in which he incloses a letter from Mr. Howard, signed as president of the American Farm Bureau Federation, under date of January 7, in which this language appears: "Mr. Howard has turned down this proposition." Were you familiar with those negotiations ? Mr. Silver. I was not present. The Chairman. You do not know anything about the negotiations Mr. Brauer and Mr. Howard had? 33920— 21— PT 2 2 52 FAEM ORGANIZATIONS. Mr. Silver. No ; I am not competent to testify on that. Mr. King. If that much money was spent in America to buy farm products, would it not help the farmer ? Mr. Silver. Evidently, and we would like to see that. The Chairman. From this letter there seems to have been some negotiations. I am quoting frofn the third paragraph of the letter of Mr. Howard to Mr. Brauer. He says : Our decision to go no furtlier with you in this matter is due to your ofEer of remuneration for our sevices. As I told you plainly at the hotel, you could not give us one cent for any service we would render ; and the fact you made the proposal to me which you did, makes me believe there may have been prac- tically a similar proposal made by you to other representatives and possibly to public officials. Do you know anything about that proposition? Mr. Silver. I do not. Mr. WiNGO. You stated that you saw a contract of Mr. Brauer with the German Government ? Mr. Silver. In part. Mr. WiNGO. You said he was a representative of the German Gov- ernment. You do not mean by that he is a diplomatic or business agent with plenary powers, but you mean he had a contract, just as any business man would have? It was a business contract for profit, was it not? Mr. Silver. A business contract for profit Mr. WiNGO. To this gentleman? Mr. Silver. Yes. Mr. WiNGO. And he was getting profits out of it? Mr. Silver. Yes. Mr. WiNGO. Naturally he would desire that the export of the sur- plus of American products should be made through him and under his plan, because he would get a profit ? Mr. Silver. He would get a profit; that is my understanding. Mr. WiNGO. And he would naturally be antagonistic to the Edge Corporation which would export our surplus products and prevent him from making profits out of his contract ? Mr. Silver. That is my understanding. Mr. WiNGO. So that you do not mean to suggest he was a repre- sentative of the German Government, with plenary powers such as an ordinary diplomatic representative would have ? Mr. Silver. Not at all. The Chairman. In the early stages of these negotiations between Mr. Brauer and the president of your organization — Mr. Howard — did your organization appear before any committee of Congress urging legislation along the lines of and supporting that plan ? Mr. Silver. I think before no committee of Congress. We have urged credits to central Europe, and in that connection have used the term " Germany," but we used it in a general sense as applying to the group of powers which was formerly the Central Powers. We feel any credit which can be rightly extended to that group will be helpful in marketing our surplus crops, which are in such an unhappy state at this time. The Chairman. But at no time have you advocated Mr. Brauer's plan ? Mr. Silver. To the exclusion of others ; no. I think we never have, except we appeared before a committee where it was mentioned, but FAKM ORGANIZATIONS. 53 I did not mention it at that time. Mr. Howard and myself both appeared before a joint hearing of the Senate Committee on Banking and Currency and the Committee on Agriculture and discussed infor- mally the thmgs that would be helpful to the farmer. The Chairman. I was present that morning and heard Mr. How- ard's testimony, and I rather felt he was favorable to the plan of Mr. Brauer for extending credits to European countries. Mr. Silver. We do feel favorable to the extension of credits, whether through Mr. Brauer's plan or not — we do feel favorable to the extension of credits to Germany. Mr. King. Talking about the deplorable condition of the farmers, which I admit, has your organization been able to get any relief from the Federal Reserve Board for the farmers ? Mr. Silver. We have had many interviews ? Mr. King. How successful have they been ? Mr. Silver. More or less so. We were able to interest them in ex- tending loans on wool and wheat ; we were unsuccessful in our other endeavors. During the trying situations of the past year we have had many conferences with Mr. Harding, governor of the Federal re- serve, and have always found him ready to do whatever has been within his authority to aid agricultural finance. That he has been under strict statutory limitations haa been too often forgotten, and he has borne personal criticism when the Federal reserve act, rather than its administration, has been at fault. Mr. Brand. Referring to this man Brauer: You were working along smoothly and friendly for a while, your main bureau and this man Brauer? Mr. Silver. We were both interested in the same project and going the same way. Mr. Brand. You were negotiating with him, were you not — con- ferring with him ? Mr. Silver. Oh, he visited our headquarters frequently. Mr. Brand. And you and he having the same common object in view ? Mr. Silver. Yes ; if you limit it to the fact we were endeavoring to find a market for our American products. Mr. Brand. That is what I mean. Mr. Silver. Yes. Mr. Brand. Why did you suddenly stop ? Mr. Silver. In the letter the chairman has there is the information as to that. The Chairman. Your separation, then, was entirely due to that proposition of remuneration to your organization? Mr. Silver. Yes. Mr. Brand. Is that the reason you ceased negotiating and having anything more to do with each other ? Mr. Silver. Yes. Mr. Phelan. You say your organization is favorable to the ex- tension of credits to Germany and to other countries ? Mr, Silver. Yes. Mr. Phelan. By whom ? Mr. Silver. We have never thought so much of our own direct Government obligation as through the War Finance Corporation or any other method that would be provided. 54 FARM ORGANIZATIONS. Mr. Phelan. What I want to get at is whether you advocate the extension of such credits by the United States Government? Mr. SiL\-ER. As a direct charge on the Treasury? Mr. Phelan. Yes. Mr. Silver. We have not thought so well of that. Mr. Brand. You stated awhile ago to the chairpian there were 40 ctates in your bureau? Mr. Silver. I think it is 40—38 or 40 ; I think it is 40 now. Mr. Brand. Have you any of the Southern States, or are any of the Southern States members of it ? Mr. Silver. Yes; Texas, Oklahoma, Georgia The Chairman. In that connection, could you not put into these hearings a list of the States? Mr. Silver. I would rather do that. The Chairman. Some of the members would like to have that and, if possible, the name of the head of each State organization. Can you insert that in your hearing ? ilr. Silver. I can give it to you for the States very readily, and may not be able to get the information as to the county organiza- tions. The Chairman. If you can, get that later on and put it into the hearing. Mr. Silver. Yes. Mr. ]3rand. I would like to have the officers' names in the various States also. Mr. Silver. I would be very glad to do that. Mr. WiNGo. Before you get away from this Brauer proposition, it is fair to infer, in view of the .statement in Mr. Howard's letter, is it not, that the interest your organization had in Brauer's proposir tion was not the selfish financial interest Brauer had, but you wanted to aid any proposition that would tend to find a market for Amer- ican farm products; and Mr. Howard declined to proceed further in the matter because he declined to proceed upon the selfish finan- cial basis but wished to confine his activities to the general purposes of your organization? Mr. Silver. That is true. Mr. WiNGO. And to be free from private contracts with private relations ? Mr. Silver. That is right. Mr. King. Did the fact that you folks had been active and in a way had accepted the invitation to join in the movement to establish Edge corporations, which will be opposed to Mr. Brauer's proposi- tion — did that have any influence on you in turning down the propo- sition of Mr. Brauer ? Mr. Silver. Not a bit. The Edge proposition is something we look on as in the future and that his plan could get into operation a little bit ahead of that, and we were anxious to do anything which promised the immediate movement of crops. The two plans do not conflict, to my mind. Mr. Brand. Is your bureau chartered or incorporated by any State in the Union or is it just a voluntary organization ? Mr. Silver. A voluntary organization? Mr. Brand. You have no charter ? FAKM ORGANIZATIONS. 55 Mr. SiLvEE. No ; I might want to correct that, because there was some talk of incorporating. Whether one has been formed, I am not sure ; but I would be glad, along with this memorandum the chair- man has requested, to give you that information. Mr. Brand. And also, if it has been incoriJorated, will you give us a copy of your charter ? Mr. Silver. Yes, indeed ; I will be glad to. Mr. BuRDicK. You said the way in which you get the sense of your membership is by referendum ? Mr. Silver. That is one of the ways — by assembling in the meet- ings, by referendum, and by other communications. The two prin- cipal methods we use are the referendum and assembling in their meetings and passing their resolutions on whatever it may be— state- ments of their wishes or interest in the matter or viewpoints. Mr. BuRDiCK. Do you keep track of all bills introduced in Con- gress that may possibly affect the farmer ? Mr. Silver. We endeavor to do so. Mr. BuRDicK. And do you call for a referendum upon all of them, or do you act independently on some of them, without reference to the members? Mr. Silver. This office is not the policy oifRce at all. We do not take it upon ourselves at this office to pass upon these matters as to policy ; that comes through the local organization by one of the two methods which I report. Mr. BuRDioK. What I was trying to get at is whether you act with- out getting the sense of your members in any case ? Mr. Silver. No. Mr. Btjrdick. Whether through the Chicago office or the local office? Mr. Silver. No. We endeavor to have the sense of our individual memberships, the sense of our local groups, upon any measure we advocate. Mr. Luce. Did you take any position on the emergency tariff bill ? Mr. Silver. The emergency tariff bill seemed so favorable of pas- sage that we never had to do it ; we never felt it was necessary to be done. We are interested in it. Mr. Luce. I mean did you appear before any committee on the matter ? Mr. Silver. No. In fact, there was no hearing in the House, was there? Mr. Scott. Did you take a referendum on it ? Mr. Silver. We have resolutions from our different groups, not particularly on the emergency tariff but on the tariff question gen- erally as to how they feel about the application of a tariff or not, and that memorandum is being filed before the committee this morn- ing. Mr. King. In submitting a matter to referendum, what is the policy of the officials of the organization in regard to sending to the in- dividual members of a bureau or to the county agents information upon the subject so that he may judge fairly of the merits of the proposition from his own standpoint? In other words, are there any suggestions made to him as to how the officers of the association would like to have him vote ? 56 FAKM OKGANIZATIONS. Mr. Silver. On the question of the Adamson law and other things having to do with that, in submitting it we asked the former gov- ernor of Kansas, Gov. Allen, to prepare one paper ; Mr. Frank Mor- rison, of the American Federation of Labor, to prepare another ; and. a committee of the Farm Bureau made a memorandum. Those three papers were inclosed in order to give the local groups the angles from the three different points of view. Mr. WiNGO. What did you say that was on? Mr. Silver. On the Adamson law. Mr. WiNGO. Did your organization favor the revival of the War Finance Corporation? Mr. Silver. Yes. Mr. WiNGo. And also favored the so-called Fordney emergency tariff bill? Mr. Silver. We are interested in that and favor the passage of it. Mr. WiNGO. Did your organization ever seriously consider the proposition there might be a conflict in fundamentals between the two propositions? Mr. Silver. Our position on the tariff, to put it briefly, I might say is this Mr. WiNGO. I did not ask you about your opinion on the tariff, but did you ever discuss among yourselves that there might be a conflict in fundamental principles between the Fordney tariff bill and the War Finance Corporation act? Mr. Silver. I do not know that that particular question ever arose. Mr. WiisTGO. Did it ever occur to you there was a conflict there ? Mr. Silver. I do not know that it has ; I do not have it in mind at this time. Mr. WiNGO. You do not regard them as conflicting ? Mr. Silver. No. Mr. WiNGO. In view of some other questions I asked you in the beginning, but did not complete : Your organization, I presume, has no more responsibility than any other organization for the local men who may use their official relations to their personal advantage in political contests either in their own party or between parties ? Mr. Silver. I do not Imow that we are responsible, but we cer- tainly at all times discourage anything having to do with party politics. Mr. Wtngo. It is not the intention of your organization to show any interest in the primary campaign funds of different candidates, whether Democrats or Republicans, where candidates are approached with the suggestion that it takes money to carry on the work and to pay expenses of your local men, and that a contribution to the per- sonal traveling expenses, hotel bills, etc., of these local men, would evidence a friendly f e,eling on the part of the candidate ? Mr. Silver. No; we have no such thought. And, in addition to that, our national charter provides that when any member becomes, any officer becomes, a candidate for an office, that he thereby vacates his office. Mr. WiNGO. I am not talking about a candidate ; the point I want to make is not antagonistic to you, but do the farm bureau organiza- tions condemn a local, State, county or traveling representative. FAEM OEGANIZATIONS. 57 floating representative, undertaking to hold up candidates in any kind of a campaign ? Mr. Silver. In answer to your previous question, where you re- ferred to contributing to the expenses, etc., I would say absolutely not ; nor are we in the business of holding up, one way or another. We, of course,_ discuss question involved and discuss the way that the candidate, if he has had an opportunity to pass on those things, or his pledges at that time — whether they are favorable or unfavor- able to our purpose. Mr. WiNGO. I agree with you there; any organization, just like any private person or group of private persons, has a right to ask any public man for his point of view upon matters affecting the welfare of that particular citizen or that particular group to which he be- longs. Mr. Silver. That is our belief. Mr. WiNGO. But there is not any intention on the part of your organization to permit local representatives of your organization, in carrying on the work of your organization, to ask for contributions from candidates? Mr. Silver. No ; absolutely not. Mr. Brand. You said something about your national charter ? Mr. Silver. Constitution; not charter. We have adopted a con- stitution. Mr. Brand. When j'ou furnish this other information which we have requested, will you also furnish us with a copy of your con- stitution, too ? Mr. SiLTOR. Gladly. Mr. King. May I ask one additional question : The gentleman from Arkansas [Mr. Wingo] has spoken in regard to fundamentals — a conflict between the War Finance Corporation and the other proposi- tion : I want to ask you whether you see any conflict of fundamentals between the efforts of the Edge corporations and the tariff, in this, that if foreign stocks are sold in this country to the farmers and to American citizens generally, it is for the purpose of building up in- dustries in Europe, rehabilitating Europe. Some of them Jiave already started. Now, they must have a market for their products and where is that market going to be found, if not in America, and why won't we find the Edge corporations fighting a tariff law in the United States, both as to the farmers and the manufacturing interests ? Why isn't there a conflict there, and do you see any con- flict? Mr. Silver. I am not so sure the United States is the only market for the purchase of those materials you refer to. Of course, we want to do the thing that is helpful to America from all phases; and the very fact we export to European countries and to other countries, South America, Africa, and Australia, means there are other markets. And we are all competing in the world markets and in the world markets the farmer has to compete in the cost of grow- ing his surplus. Mr. King. If the American people have large interests in the for- eign manufacturing corporations, won't they naturally be in favor of opening up our home market to them, and is not that the purpose of that venture ? 58 FARM ORGANIZATIONS. Mr. Silver. Anything that we grow a surplus of must be mar- keted abroad ; it is difficult to see how we can protect that by open- ing our market to European countries. Mr. WiNGO. How on earth can you get along without a European market for vour raw cotton, when the American spmner does not use over 35 per cent of that we produce here? How or why should we prevent the foreign spinners from operating by using our raw cotton ? Mr. King. I am speaking of foreign factories financed by Ameri- can business through the Edge corporations. Mr. WiNGO. In view of what my friend suggests about any of these big foreign Government loans, some gentlemen feel the people are so ready to absorb in this country, yet thought that the War Finance Corporation should not be revived because it would mean the under- writing of foreign Government loans. And that is what is being done to-day. I s,aw in the paper where they were going to offer to- day in New York an issue of bonds of a foreign Government, and according to the newspaper reports they think they will all be ab- sorbed before noon to-day. How do you account for the fact you can find plenty of investment capital in this country to absorb all these great foreign Government bond issues and yet we are told that it is unwise to provide credits for the purchasers of the wheat of Kansas or the cotton of Arkansas ? I want to understand it. Mr. k5iLVEE. Let me say one thing, that I am not testifying on this particular matter as an expert; I am not in the expert class. I am a farmer from Apple Pie Eidge. Mr. WiNGO. You and I are in the same class. Maybe I put my question to the wrong person ; I will put it to these financial experts. Mr. SIL•^^ER. Unless I had it a little clearer in my mind I do not know that I either could or should attempt to answer it. Mr. WiNGO. Here is the point : Is there any difference in the effect on the prices in America and on inflation for money to be used to buy the bonds of a foreign Government that are going to be put on the market by underwriting banking syndicates and the extension of credits for the purpose of paying for the export of wheat and cotton? Is the effect on the finances of the Nation and the credits of the Nation and on the question of inflation any different in either case? Mr. SiLA'EE. I do not know that I could answer that. I would say, in that connection, the farmers are interested in the markets of the world and we feel at this time that two things have to do largely to- day with our undoir.g; the absence of credits Mr. AViNGO. I beg your pardon, but maybe you did not catch the point. What I want to get is whether there is any difference on the inflation of credits in this country by foreign bonds being purchased by underwriting syndicates and by any organization, whether it be by the Edge corporation, the War Finance Corporation or the cotton factor, taking the credits of foreign factors, foreign governments, banks, or anybody else, for the purpose of paying for the wheat of Kansas and the cotton of Arkansas? Is there" any difference on the question of inflation? Mr. Silver. So long as the credits are used in the ordinary ex- change or production of commodities, it is not an inflation. If it FARM ORGANIZATIONS. 59 ■comes to the question of investment securities, it may or may not be, depending on what the proceeds of the securities would be invested in. Mr. WiNGO. Is not there this difference : These bonds floated to-day over here of foreign governments and absorbed by American in- vestors are frozen credits ; but if credits are made in order to pay for the wheat out there in Kansas, or in other parts of the country, or the cotton in Arkansas, then that liquidates indebtedness in this country and helps the normal marketing of new wealth, doesn't it? And it relieves inflation, and absorbs some of the frozen credits, instead of adding to them. Is not that a distinction in favor of extending credits for the purpose of exporting our surplus products; is it not less injurious to the credit situation for credits to be extended for the purpose of market- ing our surplus crops than it is for the frozen bonds of foreign gov- ernments be added to the stock of securities in the hands of investors in this country and absorb all the possible money that might be used for the purpose of exporting our surplus materials the lack of credit facilities for the marketing of which are causing so much de- pression in the agricultural districts? Mr. Silver. The most helpful thing from the farmer viewpoint is a market, and he would lend inducements in order to aid the pur- chase and transportation of his products to markets wherever they can be secured. I am not prepared to testify or qualified to testify as to the different forms of securities they might be invited to invest in ; I do not know what they might be and I do not know how it would react in other ways; but we would like to see a credit that will en- able us to move our crops to market. Mr. Phelan. How can you hope to export and sell American agricultural products in foreign markets in competition with foreign production when, at the same time, you need a tariff duty upon those same products to prevent foreign competition by importations? Mr. Silver. I am going to ask you to state the question again, please. Mr. Phblan. How can you hope to export and sell American agricultural products in foreign markets in competition Avith foreign products when, at the same time, you need a tariff duty to protect those same agricultural products from competition in America with foreign products? Mr. Silver. If I may answer it in this way : In the group that grow an exportable surplus of commodities the very fact we do ex- port and have always exported means we must go into the markets of the world for a selling place ; consequently, the tariff does not, in those instances, affect us. I might like it to be so it would. But on wool and some other things, where we do not grow more than we consume, why, then it does apply and does affect us. Mr. Stevenson. To come down to the matter of wheat, reference has been made to Canadian wheat, that the Canadian wheat crop makes a surplus and we make a surplus. The Canadian surplus has to be exported ; it will go either to Europe or it will come into Amer- ica. If they export their surplus into America, then, to that extent, they leave open to us the market in Europe which they would other- wise absorb, don't they? Mr. Strong. And compel us to be at the expense of going over there to get it. Mr. Stevenson. We can always get paid for the expense. 60 FARM ORGANIZATIONS. Mr. SiLVEE. I -would rather some tariff expert testified on this, but it is right difficult for me to see the difference between Canadian wheat going out from their side to Liverpool and Canadian wheat going out from our side to Liverpool, as both go as the exportable surplus. Mr. Phelan. I might remind you that it takes experts to see that. Mr. Stevenson. The Non-Partisan League is a farmers' organiza- tion, is it not, in the Northwest? Mr. SiL^TSE. Yes. Mr. Stevenson. Is it affiliated with your bureau? Mr. Silver. It is not. Mr. Stevenson. I receive every two weeks a very illuminating statement from the Bank of North Dakota, established by that great organization of farmers, and, in the last one I received, they make the point that the tariff on wheat is not worth anything to them, be- cause the proposition is only 20,000,000 bushels will come in here from Canada, and if it does not come here our farmers will meet it in Liverpool, France, Germany, and elsewhere and, therefore, it is just a question of where the surplus is going to be sold ; and if Canada sends it in here we will have that much more market in Europe, and that there is no more demand for wheat than there is surplus. That is a very illuminating statement they make, and I did not know whether you were familiar with the position they take, or not. Mr. Silver. I am not familiar with the statement, but the surplus of wheat, cotton, and other commodities certainlj' goes into the mar- kets of the world Mr. Stevenson. And they have to compete ? Mr. Silver. Yes. The Chairman. Before you leave, there is just one other observa- tion I wish to make. To get back to your organization and the county farm bureaus, is it not a fact that if there had been no Smith-Lever appropriation, which provided for the appointment of county agents, around which was built up the county farm bureaus and the clubs throughout the country, that it would not have been possible to have had a national federation or State Federation of farm bureaus? In other words, is not the Smith-Lever fund the very foundation of your existence as a federation? Mr. Silver. Absolutely not. The Chairman. Will you explain to the committee why ? Mr. Silver. I can not conceive that because we work in harmony with special agents of the Government it would have any particular thing to do with the farmers voluntarily banding together to advance their welfare or interest. The Chairman. "Would it have been possible then to have made that organization of a million and a half men if you had not utilized the agencies which I have just enumerated? Mr. Silver. Dr. Atkeson will tell you about the Grange ; they have almost as many members, five or six or seven hundred thousand of them at this time, and they have had more The Chairman. But your organization was founded entirely within a period of years, whereas the Grange is a natural growth We have all known of the Grange as long as we have lived But your organization and the size to which it has grown has been due entirely to the fact the Smith-Lever appropriation provided FARM ORGANIZATIOXS. 61 for this organization of county agents around which was built up the county farm bureaus or the clubs and then some one interested m active organization saw the possibilities of federating them and that was done. Is not that the fact ? Mr. Silver. I do not see it just as you do. While I am not at all unmindful of the fact that these local organizations were made to help carry the practical application of the teachings of the county agents of the Department of Agriculture to the farmers, yet I do not understand that at all had to do with the great movement of the farm bureau. I think that the farm bureau, whether by that name or some other name or whether by the agency of the immediate peo- ple now concerned that this farm organization would have existed by the necessity of the conditions arismg on the farm. I think they would have been bound to organize and would have organized very rapidly along the lines that they have now organized. The Chaikman. But the men who are interested and influential in this organization seized upon this opportunity for the purpose of building the federation did they not ? Mr. Silver. I do not say that. I think there was something much deeper in the bosoms of the people, who were making this farm or- ganization, than just that one question. I think they felt that other things entered into their lives, not the least of which is the ques- tion of marketing, which they do in these organizations and other things which are associated with but not directly connected with it. The Chairman-. I have before me the hearing on the agricultural appropriation bill for 1922 and on page 547 there is a statement regarding the county agents, Mr. Byrnes asked what was the aver- age salary paid to the county agents, and Mr. Evans was answering. He said : " The average salary in the 15 States is $2,484.13 for county agents, with $181 for travel." Now, on page 550 of these hearings is an explanation by Dr. True, during which various members of the committee asked questions regarding the work of the county agents. It extends over on page 558. With the permission of the committee, I would like to have that inserted in these hearings at this time, because it deals with the work of the county farm bureaus and the county agents and explains how much the Smith-Lever appropria- tion amounts to in each State and covers the distribution thoroughly. I think it will be enlightening to have that in the hearing at this point, and, unless there is objection, I will ask the stenographer to insert that. (The portion of the hearing referred to is as follows :) AVEKAGE SALAKT OF COUNTY AGENTS. Jlr. Byrxes. What is the average salary paid? Mr. Evans. The average salary in the 1.5 States is 9--i84.13 for county agents, with $181 for travel. And there, again, it varies. Mr. Byexes. Who fixes the amount for travel — the State agent? Jlr. Evans. We pay no travel allowance to county agents from our funds ; that is with the State. In a great majority of the cases in the southern terri- tory, the county agent has no separate travel allowance ; it is included in his salary. Mr. Bybnes. What is the item you mentioned for travel? Mr. Evans. I say tliat is the average. Some States give a travel allowance and some do not. South Carolina gives an average of $390.91 a year. Mr. Bybnes. The State does? Mr. Evans. Yes ; that comes out of the Smith-Lever funds or county funds. 62 FARM OEGANIZATIONS. Mr. Bybnes. What other expenses or what other appropriation is made to county agents, if any? Is any allowance made out of those funds for any other purpose, for office expenditures, automobile, or any other expenses .' .Mr. Evans. No. Usually the travel expense covers the running expen.ses of an automobile. The agent owns his own automobile, as a rule, and he is given traveling expenses to cover expense of running it. Where he has traveling expenses at all, that is what it consists of usually. Mr. Byknes. Do you have such a thing as a supervisor there? Mr. Evans. Yes. Mr. Byrnes. How many of those? Mr. Evans. That varies. Usually we call them district agents. The State Is districted for purposes of administration, and there are usually about three such agents. It depends on the size of the State — one district agent for any- where from 12 to 15 or 20 counties. Mr. Bybnes. What salary is he paid? Mr. Evans. Usually he is paid a salary ranging around $2,500 a year. Mr. Bybnes. And expenses? Mr. Evans. Expenses of travel. Mr. Bybnes. Is he allotted funds to pay the expense of an office, too? Mr. Evans. No ; he usually offices at the central office, at the college — not always ; sometimes they have different offices out in the State. Mr. Bybnes. If the State is divided into districts, it might be very incon- venient to have the man located at the college. Mr. Evans. It is quite inconvenient at times, but the State determines that policy. Mr. Bybnes. It would increase the travel allowance, too, would it not? Mr. Evans. It would somewhat'; but, on the other hand, where they have that arrangement they figure it has the advantage of having them together for fre- quent conference. Mr. Bybnes. How many county agents are receiving anv part of these funds? Mr. Evans. This table does not include a few assistant county agents we have. We have 807 county agents receiving part of this fund at this time. This statement is made as of December 1. There are some assistant county agents not included in that. Mr. Byrnes. That does not include your district agents to whom you refer? JIi-. Evans. No ; that does not include the district agents. Mr. Byrnes. Do you pay, as a Rpueral thing, about the same average amount toward the salary of the district aiient? Mr. Evans. Usually we pay a little bit nioi-e to a distlrct agent — probablv fibout $600. Mr. Byrne.s. How about your liome-domonstration work now? Mr. Evans. You mean as to the average f;alaries and thiu.gs of that sort? Mr. Byrnes. As to the averii^'' salary and as to the number toward whose salaries you are contributing. Mr. Evans. On December 1 -.ve wer-e contributing, according to the table prepared in my office to the salaries of 513 home-demonstration agent.'* an average amount of $196.49 per ye;ir. It ranges all the way from ,$120 a year to $600 a year. It depends on the Slate: there are different amounts in difCernet States. Mr. Byrnes. In practical operation the State requires an appropriation from the respective counties, does it not? Mr. Evans. Yes. home-demon iSTRATIOX WORK. :\Ir. Byrnes. That i.s the Avay they secure their part of the funds? Mr. Evans. Yes. Take this home-demonstration work, for example ■ The average salary of home-demonstration agents is $1,772.21. That is made up as follows: $196.49 from our office; $686.19 from the college or the State which means Smith-Lever funds; and $859.00 from the county, with .$30.47 from other organizations, making the total average I have given here. Mr. Byrnes. Your boys'-club work amounts to only $23,322? Mr. Evans. Yes. Our boys'-club work is carried on by the county agent ■ we only spend money for supervisors or leaders in the club work. The counlv agent or home-demonstration agent, as the case mav be. in the county is re- sponsible for the club work—boys' and girls'. But we have to have men and women to lead the project and to supervise and look after the selection nf FARM OKGANIZATIDNS. 63 agents, to look after getting the appropriations, and to direct and shape up tlie work and keep the policy uniform in the State, and so on. Mr. Byrnes. What part of this fund is spent in the Washington office? Mr. Evans. We are spending tliis year about .fOn.OOO— ?52,590 for the admin- istration or scientific force, and $42,720 clerical. Mr. Byrnes. What do you call a collaborator; is he in the field or here? Mr. Evans, \\ithout seeing that table, I do not know just what you mean. Mr. Byrnes. You ask for 1,91.5 collaborators. Mr. Evans. Ordinarily, a collaborator is a fellow we pay $1 a year to in order to give him the franking privilege, and all the rest of his salary is paid by the State or county. Mr. Byrne.s. That is the reason I am asking, because this statement shows 996 paid .$1. How many men have you receiving that $1? Mr. Evans. Not vei-y many at present. We have tried to get away from that policy as much as we can. Jlr. Byrnes. The purpose is to give the franking privilege and they are men engaged in this work at the agricultural college of the State? Mr. Evans. Oh, no. Mr. Byrnes. Who are they? Mr. Evans. They are frequently county agents, or home-deuionstration agents, or. oftener, Negro agents. Mr. Byrnes. Your $1 men? Mr. Evans. Yes ; in that case the college pays all the salary from Smith-Le- ver or county funds, but asks us to give the franking privilege, and to do that we have to pay something, and they are the collaborators. Mr. Byrnes. I would like you to make a statement as to what you are doing — whether you are making any headway. Mr. Evans. Yes; we are making headway. Of course, the past year has been a very difficult one because of the readjustments necessary following the war and the reduced appropriation. During the war, of course, we had a very large appropriation and we put agents into a great many counties that had no agents before. Then, when our funds were cut down, the readjustment of those force made some difficulties, and, also, during the war all of our forces, men and women, were called upon to cooperate with all kinds of agencies, all kinds of drives, and everything else. Following that it was a little bit difficult to settle down to definite, specific project lines of work again. But I believe the results of the work this year will compare favorably with any previous year, notwithstanding all the difficulties. cox:nty agents. Mr. Anderson. How does the number of county agents compare with the total number of agricultural counties in the 1.5 States? Jlr. Smith. We have about 1,500 counties in the North and West, and about 1,180 of them are now with county agents. Mr. Merritt. I think, Mr. Evans, there are about 1,400 counties in the South- ern States. Mr. Evans. Yes ; and we have about 840 new county agents. Jlr. ANDiaisoN. You can insert that In the record. I would like to ask Mr. Smith one question : Have you had any difficulty in securing competent county agents? I have heard some criticism of the char- acter of the men «ho have been employed, and it has been Insisted to me that some of the failures in the counties have been due to the fact the men em- ploved were not competent. Mr. Smith. That is true that there has been difficulty In getting competent men. As I indicated a while ago. there are now probably between 60 and 80 counties without agents, because they are not able to find competent men for those places. That situation is easing up a little now as compared with what it was a year ago, and I am looking forward hopefully to getting and keeping high-grade, competent men. Mr. Rubey. You have here two apiiropriations. I would like to have a state- ment made as to the difference, if there is any, between the work done under each one of these appropriations. Dr. True. In a general way, the work is carried on very much the same. The southern work is older than the the northern work, and for that reason the home-demonstration work Is much better established there. Mr. RvBEY. You are doing practically the same kind of work under these ap- propriations? Dr. True. Yes ; it is practically the same. ^4 FARM OKGANIZATIONS. Mr. RUBEY. What would be the result if they were combined? Couldn't you save something in the overhead charges and all that sort of thing by putting these two funds together and administering them as one :mnd? „„^,,„„ Dr. True. I doubt whether it would make very much difCerence The number ■of people we employ and the general management of the work is such that I do not think our force would be affected materially. , ^ ^ Mr Rtjbet. It has always seemed to me, since this last work has been in- augurated, it would be better just to put it all under one head and to have it all done by one department or one chief, whereby you would get rid of a twin system or a dual system. ^, . . ^ 4.,, Mr. Evans. Of course, there is a history back of that, but that is not worth v?hile going into now. i, . ^ ^ -. Mr. BireEY. I understand, of course, the people of the South have objected to that, because of the fear they would have down there they were doing away with the work on the boll weevil. The whole proposition in the South is to £ght the boll weevil largely by changing the systems of agriculture and of •doing agricultural work? Mr. Evans. We are working on several special problems. Of course, the very big Negro problem is peculiar to the South and that is one line of our work — one of our problems that is not peculiar to other sections. We carry on a special line of work with the Negroes, which I hope to increase, because it is a very important line of work and we are getting mighty fine results from it. And they have also special cotton and boll-weevil problems and all that sort of thing. Mr. Bybnes. Can you get the Negro to adopt the new methods that are absolutely necessary with the coming of the boll weevil? Mr. Evans. With difficulty, but they are doing it very rapidly ; that Is to say, when you can once get a Negro interested as a demonstrator or cooperator, and they undertake to follow instructions, they make the best there are. Some of the best results we are able to get have been with Negro demonstrators. Mr. Byknbs I think the Negro is going to suffer more than anyone else from the spread of the boll weevil. Mr. Evans. Unquestionably he will. Mr. Bybnes. The boll weevil is in my country this year, and I am wondering seriously what the Negro is going to do, because he loves cotton and does not know how to do anything else, and you can not induce him to try anything else. Mr. Evans. It is a mighty big problem. COOPEEATIVE AGEICTJLTTJEAI, EXTENSION WOBK AND HOME ECONOMICS. Mr. Andeeson. We will take up item 40 ; that is the $1,500,000 supplementary fund. Dr. True. This fund is allotted to the States under the same conditions as the regular Lever fund, and it is spent for the same purposes. A proviso in this item requires that no more than $300,000 shall be expended for purposes other than the salaries of county agents. That has been more than fulfilled. The allotment for the salaries of county agents, as I have it here, is $1,344,597, -whereas $1,200,000 would be required. Mr. Anderson. That is actually spent for the salaries of the county agents' Dr. Tktje. Actually spent for the salaries of the county agents. Besides that, :$102,711 is spent for home demonstration work. Mr. Anderson. Does that mean women demonstrators in the field? Dr. True. Yes; county home demonstration agents; and $28,848 for club agents in the counties. That leaves $23,844 for extension specialists Mr. Byknes. What are extension specialists? Dr. True. They are men in different branches of agriculture or women in different branches of home economics who go out from the colleges to aid in the work in the counties, prepare publications for use in this work, etc Mr. Anderson. Then there is not any part of this, apparently ' that is spent for administration? Dr. True No, sir. It is offset under the law by an equal amount, which is divided in this way: County agents, $1,212,488; home-demonstration affent' Dr. True. By funds from sources within the State Mr. Anderson. Is there an offset also to the other two items for demonstra- tion work in the North and boll-weevil work in the South? Is that offset, too? FAEM ORGANIZATIONS, 65 Dr. Tbue. No formal ofEset is required there; but, as a matter of fact, from resources within the State much larger amounts are contributed to the exten- sion work. I have a general statement about that which I may make now. Mr. Anderson. All right. SOUKCE or FUNDS. Dr. True, Cooperative extension work in agriculture and home economics, carried on in the 48 States under the Smith-Lever Act and related Federal and State legislation, is maintained for the year ending June 30, 1921, with funds aggregating $16,836,734. To this amount the Federal Government contributes $6,281,345, and the States, counties, farm bureaus, etc., contribute $10,555,389. Of the funds derived from sources within the States $4,655,334 are given by the States and agricultural colleges, $5,057,547 by the counties, and $843,508 from miscellaneous sources. The Federal Smith-Lever fund is $3,580,000. This is supplemented by $1,500,- 000 appropriated to the Department of Agriculture, to be expended under the terms of the Smith-Lever Act. Of the regular Smith-Lever fund, $480,000'— that is, $10,000 to each State — is given without requirement of offset. The balance. $3,100,000, and the supplemental fund of $1,500,000, or in all $4,600,000, must be offset by funds from sources within the States. This offset is provided by $3,037,388 from States and colleges, $1,830,520 from the counties, and $232,- 082 from miscellaneous sources. The amounts not requiring ofEset are as follows : Federal funds, Smith-Lever fund, $480,000; farmers' cooperative demonstration work, allotted to the States, $1,026,850 ; other bureaus of the Department of Agriculture, $174,495 — making a total of Federal funds not requiring offset of $1,681,345. From the States and colleges, $1,617,946; from the counties, $3,727,027; and miscellaneous, $610,416; total from State sources, $5,955,389. From both Federal and State sources the funds not requiring offset aggregate $7,636,734. These funds for the current year, according to the projects submitted to us from the States and approved by us, are being spent for the following purposes : In the county agent work, $8,466,219, or 50 per cent ; in the home economics work, $3,145,755, or 18.8 per cent ; in the boys' and girls' club work, $1,109,109, or 6.6 per cent ; for extension specialist, $2,918,664, or 17.5 per cent ; for ad- ministration, $951,185, or 5.6 per cent ; for publications, $245,802, or 1.5 per cent. For the three lines of county work, $12,721,083, or 75.4 per cent, are being used. Mr. Anderson. It is a little bit difficult. Doctor, to follow that statement. 1 wonder if we can take this Smith-Lever fund, $3,580,000, and have you give me the same information for that that you did on the other two items, as to the amount of it which is being spent for county agents, etc. ? Dr. True. Yes. ( The statement follows : ) Farm- ers' co- opera- tive dem- onstra- tion work. Smith-Lever. State and college. Coimty. Other. Projects. Regular. Supplement ary . Total. Fed- eral. State. Federal. State. County agents: North and West.. South $284,955 279,367 $491,034 483, 113 $692,046 339,766 $725,966 618,631 $726,342 486,146 $288,954 55,606 $2,050,374 500,842 $408,877 34,100 $5,668,548 2,797,671 Total 564,522 974, 147 1,031,812 1, 344, 597 1,212,488 344,460 2,561,216 442,977 8,466,219 Home demonstration work: North and West.. South 101, 575 181,329 373,722 410, 127 286,366 446,756 36,978 65,733 40,991 202,631 132, 163; 376, 150 29,204; 425,929 35,502 600 1,383,447 1,762,308 Total 282,904 125,600 21, 782 783,849 733,121 102,711 243,622 161, 367, 802, 079 36,102 3,145,755 Boys' and girls' clubs: North and West.. South 223,171 71,790 135, 220 59,148 26,848 2,000 31,204 i 132,540' 233,482 1, 550; 5, 221 39,563 947,618 161,491 Total 147,382 294,961 194,368 28, 848 31,204 134,090 238,703 39,553 1,109,109 66 FAEM ORGANIZATIONS. Mr. Anderson. Can you give me the total amount out of tliis $:},.=580,000 spi'iit for county agents? Mr. Mekeitt. i[!974,000. Mr. Anderson. Does that include any State leaders? Mr. Meeeitt. Yes. Mr. Andeeson. Can you say how much? Mr. Mekeitt. Not from these records ; no. Mr. Andeeson. How much of it is for county demonstration agents? Mr. Meeeitt. Home demonstration agents? Mr. Andeeson. Yes. Mr. Meeeitt. $.784,000. Mr. Anderson. Is there any farm-management demonstration in th;s? Mr. Mereitt. No. Mr. Andeeson. What is the rest of it? Mr. Meeeitt. .$295,000 for boys' and girls' club work. Mr. Byrnes. Is that spent in the field? Mr. Meeritt. That is for the State leaders and the county club leaders. Mr. Anderson. What is the rest? Mr. Merritt. The rest of that goes into supervision, publications, and special- ists. I have not those other items here. I can furnish that from the records in the office. Mr. Anderson. I would like to have a table showing of this amount of $3,580,000 how much goes to county agents in the field, how much to the State leaders and district leaders, and to other supervision, how much goes for home demonstration work in the field and that amount that goes for State leaders out of that ; the same thing for the boys' and girls' club work and whatever makes up the rest of the item — whether it is supervision, publications, or whatever it may be. Mr. Meeeitt. AVe will have to go back to our original records to get that. I think we can make a statement of practically what you want there. Mr. Andeeson. And I should like a table totaling up this whole business, giv- ing these same figures for all four funds. Mr. Meeeitt. We can not give you that for the present year, but we can give it for last year, because that comes In when they report their expenditures. Mr. Andeeson. You can give it for last year? Mr. Meeeitt. I can give it for last year, I think, but not for this year, because this year our records are based on allotments, and they do not subdivide to that detail. But the percentage will practically be maintained. Dr. Teiie. We can show that approximately, I think. Mr. Anderson. Of course, I would like to get it as near as we can for this year. Dr. True. We think you should have before you the whole statement, rather than a statement as to any one fund. Mr. Anderson. I would like to get the whole statement ; but when you say $974,000 goes to pay State leaders, etc., we get a wrong Idea of it Dr. True. We want to give it to you just as you want it, as near as we can. Mr. Meeritt. First, you want to know how much of the farmers cooperative demonstration work is paid for State leaders at colleges and how much goes into counties, and the same thing for the four Smith-Lever funds, i. e., two regu- lar and two supplemental. Ml'. Anderson. Yes. Mr. Mereitt. And the same thing for funds from all sources. Mr. Anderson. Yes ; I want it divided up so that it will show what actually goes into the payment of salaries for county agents, what goes into State leaders, and what goes into Washington extension specialists, and what goes into Washington administration. Dr. True. A separate statement covering this information wdll be furnished you. When you have those funds presented in that way, you should take into account the whole enterprise, and that involves a good many items which lead to the particular adjustment of these funds ; the condition of the funds in the counties, the condition of the State appropriations, and beyond that also the mere matter of bookkeeping or adjustment, because as far as the Federal funds and the offsetting funds from sources within the State, we regard those as practically pooled when it comes to the division of the funds among different lines of work. FARM ORGANIZATIONS. 67 Mr. Anderson. AVeli, yon do not ha\-e the actual bookkeeping of those funds, do you ? That is a county proposition. Dr. True. No; we do not require that a certain proportion of the county agent'.s salary, for example, shall be paid out of the Federal Smith-Lever fund and an equivalent amount out of State Smith-Lever fund. Thev may put all the contributions from the college on the Federal Smith-Lever 'fund, or they may put it all on the State Smith-Lever fund, and that is very largely a matter of bookkeeping. Mr. Anderson. The salaries of these county agents are actuallv paid to them by the colleges, are they not? Dr. True. Only a small part is paid by the college. Mr. Anderson. What am I getting at Mr. Byrnes (interposing). Who gives the man the check? Mr. Anderson. Yes ; that is what I am trying to get at, who gives the man the check? That Is what I want to know, the Federal Government or the State college ? Dr. True. He generally gets his money from three or four different sources. Mr. Byrnes. Well, do you send him a check? Dr. True. We send a check simply for the small amount which we contribute on his salary. Mr. Anderson. And the State college gives him a check for a part? Dr. True. Yes, sir ; the State college gives him a check for a part of it. Mr. Anderson. And the county gives him another check for the part they pay? Dr. True. Yes, sir. Mr. Anderson. That is true also of the Smith-Lever funds? Dr. True. Yes ; we do not pay out the Smith-Lever funds to him. Those are paid out to the colleges. Mr. Anderson. That is what I am trying to find out? Dr. True. Certainly; we simply allot that money to the colleges and those funds are given to the colleges in a lump sum. Mr. Anderson. That is what I am trying to find out. You do not issue him a check direct? Mr. Harrison. Only to those who are paid out of the direct funds, Mr. Chair- man. These two items for farmers' cooperative demonstration work are the only specific extension funds from which money is paid out directly by the department. The remainder of the money goes to the States. Mr. Anderson. That is what I am trying to get at. So that all the book- keeping you have to do in connection with the Smith-Lever jfunds is the book- keeping in connection with the allotment to the States of both regular and supplementary Smith-Lever funds and the audit of the account to see that it is spent for the purposes for which it is.allotted. [''.'//' All right, we will take up the next nem. Now, with regard to this increase of $500,000 in the Smith-Lever fund this year, that, of course, Is a general increase in the amount which can be spent for this extension work. Now, can you state generally or specially what can be done with the $500,000 ; why it is necessary to have that increase? What I am getting at is this: The Agricultural Committee when it had charge of these appropriations had in mind that some time when the Smith-Lever funds reached their maturity it would be possible to reduce the supplementary fund of $1,500,000. Now, if it is not feasible to do that, I want to know why. Dr. True. Well, this extension movement is a growing movement and it has by no means reached its conclusion. We have county agricultural agents' in 2,000 counties. There are at least 650 more counties which ought to have such agents. There are home-demonstration agents in only about 800 counties. The boys' and girls' club work is a growing proposition and increasingly popular. For the past few years the extension funds have been increasing in the aggre- gate by about $2,000,000 a year. What we hope is that with this additional $500,000 the States will increase their appropriations by at least an equal amount, and that then the counties will put up $1,000,000 more, as new counties; may be organized. And so there is plenty of use for this additional fund. Mr. Anderson. Well, of course, you can put a county agent and a home- demonstration agent, and a boys' and girls' pig club, and a man in charge of them in every county in the United States. You could put a half dozen in there for that matter, but all of that is more or less relative. In the counties that I know something about the county agent is doing all three things, organizing 33920— 21— PT 2 3 68 FARM ORGANIZATIONS. boys' and girls' pig clubs and calf clubs and the various other clubs and associa- tions, and looliing after all of them. . 4. 4. Now, I must say that I am not sure that it is either necessary or wise to try to establish the boys' club work; particularly on the basis of an agent for every county or anything lilse that. Dr. Tbue. We do not anticipate that in the near future there will be a sepa- rate paid club leader In the counties generally; but we do expect a ^dual increase in the worl£ and on the basis of an additional sum of $2,000,000, In- cluding this $500,000 additional Smith-Lever fund, we hope that we will be able during the next year to add at least 200 counties with county agricultural agents and 200 counties with home-demonstration agents and perhaps 150 addi- tional counties with the club agents. Mr. Habbison. Mr. Chairman, you have in mind the change that occurs next year in the basis of apportionment? Ivtr. Andeeson. Of course, we know that will reflect in the situation to some Mr. Haerison. There will be a decrease in some States and an increase in others.. Mr. Andeeson. Of course, that is a matter largely of legislation. We will have to deal with it, so far as appropriations are concerned, in more or less of a general way, and from that point of view It is just a question as to how far this work can or ought to be developed. It rather seemed to me that so far as the boys' and girls' clubs are con- cerned I think that is a very excellent development that ought, so far as possi- ble, be put on the basis of self-help and development, and that a whole lot of that work can be done and normally is done by the county agents. AU right, we will how take lip item No. 41. Before we go to that, though, I wish you would put in the record anything you can with regard to the apportionment and the distribution of funds for the next fisca,! year under the four approi)riations. Mr. Haeeison. You want them separately? Mr. Anderson. A statement similar to the one you put in on this item here. (The statement referred to follows:) Maximum amounts of Federal funds which eacfi State is eligible to receive unAer the cooperative-extension (Smith-liever) act. state. 1920-21 1921-22 I State. 1920-21 1921-221 $121,041.07 18,863.27 96,171.76 67,026.86 34,761.'87 17,218.85 16,610.76 43,515.89 140, 062:92 28,062.^34 146,791.35 107,810.27 107; 036.08 '85,203.20 118,955.57 ,82,860.91 32,672.78 ■50,024.78 25,142.20 103,167.27 86,978.09 109, 868. 30 129,009.92 25,241.71 65,365.44 $140,433. 20' 25;314.:40 113,449.60 .87,490.00 44; 434. 00 ;17,S70,80, 17,203.60 53,354.80, lS3,000.-()0 82,tW5.20. 157, 085.. 20 112,459.60 118,237:60 91,486.00 13B,.194.40 .92,821.60 94t)94.80 51,061.60 24,356.80 110,897.20 104,467.60 119,868.40 138,649.60 36,578.80 72, 928. 00 Nevada $14,,303.54 21,022.86 49,5r2.67 27,634.90 1S1;^120.72 128,588, 70 42i77.14 142,(542.14 93,987.74 32,972,86 200,617.70 11,127.96 91,070.95 41,862.24 119,538.56 195,843.27 22,589.79 21,747.77 109,571.81 43,699.36 72, 37a 58 93,519.09 16,454.20 $14,104.00 21/559.60 $7,444.40 30 930 40 Arizona .NeV?.Hanipshire Galifbmia NriwMfexlco Ne'w'York. 137/262.40 156,949.40 49-'456 00 North Carolina North Dakota Florida Ohio 157-369. 60 115; 314.40 ■ 37 781; 20 Idaho Pfipnsylvftnia 230;338.00 11,076.40 198,186.40 ■'47 792 80 Phode' Island South Carolina South Dakota 132,169.60 2S2,858.00 26,552.80 22,733.20 125,560.00 53 ll7"20 Utah; Wasliington. . . . West V&ginia 87)724! «) 108,424.00 19,504.00 MissiSSiDDi Wisconsin Total 3,580,000.00 4,080,000.00 1 Approximate, based upon a preliminary census statement. FAEM ORGANIZATIONS. 69 Distribution of supplenuiiiarji ejftension funds, by States. State. 1920-21 1921-22 1 State. 1920-21 1921-22 1 Alabama. $53,729.65 4,288.68 41,696.01 27,583,64 11,981.56 3,492.99 3,198.75 16,217,37 62,983,67 7,772.10 65,705.49 47,327.55 46,962.94 36,388.65 52,720.44 35,255.28 10,970,70 19,366.83 7,326. -87 45,080:94 37,247.46 48,323,37 57,585.45 7, 375. 02 26,789.73 $54,355.60 6,381.00 43,104.00 32,287.50 M, 347. 50 3,154.50 3,001.50 18,064.50 63,760.00 9,198.00 61,285.50 42:691.50 45,099.00 33,952.60 52,581.00 34,509.00 10; 039. 60 17,109.00 5,982.00 42,040.50 39,361.50 45,778.50 53,604.00 11,074.50 26, 220. 00 $2,082.36 5,333.84 19,14S.07 8,533.02 58,606.80 67,381.63 15; 617.97 63,891.36 40,639.23 11,116.90 92,234.37 545.79 39,227.88 15 417.21 53,002.53 89,924.16 ;6,091.83 5,684.40 48,179.91 16,306. 14 30,179.31 40,412.46 3,123.00 $1,710.00 ,4,8re.50 Arizona New Hampshire Arkansas California 8,721.00 Colorado New York North Carolina 6i;228.50 16,440.00 61,404.00 43,881.00 11,575.50 91,807.50 Delaware Florida Ohio . . Georeia Idaho Illinois Iowa South Carolina South-Dakota. 40,811.00 15,747.00 60,904.00 92,857,50 6,897.00 6,305.50 48,150.00 Kansas Louisiana Texas Maine Utah Maryland Vermont Virginia Michigan Washington 17,965.50 32,385.00 4l 010.00 West Virginia Mississippi...: Wisconsin 3,960.00 Total Nebraska 1,500,000.00 1,500,000.00 ^ Approximate, based upon a preliminary census statement. The State will have to duplicate the funds provided under the Smith-Lever Act, with'the exception of $10,000 allotted to each State, and the supplementary extension funds, the full amount. Mr. WiNGO. I understand the chairman takes the position that Mr. Silver's organization is nothing more than a national organiza- tion grouping together these county agents? The Chairman. No;, it is a federation of the county farm bureaus. The county farm bureaus are made possible because of the establish- ment in the counties of the county fclrm ageilts, who are supported by appropriations from the United States Department of Agricul- ture and appropriations from the. States to match the appropriation from ' the tJnited States, and local contributions from the counties. Mr. WiNGo. You say it is made possible. What are you going to do with the situation where they have these county farm bureau and do not have the county agent? The Chairman. Up until they started to federate there was not any county farm bureaus. Mr. WiNGO. I just wanted to develop your idea. The Chairman. My point is the establishment of the county farm bureaus was entirely due to the Smith-Lever appropriation and ap- propriations of the States made for the support and employment of county farm agents. Mr. WiNGO. Do you contend these county farm bureaus, then, con- fine themselves and act simply as a board of directors to direct the county agent in what he shall do ; is that the idea ? The Chairman. My experience is, and I sat in on the organization of a county bureau in my own county and had a good bit: to do with the appointment originally of the county agent under the Smith- Lever law — I saw the beginnings of the woi'k of the cotrtity agent; I saw the building of the local farm bureau, and 1 know the lOeal farm bureau in my own county was promoted through the efforts of the county agent. He called the meetings, he got the fanners t^v- 70 FARM ORGANIZATIONS. gether; he had a large part in the selection of the officers of the county; I know they meet in the county court house; I know the county commissioners contribute each year to the appropriation for the support of the organization. Mr. Silver. The organization? The Chairman. To the work of the county agent? Mr. Silver. To the work of the county agent, but not to the farm bureau as a farm bureau. The Chairman. No; I do not know that they contribute to the bureau; but it is so intertwined it would be extremely difficult to separate those funds and the work that the county agent does. He works with the members of the farm bureau, and he works under di- rections from the State College and, indirectly, under the direction of the Department of Agriculture. My own thought is they are so intertwined and intermingled in their functions and duties that if you started to separate them you would find the whole federation of the farm bureaus is dependent entirely, in the final analysis, on the appropriations made by Congress for the support of this extension work. Mr. WiNGO. Is it not, then, the inevitable conclusion, based on that premise and statement of fact, there is danger that the control of the county-agent work will pass from the Department of Agriculture and be dominated by this American Farm Bureau Federation? The Chairman. I can say this : That in the beginning of the estab- lishment of these county agents, it was understood by all hands that this representative was the representa.tive of the Department of Ag- riculture. It was the first time that the farmer was getting the word direct from the United States Department of Agricufture and getting the benefit of all of their research work, and then that the affilia- tion of the local county organization was strengthening his hands — these farmers were engaged in helping him to bring that word to other farmers who were reticent and backward about letting this farm agent come into their homes and adopt the radical ideas which were suggested by the Department of Agriculture. And so far as that local organization is concerned, it is purely a local organization. Now, this farm bureau comes along and injects a new element into the organization and while it proposes to harmonize both the Depart- ment of Agriculture and local farm bureaus and agents and farmers and all that, it seems to me it is rather a duplication of effort and their foundation is being built on Government appropriations. Mr. WiNGO. The county agent is the public official that everybody recognizes and he is held out all over the country as the Government's representative : What part does the secret organization of the Depart- ment of Agriculture play, these secret agents in every county whose names they will not even furnish to a Member of Congress ; what part does that organization play ? The Chairman. I arn not familiar with that phase of it. ' Mr. Silver. May I say just in that connection that our organiza- tion in the great State of Illinois, which is second, I think, in mem- bership in the TJiiited States _Mr. WiNGO. I do not mean secret like a lodge, or something of that kind, but it is a confidential organization that they do not let the general public or Congress know who compose it. FAEM ORGANIZATIONS. 71 Mr. Silver. I was speaking of Mr. McFadden's suggestion first, that possibly in whole and certainly in the major part, the State of Illinois entirely takes care of the county agents, the Government tak- ing no part in the contribution to them. It has bureaus second in membership in the Union, which would seem to indicate that the movement is well founded and well grounded and thoroughly estab- lished, without any connection with the county agent such as is in Mr. McFadden's mind. The Chairman. My interest in that, Mr. Silver, is this: I am heartily in sympathy with the work that is being done by the county agents under the Smith-Lever law, but I do not want to see any organization built up that is going to interfere with the cooperation between the United States Department of Agriculture and the farmer back home that takes the information direct to the farmer's door which is of great help to him, I do not want to see an organization built upon that foundation which may help to destroy the appro- priation which supports that great work. Mr. King. Before we adjourn, I just want to make one statement for the record, when Mr. Silver gets through. Mr. Silver. I would just say, in answer to that, that certainly the members of the farm bureau nor the officers would not want to do anything to destroy that working relationship that gives an inter- pretation of the result of research to the farmers in a practicable way; they want to aid that and not in any way to retard and handicap it. Mr. Strong. Is not this true, that the appropriation by the Gov- ernment is not large enough to support these local county farm agents, and these farm bureaus use their funds to supplement his salary and make it possible to employ competent men in those counties? That is true in my own county. Mr. Silver. Not only do they supplement it, but m the case ot Illinois they pay it all ; and the highest-priced county agents in the United States are paid wholly from county and farm bureau funds and not funds in connection with the Government. Mr. King. I wish to make a short statement in Mr. Silver's pres- ence and in the presence of all these other representatives of farmers' organizations. My opinion is not concurred in wholly by the mem- bers of this committee, but I view with a great deal of apprehension the efforts which are apparently going to be made by some of the farm organizations to assist Edge corporations to dispose of their debentures in the United States, not guaranteed by themselves. They will not take a single dollar of them by themselves, but expect to foist them upon the American community— not the farmers alone, but the entire American population. How is it going to affect this country; how is it going to affect the farmer when the people of this country will be loaded up to the hilt with a lot of securities of European Governments for the mere temporary purpose of selhng some of the farmers' products ? Eventually, in the long run, where are we going to get in this country by absorbing a great amount of -F«roTo^ fpniirities? It was stated in this committee and on the floor S if House a? the time of the passage of the Edge bill that its passage would stabilize foreign exchange. So said Gov. Harding, of the Federal Reserve Board. And there never was a more specious 72 FARM ORGANIZATIOKS. argument put before any body of intelligent men than this argument in favor of th& enactment of the Edge corporation law, and to-day you see Mr. Harding, president of the, Federal Eeserve Board, accepting or going to accept the presidency of on« of these Edge corporations, at a salary of $100,000 a year, af t^r he has been working here for a year for the purpose of perfecting Edge-law tegis^ation to enable him to do that very thing, so as to make himself eligible as an officer. Mr. WiNGO. You say under these Edge corporations that they would sell their debentures here without any liability of the stock- holders at all ? Mr. King. There may be a slight liability, but they are not guar- anteeing and do not intend to guarantee them. Are they guarantee- ing the Belgium bonds; are they going to guarantee the Midi Rail- road of France or the Paris and Oi^leans Eailway ? Not at all. Thejr want the Government to take care of those things through the Fi- nance Corporation, where there is any liability or any danger, and let the people pay it or the farmers pay it. Mr. WiNGO. Under what provision of the law do Edge corpora- tions sell their paper without recourse ? I forgot, for the moment. Mr. King. They can sell it if they can get the people to buy it. Mr. WiNGO. I mean sell without recourse, Mr. King. Oh, if they put out the proper propaganda and get all the professors going and all the teachers going and farmers' organi- zations and newspaper organizations and the daily press and every- thing else, they will sell all that stock in this country, and you know it. Mr. WiNGO. You are not going to amend the legal liabilities im- posed by the act by propaganda. Mr. Phelan. Just so there won't be any misunderstanding I want to say for the record, Mr. King does not represent my views on Gov. Harding, whose service I think has been disinterested and very valuable, both to the Government and to industry and agriculture. Mr. King. He even amended this act so that he could get this posi- tion and accept it. At the time that the Edge bill was enacted here at the last session he came before this committee and we sat here and permitted him to do it and stood fpr him on the floor of the House. Mr. Steagall. It is no reflection on Gov. Hardiug that any insti- tution should mention him in connection with an official position in the organization of that corporation. Mr. King. It is wrong when Government officials can go out after appearing here as arguing in behalf of the people and take a position of that kind. Mr. Steagall. There is not anything in the laws of this country that denies him the right to accept any legitimate business connec- tion he sees fit, after, he goes out of the office he holds. Mr. WiNGO. Would the Edge corporation, with reference to the class of paper to which you refer, do anything that the national banking law does not authorize a national bank to dq with reference to domestic paper in purchasing, selling, discounting, and negotiat- ing, with or without its indorsement or guaranty, notes, drafts, checks, bills of exchange, acceptances, including bankers' acceptances, cable transfers, and so on? FARM ORGANIZATIONS. 73 Mr. King. They can handle all these things as investment brokers. Mr. WiNGO. Would an Edge corporation sell a bankers' acceptance ^^'ith amr less liability than any other banking corporation ? Mr._ Strong. I just want to say, Mr. Silver, it is very evident this committee does not agree on the tariff legislation, a revival of the U ar Finance Board, nor on the Edge corporation law, and some of our questions to you have been based upon our different opinions. Mr. Silver. Yes. The Chairman. Have you some further statement you want to make? Mr. Silver. I do not want to get into these differences of opinion or controversy, except to say so far as the gentleman's alarm is con- cerned as to investment by the farmers in this corporation, if his mind reacted as mine does, to the situation of the farmers to-day, he would not worry about their investments that may be made other and aside from attempting to carry on their business. My belief is that from 25 to 40 per cent of the farmers of America are to-day bankrupt if they sold out on the present market. Mr. King. But other American's have to buy stock. Mr. Silver. I have communications saying that tenant farmers have abandoned their cotton crop and range men have abandoned their sheep. I have letters telling me that when the banks demanded immediate payment in one case at least, the ranchman said " If you can get your money out of these sheep quicker than I can, they are on such and such a ranch." And in the apple section, in the great State of West Virginia, where they gather great apple crops which scarcely paid the cost of picking ; and in Iowa, where corn went down to 35 cents a bushel. I think there is not so much danger of great subscriptions from the farmers at this time. The Chairman. Along the line of my discussion and fears regard- ing the possible conflict of the county agent and the Simth-Lever funds, have you any objection to there being written into the law, in this next appropriation bill, that no part of those appropriations shall be used other than for the work of the county agent, so that it does not enter in as a part of your county farm bureau work in any particular ? Mr. Silver. I would rather that question be put to Mr. Howard, but I would say personally, as it is now, so far as my knowledge goes, there is absolutely no possible way for any of the Smith-Lever funds to get into the county farm bureau till. (Additional information furnished by Mr. Gray Silver, Washing- ton representative of the American Farm Bureau Federation:) Constitution Adoptbd by the American Farm Bureau Federation, November 14, 1919, Chicago, III. article t. — name. The name of this organization shall be the American Farm Bureau Federation. article II. — OB.IECTS. The objects of this organization shall be to correlate and strengthen the State farm bureaus and similar State organizations of the several States in the na- tional federation, to promote, protect, and represent the business economic, social, and educational interests of the farmers of the Nation, and to develop agri- culture. 74 FARM ORGANIZATIONS. AETICLE III. — MBMBEBSHIP. Section 1. The membership of this organization shall consi^^t of State farm bureau federations and State agricultural associations based on the tarm bureau or s m,lar plan when approved by the executive comnuttee of the orgam- Sec' 2. All applicants for membership shall submit to the executive committee a copy of their constitution and by-laws. Sec 3 Any member may withdraw from the American Farm Bureau Federa- tion by presenting to the secretary a written resignation, provided that all dues are paid to date of withdrawal. ARTICLE IV. BOAED OF DIRECTOES. Section 1. The governing body of this organization shall be composed of a board of directors, the members of which shall be elected by each of their re- spective State federations or similar organizations, which shall meet once a year. Each State organization qualified for membership shall be entitled to one direc- to and an additional director for every 20,000 or major portion thereof, of paid-up members of the county organizations, which are affiliated in the State organizations. Sec. 2. The board of directors shall be composed of actual bona fide farmers, and each director shall have one vote on each question. Sec. 3. Bouse of delegates. — Each member in the American Farm Bureau Fed- eration shall be entitled to one delegate to a house of delegates and one addi- tional delegate for every 10,000 farmers of the State, or major portion thereof. The delegates shall sit with the directors and have the same privileges as direc- tors except the right to vote. article v. — DUES. Section 1. The annual dues of each State association in the national organi- zation shall be 10 per cent of the total individual farm bureau membership dues ; provided that in States not having memberships the minimum dues shall be $250 and the maximum $1,000; the basis and amount for such States shall be fixed by the executive committee. Sec. 2. In States without memberships, if 4 per cent of the total amount expended annually for farm bureau work within the State exceeds $1,000, the dues for such State shall be 4 per cent of such total expenditures or such portion thereof as is deemed right by the executive committee. Sec. 3. Sections 1 and 2 shall be applicable for the first year. Sec. 4. The dues shall be payable in advance quarterly on January 1, April 1, July 1, and October 1, each year. The executive committee shall have power to suspend any State organization from the American Farm Bureau Federation for nonpayment of dues when six months in arrears. Sec. 5. Each State organization desiring to become a member of the Ameri- can Farm Bureau Federation, shall present an application, and if accepted by the executive committee it shall then forward its membership dues for that quarter, and upon receipt of same shall be entitled to full privileges of the organization. Sec. 6. A complete annual audit and report of the affairs of the organization shall be furnished each member, such audit to be made by a certified public accountant. Sec. 7. The executive committee shall approve and order to be paid, such mileage, salaries, and expenses as are In accord with the general plan adopted by the board of directors. The expenses of the board of directors attending the annual meeting shall be paid by the American Farm Bureau Federation. ARTICLE VI. meetings. Section 1. The annual meeting of the board of directors shall be held during the month of November or December, the date and place to be decided upon by the executive committee. Sec 2. A majority of the board of directors shall constitute a quorum, and no director shall vote by proxy. Sec 3. Reports of all executive and other committee meetings shall be filed with the secretary and copies furnished to each director of the organization, FARM ORGANIZATIONS. 75 and to the director of the States Relations Service of the United States Depart- ment of Agriculture. Sec. 4. Special meetings of the board of directors may be' called by the presi- dent with the approval of the executive committee, and shall be called by him upon the request of 10 member States. AKTICLE VII. 0¥FICEES. Section 1. The officers of the American Farm Bureau Federation shall con- sist of a president, a vice president, a treasurer, and a secretary. Sec. 2. All officers, with the exception of the secretary and the treasurer, shall be elected by the board of directors, at each annual meeting, and shall serve for one year, or until their successors are elected and shall have qualified. Sec. 3. The president shall be the executive head of this organization and shall be paid such salary as may be determined upon by the board of directors. He shall preside at all meetings of the board of directors and of the executive <;ommittee. He shall be a member ex-officio of all standing and special com- mittees. Sec. 4. The vice president shall perform the duties of the president In his absence or inability to serve. Sec. 5. The treasurer shall be elected by the executive committee and shall receive all moneys from the secretary and shall disburse the same by check only upon written orders signed by the se<;retary and countersigned by the president. He shall carefully account for all money and make a full report to the board of directors annually, or at other times upon request of the president. The treasurer shall furnish a good and sufficient bond satisfactory to the executive committee, who shall serve one year, or until his successor is elected and shall have qualified. Sec. 6. The secretary shall be elected by the executive committee and his salary fixed by it. He shall receive all money and pay it to the treasurer, taking his receipt therefor. He shall give a bond satisfactory to the executive com- mittee. His further duties shall be outlined by the executive committee and he shall work under its direction. Sec. 7. The executive committee shall employ such assistant secretaries, as- sistants, and office help as it may deem necessary. Sec. 8. Any officer or director of the American Farm Bureau Federation who shall become a candidate for an elective or appointive State or national office, shall at once resign and be automatically dropped from his official position in the American Farm Bureau Federation. ARTICLE VIII. EXECUTIVE COMMITTEE. Section 1. The board of directors shall elect by majority vote at the annual meeting from among its membership an executive committee of 12 members, not more than one from any State, the members of which shall serve for one year or until their successors are elected* and shall have qualified. The executive committee shall have charge of the administrative affairs of the organization. The membership of said committee shall consist of three members from the Northeastern States, three from the Middle Western States, three from the Southern States, and three from the far Western States The president and vice president shall be members ex officio of the committee, and the president shall be chairman of the executive committee. The committee members from €ach region shall be nominated by the directors from said region. The Secre- tary of the United States Department of Agriculture and the Director of the States Relations Service shall have the privilege of attending all meetings of the committee and the right to take part in discussions, but shall have no vote. «!ec 2 The re<'ions for the selection of the members of. the executive com- mittee siiall be as follows: Northeast group— Massachusetts, New Hampshire, Vermont Maine, Connecticut, Rhode Island, New York, New Jersey, Delaware, Pennsylvania. Central group--QhIo, Indiana, Illinois, Michigan Minnesota, Iowa North Dakota, South D§fota, Nebraska, Kansas Missouri, Wisconsin Southern group-Maryland, Virginia, West Virginia, North Carolina, South CaroUna Georgia, Florida, Alabama, Mississippi, Kentucky, Teimessee Okla- homa Texas! If kansas, Louisiana. Far West group--Montana Idaho, Colorado, Utah ' New Mexico, Arizona, California, Oregon, Washington Wyoming, Nevada. SFr 3 A auorui In all meetings of the executive committee and other stand- ing and special committees shall be a majority of such committees. All vacan- 76 FARM ORGANIZATIONS. cies, except in the board of directors, shall be filed by the executive committee until the iies;t annual meeting. Sec. 4. The executive committee shall have povyer to conduct a referendum vote on any matter of national interest. ABTICLB IX. — ^EEMUNEBATION. The vice president, treasurer, and the members of the executive committee shall be paid not to, exceed $10 per diem and necessary expftijses, which shall be paid from, the funds of the. American Farm Bureau Federation, while such officers are attending to the' business of the organization. ABTICLE X. — AMENDMENTS. This constitution may be amended by a two-thirds vote at any regular meet- ing of the board of directors, such amendments to be effective when approved by a majority of the member States. ABTICLE XI. — ^BT-LAWS. The executive committee shall have power to formulate the necessary by- laws for this organization subject to the approval of the board of directors. ARTICLE XII. ENACTING CLAUSE. This constitution shall be effective when ratified by 10 State organizations. Officees of THE Amebican Fabm Bureau Fepebation and Officebs of STAg?E Farm Bureau Fbdebation. AMERICAN farm BUREAU FEDERATION. Grcneral offices, 205 Mailers Building, 5 South Wabash Avenue, Chicago, 111. Washington office, 1411 Pennsylvania Avenue, Washington, D. C. Officers : President, J. R. Howard, "general office ; vice president, O. E. Brad- fute, Xenia, Ohio ; Washington representative, Gray Silver, 1411 Pennsylvania Avenue, Washington, D. C. ; secretary, J. W. Goverdale, general office ; treas- urer and assistant secretary, Charles E. Gunnels, general office ; director of education and publicity, Samuel R. Guard, general office; attorney, Clifford Thorne, Lytton Building, Jackson Boulevard, Chicago, 111. OFFICERS OF STATE FABM BUREAU FEDEEATION (AFFILIATED). Arizona — President, Charles S. Brown, Tucson, Ariz. California — President, W. H. Walker,* Willows, Calif.; secretary W H Heileman, 102 Hilgard Hal), Berkeley, Calif. Colorado — President, W. G. Jamison, La Veta, Colo. ; secretary, E. J Leonard Fort Morgan, Colo. Connecticut — President, C. H. Savage, Storrs, Conn. Florida— President, L. M. Rhodes, Gainesville, Fla. ; secretary. Miss Ruby Newhall, Gainesville, Fla. Georgia — President, J. W. Morton. Athens, Ga. ; secretary, J. Philip Camp- bell, Athens, Ga. Idaho — President, C. E. Ross, 334 South Fifth Avenue, Poca telle, Idaho- sec- retary, L. W. Fluharty, Boise, Idaho. Illinois— President, Howard Leonard, Eureka, 111.; secretary, D O Thomn- son, 130 North Wells Street, Chicago, 111. " Indiana — President, John G. Brown, Monon, Ind. ; secretary, Maurice Doug- las, 147 East Market Street, Indianapolis, Ind. Iowa— President, C. W. Hunt, Logan, Iowa; Secretary, E. H. Cunningham Ames, Iowa. Kansas— President, Ralph Snyder, Oskaloosa, Kans. ; secretary, Charles R Wekks, Manhattan, Kans. Kentucky— President, E. H. Woods, 413 Starks Building, Louisville Kv • secretary, Geoffrey Morgan, 413 Starks Building, Louisville, Ky - • • • Maryland— President, D. G. Harry, Pylesville, Md. ; secretary, T. B Svmons College Park, Md. FAEM ORGANIZATIONS. 77 Massachusetts— President, B. F. Richardson, Millis, Mass.; secretary, Fred i->. tiriggg, Waltham, Mass. Michigan— President, Roland Morrill, Benton Harbor, Mich.; secretary, C. A. Bingham, Lansing, Mich. Minnfesota— President, L. E. Potter, Springfield, MjLnn. ; secretary, F. L. "^T ' University Farm, St- Paul, Minn. Coluf b'"'''M^'"*'^''^*'°*' *-"'^®*^' ^- ^™^'' Nevada, Mo. ; secretary, A. J. Meyer, Montana— President W. B. Harland, Como, Mont. ,r?n®'^^^'^'^~^''®®"'*^"t' Kinder Youngs, Lexington, Nebr. ; secretary, H. D. Lute, 1543 O Street, Lincoln, Nel?r; New Hampshire^President, G. U. Putnam, Contoocook, N. H. ; secretary, George A. Hill, Concord, N. H. New Jersey— President,. H. E. Taylor, Freehold, N. J. ; secretary, Frank App, 37 West State Street, Trenton. N. J. New Mexico— President, R. C. Reid, Dexter, N. Mex. ; secretary, S. G. Calisch, Montoya, N. Mex. New York- President, S. L. Strivings, Castile, N. Y. ; secretary, H. B. Creal, Ithaca, N. Y. Nevada— President, C. C. Tidd, Smith, Nev. ; secretary, Mrs. Nettie R. Ful- kerson, Fallon, Nev. Ohio— President, O. E. Bradfute, Xenia, Ohio ; secretary, Murray D. Lincoln, fourth floor Franklin Loan &: Savings Building, Columbus, Ohio. Oklahoma — President, George Bishop, Cord,eU, Okla. ; secretary, M. A. Beesom, Stillwater, Okla. Rhode Island — President, C. N. Potter, Auburn, R. I. ; secretary, H. W. Tink- haiu, Warren, R. I. South Dakota — President, H. C. Cobb, Doland, S. Dak. ; secretary, P. J. Crandall, Huron, S. Dak. Texas — President, J. T. Orr, Dallas, Tex. ; secretary, C. O. Moser, Dallas, Tex. Utah — President, D. D. McKay, Huntsville, Utah ; secretary, Lee Taylor, Payson, Utah. Vermont — President, E. B. CornTyall, Middlebury, Vt. ; secretary, J. E. Oarri- gan, Burlington,; Vt. Virginia — President, B. F. Moomaw (temporary), Cloverdale, Va. ; secretary, E. K. Coyfler, Marion, Va. West Virginia — President, W. D. Zinn, Phllippi, W. Va. ; secretary, J. B. McLaughlin, Strange Creek, W. Va. Wisconsin — President, George W. Hull, 410 Pioneer Building, Madison, Wis. ; secretary, C. A. Peterson, 410 Pioneer Building, Madison, Wis. Wyoming — President, John Gonin, Lander, Wyo. ; secretary, B. F. Cochrane, Lander, Wyo. OFFICERS STATE FABM BUBEAU FEDERATIONS (NOT AFFILIATED). Maine — President, A. L. Deering, Orno, Me. North Dakota — President, U. D. Burdick, WlUiston, N. Dak. ; secretary, H. B. Fuller, Fargo, N. Dak. Oregon — President, G. A. Mansfield, Medford, Oreg. Washington — President, G. W. Hayton, Chehalis, Wash.; secretary, W. L. Davis, Ellensburg, Wash. Illinois Agricultceal Association Treasurer's Report. Income statement for yew ending Deo. 31, 19B0. Income: , „.^_ , ._ ._ Membership dues collected $415,145.45 Interest on bank balances 525. 30 Phosphate sales $202, 266. 14 Less phosphate purchases 197, 517. 00 ^ „^„ , ^ ■ 4, 749. 14 Commission, Live Stock Exchange ^59. 90 Total income ?420, 679. 8$ 78 FARM OKGANIZATIONS. Expenses : Departmental — Organization $156, 463. 51 General live stock 31, 076. 75 Dairy live stock 2, 532. 06 Grain marketing 22, 235. 11 Produce marketing 1, 240. 64 Phosphate limestone 20,132.70 Finance 9, 897. 46 Publicity 11, 609. 24 Claim 3, 458. 54 Dairy produce marketing 4,516.29 General office expenses — Salaries (clerical help) 9,412.65 Office rent 8,532.11 Light, repairs, insurance, and taxes 1, 246. 88 Printing and mailing 11,329.73 Stationery and office supplies 9, 965. 48 Telephone and telegraph 1, 691. 14 Machine rentals, freight, cartage, express, miscellaneous (sun- dries) 862. 01 Depreciation office furniture and fixtures 2, 582. 57 $263, 162. 30 45, 622. 57 Other expenses — Executive 21i, 420. 91 Speakers' bureau 1, 705. 57 Labor agency 1, 052. 30 Car survey 1,696.71 Annual meeting 1, 708. 25 American Farm Bureau Federa- tion 50, 468. 34 78,052.08 Total expense $386, 836. 95 Balance, excess of income over expense 33, 842. 88 Balance sheet, Deo. 31, 1920. ASSETS. Cash: Sycamore National Bank $12, 964. 65 On hand 11, 322. 53 $24, 287. 18 Accounts receivable: Due from county farm bureaus 20, 979. 43 Due on sales of phosphate 12, 579. 40 33, 558. 83 Miscellaneous personal accounts 564. 52 Advanced to Tennessee offlce-J 2, 000. 00 Advances to employees for traveling expenses 445. 75 Inventory — stationery and supplies 539. 60 Prepaid office rent 3, 333. 00 Automobiles, Tennessee office 786. 66 Office furniture and equipment, all departments 18, 912. 85 Less reserve, for depreciation__ 3, 782. 57 15, 130. 28 Total 80, 645. 82 FAKM ORGANIZATIONS. 79 LIABILITIES. Accounts payable $5, 003. 56 Reserve for 1920 dues, American Farm Bureau Federation 5, 000. 00 Deferred credits— Membership dues collected in advance 410. 00 Accumulated revenue (surplus) 70, 232. 26 Total 80, 645. 82 Respectfully submitted. Geokge A. Fox, Treasurer. (The committee thereupon took a recess until 2 o'clock p. m.) '■wm0^ w^iM, 'mi^fi,"