who has combined the rare talents of bookkeeping and comparative reporting.

The Auditing Committee, composed of Sterling Smith, who was not able to be here, Mr. Pape of Indiana, and myself, accept this report of Carl Prell on behalf of this Northern Nut Growers Association,

PRESIDENT BEST: Let's have the Treasurer's report. Mr. Prell

Report of the Treasurer

CARL PRELL, South Bend, Indiana

At the beginning of this fiscal year it seemed likely to your Board of Directors that the Association's investment in government bonds would have to be converted into cash to meet the year's expenses. There was barely enough money in the treasury to pay for the 42nd Annual Report, which should have been billed the preceding year.

Normally, the treasurer collects only enough money to pay for one report, plus the year's operating expenses. The problem this year was to pay operating expenses and to discharge our obligation on two reports.

Anticipating this problem, and in an effort to correct recurring deficits, your Board made plans back in 1951 for a drive to increase membership. Some momentum was gained by the end of last year, which carried into this year with increasing force. The result was the substantial gain in membership reported upon by your Secretary—with a substantial increase in revenue.

Membership drives, of course, are a mixed blessing. They may produce more dues; but they certainly cost money. Our promotion expenditure jumped from practically nothing in 1951 to $115 in 1952 to $620 in 1953. However, our dues collection from new members thus gained, were more than $1200 in 1953 alone—twice as much as was spent. And it is important to note that an expenditure to gain a member is made only once, whereas the member's dues continue year after year.

In any event, increased membership was a factor in keeping us from cashing our reserves.

Another important factor was the very generous response of the membership to a plea for Sustaining and Contributing dues. Thirty percent of our old members responded with $10.00 payments for Contributing Memberships or $5.00 payments for Sustaining Memberships. This help was needed. It is deserving of special mention in this report.

One other factor contributed to successful operation this year, as it has in other years. This factor does not show up in figures in a financial statement for the simple reason that the figures are modestly withheld from the treasurer. I refer to the out-of-pocket and unreported expenditures of officers and committeemen, which expenditures sometimes are sizeable. Certainly they were this year. The fact that such contributions were made should be noted.

The sum total of all this is a financial showing for the year that may be considered satisfactory. Our debts are all paid. No bonds were cashed. Nothing was borrowed. And we have money in the bank.

At this time last year we had a cash balance of $1313.78. Today our balance is $303.70. We spent $1,000 more than we took in. But we paid for two Annual Reports. The lesser report cost $1200. If this were subtracted from this year's business, where it does not belong, our cash balance would be $1500.00. In short, on this year's business—even with all its unusual expenses for promotion—our income was more than our disbursements—by $200.00. This reverses the deficit trend of recent years.

   RECEIPTS
     Membership Dues $3,638.05
     Sale of Annual Reports 394.00
     Advertising in Nutshell 110.00
     Contributions 39.00
     Interest on Government Bonds 37.50
                                                                _________
       TOTAL $4,218.55

   DISBURSEMENTS
     42nd Annual Report (Urbana) $1,205.53
       Printing (1000 copies) $1,050.00
       Reporting (addi. billing) 97.05
       Postage & Addressing 58.48
     43rd Annual Report (Rockport) $1,760.72
       Printing (1200 copies) $1,477.42
       Envelopes, 800 19.60
       Reporting 100.00
       Postage & Addressing 163.70
     The Nutshell
       Printing, 4 issues 353.11
     American Fruit Grower 39.00
       73 Subscriptions at 50¢ 36.50
        2 Subscriptions at 75¢ 1.50
        1 Subscription at 1.00 1.00
     Association Promotion 620.47
       Application folder, printing 11,200 164.28
       Stationery for Sub-Zero and V. P. campaigns 337.24
       Mimeo Sub-Zero and follow-up, 1500 59.00
       Postage, Things of Science 59.95
     Secretary's Fee, 50¢ per member 517.50
       1952-53 Fee to date 506.50
       Balance of 1951-52 11.00
     Stationery and Supplies 268.22
     Secretary's Expense 315.87
     Treasurer's Expense 143.21
     Dues, American Horticultural Society 5.00
                                                                _________
       TOTAL $5,228.63

   Cash on deposit, First Bank, South Bend $ 303.70
   Disbursements 5,228.63
                                                                _________
                                                                $5,532.33

   On hand, August 18, 1952 $1,313.78
   Receipts 4,218.55
                                                                _________
                                                                $5,532.33
   U. S. Bonds in Safety Deposit Box $3,000.00

MR. PRELL: I am going to close right now with this information which the Association, I think, should have. The membership promotion consisted of a campaign called the "Vice-president's Campaign" sparkplugged by Mr. Best. Thousands of letters were sent out through the vice-president's and from the president's office to the membership. You may have received some of them. In addition to