Company
History
The National Livestock Commission Association
(NLCA) began doing business on September 15, 1931. It began as
the Oklahoma Livestock Marketing Association (OLMA). At this time
in our nation's history, everyone was in the midst of the Great
Depression. The primary objective of the new organization was
to market livestock for its members. Any producer of livestock
was eligible to become a member upon payment of $1 for one share
of common stock. This purchase of stock provided each member "full
privileges of membership without further payment of dues or assessments".
While incorporation documents were being
completed, the company leaders were very busy. On October 31,
1931, OLMA contracted to buy the National Commission Company.
It was the oldest firm on the Stockyards and was owned by R. Ridley
and his son. In a "zero cash" deal, Ridley agreed to
sell the firm and continue as manager for five years with profits
to be split between he and OLMA. OLMA would then use its percentage
of company profits to generate new business and fund the expenses
of National Livestock Credit Corporation.
The first annual meeting of OLMA was held
in Oklahoma City, Oklahoma on April 5, 1932. The report showed
that during the first 5 1/2 months of operations, the firm had
sold 34,500 head of livestock. More than 5,000 head of livestock
had been purchased for members. Total commissions paid for services
were $16,929 and the net profit for National was $5,468, an astonishing
32% of revenues. Directors announced that National would pay a
10% dividend, rebating that portion of commissions paid by its
members up to April 19, 1932. In those days, a rebate was a new
experience for farmers and stockmen. Membership at the first meeting
was reported to be 1,161 increasing at a rate of 100 new members
per month. It was also claimed that in the first 10 weeks, the
National Livestock Credit Corporation made more livestock loans
than all other agencies in the state combined.
On September 15, 1931, an article titled
"Livestock Co-op is Ready for Business" ran in The Oklahoma
Farmer Stockman. The article touted National as a much needed
source for livestock marketing and credit arrangements. The article
further indicated that everyone expected a rush of new credit
applications once the company opened its doors. At this time,
top slaughter cattle were selling in Oklahoma City for $11.25
per hundred weight. Grass fed steers were bringing only $8 per
hundred weight.
In the early 1930's, agricultural credit
was all but gone. A three-fold disaster had occurred. The Great
Depression combined with drought and crop surpluses caused agricultural
credit to all but disappear. Many banks closed during this period.
An editorial in The Oklahoma Farmer Stockman described the situation
this way. "The days of easy borrowing are all behind us.
In the first place, the money isn't in the banks to loan. In the
second place, so many banks went broke trying to finance the production
of crops that none of the banks left will try to beat the game.
All of the soft-hearted bankers are now ex-bankers."
A full page ad for National appeared in
the Oklahoma Livestock Market News on July 11, 1950. It offered
livestock loans at 4.5%. One customer discussed the loan policies
of National in an interview many years ago. The customer was quoted
as saying of the President of National "He would say I'll
lend you money to buy 100 cows, but when I come up there a year
from now, I want you to have 100 cows or the hides nailed to the
barn with the brand showing."
The long-established practice of selling
livestock by "private treaty" eventually gave way to
selling at public auction. Soon the Oklahoma National Stockyards
became "The World's Largest Stocker and Feeder Cattle Market".
Railroads had traditionally delivered livestock to the terminal
markets in Oklahoma City. But this mode of transportation gave
way to trucking.
Many of the original families who were pioneers
of National are still actively involved as either customers or
directors. Periods of long service by staff and board are very
common. It has been said that once someone comes to National as
a customer or staff member, that they be with National until retirement
or death. This sense of service continues with the current staff,
customers and board members of National.
Today, the National Livestock Commission
Association continues as a leader at the Oklahoma National Stockyards.
The National Livestock Credit Corporation boasts loan commitments
of over $100 million. The common thread of the National companies
continues to be the pursuit of total customer satisfaction. Many
years ago, a director of National made the following comment.
He said "I don't think there's any question that National
will live and continue to serve the people, but possibly the organizations
will serve them in some different respects. We already have seen
some big changes and there will be more changes". That certainly
was a prophetic statement that continues to be accurate as the
livestock business continues to change rapidly.
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