Farmers Union Oil Company was incorporated. The Board of Directors consisted of W.E. Bengston, Roy J. Sharp, John Chritt, S. Rebor, Joseph Iverson, Emil M. Larson, John G. Cech, H.E. Jeppesen, Coleman Hearnen. The first manager was Hans Nelson.
The bulk petroluem department was established with the purchase of property for a bulk oil station and three 17,000-gallon vertical storage tanks. The office began when a typewriter, adding machine/cash register combo, safe, desk and chair, clock and mimeograph was purchase for $230. The decision was made to build a service station 10×24 feet in dimension, with a canopy over the pumps and a full basement. It was built of clay tile and cement blocks, with electrical wiring and painting for $1,432. The company started buying eggs and poultry from local producers and sold flour and feed.
Gasoline sold at the service station was 16.5 cents per gallon. Motor oil and tractor oil sold for 60 cents per gallon. The first patronage dividend of $3,300 was declared. Directors were compensated $2 per meeting. The co-op started selling coal and apples and buying cream. Flour was sold for 90 cents for a 50-pound bag.
Tractors, cultivators, plows and drags were offered for sale.
Charles Livermore was hired as a manager.
The Honorable Hubert H.Humphrey gave a very interesting talk at the annual meeting.
The decision was made for the co-op to go into the bulk fertilizer business and a used fertilizer bug was purchased, along with a nurse tank for liquid nitrogen for the fall.
A truck previously used for the egg route was converted to a tire service truck. Plans are being made for a fertilizer plant expansion and to install a fertilizer mixer.