368 ANNUAL EEPORTS OF DEPARTMENT OF AGEICULTUEE. 



LIVE-STOCK SHIPPING ASSOCIATIONS : SYSTEM OF ACCOUNTS, BUSINESS PEACTICES. 



A system of accounts for live-stock shipping associations has been 

 devised, this system having been prepared after an extensive investi- 

 gation of the accounting and business methods of live-stock shipping 

 associations. The system will be installed during the fiscal year 

 1916 for experimental operation in one organization in each of the 

 following States: Michigan, Minnesota, and Wisconsin. After an 

 experimental operation covering a year's business, if the system 

 proves successful it will be made available for adoption by live-stock 

 shipping associations generally. 



KURAL CREAMERIES : SYSTEM OF ACCOUNTS, BUSINESS PRACTICES. 



During the past year an extensive investigation was made of the 

 accounting and business-practice methods of rural creameries. About 

 25 creameries, located in the States of Minnesota, Iowa, Illinois, 

 Michigan, Wisconsin, Indiana, and Kentucky were visited and a 

 detailed study was made of their business methods. This investiga- 

 tion showed that there was a great need for some business system 

 which could be adopted generally by these enterprises, and which 

 could be used with but few changes by both large and small con- 

 cerns. A system of accounts has been devised and arrangements 

 have been made to install it in one creamery in each of seven States. 

 It is the intention to try this system in experimental operation until 

 it has been developed to such a point that it is deemed of sufficient 

 worth to be recommended as a uniform system of accounts for rural 

 creameries. When this system is perfected it is intended to place it 

 in bulletin form together with other information relating to the busi- 

 ness methods of these enterprises. The work in perfecting this sys- 

 tem is conducted in close cooperation with the Dairy Division of the 

 Bureau of Animal Industry. 



FINANCING COOPERATI\'E MARKETING ASSOCIATIONS. 



In starting a cooperative organization one of the most serious 

 problems is that of financing its operation. Very few of these organ- 

 izations have paid-in capital stock or surplus or other assets which 

 are liquid, sufficient to meet the expenses of the business during the 

 heavy marketing season. It is necessary therefore to secure funds 

 from outside sources for these purposes. From the investigations 

 of this office relating to cooperative organizations it was found that 

 practically none of the smaller organizations have any idea as to the 

 possibilities for developing credit and securing the necessary funds 

 for conducting their business along approved and efficient lines. It 

 was deemed advisable, therefore, to make a complete investigation 

 of the financing of cooperative marketing associations, and ascer- 

 tain, if possible, the methods used by the successful organizations in 

 financing their enterprises. 



Personal visits were made to cooperative organizations in 17 States. 

 The managers were interviewed, methods and plans of financing 

 secured, and bankers and others making loans to the business were 

 consulted. Bankers in Los Angeles, Portland, San Francisco, Den- 

 ver, New York City, Chicago, and Philadelphia were interviewed 

 for the purpose of ascertaining to Avhat extent loans were made to 



