PROCEEDINGS CORN BELT MEAT PRODUCERS' ASSN. 485 



the extension organization, and, believe me, they squared up to it. They 

 put on the men that were necessary, and a series of managers' short 

 courses was held over this state last year. Many of you know about 

 that, first hand. Others are being held this year. Mr. Thompson, who 

 has been in charge of the work, is going to explain some features of it in 

 detail tomorrow. I am not stealing any of his thunder. I just want lO 

 pass through that and to our next problem. 



What have we done up to that point? We have worked out a model 

 system by which any co-operative manager of this state who will give a 

 few days to studying that may have a simple system of bookkeeping by 

 which he will set down regularly and systematically, and on a model, 

 uniform system, all the facts which are essential to the continuous study 

 of the factors of success in that business. Just exactly as under the 

 Interstate Commerce Commission it developed a uniform system of ac- 

 counting for the railroads and as any big business organization through 

 its head accountant does work out such systems so that they can make 

 a comparative study of the results of this office or that office, this branch 

 or that branch, this department or that department and also get final 

 figures as to the financial results, such a system has been worked out 

 so that it is now possible to make an actual statement as to what ship- 

 ping associations are doing, to compare one shipping association with 

 another, to compare results which they get in one market with results 

 which they get in another. In other words, when you get, as we have, a 

 large number of associations keeping accounts on that basis, we really 

 can have authoritative information as to the factors of success or of fail- 

 ure which enter into the day-to-day operations of every shipping associa- 

 tion which elects to go on that plan. 



We felt sure that if we made that sort of a scientific business studv, 

 because that is just what they are, and every sort of really progressive 

 modern business organization is doing that, we felt that we would get 

 results there which would enable us to find where the leaks were and to 

 find which method of handling shipments or running the association really 

 results in saving. That is what the farmer started out with. He said: 

 "We can make a great saving by co-operation." I say you should prac- 

 tice that. I believe you can do it just by doing that, not handling your 

 business in a loose sort of way. If the shippers of this state will start 

 under the co-operative plan and devise a real business system and elimi- 

 nate wasteful methods with a lot of leaks and a lot of guesses and a lot 

 of uncertainty, if you will put it on a basis of uniform records and theu 

 apply business analysis, you will find certain very illuminating facts 

 which will be the foundation upon which the co-operative movement may 

 build forward today in this state, what the California Fruit Growers' 

 Exchange, for example, has done in California, namely, get at the factors 

 of waste, improve their shipping practice and their selling market rules, 

 which is their best home outlet and the cheapest way to get it and act- 

 ually reduce expenses. 



Now I think we have passed to that third stage at the present time. 

 I can hardly say some things about the results of the work that has been 

 done without encroaching upon Mr. Thompson, but there are some people 

 here who will not be in the meeting tomorrow. Seven counties in this 



