32 CREAMERY ORGANIZATIONS 



confined to that which is consumed on the farm, and by the 

 country store trade. 



There are. principally four different types of creamery or- 

 ganizations, namely, the mutual co-operative creamery, the joint 

 stock company with co-operative features, the proprietary factory 

 and the creamery corporation. 



The Mutual Co-operative Creamery Association. This is 

 strictly a farmers' co-operative association. Its purpose is to 

 pool the milk or cream of the individual members, the farmers, 

 to manufacture it into butter and to sell the product, by the 

 employment of a butter maker and manager, and in this man- 

 ner to save equipment and labor needed for manufacture and sale 

 of the product, to secure greater skill for manufacture, to make 

 a better product and to sell it to better advantage. 



In the truly mutual co-operative creamery association, every 

 stock holder must be a milk or cream producer, he must be a 

 patron of the creamery, but not every patron need be a stock 

 holder. 



In some cases the buttermaker is employed at a stipul- 

 ated salary, in others the association agrees to pay him a stipul- 

 ated commission for every pound of butter manufactured, such 

 as, for instance, three cents per pound. 



The mutual co-operative creamery association has for its 

 object, not so much the payment of large dividends on the shares 

 of stock, but to profitably manufacture the milk and cream 

 into butter, i. e. to secure the highest possible net returns for 

 the butterfat manufactured into butter. 



The amount of money needed and decided upon for build- 

 ing and equipment usually governs the amount of the capital 

 stock to be issued. The shares of stock usually range from $10.00 

 to $100-00 per share. As it is desirable to have as many patrons 

 as possible that are also stock holders and who are, therefore, 

 interested financially in the creamery, shares of small denomin- 

 ations have their advantage. 



The net returns from the business, which represents what 

 is left after deducting from the gross receipts accruing from 

 the sale of butter and other products, all expenses of manufac- 

 ture, such as labor, supplies, coal, ice, taxes, and insurance, and 



