58 DAIRYING 



is made for a stated price per pound, and any profit or loss in 

 the business is divided among the stockholders. 



3. The Cooperative Creamery. There are many different , 

 ways of organizing cooperative creameries, but the general un- 

 derstanding i regard to them is that the entire business, factory, 

 and machinery, is owned by the patrons supplying the milk, and 

 that instead of charging a certain price per pound for making 

 butter, the running expenses of the factory are deducted each 

 month from the gross receipts. The balance is divided among 

 the patrons according to the amount of butter fat contributed by 

 each one in the milk or cream sent to the facory. 



643. Organizing. The organization of such a creamery is 

 usually started by calling a meeting of those persons interested 

 in the enterprise. Officers and directors are elected, a constitu- 

 tion and by-laws are adopted* and the association incorporated 

 according to the laws of the state. A competent lawyer should 

 be employed to draw up the articles of incorporation and attend 

 to other legal matters connected with the organization. Without 

 going into details regarding the constitution and by-laws of such 

 an organization a few suggestions may be helpful in this direc- 

 tion. The usual officers, such as president, vice-president, secre- 

 tary, treasurer, and general manager, with a board of directors, 

 which is sometimes composed of the officers named, are elected 

 annually by the stockholders. The duties of these officers are 

 those usually performed by such officials. 



644. The only one of these officials who receives pay for his 

 services, as a rule, is the secretary, who is also general manager; 

 and the amount paid him is determined by the board of directors. 

 His duties are to look after the general welfare of the business, 

 and he should be a man in whom the stockholders have uni- 

 versal confidence. He should be permitted to manage the busi- 

 ness as seems best to him, after consulting the directors, and 

 any criticism of his work should be in a spirit of helpfulness and 

 of promoting the best interests of all concerned. The success 

 of the creamery depends, in a large measure, not only on the 

 business ability of this official, but on the attitude of the stock- 

 holders towards him. His annual report to the stockholders 



* A sample constitution and by-laws is given at the end of this lesson. 



