DAIRYING 59 



should contairra statement in detail of the receipts and expendi- 

 tures for the year, with a record of all meetings and transactions 

 authorized by the directors. A copy of this report should be 

 supplied to all stockholders. 



645. Raising Funds. The money needed for building and 

 equipping the creamery is raised in different ways, each locality 

 determining for itself how this may best be done. In some cases 

 a sufficient number of shares of stock at ten dollars or one hur> 

 dred dollars per share are issued, and this stock is bought by the 

 farmers who expect to patronize the creamery. Another way ot 

 raising the money is to let two or more of the responsible patrons 

 borrow a sum of money (probably $3,000) on a joint note. This 

 note with interest is paid by deducting a sum of money, five 

 cents, more or less, per hundred pounds of milk, as previously 

 agreed upon, from the monthly dividends of the different patrons. 

 When the payment is completed, stock is issued to the patrons 

 in proportion to the amount each one has contributed towards 

 this fund. 



646. Assessment of New Patrons. The acquisition of new 

 patrons to the creamery after the original stock is all paid for 

 will be beneficial to the stockholders by reducing the cost per 

 .pound of making the butter, as it is a well known fact that oper- 

 ating expenses diminish as the amount of milk increases. When 

 patrons own stock in proportion to the amount of milk they are 

 furnishing the factory there is no necessity of taking into con- 

 sideration the item of interest on the stock, as the patrons are 

 receiving the benefits of the creamery in proportion to their 

 separate investments ; but in the case of new patrons who are 

 not stockholders, it is only just that a reasonable interest on 

 the stock should be added to their monthly expense account. 

 This will be an assessment on all patrons, but it will be returned 

 to the stockholders as interest on their stock. 



647. Sinking Fund. In addition to the item of interest 

 which is sometimes ignored, it is wise and just to create a sink- 

 ing fund. This fund is used to pay for the necessary wear and 

 tear of the machinery and building, and to distribute this ex- 



