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ACCOUNTS FOE LIVE-STOCK SHIPPIITG ASSOCIATIONS. 3 



FINANCING SHIPPING ASSOCIATIONS. 



In order that a live-stock shipping association may conduct 

 its business along safe hnes it is advisable that the organization 

 be incorporated. If organized under a law requiring capital stock, 

 shares in the corporation may be sold at a price sufficient to bring 

 in the necessary capital, but the amount which has been found most 

 successful for the par value of shares has been from $10 to $25. In 

 some associations it has been found feasible after incorporation to 

 sell shares in order to procure capital and to issue memberships at 

 $5 each to all patrons not desifing to buy stock. In course of time 

 many of the holders of memberships who have had a chance to test out 

 the value of the shipping association desire to become stockholders, 

 and it is therefore advisable to make the memberships convertible 

 into stock at their face value. 



Under the corporation laws of some States provision is made for 

 the chartering of nonstock cooperative enterprises. Where incor- 

 poration is had under one of these laws, provision should be made 

 for a membership fee large enough to bring into the treasury suf- 

 ficient funds to conduct the business. 



A five-stock shipping association in its simplest form would not 

 require incorporation or an extensive capital, but if any considerable 

 amount of business is done it wiU be found necessary to expend 

 money on equipment, and this will require an outlay of capital before 

 sufficient business can be done to lay aside a fund necessary for these 

 purposes. It is not wise, therefore, to consider the formation of an 

 association without adequate provision for meeting needed expend- 

 itures. 



ACCOUNT SALES. 



The account sales rendered by the commission merchant at the 

 terminal market to the shipping association, an example of which is 

 shown on page 4, furnishes all the original material from which the 

 accounts deafing with live stock are derived. Account sales, when 

 rendered with reference to mixed shipments, should show the number 

 of animals of each kind and grade, together with weight, price, the 

 amount sold for, and marks as applied to each kind and grade. In 

 addition, it should furnish the total of expenses and deductions, 

 which should bo supported by an itemized fist showing what items 

 are charged for and the amount of each. The difference between the 

 total sale value and the shipping expenses is the net proceeds to 

 the association. From this must be taken the association expenses 

 and deductions, leaving the amount to bo distributed to the members 

 represented in the shipment. 



