﻿30 BULLETIN 1150, U. S. DEPARTMENT OF AGRICULTURE. 



ble for the funds, by monthly audits by an auditing committee, and. 

 annual audits by a qualified, disinterested accountant; (2) having 

 all of the records accessible at one place, preferably at the place ox 

 business, or at the bank; (3) having the records kept up to date 

 and according to approved methods. If neither the manager nor 

 the secretary is qualified to do the clerical work some one who is 

 qualified can usually be induced to assume this responsibility. Econ- 

 omy in the matter of keeping the records is usually dearly bought. 

 Whether the manager or the secretary keeps the books, or whether 

 the work is delegated to hired help, it is highly desirable that both 

 the manager and one or more members of the board of directors 

 possess a sullicient knowledge of accounting so that they can 

 intelligently judge the results obtained and the method of obtain- 

 ing them, and can supervise the work when delegated to hired help. 



MARKETING METHODS. 



The foregoing discussion of forms, accounts, and procedure is 

 based on certain conclusions reached after an extensive study of 

 cooperative live stock marketing methods. In view of the many 

 different methods used in handling the business at home as well 

 as at the markets, this discussion of records and accounts would be 

 incomplete unless supplemented by an analysis of the business prac- 

 tices. Moreover, only by free and thorough discussions of the dif- 

 ferent methods used will real progress be made in standardizing 

 the practices and in eliminating those methods which are unsound 

 and uneconomical. 



TERMINAL MARKET METHODS. 



The chief objective of the cooperative live stock shipping move- 

 ment is to obtain for the shipper the actual market value of his 

 particular kind and quality of live stock, less the actual cost of 

 marketing it. The extent to which this ideal will be realized de- 

 pends upon the prevailing methods of selling and weighing the 

 live stock at the central markets and handling it at home, and upon 

 the mehods used in prorating. A clear understanding of the 

 methods of handling the live stock at the terminal markets is nec- 

 essary if real progress is to be made in realizing this ideal. 



The prevailing method of handling hogs seems to be to sell and 

 weigh by grades and to prorate the shrinkage either on the entire 

 load or separately on the bulk of the load and on the throwouts 

 and packers. On some markets a considerable number of hogs are 

 sold as straight carloads, the salesman pricing the animals in each 

 individual lot on their merits and prorating the shrinkage either 

 on the entire load or separately on the bulk of the load and on the 

 throwouts. Less frequently loads are sold according to marks, unless 

 it happens that given lots fall into specific grades which are sold 

 to different buyers. In such cases the shrinkage is ascertainable 

 separately for each lot and may be charged to the individual owners 

 as it actually occurs. 



Much the same methods are used in handling calves and sheep, 

 except that selling and weighing by grades prevail to a greater 

 extent than in the case of hogs. The grading frequently consists 

 merely of culling out the off grades and selling the bulk of the 

 load as a separate lot. 



