﻿LIVE-STOCK SHIPPING ASSOCIATIONS. 35 



should be weighed separately at the market and the owners charged 

 with the actual shrinkage. 



Distributing fat sum among different grades in, carload.. — Where 

 a carload of hogs of mixed grades is sold for a flat sum, the commis- 

 sion firm usually indicates on the account sales the market value of 

 the different animals in the shipment. Where hogs, calves, or sheep 

 are graded locally the proceeds are distributed on the basis of the 

 market quotations prevailing on the day of sale for the different 

 grades. 



Dividing- the expenses when mixed loads are shipped. — The ques- 

 tion of mixed loads is of more importance in some localities than in 

 others. However, nearly all associations ship some mixed loads. 

 Much difference of opinion prevails as to the method to be used 

 in dividing the different items of expense between the species. It is 

 urged by some, for instance, that the extra freight should be charged 

 to the hogs, and by others, to the cattle, calves or sheep. Still others 

 urge that the total expenses should be divided equally among the 

 different kinds of stock on the weight basis. 



The problem of dividing the expenses centers mainly about the 

 item of freight. Obviously, it is not fair to members shipping 

 16,000 pounds of hogs in a load to charge them with the freight 

 burden due to the inclusion of 1,000 or 2,000 pounds of cattle. It 

 would be still more unfair to charge the cattle with the extra bur- 

 den. Even if the freight were divided equally on the weight basis, 

 it would pay the hog shippers much better to ship their 16,000 

 pounds in a carload by themselves. The weight basis of division 

 seems to be the only practicable basis. When distribution on this 

 basis puts an undue burden on either group of shippers, the only 

 solution is not to load in such unfavorable proportions. By educa- 

 tional work and progressive leadership on the part of the manage- 

 ment the community may be made to see the penalty paid for ship- 

 ping in unfavorable proportions. It should be clear not only to the 

 management of a shipping association but to the membership as 

 well, that an association shipping under excessive freight burdens 

 due to improper mixing is laboring under a considerable handicap, 

 especially when competing with agencies which may take special 

 care to avoid such burdens. 



The division of the other items of expense involves no special 

 difficulties. The yardage charge is divided according to the rate per 

 head actually applying on each species. The cost of corn is charged 

 to the hogs and the cost of hay to the cattle. Inspection applies to 

 hogs only. Fire insurance, because of the smallness of the amount, 

 may be arbitrarily charged to the bulk of the load. The selling com- 

 mission is a per-head charge and should be divided on that basis- 

 For instance in shipment No. 112, on page 41, the rate applying on 

 hogs was assumed to be 30 cents, or $15.60 for the 52 head ; and on 

 cattle, 90 cents per head or $4.50 for the 5 head. The total commis- 

 sion at these rates would be $20.10. If, however, $18 is assumed 

 to be the maximum commission applying on a single car, the pro- 

 portion chargeable to hogs would be as $15.60 is to $20.10, or 77.6 

 per cent, and the proportion chargeable to cattle would be as $4.50 is 

 to $20.10, or 22.4 per cent. 



The manager's commission and the insurance fund charge for 

 shipment No. 112 would be divided as follows: Manager's commis- 



