22 BULLETIN 1095, U. S. DEPARTMENT OF AGRICULTURE. 
the producer might suffer a loss under such circumstances, the pro- 
ducer would not be a gainer, because, being a part of the organization, 
he would have to bear his part of the loss eventually. 
The advantages of the truly cooperative method of payment, that is, 
prorating the net proceeds in accordance with raw materials 
furnished, should be carefully considered, for under this method 
questions of surplus milk may be adjusted without difficulty: Further- 
more, the prorating of net proceeds has been employed successfully 
by many other cooperative organizations, such as cooperative cream- 
eries and cooperative fruit and vegetable marketing organizations, 
and should be equally satisfactory when used in cooperative milk- 
distributing plants. 
EFFICIENT AND ECONOMICAL PLANT OPERATION. 
Internal economy in plant operation is a detail feature of business 
management largely dependent upon the systematic organization, 
ability, and ideals of the employees, the arrangement and construc- 
tion of the plant, and the arrangement, capacity, and efficiency of the 
equipment. The importance of proper plant construction and equip- 
ment has been previously discussed and should not be overlooked 
in the construction and equipment of new plants or the remodeling 
and equipment of old ones. | 
Systematic plant organization, with competent, able, and willing 
employees, is an important factor in obtaining efficient and economical 
plant operation. Every part of the work should be properly coordi- 
nated, to the end that needless waste of supplies and labor may be 
eliminated. Plants of sufficient size to warrant the employment of a 
plant foreman or superintendent should have one. The duties of a 
plant foreman or superintendent are largely supervisory, directing 
the employees in the plant in the proper performance of their duties, 
whether it be in weighing, testing, or inspecting the supplies received, 
pasturizing and bottling the milk and cream, and washing and steri- 
lizing the bottles, vats, or plant equipment. In plants where a plant 
engineer is not regularly employed, he supervises the proper operation 
of the boiler, engine, motors, and refrigerating equipment, and 
whatever detail work is done in the holding of products in the re- 
frigerator or cold-storage room for delivery on routes, or in the 
manufacture of by-products. It is obvious that competent supervi- 
sion with systematic organization and high ideals are essential for 
the most efficient and economical operation of a milk plant. 
SALES POLICIES AND METHODS OF DISTRIBUTION. 
Local market conditions must be the chief deciding factor in de- 
termining the sales policies and methods of distribution in a milk- 
distributing plant. Quality, however, should be the first considera- 

