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) havin 
all of the records accessible at one place, preferably at the place o 
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 sufficient 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. 
CERMINAL 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. | 
