ACCOUNTS FOR LIVE-STOCK SHIPPING ASSOCIATIONS. 6 
FINANCING SHIPPING ASSOCIATIONS. 
In order that a live-stock shipping association may conduct 
its business along safe lines 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 desiring 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 live-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 will 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 
i shown on page 4, furnishes all the original material from which the 
accounts dealing with live stock are derived. Account sales, when 
j rendered with reference to mixed shipments, should show the number 
j 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 be supported by an itemized list 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 be distributed to the members 
represented in the shipment. 
