Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1914-08-27

The following from Farm Life and
Agricultural Epitomist" for August
tells an interesting story of how one
dairyman placed his business on. a
scientific basis:
Three years ago, Banks invested 3d.
500 in the dairy business in a town
Iof three thousand population. He
bought q small farm near the town for
$4,000 and spent the balance for twen-
ty head of cattle at an average cost of
$50 each, for wagon and horses for de-
livery, bottles, milk cooler, and other
equipment necessary in his business.
He gave his personal attention to the
work from about 3 a. M, to 8 p. M,
and was assisted by his wife. an eigh-
teen-year old son, and sixteen-year
old daughter when she was not in
school.
AT the close of three years he found
himself in debt to about every trades
man In the town who had trusted him,
and up against it, good and rocky.
He walled and rallied at his lack of
success, and condemned everyone who
had advised or assisted him In his
business.
Questions That Puzzled Jim.
A friend approached him one day
and said, Jim, how much does it cost
you to produce quart Of milk?'
II don't know
How much does it cost you to sell
a quart of MILK"
That's fool question to ask"
How much does it cost to keep a
COW a day."
How can tell?"
What percentage of your sales do
you fail to collect?"
Say, my friend, what are you driv-
ing att"
"Just this: You don't deserve to
succeed. You haven't learned your
business yet You are business
menace. You are the type Of man
who tears down. the business of an.
other without building one for your.
self.
BE just to yourself Get your
figure facts before you. Before you
can succeed you must know all these
things and more. You must keep be-
for you the costs, SO that you know
what your farm produces, and what it
earns. And when you sell your farm
produce to your dairy business, deal
as If you were dealing with stranger
Find what your overhead expense is
what the limit is where COW ceases
to be profitable. You have fine look.
Ing cows; that gets you nothing-you
are selling milk, not cows.
Overhead" Expenses Of Cow.
why, Jim, when you pay $3.50 a
ton for hay to feed COW that eats two
tons OF hay year, you can realize
that your COW costs you fifty cents a
week for hay. And add to that thirty.
Ave cents week for grain. And add
to her proportion of overhead" such
as interest, taxes, insurance, depre-
ciation-you realize that dairy COW
| is q good cow for only four year, hav-
ing to charge of one-fifth her cost to
depreciation every year-and the bot
ties and wear and tear on wagon, the
! keep OF your delivery horse, the wages
you pay to deliver, must all find a
unit value somewhere that you can
charge-why!"
| What Is a unit value"
"A basis for your fixed charges. You
have twenty cows. Against these
twenty units you have to charge all
your expense and credit all your rev.
J enues.
For instance your interest on &c..
600 at 6 per cent is $216. Your taxes
are $40 Your insurance is $40. Your
hay bill is $500 year. Your grain
bill is 5000. Your wage bill for your
son is $780, For your wife $500. For
your daughter $3.50. You yourself
should be put on salary, say $500.
Any one of you would earn more than