Jamestown weekly alert. [volume] (Jamestown, Stutsman County, D.T. [N.D.]) 1882-1925, 1914-03-12
THE GRAIN DEALERS TELL OF D0CKAGE LOSSES
Plans Proposed to Save c7Noney in c71arketng Grain
Federal Supervisors Recommended. Increase of
Membership Wanted.

The Wednesday afternoon session
of the Grain Dealers association was
enlivened by the address of w. H.
Kerr, department of markets of the
Agricultural Department at Wash
ington. His remarks were we'll re-
ceived and the recommendations re-
garding an elevator system of ac-
counting was generally endorsed, as
we'll as his suggestions of laying
aside surplus for capital, deprecia-
tion, etc. Mr.. Kerr had personally
visited farmers elevators at Mandan,
Beach, Hatton, Hillsboro, and other
towns, for the purpose of inspecting
their systems of bookkeeping. He
said that on account of the variation
in the business of the companies, it
is almost impossible to get any one
accounting system that would an
swer for all. Each manager has his
own plan of bookkeeping, and it is
rare thing to get a good manager,
on whom the success of the enter
prise depends so largely, and good
accountant combined. Auditing,
however, is very: necessary to keep
the elevator business free from er-
rors, losses and fraud. Checking out
old and checking in new managers
by a certified public accountant. is
necessary in justice to all concerned.
Fraud can be carried on for years,
and. investigations have shown that
elevator managers have run blind
pigs, have Disseminated in prices
and grades, and that their fraudulent
practices would probably never have
been discovered by the officers and
stock holders, unless an expert ac-
counting had been made. 1t is easy
to falsify records of elevators, and
every stockholder ought to have from
time to time true statement of the
assets and liabilities. A known aud
iting by an impartial expert. from
I time to time, encourages farmers to
do business with elevators that are
known to be checked up periodically.
Elevators of the association can
combine to get an expert auditor,
and a good man ought to be had for
$1,000 a year and expenses. One
man can care for 80 to 40 elevators,
and the proportionate cost to each
would be small. In time, the speak
er said, a uniform system of account
ing might be worked out. The state
examination would cost less than any
other. Most farmers elevators have
small capital; they borrow money
and declare dividends, as high as
from 20 to 40 per cent, without put
ting aside anything for capital or re-
pairs, or the future contingencies.
Half of the net profits ought to be
put aside for capital to work with,
save interest at banks and to COM
mission houses, thus adding to the
value of the stock. An elevator gen.
orally wears out in about Is years.
The Evening Session.
A short evening session was held,
at which matters we're discussed by
several speakers. E. A. Bowman of
Kuhn spoke on the general tendency
of farmers elevator companies to
change from the stock dividend to
the patronage. dividend plan.
Mr.. Eckerle of the American Co.
Operative Journal, Chicago, deliver
ed a strong address on cooperation,
advantages and present tendencies in
all business lines. He recommend
ed the patronage dividend plan of
pro rata profit, as the only true mean
ing of cooperation. He touched
lightly on the fight going on between
the Society of Equity and the Farm
ers' Grain Dealers association. He
also pointed out that if the farmers
companies thought they were not
getting justice done in the handling
and marketing of their grain at the
terminals, the association should en-
large its state membership, get to-
gether in q strong association, and
secure representatives to look after
their special interests on the boards
of trade. Such memberships could
be had, and while there is always
contention on the boards of trade be-
tween commission houses and line
elevator companies, yet such an ar
rangement would have its advantages
in official membership whose respon-
sibility. would be located.
Thursday Morning Session.
Vice President A. A. Lane of'Sher-
wood presided. There was a gePer-
al discussion Of dockage and grading
both at terminals and home houses.
Mr.. r. G. Miller, from the Bureau Of
Plant Industry, Department Of .Agrf-
culture. was present. and spoke OF