The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1914-03-05

and. the careless handling Of money.
Would we not all prefer to do busi-
ness with an elevator that we knew
was. worked along the best business
principles with everything above
board, other things being equal? If
each of your farmers elevators was
to employ an expert accountant, the
sum for each audit would probably
be excessive, but with the great num-
Der Of farmers elevators there are in
this state, associations or circles
could be formed, contracts being made
with competent auditors to do the
auditing for a. large number Of the
elevators, the cost to each. elevator
being nominal. Auditing companies
employ their men at weekly salaries,
which amount to one-third or one.
half the amount the company receives
in return for their services. Your
association could employ an expert at
$1,000 a year and his expenses, who
would spend all his time working for
the interests of your elevators. 1t
would be possible for one man to
take care Of from thirty to forty ele-
vators, after he had placed the sys-
tenn in good shape. The cost of each
elevator, compared to the benefit de-
rived, would be especially small, sug-
gestions for and the improvements
Of accounting methods will often mean
more than the entire cost Of audit
ing. ,
Nov I desire to bring out my point
about the systems Of accounting now
used. Since the managers, as a rule
are not expert bookkeepers but have
generally mastered some system, it
would be better to have an expert
give suggestions as to possible m
provements in the systems they are
v1ou IIrir,cr ~ n1rT,r c,,1 ~I[its~na @nI
changes. as would be necessary, rath-
er than putting upon all your man.
ayers a big system of records. the
keeping of which, they know little or
nothing about. Practically every sys-
tenn Of elevator accounts I have ex-
amined has some good features and
with a few improvements, they could
all be made good systems and would
amply answer the purposes for which
accounting records are required, 9TH
ers are answering their purposes and
need no changes. An auditor, vfsIs-
ing the various elevators would be
Of valuable aid in perfecting the sys-
TENS of accounting. AS I have pre-
viously stated, I feel that a great mis-
take will be made in trying to force
the farmers elevators to use any one
stock system. If all the elevators were
alike, the same size inc had account
ants or managers who could keep
such a system, it would be different.
1t is true however, that the systems
now being constantly devised and i'm
proved are a great help and are GER
tainly answering their purposes in
some cases. -,
81 notice that state regulation of
elevators, to a. certain extent, is being
advocated in his state. In this con-
~nection a plan should be devised
whereby an annual examination OF
audit by an expert, who is also cap
able of advising the various elevator
companies as to the proper methods
and improvements in handling &C.
counts, would be made. The great
benefit Of any proper state supervision
Of the elevator companies would be
derived by the elevators themselves.
The cost Of state examination Of ele-
vators would, If properly conducted,
be much less than the cost Of any in
dividual or set of elevators. There is
no reason why the Farmers Elevator
companies of this state should not be
encouraged and I know Of no better
way to. help them than in assisting
the proper handling of their accounts
and enforcing the proper business pre-
There are also various ad-
vantages to such regulation from the
customers and buyers standpoint,
the details Of which I shall not go into.
Great care, however, should be taken
to see that a plan for such regulation. |
If presented to, your legislature, is Of
such a nature that the proper help
will be given the elevators in the. per-
Of the systems Of accounting |
now used and that cumbersome bar |
which will require considerable |
expense, to the companies |
without any returns, are. not placed in |
such proposed legislation. You must
however, that anything |
that gives you a complete examination |
will detect fraud or errors and
also any assistance that will improve |
methods of business, should be |
sought after. The elevators
are DESTROYS Of improving their
and prospecting should be a
unit in trying to secure proper state
which would be assistance
in this connection.
Most OF the farmers elevators are
working on a very small amount of
capital, it being necessary to borrow
money from banks or securing ad-
from commission houses, to
carry on the business during the busy
season. In some Eases this condition
cannot be materially helped as the
is 30 small that little or no
profit is made, it being all the manag-
a do to meet expenses. There are
q great many cases., however, where
elevators are working under the great
handicap of having insufficient capital
and yet these same elevators are pay