Excerpts from the report: Until recently many livestock associations were inclined to regard savings as strictly an association affair. They felt that each was free to distribute its own savings or to retain them in the business. In general, they were right, but if an association is to operate as a cooperative and take advantage of the income tax exemptions provided by law, it must follow certain well defined procedures in the distribution of savings. Income taxes are assuming a much more important role in all businesses than they have in the past and associations do well to examine their status critically. In doing so they usually find that the method followed in distributing savings is significant. This report is designed to answer some of the questions that have proved troublesome to the cooperatives.