PACKERS AXD STOCKYARDS ADMINISTRATIOX. 663 



stock." The act also prohibits any market agency from extending 

 to any person at the stockyards where it is engaged in business any 

 stockyard services except such as are specified in its published sched- 

 ules. The general rules and regulations of the Secretary of Agri- 

 culture require that each market agency that is a cooperative associ- 

 ation of producers shall expressly so state in its schedule, and shall 

 also plainly state the method of distribution or apportionment of its 

 excess earnings or deficit, if any. It will be understood that every 

 market agency, whether cooperative or otherwise, in filing its origi- 

 nal schedule is entirely free to determine for itself what its rates and 

 charges shall be, and subsequently thereto it may change the same 

 upon 10 daj'S' notice, subject to the conditions stated in the statute. 



A cooperative association of producers is an association com- 

 posed of and controlled by producers in which each of the members 

 has a voice in the affairs of the organization and the right to vote. 

 Membership in an association must carry with it rights and respon- 

 sibilities with respect to the management, control, operation, and 

 maintenance of the organization. In determining who are the mem- 

 bers of an association the foregoing facts should be borne in mind. 



It is clearly unlawful for a cooperative association to pay pat- 

 ronage dividends to nonmembers. It is manifest that in order for a 

 cooperative association to come within the provisions of the act re- 

 lating to patronage dividends — 



(a) The market agency must be a cooperative association of pro- 

 ducers ; 



(b) Its refunds to shippers of livestock must be bona fide returns 

 to its actual members only; 



(c) Such returns must be on a patronage basis; 



(d) The association must not make such returns to nonmembers. 

 A person is not a member of an association unless he has agreed 



to assume the obligations of membership, including both the respon- 

 sibilities and privileges attaching thereto, and has been accepted by 

 the association as a member. A mere declaration by a cooperative asso- 

 ciation that certain individuals or a grouj) of producers are members 

 of the association, without recognition and acceptance of both the 

 obligations and privileges of membership by such individuals or 

 group, does not make such individuals or group of producers mem- 

 bers, and hence they are not members under the packers and stock- 

 yards act with respect to the determination of who are members for 

 the purpose of paying patronage dividends. Membership may be 

 acquired and dividends distributed either by direct contact between 

 the terminal market agency and the individual shipper or indirectly 

 through the medium of his local cooperative shipping association, if 

 it has the requisite authority. 



VALUATION WORK. 



In attempting to determine the reasonableness of stockyard 

 charges, it is necessary to collect information concerning the value 

 of stockyard property. Prices of materials have been compiled and 

 forms necessary in inventory and appraisal work have been prepared. 

 The appraisal of the Peoria Union Stockyards has been checked, 

 and an appraisal by the engineer of the Packers and Stocl^ards Ad- 

 ministration has been presented at a public hearing; also, an ap- 

 praisal has been made of the feeding facilities at the Omaha stock- 

 78007— AGE 192.3 43 



