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stock and whose business is not carried on for profit. These asso- 

 ciations issue certificates of membership to each member but the 

 niembership cannot be transferred or assigned to any other per- 

 son, nor is the purchaser of a property of a member entitled to 

 membership by virtue of such purchase. In such associations 

 the basis of voting and the control of the membership is subject 

 to rules made by the association. These associations may accu- 

 mulate a capital with which to transact business though the cap- 

 ital is not in the form of a paid-in capital stock. It may be accu- 

 mulated pro rata from the proceeds of the shipments of the mem- 

 bers, or in any other way agreed to by the members. 



In Nebraska cooperation has been defined and given a legal 

 status. The law says, "for the purpose of this act, the words 

 'cooperative company, corporation, or association' are defined to 

 mean a company, corporation or association which authorizes the 

 distribution of its earnings in part or wholly, on the basis of, or 

 in proportion to, the amount of property bought from or sold to 

 members, or of labor performed, or other service rendered to the 

 corporation." It differs from the general incorporation law of 

 Nebraska by providing that every cooperative corporation has 

 the power 'to regulate and limit the right of stockholders to 

 transfer their stock ; and to make by-laws for the management of 

 its afifairs ; and to provide for the distribution of its earnings." 



In Wisconsin, a law was passed in 1911, Chapter 368, Laws 

 of 1911, which provides for the formation of "a cooperative asso- 

 ciation, society, company or exchange, for the purpose of con- 

 ducting agricultural, dairy, mercantile, mining, manufacturing or 

 mechanical business on the cooperative plan." It "may buy, sell, 

 and deal in the product of any other cooperative company here- 

 tofore organized or hereafter organized" as a cooperative asso- 

 ciation. The law provides that "no stockholder in any such asso- 

 ciation shall own shares of a greater par value than one thousand 

 dollars ... or be entitled to more than one vote." It provides 

 that the directors shall apportion the earnings, subject to revision 

 by the association at any time, "by first paying dividends on the 

 paid-up capital stock not exceeding six per centum per annum, 

 then setting aside not less than ten per centum of the net profits 

 for a reserve fund until an amount has been accumulated in said 

 reserve fund equal to thirty per centum of the paid-up capital 

 stock, and five per cent thereafter for an educational fvmd 

 to be used in teaching cooperation, and the remainder of said ne< 

 profits by uniform dividend upon the amount of purchase of 

 shareholders and upon the wages and salaries of employees, and 

 one-half of such uniform dividend to non-shareholders on the 

 amount of their purchases, which may be credited to the account 

 of such non-shareholders on account of capital stock of the asso- 

 ciation ; but in productive associations such as creameries, can- 

 neries, elevators, factories, and the like, dividends shall be on 

 raw material delivered instead of on goods purchased. In case 



