10 CANADA - CO-OPERATION AND ASSOCIATION 



at the general meetings of the company, who exercise all such powers 

 of the company as are not by the Act required to be exercised by the 

 company in general meetings or as are not conferred by by-law of the 

 company upon the local Boards of Management, and any other powers 

 not contrary to the provisions of the Act which may be conferred upon 

 them by the by-laws of the company. Wide powers have been given 

 to the Board of Directors because such a central body has a great ad- 

 vantage over a number of scattered units in such matters as selling the 

 grain, employing managers, inspecting elevators and records, purchasing 

 building materials and supplies, making financial arr angements, etc. 



§ 2. Local ei,evators. 



Any number of shareholders may request the directors of the com- 

 pany to buy one of the elevators at theii shipping point, or to build 

 a new one. It must appear to the satisfaction of the directors " that 

 the amount of shares held by the supporters of the proposed local ele- 

 vator is at least equal to the value of the proposed elevator, that fifteen 

 per cent, of the amount of such shares has been paid up and that the 

 aggregate annual crop acreage of the said shareholders represents a pro- 

 portion of not less than 2,000 acres for each 10,000 bushels of elevator 

 capacity asked for. " These requirements are designed to secure and re- 

 tain the interest and support of a sufficient number of the actual grain- 

 growing farmers to insure the success of the local elevator even if no 

 grain other than that grown by shareholders were handled by the ele- 

 vator. No pledge or guarantee of any kind is required of the shareholder. 

 He is as much at liberty as any other farmer to ship h!s grain as 

 he pleases or to sell it to the highest bidder. His interest in the com- 

 pany, however, makes it practically certain that he will do his business 

 through it. 



Each local elevator has a Board of Management consisting of five of 

 the shareholders elected annually. At all meetings of the supporters of 

 the local elevator each shareholder has one vote for each share held by 

 him up to five. The local elevators are represented by delegates at the 

 general meeetings of the Company. 



§ 3. Government assistance. 



By the Act the money for the work of organisation of the company 

 was to be given by the Government to the extent of $ 6,000 if neces- 

 sary. This was not to be repaid by the company. The Government 

 lends to the company, for the purpose of aiding in the acquisition or 

 construction of any local elevator a sum not exceeding eighty-five per 



