285] THE PRODUCTION OF BUTTER 6 1 



the return on capital is limited to the current rate of in- 

 terest and all of the net earnings are divided among the 

 patrons whether or not they own stock, the enterprise is 

 run on the principle of complete cooperation. H. C. Adams, 

 in his report for 1900 as Dairy and Food Commissioner 

 of Wisconsin, says that a great number of creameries in the 

 state " are cooperative in part, the manager of the cream- 

 ery owning it, making and selling the product, deducting a 

 fixed charge for making with other expenses, and dividing 

 the remainder among the patrons." Another feature that 

 distinguishes associations that are purely cooperative from 

 those that are cooperative in part is the method of electing 

 their directors. Each stockholder may be given one vote, 

 or voting may be exercised according to the number of 

 shares owned. The latter principle may again be modified 

 by limiting the number of shares voted. 1 



The following constitution, 2 drafted by the Wisconsin 

 State Board of Public Affairs, and slightly modified by the 

 editors of Hoard's Dairyman, probably represents the best 

 form of organization for cooperative creameries in use at 

 the present time: 



Organizing a Cooperative Creamery or Cheese Factory 

 forms of agreement, by-laws, etc. 



First Meeting 



A temporary chairman and secretary should be elected ; the 

 advisability of starting a creamery or cheese factory, and the 

 most desirable location should be discussed, and the value of 

 each share should be decided upon. 



If it be deemed advisable to form an association, a committee 

 should be elected to canvass the surrounding territory to ascer- 

 tain if there is a sufficient number of stockholders and cows 

 to warrant an association. 



1 James Ford, Cooperation in New England, pp. 137, 143. 

 4 Furnished by Hoard's Dairyman. 



