CHAPTER III. 



COOPERATIVE CORPORATIONS. 



AS cooperative enterprises will usually be carried on by 

 corporations created for the purpose, it seems necessary 

 to devote some space to their consideration. I can not 

 say too often that this is not a law book, and that while there 

 are many things which can be profitably said here in regard 

 to corporations, whoever proposes to organize one should take 

 no guide whatever but the printed law of his own state, and 

 the advice of a competent lawyer. As laws affecting corpora- 

 tions are continually being changed in all states, one must not 

 only consult the law, but be sure that it is the law as left by 

 the last Legislature. In fact, if a corporation is worth organ- 

 izing it is worth doing it under the advice of an experienced 

 and capable lawyer. 



The popular use of tlie term ''corporations," of late years, 

 to denote the great aggregations of capital which are so often 

 employed to oppress the masses, has been such that there has 

 grown up against those very useful institutions a certain 

 unreasoning prejudice whicli often renders it very difficult to 

 induce people— especially farmers— to go into them. This 

 prejudice has been greatly strengthened by unfortunate results 

 which have befallen many who did go into them blindly. 

 Tiiere can be no business without risk of loss. If I buy a 

 farm at current prices, circumstances beyond my control may 

 create conditioiTs which will make it unsalable at half what I 

 pay for it. If I have paid cash, I have then lost half my 

 investment; if I have borrowed half the cost, I have lost all 

 my capital and must pay rent in the form of interest so long 

 as my creditor permits; when he chooses he will take my 

 farm to repay his advance. If I lend money, no matter how 

 well secured, there is a possibility of loss. If I engage in 

 mercantile business there is still more chance of loss. If I 

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