220 THE FARMER AS A COOPERATOR. 



to the extent of liis property, for the entire indebtedness of 

 the concern, he is liable only for a certain definite amount, 

 which is fixed by statute in each state: in California he is 

 liable for such a ratio of the indebtedness as the stock owned 

 by him is of the total stock issued; if he owns one-tenth of 

 the stock, he is liable for one-tenth of the indebtedness, and 

 no more. Each state has its own law upon this matter. Some 

 states may permit so-called "limited" corporations,* in which 

 stockholders in corporations are liable only to the amount of 

 their stock subscription; when their stock is fully paid up 

 there can be no further call upon them, no matter what 

 indebtedness is incurred. 



Corporations, therefore, are not only more convenient, but 

 far safer than partnerships or associations, when any consid- 

 erable number of persons unite to establish a permanent 

 business. 



Among farmers who become stockholders in cooperative 

 enterprises there is a very common source of complaint, which 

 has no foundation in reason, and that is "assessments" on 

 stock not fully paid up; if I subscribe for ten shares of stock 

 at $10 a share, I obligate myself to pay $100 at such times and 

 under such conditions as the by-laws of the corporation and 

 the laws of the state prescribe ; and having thus promised I 

 have no right to complain that I am held to the promise. 

 There is often some uncertainty as to the exact capital 

 required, and it is quite usual to take subscriptions for more 

 than is supposed necessary, and call in only a certain portion. 

 I>ut the calling in of more is always a matter entirely within 

 the discretion of the directors, but if they do call it no one 

 can complain; if I do not wish to pay I must not promise to 

 do so. The cause of the general complaint among farmers 

 when called upon to pay "assessments" on non-paid-up stock 

 is doubtless to be found in the self-delusions of enthusiastic 

 promoters of cooperative societies, who liavc exaogeratod ideas 

 of the profits of business, and insufficient knowledge of the 



*T know of no sucli sluU;, Itut 1 have not investigated carefully. They are 

 perniitted by British law 



