Cooperative Organizations in Agriculture 45 



The Wisconsin Law 



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

 Laws of 1911, which provides for the formation of "a 

 cooperative association, society, company, or exchange, 

 for the purpose of conducting agricultural, dairy, mercan- 

 tile, mining, manufacturing, or mechanical business on 

 the cooperative plan." It "may buy, sell, and deal in 

 the product of any other cooperative company heretofore 

 organized or hereafter organized" as a cooperative asso- 

 ciation. The law provides that "no stockholder in any 

 such association 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 revisions by the asso- 

 ciation 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 accu- 

 mulated in said reserve fund equal to thirty per centum 

 of the paid-up capital stock, and five per cent thereafter 

 for an educational fund to be used in teaching cooperation, 

 and the remainder of said net profits by uniform dividend 

 upon the amount of purchases 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 

 association; but in productive associations such as 

 creameries, canneries, elevators, factories, and the like, 

 dividends shall be on raw material delivered instead of on 



