46 Cooperation in Agriculture 



goods purchased. In case the association is both a selling 

 and a production concern, the dividends may be on both 

 raw material delivered and on goods purchased by the 

 patrons." The law provides that no corporation or asso- 

 ciation doing business for profit shall be entitled to the 

 use of the term "cooperative" as part of its corporate 

 or business name unless it has complied with the provi- 

 sions of the act. 



In Nebraska, a law, Senate File No. 88, defines coopera- 

 tive associations and gives cooperation a definite legal 

 status. The law says, "for the purpose of this act, the 

 words 'cooperative company, corporation, or association' 

 are defined to mean a company, corporation, or associa- 

 tion which authorizes the distribution of its earnings in 

 part or wholly, on the basis of, or in proportion to, the 

 amount of property bought from or sold to members, or 

 of labor performed, or other service rendered to the cor- 

 poration." It differs from the general incorporation 

 law of Nebraska by providing that every cooperative 

 corporation has the power "to regulate and limit the 

 right of stockholders to transfer their stock ; and to make 

 by-laws for the management of its affairs, and to provide 

 thereon the term and limitation of stock ownership, and 

 for the distribution of its earnings." 



The California Law 



In California, a law has been enacted relating to the 

 incorporation, organization, management, and coopera- 



