50 Cooperation in Agriculture 



tion is then formed on a non-profit basis, and it may take 

 over the property and interests of the former corporation. 



PRINCIPLES TO BE INCLUDED IN NEW LAWS 



Those who are interested in the cooperative movement 

 should have the corporation laws of each state examined 

 to determine whether their provisions permit the organiza- 

 tion of farmers' associations on the cooperative plan. If 

 the laws are found to be inadequate, new legislation may 

 be enacted embodying the fundamental features set 

 forth. 



The present corporation laws of many states may be 

 used as a basis for a new law. If this policy is followed, 

 the cooperative corporation should be given under the 

 new law the right to regulate and limit the right of stock- 

 holders to transfer their stock, and to make by-laws for 

 the managements of its business, to regulate the limitation 

 of stock ownership, and to provide the method of dis- 

 tributing its surplus earnings. Whether these provisions 

 shall be set forth in the law, as they have been to a greater 

 or less extent in Wisconsin, or left for the corporation to 

 provide in its by-laws as they have been in Nebraska, 

 is a detail to be considered in each state. 



If a new law is to be enacted to cover a non-profit, 

 non-stock corporation, the features of the California law, 

 together with the articles of incorporation and by-laws 

 given on other pages, will be suggestive. Whatever the 

 form of organization, it should be remembered that to 

 be cooperative, the aim of the association should not be 

 pecuniary profit. The capital stock and dividends should 

 therefore be limited, if it is a capital stock corporation ; 



