APPENDIX. 



By-Laws of the Association.^ 



Aeticle I. — Name. 



Section 1. This association, incorporated under the laws of the State of 

 , shall be known as the ( Association). 



Sec. 2, Its iirincipal office shall be located in the town of . 



Aeticle II. — Objects. 



Section 1. The objects of this association shall be to encourage better and 

 more economical methods of production, manufacture, and sale of milk, cream, 

 butter, cheese, and other dairy products and dairy by-products and to engage 

 in handling, grading, marketing, standardizing, manufacturing, storing, and 

 advertising dairy products and dairy by-products. 



Sec. 2. In order to carry out these objects the association shall have power — • 

 (a) To purchase, rent, buy, build, or otherwise acquire and own, sell, lease, 

 or control such buildings and equipment and real and personal property as may 

 be needed for the convenient conduct of its operations. 



(6) To borrow money and to secure the same by a mortgage, deed of trust, 

 or other form of security upon any of its property, real or personal. 



(c) To cooperate and affiliate, through membership or otherwise, with any 

 other cooperative association formed for similar purposes in order to carry out 

 the objects of this association. 



Note. — Make the objects as definite as possible; but it is also well to 

 make them sufficiently broad in scope to cover any future efforts of the 

 association. Care should be taken to state the objects, so as to keep the 

 activities within the limits of the power conferi-ed by the statute under 

 which the association is incorporated, as well as in harmony with the 

 articles of association. 



Article III. — Alembership." 



Section 1. Any bona fide producer of dairy products in the territory served by 

 this association may become a member of the association by agreeing to comply 

 with the by-laws of this organization and purchasing at least (one) share of 

 capital stock. 



1 Adapted from. Bulletin No. 541 of the U. S. Department of Agrriculture entitled 

 Cooperative Organization By-Laws. All matter appearing in parenthesis is suggestive 

 merely and is to be altered to suit the best interest of each association. Those who desire 

 to form an association which will come within the scope of the Capper- Volstead Act 

 should remember that such an "association (a) must be composed entirely of producers; 

 (6) must not deal in the products of nonmembers to an amount greater in value than 

 such as are handled by it for members ; and (c) must comply with one or both of the 

 following requirements: (1) That no member of the association is allowed more than 

 one vote because of the amount of stock or membership capital he may own therein, or 

 (2) that the association does not pay dividends on stock or membership capital in excess 

 of 8 per centum per annum. Fuller information concerning the Capper-Volstead Act 

 may be obtained from the Bureau of Agricultural Economics, United States Department 

 of Agriculture. 



2 The following is applicable to capital-stock organization. On p. 43 suitable sections 

 for nonstock organizations are suggested. 



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