COOPERATIVE MILK-DISTRIBUTING PLANTS. 41 



Sec. 4. If any member shall by purchase or by operation of law come into pos- 

 session of more than shares of the capital stock of this association, the 



board of directors may elect to purchase, and such member shall then sell to the 

 association, such excess shares at a price to be conclusively determined by the 

 board of directors, plus any dividends or refunds due and unpaid. Also, in the 

 event of the death or disability of the owner of any shares of stock in this 

 association, such shares of stock may be purchased by the association and shall, 

 in the event the board of directors elects to purchase them, be sold by such 

 owner or his legal representatives to the association at a price to be conclusively 

 determined by the board of directors, plus any dividends or refunds due and 

 unpaid. 



Note. — The legal effect of sections 2, 3, and 4, above, depend entirely upon 

 the charter provisions and the laws of the State in which the association is 

 incorporated. They are suggested here as possible means of safeguarding 

 cooperative principles, and are to be incorporated into or excluded from the 

 by-laws upon the advice of competent legal counsel. Printing these restric- 

 tions upon the body of the stock certificate is a convenient and effective 

 method of giving notice of such restrictions to intending purchasers. 



If the organization desires to have both common and preferred stock, 

 proper provision for such should be made in this article. 



Aeticle XI. — Contracts and Agreements. 



Section 1. Every producer delivering milk or dairy products to this associa- 

 tion shall enter into a contract with the association in the form required by the 

 board of directors, containing, among others, the following provisions ; 



{a) That the member, by said contract, appoints the ( Associa- 

 tion) his sales agent to sell all dairy products and dairy by-products produced 

 by him for sale or such part thereof as shall be specified in the contract, and 



binds himself to deliver such products to the ( Association) for 



sale at such time and place as the association directs. 



(6) That said contract shall run continuously unless canceled by the member 



on the of any year by surrendering his contract and giving written notice 



to the association at least 30 days prior to said date of his desire to cancel the 

 contract. Such cancellation shall be subject to any indebtedness due from the 

 member to the association. 



Note. — No cooperative association should attempt to do business without 

 first having made a definite contract with each producer. Such contracts 

 tend to give stability and permanence to the organization and enable the 

 manger to plan more definitely for the handling and sale of the products 

 received. 



Article XII.— Duties and Rights of MemTyers. 



Section 1. A member shall have the right to give away or retain for his 

 use in his household or on his farm such of his dairy products as he may wish, 

 but he shall not sell any products contracted to the association to an outside 

 party, except products offered to and rejected by the association. 



Sec. 2. In case any member is offered a price in excess of the price obtainable 

 by the association, said member shall refer said bid to the association. 



Sec. 3. On or before day of of each year each milk producer 



shall report to the association the number of cows which he has in his herd 

 and the approximate amount of dairy products which he expects to market 

 monthly through the association during the ensuing year. 



Sec. 4. Each stockholder of the association shaU have only one vote. Voting 

 by proxy shall not be permitted. Members may vote by mail on specific ques- 



