42 BULLETIZiJ' 1095, U. S. DEPARTMENT OF AGEICULTUEE. 



tions in those instances where authorized to do so by the board of directors. 

 In such cases the secretary shall maU notices of such specific questions to 

 each member (10) days before the date of the meeting. Members voting by 

 mail on specific questions shall transmit their ballots to the secretary of the 

 association by registered mail and such ballots shall be counted only in the 

 meeting at the time at which such vote is taken. 



Note. — In a stock company, organized to earn profits on the money in- 

 vested in the business, voting rights are granted to tJie stockholders in pro- 

 portion to the number of shares held. In a cooperative association where 

 the individual members have common interests, equality is obtained by 

 limiting each member to one vote. The practice of allowing members to 

 collect the proxies of absent members and vote the same tends to give 

 such members undue influence in the affairs of the association. 



Sec. 5. Any member having a grievance or complaint against the association 

 may appeal to the board of directors, or to tlie members, at any regular or 

 called meeting. 



Article XIII. — Expenses and Payments. 



Section 1. The expenses of operating and maintaining this association shall 

 be met by a percentage deduction from the returns for products sold, the amount 

 of such percentage to be fixed by the board of directors. 



Sec. 2. The returns from the sale of all products of the same grade shall 

 be pooled and fuial payments made to producers on tlie basis of the average 

 price received during such periods as the board of directors from time- to 

 time may determine. Advance or partial payments for such products shall be 

 made to the producers as the l)oard of directors may det.ermine, 



Abticle XIV. — Refunds and Damages.^ 



Section 1. After payment to the producers of a specified portion of the amount 

 received for their product, and after the season's expenses are paid and a suit- 

 able sum, to be determined by the board of directors, set aside for depreciation 

 and reserves, the balance shall be divided as follows : 



(a) The stockholders shall receive not to exceed (6) per cent per annum on 

 the par value of their stock. 



(&) The remainder, if any, shaU be divided among the patrons of the asso- 

 ciation in proportion to the value of the products handled for all such patrons 

 whether members or nonmembers. 



Sec. 2- Any member who fails to live up to his agreement or fails or refuses 

 to deliver his products to the association for sale in accordance with said agree- 

 ment shall pay to the association as liquidated damages the sum of for 



each of not delivered by him to compensate the association for 



the loss sustained by the breach, and to enable it to meet and equitably dis- 

 tribute overhead and maintenance expenses involved in the operation of the 

 association and in providing and maintaining facilities for the handling and 

 marketing of the products of its members ; said sum may be deducted from any 

 money due the member in the possession of the association. 



Aeticle XY. — Aceounts and Auditing. 



Section 1. This association shall install a standard system of accounts, and 

 provide such accounting appurtenances as may be necessary to conduct the busi- 

 ness in a safe and orderly manner. 



= These spctions are applicable to capital-srtock organizations. On p. 43 suitable sec- 

 tions for nonstock organizations are suggested. 



