LEGAL PHASES OF COOPEEATIVE ASSOCIATIONS. 69 



tive association is based on the individual member, a number of 

 whom unite to do something in which they have a common interest. 

 In the former, money controls ; in the latter, men. While there 

 may be cases where the voting power of the members may be 

 made in proportion to the acreage of their products, it will gen- 

 erally be found that any attempt to vary the voting power of mem- 

 bers will be unwise. The practice of allowing a member to collect 

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

 single member influence in the association which is too dangerous 

 to be allowed. 



In some of the largest nonprofit cooperative associations it has 

 been felt that it was neither fair nor wise to demand that the 

 large-producing member should be held to the same vote as a 

 small-producing member, as their responsibility and interest are 

 so unequal. In such a case the voting power of members may 

 be proportioned according to the amount of their products or acre- 

 age handled through the association. 



Sec. 6. Any member may withdraw from the association at any time during 

 the month of January of any year, but such withdrawal shall not affect any 

 right or lien which the association has against the retiring member or his 

 property until his indebtedness to the association is fully paid. Any member 

 having a grievance or complaint against the association may appeal to the 

 board of directors (or to the members at any regular or called meeting). 



Note.- — The time of withdrawal should be so fixed as to take 

 effect some time between the close of one season's business and the 

 opening of the next. To permit a member to withdraw during a 

 busy marketing season will result in confusion and may seriously 

 handicap the manager in filling his contract. 



The laws of several of the States providing for the incorporation 

 of cooperative associations require that the by-laws shall provide 

 the manner of ascertaining a member's interest upon his death, 

 withdrawal, or expulsion. This subject should be investigated and, 

 if required, provision made therefor. The following by-law is sug- 

 gested when found necessary : 



On the death, withdrawal, or expulsion of a member his interest 

 in the association shall be conclusively ascertained and determined 

 by appraisal by the board of directors, and the association shall 

 pay the amount thus ascertained to the member or his legal repre- 

 sentative within one year from the date of appraisal. 



Aeticle XV. — Indebtedness, Membership Liability. 



Section 1. The amount of indebtedness which may be incurred by or on be- 

 half of this association shall at no time exceed ($20,000). 



Aeticle XVI. — Expenses and Payments. 



Section 1. The expense of operating the association shall be met by a per- 

 centage charge laid upon returns for produce sold, or by a uniform fixed 

 price per package ; and upon supplies purchased, the amount of such charge to 

 be fixed by the board of directors. * 



Sec. 2. The association may pool or mingle the products of each member with 

 products of like quality, variety, and grade delivered by other members. The 

 net returns from the sale of such products less such costs, advances, reserves, 

 and charges as are provided for in these by-laws and the rules prescribed by the 

 board of directors, shall be credited and paid to each member in proportion to 

 the quantity of such products shipped by him through the association, and on 

 the basis of the average price received for such products of like quality, variety, 



