2 BULLETIN 541, U. S. DEPARTMENT OF AGRICULTURE. 



other hand too often expect to obtain the desired results by merely 

 providing a general set of by-laws, which do not go into the details 

 of the form of organization or the method of conducting the business. 



ADAPTATION OF THE BY-LAWS TO LOCAL NEEDS. 



It is impossible to draw up a standard form of by-laws which will 

 adequately meet the needs of all organizations, for certain features 

 may be highly desirable for one organization and decidedly impracti- 

 cable for another organization. Among the reasons for variation in 

 the by-laws, the kind of business engaged in is important. Thus 

 the regulations in the by-laws of a fruit-shipping association regard- 

 ing the grading and packing of goods shipped are not applicable to 

 the business of a creamery organization. Many other illustrations 

 could be given. 



Certain parts of the by-laws must be drawn to suit the form of 

 organization. Thus an association with capital stock will have 

 clauses relating to its stock, while a nonstock association must sub- 

 stitute other sections more particularly adapted to its form of organ- 

 ization. The size of organization also should be taken into considera- 

 tion, because by-laws drawn to meet the needs of a small local 

 association would have to be changed before they would suit a large 

 organization. The general plan may be the same in both cases, but 

 some of the details necessarily will differ. Thus, in a small organiza- 

 tion with a selected membership, restrictions on the individual 

 members may be observed, while in a large organization it would 

 probably be impossible to enforce such restrictions. 



Differences in the requirements of various locations must not be 

 overlooked. Not only may the local conditions surrounding a co- 

 operative creamery in Vermont differ from those of a similar plant 

 in Texas, but the local conditions at one creamery may vary con- 

 siderably from those at a plant only a few miles away. The ques- 

 tions of proximity to market, of competition, of the characteristics 

 of the local population, and the kind of farming all must be considered. 



The State law under which the organization is to be incorporated 

 also influences the character of the by-laws. Some of the States 

 have special laws providing for the formation of cooperative associa- 

 tions; in other States such associations are formed in accordance 

 with the general incorporation laws. The State laws are far from 

 uniform, and it is therefore important to ascertain the requirements 

 of the laws of the State in which the association is being incorporated, 

 in order that the by-laws may be drawn in accordance with the law. 



IMPORTANCE AND ADVANTAGES OF INCORPORATION. 



A cooperative association may be in the form of a voluntary 

 unincorporated association or it may be incorporated under the laws 

 of the State in which it is being formed, or those of some other State. 



