18 BULLETIN 541, JJ. S. DEPARTMENT OF AGRICULTURE. 



Article XI. — Emergency Capital. 



Section 1. At the time of uniting with the Association, or at any time thereafter, 

 when called upon by the Board of Directors, each member shall deliver to the Asso- 

 ciation a negotiable, promissory note, payable on demand, to the order of the Asso- 

 ciation. Such note shall be for the sum of [$25] and an additional [$1] for each acre 

 of crops to be grown by the member, the products of which are to be marketed through 

 the Association. But in no case shall this note be for a less sum than [$35]. 



Sec. 2. These notes shall be the property of the Association for the purpose of being 

 pledged by the Board of Directors as collateral security for any loan that may be 

 necessary in the conduct of the Association's business. Any member's note may also 

 be available in the settlement of any liquidated damage that may result from the 

 failure of said member to live up to his contract with the Association. 



Note.— This article is intended to supply capital which is needed only for short periods, as, for instance, 

 during the rush in crop-moving time and other periods when a supply of money is required. Organiza- 

 tions that have a surplus fund for such a purpose may not find it necessary to include this article in their 

 by-laws. If any member knows that the association holds his note, which may be sold to settle any 

 liquidated damage, caused by his breach of contract, it probably will cause him to be more careful 

 about living up to that contract. 



Article XII.— Grading and Inspecting. 



Section 1. All products grown by the members for sale through the Association 

 shall either be graded and packed on the grower's premises, in accordance with the 

 rules of the association, subject to such inspection as may be established by the Board 

 of Directors, or shall be delivered to the Association., as directed by the manager, in 

 prime condition for grading, packing, and shipping. 



Sec. 2. All produce offered for shipment shall be inspected before shipment. If 

 any produce is not in good condition for shipping, such produce shall be sorted, and 

 prepared for shipment at the expense of the owner. 



Sec. 3. All brands, labels, and trade-marks established by the Association shall be 

 registered and become its property, and they shall be attached only to such grades 

 as shall be ordered by the Board of Directors. 



Note.— The rules for grading and inspection will necessarily depend on the organization and the kind 

 of business engaged in, and this should be kept in mind when drawing up the by-laws. 



Article XIII. — Contracts and Agreements. 



Section 1. Every member of this Association shall enter into a contract with the 

 Association in the form required by the Board of Directors, subject to the following 

 provisions: 



(a) That the member, by said contract, appoints the [Monroe County Cooperative 

 Fruit Association] his sales agent to sell all products grown by him for sale, or such 

 part thereof as shall be satisfactory to the Board of Directors, as shall be specified in 

 the contract, and binds himself to deliver such products to the [Monroe County 

 Cooperative Fruit Association] for sale at such time and place aa the Association 

 directs. 



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

 [March 1] of any year by giving written notice to the Association at least [thirty] days 

 prior to said date that he desires to cancel his contract, subject to any indebtedness 

 due from him to the Association and delivering his copy of the contract to the Asso- 

 ciation on or before the [first day of March]. 



Note.— No cooperative association should attempt to do business without first having made a definite 

 contract with each member. The manager can not be expected to work to advantage, unless he has 

 definite knowledge of how much of the various kinds of products he is, expected to market, and this 

 knowledge should be in his possession early in the season. Unless a member is willing to bind himself 

 under an enforceable contract, he can not expect his association to transact business to his advantage. 



