COOPERATIVE PURCHASING AND MARKETING ORGANIZATIONS. 61 



kets and Rural Organization, United States Department of Agricul- 

 ture, and some of these are giving special attention to cooperative 

 organization problems. Information was secured from nearly all of 

 the agricultural colleges and a number of State departments with 

 regard to their activities along cooperative organization lines, but on 

 account of the rapid expansion which is now taking place in this field 

 of endeavor, it has not been deemed practicable to include a complete 

 statement of the work that each one of these agencies is performing. 



COOPERATIVE LAWS. 



In the main the laws regulating the formation of cooperative asso- 

 ciations in the various States are of two types. Some State laws are 

 very general while others outline in detail the methods of forming an 

 organization and managing its business. The general laws leave the 

 details to be worked out by each individual organization, and sup- 

 porters of this type of cooperative law believe that it is preferable 

 because it allows an organization more latitude and gives greater as- 

 surance of securing the form of organization that is best suited to 

 the needs of the community. Some argue that detailed laws attempt 

 to force an idealistic form of cooperation on persons who are begin- 

 ners in this field of activity, but supporters of the detailed laws main- 

 tain that the surest method of bringing about true cooperation is by 

 outlining in full a method of organization that embodies the true 

 principles of cooperation. There is no doubt that a detailed law in- 

 sures greater uniformity of organization than it is possible to secure 

 under a general law. 



The differences between cooperative and noncooperative forms of 

 organizations and the advantages and disadvantages of each type are 

 questions which need careful study, for which few individuals have 

 either the time or the facilities. If detailed cooperative laws had 

 been in existence in all the States at the time when the farmers' or- 

 ganization movement started, it is unquestionably true that the pro- 

 portion of truly cooperative organizations would now be very much 

 larger than it is in those States where such laws are not in operation. 

 Detailed laws serve to educate people along cooperative lines, and 

 for that reason it is not necessary to wait until the beginner's stage 

 has been passed before such laws are enacted. 



Cooperative laws usually state the minimum number of persons 

 that may organize and give the kind of business in which they may 

 engage. The method of incorporation sometimes is outlined, although 

 this is not always done, as in some States the associations are referred 

 to the general corporation laws for this information- The laws often 

 include restrictions regarding the board of directors and the officers. 

 General laws usually leave questions concerning the capital stock for 

 each association to decide, while detailed laws usually prescribe the 



