FORM OF ORGANIZATION IQ 



ciation was organized in the small country town of Hjedding 

 not far from Esbjerg in Jutland. Cooperative associations along 

 other lines were started in Denmark as early as 1866 by Mr. 

 Sonne of Tisted, Jutland. Mr. Sonne's idea for such associa- 

 tions was originally borrowed from Great Britain. 



A mutual cooperative creamery association is an organization 

 of dairymen for the purpose of jointly converting the raw ma- 

 terials, milk and cream, into finished products such as butter, 

 cheese, ice cream, etc., the business being conducted on a purely 

 mutual and cooperative plan. 



Such an organization may or may not be incorporated. If 

 incorporated, its business, Uke that of any other corporation, 

 is governed by articles of incorporation and by-laws. Its affairs 

 are likewise conducted by a board of directors, and officers are 

 elected either by vote of the members of the organization or 

 by its directors. The directors usually select an agent who is 

 responsible to the board of directors for his management of the 

 business. 



Capital Stock and Dividends. — In some states the coop- 

 erative association is organized with capital stock, but no divi- 

 dends are declared on such stock. In other states the coopera- 

 tive association is organized without capital stock, thereby 

 indicating that dividends cannot be declared. 



The cooperative creamery, like the church, is of common 

 benefit to a commimity and should be the common property of 

 its people. The money required for establishing such a cream- 

 ery should be subscribed by the producers in proportion to the 

 amount of butter fat produced by each. In Denmark, a person 

 joining a cooperative creamery association must guarantee to 

 furnish the milk from all of his cows for a definite period ex- 

 tending over several years. This system, however well adapted 

 to Denmark, has not been incorporated in the by-laws of asso- 

 ciations in the United States. It is more difficult in this coun- 

 try to have the amount subscribed correspond to the amount 

 of butter fat delivered to the creamery. 



One of the more satisfactory methods of securing money for 

 the estabhshment of a cooperative creamery is through a loan 



