Marketing Pecans 147 



other non-stock non-profit organizations. In either case, mem- 

 bership should be restricted to bona fide growers. Member- 

 ship in the capital stock class is represented by the owner- 

 ship of one or more shares of stock, w^hile in the non-stock 

 non-profit form the member pays an entrance fee and receives 

 a membership certificate, which entitles him to all the privi- 

 leges of the association. 



A farmers ' cooperative association, formed on capital stock, 

 is operated on the one-member one-vote basis, regardless of 

 the variation in the shares owned. This in a measure dis- 

 courages the buying up of the capital stock by a few members 

 w^ho might desire to gain control of the organization for 

 selfish purposes. It also makes the ownership of the capital 

 stock unattractive to outsiders. Associations of growers, or- 

 ganizing on this plan, usually limit the ownership of the 

 capital stock to actual producers. From a legal standpoint, 

 it might be difficult to prevent a member from selling his 

 stock to an outsider, but the one-member one-vote provision 

 tends to render the stock unattractive to outside investors. A 

 disadvantage of this plan is that there is no method of 

 preventing an unequal distribution of stock ownership among 

 the members. 



The non-stock non-profit form of organization is the one 

 most used now by growers. Under this plan the one-member 

 one-vote provision obtains and membership is also limited 

 to actual growers. Operating capital is secured from banks 

 and from the War Finance Corporation by offering the com- 

 modity controlled by the organization as collateral. Under 

 this plan there is no capital stock to be sold, and, therefore, 

 it is impossible for outsiders to gain a foothold. Under both 

 the capital stock and the non-stock non-profit forms of organ- 



