42 BULLETIN 1095, U. S. DEPARTMENT OF AGRICULTURE. 
tions in those instances where authorized to do so by the board of directors. 
In such cases the secretary shall mail notices of such specific questions to 
each member (10) days before the date of the meeting. Members voting by 
mail on specific questions shall transmit their ballots to the secretary of the 
association by registered mail and such ballots shall be counted only in the 
meeting at the time at which such vote is taken. 
Notr.—In a stock company, organized to earn profits on the money in- 
vested in the business, voting rights are granted to the stockholders in pro- 
portion to the number of shares held. In a cooperative association where 
the individual members have common interests, equality is obtained by 
limiting each member to one vote. The practice of allowing members to 
collect the proxies of absent members and vote the same tends to give 
such members undue influence in the affairs of the association. 
Sec. 5. Any member having a grievance or complaint against the association 
may appeal to the board of directors, or to the members, at any regular or 
called meeting. 
ARTICLE XNIII.—Haxpenses and Payments. 
SEcTION 1. The expenses of operating and maintaining this association shall 
be met by a percentage deduction from the returns for products sold, the amount 
of such percentage to be fixed by the board of directors. 
Sec. 2. The returns from the sale of all products of the same grade shall 
be pooled and final payments made to producers on the basis of the average 
price received during such periods as the board of directors from time to 
time may determine. Advance or partial payments for such products shall be 
made to the producers as the board of directors may determine. 
ARTICLE XIV.—Refunds and Damages.® 
SECTION 1. After payment to the producers of a specified portion of the amount 
received for their product, and after the season’s expenses are paid and a suit- 
able sum, to be determined by the board of directors, set aside for depreciation 
and reserves, the balance shall be divided as follows: 
(a) The stockholders shall receive not to exceed (6) per cent per annum on 
the par value of their stock. 
(ob) The remainder, if any, shall be divided among the patrons of the asso- 
ciation in proportion to the value of the products handled for all such patrons 
whether members or nonmembers. 
Sec. 2. Any member who fails to live up to his agreement or fails or refuses 
to deliver his products to the association for sale in accordance with said agree- 
ment shall pay to the association as liquidated damages the sum of for 
each of not delivered by him to compensate the association for 
the loss sustained by the breach, and to enable it to meet and equitably dis- 
tribute overhead and maintenance expenses involved in the operation of the 
association and in providing and maintaining facilities for the handling and 
marketing of the products of its members; said sum may be deducted from any 
money due the member in the possession of the association. 



ARTICLE XV.—Accounts and Auditing. 
SEcTION 1. This association shall install a standard system of accounts, and 
provide such accounting appurtenances as may be necessary to conduct the busi- 
ness in a safe and orderly manner. 
_> These sections are applicable to capital-stock organizations, On p. 43 suitable sec- 
tions for nonstock organizations are suggested, 



