

COOPERATIVE MILK-DISTRIBUTING PLANTS. Al 
Sec. 4. If any member shall by purchase or by operation of law come into pos- 
) session of more than shares of the capital stock of this association, the 
| board of directors may elect to purchase, and such member shall then sell to the 
| association, such excess shares at a price to be conclusively determined by the 
) board of directors, plus any dividends or refunds due and unpaid. Also, in the 
event of the death or disability of the owner of any shares of stock in this 
| association, such shares of stock may be purchased by the association and shall, 
| in the event the board of directors elects to purchase them, be sold by such 
/ owner or his legal representatives to the association at a price to be conclusively 
| determined by the board of directors, plus any dividends or refunds due and 
) unpaid. 

Norrt.—The legal effect of sections 2, 3, and 4, above, depend entirely upon 
the charter provisions and the laws of the State in which the association is 
incorporated. They are suggested here as possible means of safeguarding 
cooperative principles, and are to be incorporated into or excluded from the 
by-laws upon the advice of competent legal counsel. Printing these restric- 
tions upon the body of the stock certificate is a convenient and effective 
method of giving notice of such restrictions to intending purchasers. 
If the organization desires to have both common and preferred stock, 
proper provision for such should be made in this article. 
ARTICLE XI.—Contracts and Agreements. 
SECTION 1. Every producer delivering milk or dairy products to this associa- 
tion shall enter into a contract with the association in the form required by the 
board of directors, containing, among others, the following provisions: 
(a) That the member, by said contract, appoints the ( Associa- 
tion) his sales agent to sell all dairy products and dairy by-products produced 
by him for sale or such part thereof as shall be specified in the contract, and 
binds himself to deliver Such products to the ( Association) for 
sale at such time and place as the association directs. 
(6) That said contract shall run continuously unless canceled by the member 
on the of any year by surrendering his contract and giving written notice 
to the association,at least 30 days prior to said date of his desire to cancel the 
contract. Such cancellation shall be subject to any indebtedness due from the 
member to the association. 





Note.—No cooperative association should attempt to do business without 
first having made a definite contract with each producer. Such contracts 
tend to give stability and permanence to the organization and enable the 
manger to plan more definitely for the handling and sale of the products 
received. 
ARTICLE XII.—Duties and Rights of Members. 
SECTION 1. A member Shall have the right to give away or retain for his 
use in his household or on his farm such of his dairy products as he may wish, 
but he shall not sell any products contracted to the association to an outside 
party, except products offered to and rejected by the association. 
Src. 2. In case any member is offered a price in excess of the price obtainable 
by the association, said member shall refer said bid to the association. 
Sec. 3. On or before — day of — of each year each milk producer 
shall report to the association the number of cows which he has in his herd 
and the approximate amount of dairy products which he expects to market 
monthly through the association during the ensuing year. 
Sec. 4. Each stockholder of the association shall have only one vote. Voting 
by proxy shall not be permitted. Members may vote by mail on specific ques- 


