
COOPERATIVE MILK-DISTRIBUTING PLANTS. 5 
A number of nonstock organizations have been financed through 
the sale of certificates of indebtedness. These certificates are sold for 
cash the same as capital stock. The rate of interest is fixed and date 
of maturity stated on the certificate. They may be sold to any one, 
since voting power is limited to members only. Usually the certifi- 
cates of indebtedness are issued in series which mature in from 1 to 
5 or 10 years with amortization coupons attached which mature an- 
nually. These certificates are paid with sums deducted monthly from 
patrons’ checks and for which the patrons are issued new certificates 
annually. The interest on the certificates is considered an operation 
expense and is paid from the reserve fund established for this pur- 
pose. 
FORMING THE ORGANIZATION. 
If the establishment of a cooperative milk plant appears advisable 
after a very thorough survey has been made of the local situation, 
| the actual work of forming the organization can be taken up actively. 
Preliminary meetings of the prospective members should be held 
and the proposed plans of the organization thoroughly discussed at 
such gatherinys. If the successful establishment of a plant seems 
feasible, an organization committee should be chosen at a called meet- 
ing of the prospective members. This committee should proceed 
with the formation of the permanent organization, including the 
drafting of suitable by-laws, a marketing contract, and plans for 
foyer the proposed plant. 
aoe eines of the organization Eamimaibtee may be selected to 
undertake various lines of work. Thus, there may be a subcommittee 
on membership and a subcommittee to sbtath information on the cost 
of plant and equipment. The latter committee may find it beneficial 
to inspect the operation of plants already established. First-hand 
information regarding methods employed, difficulties encountered, 
and problems to be met in a new plant will be most useful and 
valuable. 
After the organization committee and its subcommittees have com- 
pleted their preliminary work, a meeting should be held at which 
the question of perfecting a permanent organization should be 
decided definitely. Where it is decided to establish a milk-distribut- 
ing plant, the various plans submitted by the organization committee 
should be discussed and approved with such changes as seem advis- 
able. Temporary directors should be elected at this meeting and 
authorized to proceed to incorporate the organization. 
INCORPORATING THE ORGANIZATION. 
The committee that works out the organization plans should obtain 
all information possible relating to the corporation laws of the State 
in which the organization is being formed, because the plan must fit 
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