ORGANIZATION OF COOPERATIVE GRAIN ELEVATOR COMPANIES. 
member but providing different classes of stock with shares of vary- 
ing par value. Some of the desirable cooperative features which are 
not especially authorized by the laws under which an organization is 
incorporated and which might not be valid as a by-law provision 
alone, may loossibly be secured by means of a contract arrangement 
made at the time of issuing the stock certificate. Any and all by-law 
provisions in regard to which there is any doubt should be made the 
subject of a special contract by having them printed upon the stock 
certificates. This will also have the effect of giving notice of the 
restrictions to possible purchasers. 
MAKING PRELIMINARY SURVEY. 
Before the organization of a cooperative elevator company is at- 
tempted or advised, a careful and unprejudiced survey of local con- 
ditions should be made in order to determine the economic need for 
the organization and to secure information that will be of assistance 
when the work of actual organization is undertaken later. 
LOCAL CONDITIONS. 
First it will be desirable to study the conditions under which 
grain is generally marketed in the particular local community in 
which organization is contemplated. Whether or not that com- 
munity normally is devoted to feeding or to shipping is of im- 
portance in this connection. The fact that marketing facilities are 
grossly inadequate one year does not necessarily indicate that other 
and additional facilities can be supported advantageously during a 
series of years. A fair comparison should be made between prices 
paid by local dealers and prices obtaining in the principal terminal 
markets, with due reference to freight and other charges deductible 
therefrom. It must not be imagined, however, that every daily 
newspaper can at all times be relied upon to report terminal values 
fully and accurately. It frequently occurs that even if such values 
are quoted accurately, there are coexisting conditions under which 
the prices are not available to the local buyer, and therefore are not 
applicable to current purchases in the country. In making a study 
of local marketing conditions it will be desirable to secure the 
services and advice of some practical grain man. If available, 
the advice of managers of successful neighboring associations will 
be especially valuable. 
Information regarding the amount of grain shipped from any 
station during a period of several years should be obtained from 
local representatives of railroads, from the general offices of such 
railroads, or from State commissioners or bodies having charge of 
transportation matters within the State. Having determined the 
average volume of grain shipped from a certain station annually, 
its division among already existing agencies and dealers should be 
