20 BULLETIN 1237, TJ. S. DEPARTMENT OF AGRICULTURE. 
of discussion. The issuance of stock certificates which can be read- 
ily transferred, when a member withdraws from his association, 
solves the problem in a satisfactory way. 
As a general rule, also, associations organized with capital stock have 
a better credit rating than those organized on a membership basis. An 
association that has operated successfully for a number of years 
undoubtedly receives the same consideration from the local banks 
whether it is organized on a stock or nonstock basis; but the banks 
will consider more favorably loans to capital-stock organizations than 
to nonstock associations, if the success of the venture remains to be 
proven. This fact has prescribed to a certain extent the adoption of 
a stock form of organization. 
OBLIGATIONS OF MEMBERS. 
Nearly all associations adopt a uniform form of crop contract. (See 
Appendix, p. 56.) By the terms of this contract the grower agrees to 
deliver to the association all citrus fruit of the classes specified, grown 
upon his property, except what he may require for his own use. 
Provision is made for the payment of liquidated damages to the 
association in the event that the grower violates his contract. 
Twenty-five or fifty cents per box is the amount usually specified. 
In a few instances the members do not sign a special crop contract, 
but sign the by-laws which, in such cases, contain the essential clauses 
of the contract. Rather infrequently the grower does not sign either 
a crop contract or the by-laws, but is supposedly bound by by-law 
provisions as to the disposal of his crop. 
A member of capital-stock associations, in addition, signs a stock- 
subscription agreement which specifies the number of shares for which 
he subscribes, and in most cases authorizes the association to deduct 
a certain amount per box or per 100 pounds from money due the 
grower for fruit shipped, until the stock has been paid for. Deduc- 
tions from the returns, in amount sufficient to cover all ordinary 
expenses of the association and to create reserves, are provided for 
either in the crop contract or the by-laws, or the directors are given 
authority in the by-laws to authorize such deductions. 
The by-laws of the associations as a rule are simple in form and 
make such ordinary provisions as are common to all corporations. 
They fix the date of stockholders' meetings and provide rules for 
calling such meetings. They specify the number of directors and 
officers and their duties and powers. Thev usually specify the num- 
ber of shares of the corporation that shall be issued for each acre of 
bearing orchard and fix the par value of such stock. 
Provision is made for the withdrawal of members from the associa- 
tion. Members, in most instances, can withdraw during a certain 
month of the year, usually the month immediately preceding the 
annual meeting. In some instances the withdrawal period is short- 
ened to 15 or even 10 days, but in all cases the privilege of withdraw- 
ing from the association is open to the members for a certain period 
during each year. As has been slated, the by-laws of a few associa- 
tions contain sections which arc in effect a crop contract between the 
association and the members. Nearly all provide for liquidated 
