COOPERATIVE PURCHASING AND MARKETING ORGANIZATIONS. 65 
may be so invested, and some also provide for the authority to invest. 
The most common form is to limit the amount that may be thus 
invested to 25 per cent of its capital, and also to provide that it must 
be decided by a majority or a two-thirds vote of the members. 
VOTING POWER. 
One of the underlying principles of cooperation is that the members 
of an organization shall have equal voting power in the meetings. 
Twenty-three of the cooperative laws provide that each member 
shall have one vote, regardless of the amount of stock he holds. Two 
laws specify that each association shall set forth in its articles of 
incorporation or by-laws the rules to be followed in this matter. 
Seventeen laws touch on the question of proxy voting, and voting 
by mail; seven provide for voting by mail if the votes so cast are 
accompanied by a written copy of the question voted on; five leave 
the questions of proxy voting and voting by mail for each association 
to stipulate in its by-laws; two permit both voting by mail and by 
proxy; one provides for voting by mail but forbids proxy voting; 
one forbids proxy voting but states that an association may provide 
in its by-laws for voting by mail; and one forbids proxy voting and 
does not mention voting by mail. 
DISTRIBUTION OF PROFITS. 
It is in the matter of distributing profits that so many organiza- 
tions fall short of being cooperative. The cooperative laws vary 
considerably in their provisions with regard to this important point. 
Some laws merely state that the profits shall be distributed to those 
entitled to them, as provided in the by-laws, while other laws go into 
detail as to the manner of dividing the profits. The matter of dis- 
tributing the profits is considered under four heads — the payment of 
interest on capital stock, the setting aside of a reserve fund, the pro- 
visions for an educational fund, and the distribution of profits in the 
form of patronage dividends. 
Eleven laws leave the question of stock dividend or interest on 
money invested in shares of stock, to be decided by each association, 
and inserted in the by-laws; four laws do not mention this at all; 
six laws provide that the stock dividend shall not exceed 6 per cent, 
but four of the six grant the associations the privilege of changing 
this if they so desire; two laws give 8 per cent as the maximum 
rate; two laws place the maximum at 10 per cent, subject to revision 
by the associations; one places the maximum at 5 per cent, and one 
at 5 or 6 per cent. 
Nine laws provide that the setting aside of a reserve fund shall be 
done in the manner stipulated by the by-laws; ten do not mention 
85964°— Bull. 547—17 5 
