66 BULLETIN 547, U. S. DEPARTMENT OF AGRICULTURE. 
the matter of a reserve fund; nine provide that not less than 10 per 
cent of the net earnings shall be set aside until a fund equal to 30 
per cent of the paid-up capital has been accumulated, though six of 
the nine provide that the associations may revise this; one law pro- 
vides for the setting aside of not less than 5 nor more than 25 per cent 
of the net earnings, and another from 10 to 25 per cent; another law 
stipulates that not less than 5 per cent shall be set aside until 30 
per cent of the paid-up capital has been accumulated; one provides 
for the setting aside of 10 per cent until 20 per cent of the paid-up 
capital has been accumulated, and another for not less than 10 per 
cent until 50 per cent has been accumulated. 
Eleven laws provide that the educational fund shall be as specified 
in the by-laws; 13 fail to make any mention of an educational fund; 
six provide that 5 per cent of the net profits shall be set aside for such 
a purpose, but four of the six grant the association the privilege of 
changing this; one law provides for an educational fund of not to 
exceed 5 per cent of the net profits; one provides for 2 per cent sub- 
ject to revision by the associations; and one provides for the use of 
2 J per cent of the net profits for this purpose. 
A question that arises in connection with the payment of patronage 
dividends is whether or not nonmembers shall have any share in the 
profits of an organization. Twelve cooperative laws state that non- 
members shall or may receive patronage dividends, and several of 
these specify that the rate to nonmembers shall be one-half the rate 
paid to members. Several of the laws do not touch on this point at 
all, and a number merely state that the by-laws shall decide in regard 
to the paying of patronage dividends. 
DISSOLUTION. 
Sixteen laws have provisions regarding the dissolution of organiza- 
tions formed thereunder. Eight laws permit dissolution upon 
written request of two-thirds of the members; five provide that if 
an association has not paid any stock dividends for five consecutive 
years, five or more members may petition the court to have the 
organization dissolved; the law of one State provides that five mem- 
bers may petition for dissolution of an organization which has failed 
to pay stock dividends for three consecutive years; one law provides 
for dissolution by a majority vote; and one states that the procedure 
shall be the same as for corporations under the general corporation 
law. 
ANNUAL REPORTS. 
Sixteen laws specify that all associations formed thereunder 
shall make certain reports. Ten of these provide for an annual 
report to the secretary of state; two of the 10 also provide for reports 
to other departments, one to the State division of markets and 
