70 BULLETIN 1266, U. S. DEPARTMENT OF AGRICULTURE. 
Kingdom and is now one central association embracing all coopera- 
tive buying of fertilizers among the Danish farmers. 
The central association buys all kinds of fertilizers on the open 
market and distributes to its members at prevailing prices. It main- 
tains headquarters in Coj:>enhagen and two branch offices and several 
warehouses in provincial towns. With the local associations, the 
fertilizers are distributed direct from the cars on track. 
The central association's membership comprises local associations, 
formed for the purpose of buying and distributing its members 1 
supply of fertilizers on a cooperative basis, which in 1922 numbered 
1,525 with 74,000 members. The association is supported largely by 
the middle-sized farmers and small holders. The farms enrolled in 
the central association cover an area of nearly 3,000,000 acres, or 
40 per cent of the farm lands in the country. 
The contract agreement between the individual members and the 
central association comprises two features: (1) Each member in the 
local association must attach his signature to a special form list 
(by-laws, rules, and terms of agreement), whereby he is pledged to 
buy all commercial fertilizers used on his farm for a 10-year period. 
This buying-agreement pledge list from each local association is 
sent to the office of the central association when properly signed 
by each individual. A fine of 20 per cent of the trade value is 
imposed upon the member who violates this buying agreement. 
Withdrawal may occur at the close of each 10-year period by giving 
one year's advance notice. In case of withdrawal, members can de- 
mand payment of two-thirds of their share of the reserve fund with 
the central association. (2) The board of directors of each local 
association must sign a " guarantee certificate,'' the amount of which 
is equivalent to 0.5 per cent of the taxed valuation of the farm 
lands belonging to the members in their association. The individuals 
are jointly and severally liable to the central association for the 
amount of this guarantee, together with the members' purchasing 
liabilities to the central association. Aside from this, the local asso- 
ciation is not liable for the central association's obligations. 
The guarantee certificate provides for the central association's nec- 
essary bank credit and purchasing liabilities. The guarantee cer- 
tificates held by the central association in 1922 amounted to 5,600,- 
000 kroner. A part of the yearly net earnings is laid aside for de- 
preciation funds (the association owns its warehouses in seven pro- 
vincial towns, which appear on its books at a fraction of their 
value) ; from one-third to one-half of the net earnings is placed in 
the reserve fund and the balance is returned to members in propor- 
tion to their purchases. During the fiscal year 1922, the central asso- 
ciation handled 261,399,047 pounds of fertilizers, at a trade value of 
17,483,192 kroner. 
The annual general assembly is formed by one delegate from each 
local association. This body elects the committee of representatives 
{Reprdsentantskdb) composed of 23 members apportioned among 
the different Provinces, and the committee of representatives elects 
the board of directors of seven members. This board, with the ap- 
proval of the committee of representatives, arranges for the general 
business manager and other technical heads to lead the association's 
business affairs. 
