18 BULLETIN 1266, U. S. DEPARTMENT OF AGRICULTURE. 
DELIVER Y A GBEE MENT. 
Each member agrees to deliver his total milk production to the 
creamery for a period of years, excluding home consumption. This 
period may range from 5 to 20 years. Proper feeding and cleanliness 
in handling the milk are pledged. The creamery manager may 
reject any milk at the creamery if the quality is questionable. 
FINANCES. 
The necessary capital, both for building and operating, is created 
by a loan, which the association makes with a bank or savings insti- 
tution. The members are bound, jointly and severally, for all finan- 
cial obligations incurred by the association. To the creditor, the 
members are jointly liable, but within the association the liability is 
apportioned among the members in accordance with the quantity of 
milk delivered during the current period. 
Withdrawal may occur at the end of each period with one years 
advance notice. Otherwise a member is bound for another period. 
At the close of each contract period the association's property is ap- 
praised by a committee, and the valuation fixed is approved by the 
general assembly, which is the general meeting of the members. The 
part of the valuation sum which the association actually owns is 
divided among the members in proportion to the quantity of milk 
delivered during the last period. In early days this sum was usually 
j^aid to the members at the close of each period: but the weakness of 
this plan was soon recognized by the leaders, and now the common 
practice is to accredit each members share to him in the form of a 
share certificate bearing current interest rate, and one-tenth of the 
principal is paid each year to its holder during the next period. A 
member who withdraws may be paid the greater part of his share 
outright. Beginning with each new period the association will 
arrange for a new loan to cover any new improvements and old debts. 
MANAGEMENT. 
The members of the cooperative creamery usually hold a general 
meeting every six months, when the financial statement is presented. 
The supreme authority in the association's affairs rests with the gen- 
eral assembly, where each member has one vote. A board of directors 
of seven or nine, 15 elected by the members, assumes the business con- 
trol and supervision on behalf of the shareholders, and employs the 
creamery manager. The board usually meets once a month when 
proposed business affairs are dealt with, and keeps in active touch 
with the business conditions of the association. Ordinarily it is not 
occupied with the daily affairs and management of the creamery. 
Usually none of the officers are salaried. Only in recent years, in a 
few instances, has the chairman of the board received a small salary. 
Management of the creamery and its business transactions are dele- 
gated to a competent, technically-trained dairy specialist, who ar- 
ranges for the aecessary personnel and makes purchases of dairy ma- 
chinery, equipment, and supplies, with the board's approval. The 
Lis number may vary from g to 1 7. 
