10 BULLETIN 1266, U. S. DEPARTMENT OF AGRICULTURE. 
of cooperation. The Danish rural educational system, with its 
people's colleges (general adult education for farmers' sons and 
daughters), its 27 lower agricultural schools, and its Royal Agri- 
cultural College, makes possible this high standard of education 
among the rural population. 
As a rule, no cooperative association is formed until a sufficient 
amount of patronage is insured to enable the association to operate 
in an economical and efficient way. No effort, however, is made to 
control a major part of the production unless this amount is neces- 
sary to insure the proper volume for efficiency and economy. In 
other words, efficiency and not monopoly is the goal. 
LEGAL ASPECTS. 
There are no statutes in Denmark providing for the formation of 
cooperative associations. These organizations are unincorporated, 
voluntary associations, formed in accordance with what may be 
called common-law principles. Each has certain papers which state 
its purposes and define the method of operation and the rights and 
liabilities of the members. These papers are analogous to the consti- 
tution and by-laws of an unincorporated association operating in 
this country, and they constitute contracts or agreements between the 
association and its members, and between the various members, 
which are enforceable in the courts. 
The liability of the members of one of these associations for its 
debts may be likened to the liability of partners in this country for 
the debts of the partnership. The members are called upon to pay 
such debts only in the event that the association fails to meet them, 
and in practice this rarely occurs. The number of associations in 
Denmark that fail is small. The liability of members of such an 
association for its debts presents a strong contrast to the situation 
which normally exists in this country of nonliability on the part of 
the members of an incorporated cooperative association for its debts. 
In this country, as in Denmark, the members of an unincorporated 
association are usually held liable for its debts. 
In the case of creameries and local purchasing associations, the lia- 
bility of each member for the debts of the association is unlimited ; 
that is to say, a creditor of the association in the event that he failed 
to obtain payment therefrom, could recover the entire amount from a 
particular member. As between the members of an association, an 
equitable contribution in such an event could be required from each 
member. A number of cooperative creameries or other local com- 
modity associations frequently dispose of their products through a 
sales organization. In such cases the liability of each of the cream- 
eries or other local commodity associations, for the debts of the sales 
organization, is limited to a certain fixed amount. In some instances 
the extent of the liability of the individual member of an associa- 
tion depends upon the extent of his patronage. The greater his 
patronage, the greater his liability. 
HOARD OK ABBITEATION. 
According to the constitution and by-laws of most Danish coopera- 
tive associations all disputes and disagreements arising between indi- 
vidual members and the local association and between the local asso- 
