LEGAL PHASES OF COOPERATIVE ASSOCIATIONS 25 
at common law, may arbitrarily select their depositors; 18 and even 
a doctor, although the only one available, in the absence of a statute, 
requiring him to serve all who come, has the right to determine ar- 
bitrarily with whom he will have dealings. 19 
An association could adopt rules or by-laws to be followed in de- 
termining whether a person was eligible to be admitted to member- 
ship. For instance, an association could adopt a by-law to the effect 
that only producers who were members of some other organization 
might buy stock or be admitted to membership. 20 
RIGHTS OF MEMBERS 
In a practical and nonlegal sense the members of an association 
are the association. Members have the right (1) to choose and to 
remove the directors of an association; 21 (2) to adopt or change its 
by-laws; 22 (3) to require the officers and directors (agents) of an 
association to keep within the law, the charter of the association, 
its by-laws, and marketing contracts; 23 (4) to hold the officers and 
directors who fail to do so accountable for any losses suffered by 
members by reason of any departure; 24 and (5) to examine the 
books 25 and property 26 of the association. The last right is sub- 
ject to such restrictions as may have been agreed to and is subject 
to the further restriction that the request to examine the books 
and property of the association is made in good faith and with a 
view to its exercise at a proper time. 
The Supreme Court of Ohio has said : 27 
Our conclusion from an examination of many authorities is that, when a 
stockholder admits, or the fact is found by the court on evidence, that he has 
acquired his stock for the purpose of creating a basis for the demand to in- 
spect and copy books and papers, and that he intends to use the information 
sought, when secured, in such manner as will depreciate the value of the assets 
of the company and the value of the stock of all other stockholders, he is not 
entitled to a mandatory injunction requiring the corporation to accede to his 
demand. 
The principles stated in the foregoing quotation are applicable 
to a cooperative association. In determining whether a member 
of an association should be allowed to obtain information with respect 
to the business of the association, the purpose for which the member 
is seeking the information and the use to which the information will be 
put after being obtained should be considered. If the information 
sought does not relate squarely to the products of the member, or 
if the effect on the rights and the financial returns of the membership 
as a whole will be adverse, the officers of an association should be 
18 Elliott v. Capital City State Bank, 128 Iowa 275, 103 N. W. 777, 111 Am. St. Rep. 
198, 1 L. R. A. (N. S.) 1130. 
19 Hurlevv. Eddingfield. 156 Ind. 416, 59 N. E. 1058. 83 Am. St. Rep. 198. 
20 Connelly v. Masonic Mutual Benefit Association, 58 Conn. 552, 20 A. 671. 9 L. R. A. 
428; Carpenter v. Dummit [Burley Tobacco Growers' Cooperative Ass'n], 221 Ky. 67, 
297 S. W. 695. 
21 See sees. 12 and 15 of the Bingham Cooperative Marketing Act of Kentucky, pp. 
121 and 122 of appendix. 
22 See sec. 10 of the Bingham Cooperative Marketing Act of Kentucky, p. 120 of 
appendix. 
23 McCauley v. Arkansas Rice Growers Co-op. Ass'n. 171 Ark. 1155. 287 S. W. 419. 
24 Fergus Falls Woolen Mills Company v. Boynm, 136 Minn. 411, 162 N. W. 516. 
23 Re Petition of Steinwav. 159 N. Y. 250, 53 N. B. 1103. 45 L. R. A. 461. 
26 Hobhs v. Tom Reed Gold Min. Co., 164 Cal. 497, 129 P. 781. 43 L. R. A. (N. S.) 1112. 
27 American Mortgage Company v. Rosehbaum, 114 Ohio St. 231, 151 N. E. 122 ; see also 
Otis-Hidden Co. v. Scheirich, 187 Ky. 423, 219 S. W. 191, 22 A. L. R. 24 to 106. 
