10 BULLETIN 110 6, U. S. DEPARTMENT OF AGRICULTURE 
tion for a charter is not the same in all States. 40 Upon the approval 
by the secretary of state of the application for a charter, the cor- 
poration, in most States, comes into existence. The procedure in the 
different States is not uniform, but this discussion may give a general 
idea of the steps involved. In Georgia and in some other States, 
application for a charter must be made to a court. Some States 
require that the charter or the articles of association, or both, must 
be recorded in the county where the association is to have its prin- 
cipal place of business. In certain States, it is necessary to advertise 
for a given length of time that an application for a charter is being 
made. The exact moment when a corporation comes into existence 
varies in the different States and depends upon their statutes. It 
is believed that all States require the payment of certain fees as an 
incident to incorporation. 
It is highly important that due consideration should be given 
by those interested in forming a cooperative association, prior to its 
incorporation, to the matter of determining the particular statute 
under which to incorporate. 
Many of the cooperative marketing acts 41 urge those contemplat- 
ing the formation of an association to communicate with the College 
of Agriculture of the State or some other State agency concerned 
with agriculture for advice as to what "a survey of the marketing 
conditions affecting the commodities proposed to be handled may 
indicate regarding probable success." Advice concerning such mat- 
ters may be obtained also from the Division of Cooperative Market- 
ing of the Federal Farm Board. 
Other important matters to be considered at the time of forming 
an association are the conditions of the Capper- Volstead Act, the 
particular provisions to be included in the articles of association, the 
matter of finances, and of income taxes. To avoid the necessity of 
amending the charter at a later date, steps should be taken to see 
that the powers acquired by the association on incorporation are 
sufficiently broad to permit the association to engage in any activity 
which may be found advisable. Those interested in associations to 
be formed with capital stock should investigate the " blue sky " laws 
of the State or States in which stock will be sold and govern their 
actions accordingly. 42 
Those interested in forming associations of producers to act as 
livestock commission agencies should have certain portions of the 
packers and stockyards act, 1921, 43 in mind, and particularly section 
306 thereof, which prohibits the payment of patronage dividends to 
nonmembers. The foregoing makes it plain that those desirous of 
forming an association should have competent advice with respect 
to the legal aspects of incorporation as well as the conduct of the 
association's business. 
NAME OF ASSOCIATION 
It is absolutely essential that a corporation have a name under 
which it shall transact its business. This is necessary for purposes 
40 Lloyd v. Ramsay, 192 Iowa 103, 183 N. W. 333. 
41 See sec. 5 of Bingham Cooperative Marketing Act of Kentucky on p. 119 of the 
appendix. 
"Cannon v. Farmers' Union Grain Agency, 103 Or. 26, 202 P. 725; Kirk v. Farmers' 
Union Grain Agency, 103 Or. 43, 202 P. 731. 
43 42 Stat. 159. 
