8 BULLETIN 1106, U. S. DEPARTMENT OF AGRICULTURE 
matter is supreme. 28 The legislature can grant just as little or just 
as much power to corporations, within constitutional limits, as it de- 
sires. 29 A cooperative association was incorporated under a statute 
of Pennsylvania which, among other things, provided that all busi- 
ness of associations incorporated under it, except certain enumerated 
types, should be for cash, and that all persons who extended credit 
to such associations except for specified purposes should forfeit the 
amount of the credit thus extended. The statute required that notice 
to this effect be published on the letter and bill heads, advertisements, 
and other publications of associations incorporated thereunder. 
Debts for purposes not contemplated by the statute were incurred by 
an association, and the creditors sought to throw the association into 
bankruptcy, but failed, as the cour^ held that they had no claims 
which could be recognized in bankruptcy, owing to the provision in 
the statute referred to. 30 
In a California case, the validity of a statute providing for the 
forfeiture of the charters of all corporations which failed to pay a 
certain tax by a specified date was upheld. 31 A State can determine 
upon what conditions corporations formed in other States may do 
an intrastate business within its borders. 32 A corporation engaged 
in interstate commerce may enter any State for all the legitimate 
purposes of such commerce without the leave or license of the State. 33 
At one time the various States did not have statutes which were 
peculiarly adapted to the formation of cooperative associations but 
many statutes have been passed by the legislatures of the different 
States during the last few years for the purpose of providing for 
the formation of cooperative associations. When this bulletin went 
to press, all but one of the States (Delaware) had statutes especially 
designed to authorize the creation of such bodies. 34 
The right of States to enact statutes providing for the formation 
by farmers of cooperative associations and containing no authority 
for those engaged in other occupations to organize under them ap- 
pears to be established. The Supreme Court of the United States has 
said : " Undoubtedly the State had power to authorize formation of 
corporations by farmers for the purpose of dealing in their own 
products." 35 Although corporations are now, as a rule, formed 
under general statutes, the act involved in bringing them into exist- 
ence is regarded as a legislative one, and the rules relative to statutes 
are applied by the courts in construing charters. 36 
28 City Properties Co. v. Jordan, 163 Cal. 587, 126 P. 351. 
29 Kansas Wheat Growers' Ass'n v. Schulte, 113 Kan. 672, 216 P. 311; Rifle Potato 
Growers' Co-op. Ass'n v. Smith, 78 Colo. 171, 240 P. 937. 
30 In re Wyoming Valley Co-op. Ass'n, 198 F. 436 ; Sterling v. Trust Co. of Norfolk. 
Va. , 141 S. E. 856. 
31 Kaiser Land & Fruit Co. v. Curry, 155 Cal. 638, 103 P. 341. 
32 Burley Tobacco Growers' Co-op. Ass'n v. Rogers. Ind. App. . . 150 N. E. 384. 
33 Dahnke-Walker Milling Co. v. Bondurant. 257 U. S. 282 ; Nebraska Wheat Growers' 
Ass'n v. Norquest, 113 Neb. 731, 204 N. W. 798 ; Dark Tobacco Growers' Co-op. Ass'n v. 
Robertson. 84 Ind. App. 51, 150 N. E. 106. 
34 Copies of the statutes of a particular State on this subject can be obtained usually 
by writing to the secretary of state of that State. 
36 Liberty Warehouse Co. v. Burley Tobacco Growers' Co-op. Marketing Ass'n, 276 U. S. 
71, 48 S. Ct. 291. 
36 Casper v. Kalt-Zimmers Mfg. Co.. 159 Wis. 517, 149 N. W. 754; Lord v. Equitable 
Life Assurance Soc. of United States, 194 N. X. 212, 28 N. E. 443, 22 L. R. A. (N. S.) 420. 
