LEGAL PHASES OF COOPERATIVE ASSOCIATIONS 109 
The Dark Tobacco Growers' Cooperative Association, incorporated 
under the cooperative act of Kentucky, applied for and received a 
license to do business in Indiana. It successfully brought suit on the 
contract it had entered into with a producer in Indiana. 44 One of the 
defenses interposed was that an association similar to the Dark To- 
bacco Growers' Cooperative Association could not have been or- 
ganized in the State of Indiana and hence that the license to do busi- 
ness in the State that had been issued to the association was void. It 
will be observed that the statutory provisions quoted above authorize 
the granting of licenses to do business in the State to associations of a 
type that could have been formed in the State of Indiana. 
In the case under discussion it was claimed that the association 
was engaged in interstate commerce, but the court pointed out that 
the application for a license appeared to be an admission that the 
association was not engaged in such commerce. The court further 
pointed out that there was no allegation in the complaint of the 
association that the contract sued on was a part of an interstate 
commerce transaction. The court, however, said : " If the contract 
entered into had been a part of a transaction connected with inter- 
state commerce, such license would not have been necessary." 
" If a California corporation ships a carload of fruit to a com- 
mission merchant in New York to be sold by him on agreed fac- 
torage, is the California corporation doing business in New York 
within the meaning of its statutes of this character % If it contracts 
to ship 1,000 carloads during the year on the same terms, is it violat- 
ing the statutes of New York, unless it obtains a license to do 
business there ? " 45 
Assuming that interstate commerce was involved, the answer to 
the foregoing questions is " No." In addition, a number of the 
State courts, independent of interstate commerce, have held that 
their laws respecting foreign corporations do not apply to foreign 
corporations that ship goods into their States to be sold by factors 
or commission men. The answers just given will be amplified later. 
Each of the States, it is believed, has a statute regarding corpor- 
ations that are formed in other States but are doing business in the 
State making the law. These statutes are as applicable to incor- 
porated cooperative associations as to other corporations, unless the 
language of a particular statute is not broad enough to cover them, 
or unless the associations are engaged in interstate commerce, or 
unless for some other reason such statutes are found not applicable 
to them. 
Generally speaking, application for a permit to do business in a 
State (other than that of incorporation) must be made to the 
secretary of state of that State. Usually before permission to do 
business in that State can be obtained, it must be made to appear 
that a corporation could be formed in that State to engage in the 
business in which the applicant is engaged. Other usual require- 
ments are a known place of business and a designated person upon 
whom process may be served. 
A State has the right to exclude the corporations of other States 46 
except that a State may not exclude or impose conditions on a cor- 
44 Dark Tobacco Growers' Co-op. Ass'n v. Robertson, 84 Ind. App. 51, 150 N. E. 106, 110. 
45 Butler Bros. Sboe Co. v. United States Rubber Co., 156 F. 1, 6. 
46 Pembina Consolidated Silver Mining & Milling Co. v. Pennsylvania, 125 U. S. 181. 
