LEGAL PHASES OF COOPERATIVE ASSOCIATIONS 119 
(e) For the purposes of brevity and convenience this act may be indexed, 
referred to and cited as " The Bingham Cooperative Marketing Act." 
3. Who may organize. — Twenty (20) or more persons, a majority of whom 
are residents of this State, engaged in the production of agricultural products, 
may form a nonprofit, cooperative association, with or without capital stock, 
under the provisions of this act. 
4. Purposes. — An association may be organized to> engage in any activity in 
connection with the marketing or selling of the agricultural products of its 
members, or with the harvesting, preserving, drying, processing, canning, pack- 
ing, grading, storing, handling, shipping, or utilization thereof, or the manufac- 
turing or marketing of the by-products thereof ; or in connection with the manu- 
facturing, selling or supplying to its members of machinery, equipment or 
supplies ; or in the financing of the above enumerated activities ; or in any one 
or more of the activities specified herein. 
5. Preliminary investigation. — Every group of persons contemplating the 
organization of an association under this act is urged to communicate with the 
Dean of the College of Agriculture of the University of Kentucky, who will 
inform them whatever a survey of the marketing conditions affecting the com- 
modities proposed to be handled may indicate regarding probable success. 
It is here recognized that agriculture is characterized by individual production 
in contrast to the group or factory system that characterizes other forms of 
industrial production ; and that the ordinary form of corporate organization 
permits industrial groups to combine for the purpose of group production and 
the ensuing group marketing and that the public has an interest in permitting 
farmers to bring their industry to the high degree of efficiency and merchandis- 
ing skill evidenced in the manufacturing industries ; and that the public interest 
urgently needs to prevent the migration from the farm to the city in order to 
keep up farm production and to preserve the agricultural supply of the nation ; 
and that the public interest demands that the farmer be encouraged to attain a 
superior and more direct system of marketing in the substitution of merchandis- 
ing for the blind, unscientific and speculative selling of crops; and that for 
this purpose, the farmers should secure special guidance and instructive data 
from the Dean of the College of Agriculture of the University of Kentucky. 
6. Powers. — Each association incorporated under this act shall have the 
following powers : 
(a) To engage in any activity in connection with the marketing, selling, pre- 
serving, harvesting, drying, processing, manufacturing, canning, packing, grad- 
ing, storing, handling, or utilization of any agricultural products produced or 
delivered to it by its members ; or the manufacturing or marketing of the 
by-products thereof ; or any activity in connection with the purchase, hiring, 
or use by its members of supplies, machinery, or equipment ; or in the financing 
of any such activities; or in any one or more of the activities specified in this 
section. No association, however, shall handle the agricultural products of any 
nonmember, except for storage. 
(6) To borrow money without limitation as to amount of corporate indebted- 
ness or liability ; and to make advances to members. 
(c) To act as the agent or representative of any member or members in any 
of the above-mentioned activities. 
(d) To purchase or otherwise acquire; and to hold, own, and exercise all 
rights of ownership in ; and to sell transfer or pledge, or guarantee the pay- 
ment of dividends or interest on, or the retirement or redemption of, shares of the 
capital stock or bonds of any corporation or association engaged in any related 
activity or in the warehousing or handling or marketing of any of the products 
handled by the association. 
(e) To establish reserves and to invest the funds thereof in bonds or in such 
other property as may be provided in the by-laws. 
(f) To buy, hold, and exercise all privileges of ownership over such real or 
personal property as may be necessary or convenient for the conduct and 
operation of any of the business of the association or incidental thereto. 
(g) To do each and everything necessary, suitable, or proper for the accom- 
plishment of any one of the purposes or the attainment of any one or more of 
the subjects herein enumerated ; or conducive to or expedient for the interest 
or benefit of the association ; and to contract accordingly ; and in addition to 
exercise and possess all powers, rights, and privileges necessary or incidental 
to the purposes for which the association is organized or to the activities in 
which it is engaged, and, in addition, any other rights, powers, and privilege 
