COOPERATIVE ORGANIZATION BY-LAWS. 6 
Associations of the former class are rather loosely organized and lack 
certain advantages which are gained by incorporation. 
It is advisable for all organizations to incorporate, as this gives the 
organization a distinct legal status which can not be obtained other- 
wise. For instance, an unincorporated association is hampered in 
the matter of bringing suit as an organization, while the incorporated 
association is not subject to such disability. Another advantage of 
the incorporated over the unincorporated form is that, in the former, 
the individual liability of a member is fixed by statute and is usually 
limited to the amount which he has invested in its capital stock. 
In some States the unincorporated organization is considered a part- 
nership. Where this is the case, the liability of the members is that 
of partners. In other States the unincorporated organization Is 
regarded as an agent for its members. Where it is so held, the 
liability of the members is that of principals. Moreover, the incor- 
porated association has a more definite form of organization than the 
unincorporated and the management thereof is placed in the hands 
of certain officers who can be required to account more strictly to 
the association. Among other advantages of incorporation may be 
included its value in providing an established business, the contin- 
ued existence of which is assured more fully than that of the unin- 
corporated. Incorporation usually prevents any dispute as to the 
ownership of the property held by the association. 
The relation of the by-laws to the State incorporation laws has 
already been discussed, but it should be remembered that some of 
the States have more than one law for the incorporation of associa- 
tions. In that event, it must be decided which law is the most 
desirable and the by-laws must be drawn accordingly. Articles of 
incorporation must be prepared before incorporation, but as the 
form of this procedure differs somewhat in the various States and 
the requirements can usually be ascertained from the Secretary of 
State or other official in charge of such matters, a suggested form for 
articles of incorporation is not included here. 
SECTION 6 OF THE CLAYTON AMENDMENT. 
In 1890 Congress passed the Sherman antitrust law, and in 1914 
an amendment to the antitrust law, commonly known as the Clayton 
amendment, was passed. Section 6 of the Clayton Act is of particu- 
lar interest to farmers' cooperative associations, because to a valuable 
extent it exempts such associations, provided they conform to its 
requirements, from the operation of the United States antitrust laws. 
Section 6 of the Clayton Act reads as follows : 
That the labor of a human being is not a commodity or article of commerce. Nothing 
contained in the antitrust laws shall be construed to forbid the existence and opera- 
tion of labor, agricultural, or horticultural organizations, instituted for the purposes 
