12 BULLETIN 541, U. S. DEPARTMENT OF AGRICULTURE. 
Where two organizations are maintained, one in conformity with 
section 6 and the other in the form of a capital-stock organization, 
care should be taken to preserve the bona fide and absolute independ- 
ence of the two organizations. Otherwise, under such circumstances 
there is danger that this plan might be held to be a subterfuge. 
SECTION 6 ORGANIZATIONS AND STATE INCORPORATION LAWS. 
Many of the State laws relating to the incorporation of associations 
do not provide for the form of organization which is required by 
section 6 of the Clayton Act. While a large number of States have 
special laws for the incorporation of cooperative associations, only a 
few of them provide for the incorporation of cooperative sales agen- 
cies without capital stock. It is not unlikely, however, that more of 
the States will enact appropriate incorporation laws in the near 
future. 1 It is possible to organize as a voluntary association — that is, 
without incorporation — but by so doing the organization loses the 
advantages to be gained from being incorporated. 
SECTION 6 AND THE STATE ANTITRUST LAWS. 
While section 6 of the Clayton Act confers exemptions upon organi- 
zations, which live up to its requirements, from the operation of 
the United States antitrust laws, it must be kept in mind that that 
act neither supersedes nor affects the antitrust laws of the various 
States. The United States antitrust laws deal with interstate and 
foreign commerce only, while the State laws regulate commerce 
exclusively within the State, It is essential for everyone contem- 
plating the formation of an association, to secure information in 
regard to the State laws which have a bearing on the method of organi- 
zation and operation. 
ADOPTING THE BY-LAWS. 
When the organization of a cooperative association is taken up, 
it is well to have several preliminary meetings at which the advisa- 
bility of organizing and the best form of organization can be dis- 
cussed. It is advisable to have an organization committee to con- 
sider and develop the plan of organization and method of operation 
suited to the needs of the community. This committee may also be 
of service in drawing up a set of by-laws for consideration. In this 
work the committee should avail itself of all the suggestions that 
can be obtained in regard to the form and contents of the by-laws. 
It is thought to be indispensable that this committee should have 
the benefit of competent legal advice in the performance of its duties, 
in order that there may be no question as to the legality of the con- 
i Service and Regulatory Announcements No. 20 of the Office of Markets and Rural Organization, U. S. 
Department of Agriculture, suggests an appropriate State law for the incorporation of section 6 cooperative 
sales agencies. 
