68 BULLETIN 1106, IT. S. DEPARTMENT OF AGRICULTURE. 
and, if required, provision made therefor. The following by-law 
is suggested when found necessary : 
On the death, withdrawal, or expulsion of a member his interest 
in the association shall be conclusively ascertained and determined 
by appraisal by the board of directors, and the association shall 
pay the amount thus ascertained to the member or his legal repre- 
sentative within one year from the date of appraisal. 
Article XV. — Indebtedness, Membership Liability. 
Section 1. The amount of indebtedness which may be incurred by or on be- 
half of this association shall at no time exceed ($20,000). 
Article XVI. — Expenses and Payments. 
Sectiqn 1. The expense of operating the association shall be met by a per- 
centage charge laid upon returns for produce sold, or by a uniform fixed price 
per package; and upon supplies purchased, the amount of such charge to be 
fixed by the board of directors. 
Sec. 2. The association may pool or mingle the products of each member with 
products of like quality, variety, and grade delivered by other members. The 
net returns from the sale of such products less such costs, advances, reserves, 
and charges as are provided for in these by-laws and the rules prescribed by the 
board of directors shall be credited and paid to each member in proportion to 
the quantity of such products shipped by him through the association, and on 
the basis of the average price received for such products of like quality, variety, 
and grade during such period or periods as the board of directors from time 
to time may determine. 
Note. — It is important that an average price should be paid for 
products of the same grade shipped during a specified period. In 
this way inequalities and dissatisfaction are avoided, and the asso- 
ciation is better able to serve the interests of the entire membership. 
Article XVII. — Cooperative Purchase of Supplies. 
Section 1. All merchandise purchased by the association for any member 
shall be paid for in cash by the member ordering such supplies at the time the 
order is placed. 
Note. — Without such a provision an organization purchasing sup- 
plies for its members may find that some of the members will re- 
fuse to take supplies ordered or else will not pay promptly. A 
cooperative organization should extend credit to no one unless it is 
amply secured. 
Sec 2. If local dealers handle the supplies desired, they shall be given an 
opportunity to bid on the order before it is placed with an outside agency. 
Note. — In the cooperative plan of buying farm supplies the local 
dealer should be given consideration and an opportunity to submit 
terms and prices. 
Article XVIII. — Savings and Damages. 
Section 1. After the season's expenses are paid and a proper sum set aside 
to cover the depreciation of the association's property and provision is made 
for a reserve fund to be fixed by the board of directors, the balance of the 
season's returns on products sold shall be divided among members and non- 
member patrons, if any, in proportion to the value of their products sold 
through the association, and the balance of the season's savings on supplies 
purchased shall be divided in like manner. In the case of a nonmember patron, 
any part of such sums of money may be applied, with his consent, to the pay- 
ment of membership fees and dues for him ; and, if so applied, when such fees 
and dues are fully paid a membership certificate shall be issued to him. When 
any nonmember offers his products and the association accepts them for sale, such 
offer and acceptance shall be deemed an application for membership, if the non- 
member agrees that it shall be so considered. 
