UNITED STATES DEPARTMENT OF AGRICULTURE 
an 
Shon 
WINS 
Washington, D. C. v October 23, 1922 
LEGAL PHASES OF COOPERATIVE ASSOCIATIONS. 
By L. S. HULBERT, 
Assistant in Cooperative Marketing, Bureau of Agricultural Economics. 
CONTENTS. 
Page. Agency—Continued. Page. 
| 7 eee 1 Cooperative associations liable 
Incorporated associations or corpo- for acts of agents__._L-____ 35 
<= 7° Ep curt Tene laren aig ome ae ae I 2 | Monopolies—restraint of trade_____ 35 
Nature and characteristics__--~ 2 Monopolies a2? 22 seen a 35 
Antiquity of corporations——_-_- 3 Sherman and Clayton Acts____ 37 
Power to create corporations_—- 4 State statutes exempting farm 
Incorporated associations—how Organizations 6.20. Ae eee 39 
Speed iG oe 20 So el 5 Section 6 of the Clayton Act__ 40 
Name of association______---~ 4, Right to select customers______ 41 
Charter—what it is__-_--~---~-- 8 California Associated Raisin Co. 
a EEE—E—E———eE——— 8 @ANC 3h) Sa Se ee eee 42 
Directors and officers_____---- 10 Capper-Volstead Act___.___.__ 43 
Who may become members_-_- UP. Federal Trade Commission________ 47 
Subscriber, stock, capital stock_ 12 Unfair competition-___.______ 47 
Stock—how paid for__------_- 13 | Specific performance—injunctions __ 49 
MOLine (fenite > 2 at St ese 13 pecific performance__________ 49 __ 
Restricting transfer of stock-- 14 IsisEn eu One. 22 eae 50 
Lien on stock__-~------------ #7) ||) Income ytameg.: ci. toiled, Sid! 58 
Limitation on indebtedness__-- aly Unincorporated associations _______ 55 
Liability of corporation for pro- Differ from partnerships or cor- 
motion expenses_______-_~-~ 18 porationsce 2.2.5 ee ee 5D 
Differences between stock and Unincorporated associations — 
nonstock corporations-__-~-_- 19 Cw Terme. st eee ee 56 
Transfer of stock, loss of mem- Admission of members________ 57 
i ieee 21 Membership nontransferable___ 57 
oo Ee eee 22 Who control an association____ 58 
TS ie VS ee ee 23 Notice of meetings.) 58 
Nature and characteristics____ 23 Unincorporated associations and 
Gren contracts __.__-___:.__— 23 irae Merson oo: 2. ok Ee. ee 58 
Pooling: Right to determine Money must be used for pur- 
a Sn Sa 24 pose’ furnished —— 2-22 ue: 60 
Liquidated damages ____-___--~- 25 Expulsion of members________ 60 
Running. with. land_—~-~—---~—_ 29 Withdrawing or expelled mem- 
Interference by third persons_- 29 bers receive nothing________ 61 
rmmeetory soses. 30 ‘Mssplution..2 4 ela Se ee 61 
PEP er rie yi si its Pp! 32 | Appenzell sO eryTo oy OLE 62 
Cooperative associations as Hora (pb, by-la wens) 2 cote 5 
Beomigi ies itr 2.0 es 32 | Form of contract_____________ 79 
FOREWORD. 
It is the purpose of this bulletin to discuss some of the legal ques- 
tions with respect to the organization, conduct, and operation of 
cooperative associations. These questions will be considered from 
the standpoint of incorporated associations with capital stock, in- 
corporated associations without capital stock, and unincorporated 
_ associations. 
1In view of the widespread interest in the legal phases of cooperative marketing, 
stimulated by the passage of the Capper-Volstead Act, this exhaustive study has been 
made of the legal phases of the subject by an investigator who not only has vad. sey- 
eral years of actual legal practice, but has had opportunity to make an intensive study 
of the economic side of cooperative marketing. 
1416—22——_1 
