\ LEGAL PHASES OF COOPERATIVE ASSOCIATIONS. 69 
tive association is based on the individual member, a number of 
whom unite to do something in which they have a common interest. 
In the former, money controls; in the latter, men. While there 
may be cases where the voting power of the members may be 
made in proportion to the acreage of their products, it will gen- 
erally be found that any attempt to vary the voting power of mem- 
bers will be unwise. The practice of allowing a member to collect 
the proxies of absent members and vote the same tends to give a 
Single member influence in the association which is too dangerous 
to be allowed. 
In some of the largest nonprofit cooperative associations it has 
been felt that it was neither fair nor wise to demand that the 
large-producing member should be held to the same vote as a 
small-producing member, as their responsibility and interest are 
so unequal. In such a case the voting power of members may 
be proportioned according to the amount of their products or acre- 
age handled through the association. 
Sec. 6. Any member may withdraw from the association at any time during 
the month of January of any year, but such withdrawal shall not affect any 
right or lien which the association has against the retiring member or his 
property until his indebtedness to the association is fully paid. Any member 
having a grievance or complaint against the association may appeal to the 
board of directors (or to the members at any regular or called meeting). 
Notre.—The time of withdrawal should be so fixed as to take 
effect some time between the close of one season’s business and the 
opening of the next. To permit a member to withdraw during a 
busy marketing season will result in confusion and may seriously 
handicap the manager in filling his contract. 
The laws of several of the States providing for the incorporation 
of cooperative associations require that the by-laws shall provide 
the manner of ascertaining a member’s interest upon his death, 
withdrawal, or expulsion. This subject should be investigated and, 
if required, provision made therefor. The following by-law is sug- 
gested when found necessary: 
On the death, withdrawal, or A 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. 
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SEcTION 1. The amount of indebtedness which may be incurred by or on be- 
half of this association shall at no time exceed (820,000). 
- ARTICLE XVI.—EXPENSES AND PAYMENTS. 
Section 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 preducts shipped by him through the association. and on 
the basis of the average price received for such products of like quality, variety, 
