The San Francisco call., 1906-11-16
! EvENTEEN prominent members

~ EVENTEEN prominent members
of the French Parliament have
II joined in introducing a bill to
provide for the workingmen's CO.
operative Industrial companies.
The object is to give to labor larg-
er share in the fruits of their work"
1t states that it has embodied in the
bill the chief features of a number of
other laws that have been introduced
and passed at different times. Acts of
organization shall be filed with the
Chamber of Commerce, each co-opera-
tive society much consist of at least
seven persons; the capital shall be stat
ed in the act of organization, and it
may be increased at any time by the
paying in of more money or the addi-
ticn of new members But the capital
cannot be increased until at least half
the stock subscribed is paid in. No
share can be less than 20 francs (franc,
1873 cents) nor more than 100 francs.
The bylaws may prohibit the directors
from selling any stock whenever one
or more stockholders shall object to
such a sale and any stockholders offer
to buy such stock at a price fixed by
the last inventory.
If stockholder wishes to pay for his
stock other, than with money commit
tee will determine the value of his con-
tribution. Productive cooperative
companies must be governed by officers
and boards of directors chosen from
among their stockholders. Such stock
holders are responsible to third parties
only in proportion to their holdings.
Directors and managers are not person
ally responsible for any debts contract
ed in the prosecution of their business
for the The the
company may be diminished by the
death or withdrawal of members.
Whenever such a decrease amounts to
half the original capital a meeting of
stockholders must be called to wind up
the concern, unless a majority of the
stockholders can be induced to resume
their membership and TO renew their
subscriptions of stock. Two meetings
may be held for the purpose of induc-
ing the members to re-enter the fold
before the dissolution becomes impera-
tive.
An annual inventory and an investi-
cation of conditions must be made by
committee of members or of third
parties. A copy of this report must be
furnished to every stockholder at least
one week before the annual meeting of
the board Of directors. A member may
have as many votes as he has shares
in the company If so provided in the
bylaws, but no member shall have
more than five votes.
Government stamps usually affixed
upon commercial paper and contracts,
notes, ETC., are not required OF compa-
nies organized under this law, nor Will
they be subject to an income tax, ex-
cept as 1T applies to persons having
more than 1000 shares of stock. No
member can withdraw from a cooper
ative company without giving one
INN nr7f1 \, hot ho mo ay,1ln re
may discuss 1t In at least one meeting.
If one or more members thus withdraw
he or they will be paid their share OF
the property of the company based
upon the last inventory.
One-tenth.eof the net earnings shall
be set aside every year as q reserve
fund, but when that sum shall have
reached figure equal to one-half the
capital stock 1t need not be continued.
The maximum sum that can be paid to
the board of directors and the mana
gers is 10 per cent of the net earnings.
company organized under this law
Will not be permitted to enjoy It's priv
ileges If 1t employs outside working
men without giving them share of its
profits must be distributed among such
employees or the company will forfeit
all rights under this law.
Farmers and farm hands may organ
ize under this act for the purpose of
selling stock or their produce, and such
companies will be exempted from pay
ing the special tax or license imposed
by the Government upon other COM
panies transacting similar business A
violation of any of the requirements of
this law works forfeiture of all
rights granted under It, The law ap-
plies to companies OF business men,