Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1913-04-04

invest Its reserve fund or anv mart
'nereot In the capital stock of anv
other cooperative association.
Sec H. Purchasing Business of
otner OBSERVATION-DISCLOSURES
Issued.
whenever an association organized
under this act shall purchase anv
STOCK Of another association or the
interest or any part thereof of anv
person or persons, firm or partner
snip engaged in any lawful business
as defined in section of this az,
II may pay for the same in whole or
III part by issuing to the selling as
soclatlon or person, firm or partner
snip shares of its capital stock to
an amount which at par value would
equal the fair market value of tho
STOCK or interest so purchased and
IN such case the transfer to the as
sociatlon of such stock or interest
SO purchased at such valuation shall
Dc equivalent to payment in cash for
the shares of stock so issued.
Sec, IL. Certificates of Stock
When Held in Trust-Issued.
In case the cash value of such
STOCK or interest so purchased ex
ceeds one-fifth of the par value of
the purchasing association, the trus-
tees OF the purchasing association are
authorized to hold the shares in ex-
cess of one-fifth of the par value of
the purchasing association, In trust
FOR the vendor and dispose of the
same to such person or persons and
within such time as NAV be NIL
tually agreed upon by the parties
In interest, and shall pay the pro-
ceeds thereof as currently received
to the former owners thereof. Ger
tlficates of stock shall not be issued
to any subscriber until fully paid
for, but the bylaws of the asso-
citation may allow subscribers to
stock to vote as stockholders: Pro-
vided, That one-fifth of the stock
subscribed for has been paid for by
such subscriber
Sec. IL. Stockholders May Vote
by Mail
At any regular, called, general or
special meeting of the stockholders,
a written vote received by mail
from any absent stakeholder and
signed by him may be read in such
meeting and shall be equivalent to
a vote of each of the stockho lders
| so signing: Provided, He has been
previously notified in writing of the
exact motion or resolution upon
which such vote is taken and a copy
of same is forwarded with and at
tached to the vote so mailed by him.
Sec. 10. Earnings - Apportion-
ment
The trustees shall apportion the
net earnings by first paying divi-
dends on the paid up capital stock
at a rate not exceeding 8 per cent
| per annum; then setting aside not
less than 10 per cent nor more than
| 25 per cent of the remainder an
nually of the net profits for a re-
serve fund and the remainder of said
net profits by dividends proportion
ed upon the amount of business
| tr oafaH with CaiI nd
proportional upon the wages and
salaries of employees: Provided,
That observation-disclosures shall only be
entitled to one-half as much divi-
dends from said net profits as share
| holders: And provided further,
That no dividend shall be paid out
or declared on any business trans
acted with the association by any
| person, persons, firm or corporation
engaged in the buying, selling or
handling of agricultural products for
profit or to any sale to said asso-
citation by any person or persons,
! firm or corporation engaged as a
wholesaler or jobber in the distribu-
ton of manufactured products.
Dividends remaining uncalled for six
months after the same have been
declared shall revert to the associa-
ton.
Sec. IA. Distribution of Divi-
bends.
The profits or net earnings of such
association shall be distributed to
those entitled thereto at such time
and in such manner not inconsistent
with this act as its bylaws shall
prescribe, which shall be as often as
once a year.
Sec. is. Annual Reports 49, Con
| tents-Filing.
Every association organized under
the terms of this act shall, annually
on or before the LIST day of March
of each year, make a report to the
secretary of state; such report shall
| Of ha