The Ward County independent. [volume] (Minot, Ward County, N.D.) 1902-1965, 1915-07-15

per safeguard can be enacted by tn,
association itself, and by complying
fully with the laws restricting ant
governing corporations so that much
good to the farmers can be secured
Therefore, it is proposed to incor
porate such an association. The in
corporation of the association has
therefore, been planned and proposed
and is about to be effected under the
laws of the state of North Dakota
with the following provisions and pur
poses:
"1st. The name is to be the Farm
ers Rural Credit Association
"2nd. The authorized capital stock
at present, at par, if Five Hundred
Thousand Dollars, to be later in.
creased as needed.
'3rd. There is no liability to share
holders beyond payment for subscrip.
tions. A surplus will be subscribed
and paid for, in an amount equal tc
10 per cent of the capital stock.
18th. Out of the surplus thus
created there will be paid the ex.
pense of organization, and the ex.
pense of conducting the business OF
the association until the interest &C.
cumulations from the business are
sufficient for this purpose.
9Th. We propose to widely dis
tribute the subscriptions for shares OF
the association among the farmers
the tradespeople, the merchants, the
implement dealers, the country banks
as we'll as the city banks, and among
all classes of citizens who are really
interested in promoting a better sys-
tenn of financing the agricultural in
terests of the section of the country
where the association proposes to op-
crate.
10Th. The par value of it's shares
will be 500 each, which will be sold
at $110 each for cash or on INSTALL
ments. The $40 per share of pre-
mum asked is to cover cost of or
ganization and expense of conducting
the business, as before stated, until
the earnings from the business are
sufficient for this purpose, and furth-
er to prevent any possibility of i'm
pairment of the capital stock.
9TH. The association will aim to
limit its loans to it's own members:
that is, it will be the general practice
OF the association to loan onlv to those
who have shares in the association.
and thus assist in creating a close
relationship between the association
and its patrons. Every borrower viii.
therefore, be directly interested in
the success of the association. and
will share not only in the profits pro-
portionally to the amount of his in
dends.
18th. The net earnings on the bus
mess handled by the association, after
provision is made for the payment of
all operating expenses of every kind
and nature shall be applied at the end
OF each business year, as follows:
"a. In payment of dividends at the
rate of 8 per cent per annum. but II
it be found that the net earnings are
not sufficient to pay dividends. then
in that event, such dividends shall be
cumulative.
"b. To create a reserve fund hv
setting aside an amount not to exceed
zO per cent of the net earnings.
&c. To make provision for future
operating expenses, fulfillment of
OF agreements, emergencies and de-
precautions; to establish and maintain
bureaus of credit, market, audit, en-
ployment, information, immigration,
and other departments, by reserving
for and to carry in an undivided
earnings account an amount not to ex-
coed 20 per cent of the net earnings.
I'd. The remainder of the net earn
lngs shall be apportioned among the
patrons of the association as a pat
ronage dividend, in proportion to the
patronage accorded the association, as
follows:
list. To all stockholders and sub
scribers for shares, the patronage div
idend shall be paid in cash within
thirty days after being declared; pro-
vided, however, that If any of the
stockholders or subscribers for
shares, shall be indebted to the as
ISOLATION on any account whatever, the
patronage dividend shall in all cases
apply on the Indebtedness until fully
paid.
"2nd. To patrons who are not stock
holders or subscribers for shares, the
patronage dividend shall be rendered
in the form of share purchasing cou-
pons, provided that whenever any
patron shall have been given share
purchasing coupons equal to or in ex-
cess of the par value of one share of
stock in the association, he or she
must, within 80 days from the time
of delivery or mailing the last share
purchasing coupon making up the re-
quired amount for a share of stock,
forward such share purchasing cou-
pons to the home office of the asso-
citation and receive in their stead a
certificate of one share of stock of
the association, fully paid. The diff
ference, if any, between the face
value of a share of stock, and the
total amount of share purchasing cou-
pons returned, shall be paid to the
holder thereof in an additional share
purchasing coupon. If share purchas
ing coupons are not returned. as per
the foregoing provision, within the
specified time, the association shall be
under no obligations to issue certifi-
Gates of stock in their place.