The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1919-09-26
COOPERATIVE COM
MUNITY CLUBS
By A. r, Edmolston,

ing associations with all the privilege
es and protection extended by the
State to corporation, are authorized
by a popular Democratic administra-
ton measure, now law, carrying the
caption of agriculture, Horticulture,
Dairying, Poultry and Apiaries; In
corporation of Cooperative Associa-
tions," enacted by the Fiftieth Cen
eral Assembly, and Immediately APP
proved by Gov. Frederick d. Gardner,
May "a, last. The act materially as
siats in solving the high cost of living
for Missouri farmers and all urban
citizens who care to take advantage
and reap the benefits it's provisions
extend.
Through one of the proposed COM
munity associations farmers can sell
direct to municipal clubs of the same
character, or to wholesalers, or retail
ers, or to individuals, and gather in
the top market prices without paying
the commissions or profits enacted by
local buyers and shippers and city
commissioner, or losing through the
manipulations of the men to whom
they consign products for sale. Mer-
Chandise and other necessities the
farmers need, in turn, can be purchas-
ed in carload lots through such an
agency from manufacturers and other
producers at the lowest figures,
there through saving the profits of all
middlemen and local retailers, without
such cooperative transactions con-
shutting claim, in case of a mishap,
against the property of each individual
member.
Members of such cooperative COM
munity clubs of cities, towns and viii
lagos can buy direct from farmers in
wholesale quantities at farm value for
their members and sell the surplus to
anyone who will buy, and divide the
profits thus derived among the men,
bers with the knowledge that if any
thing goes wrong with their associa-
ton their personal and other similar
belongings are exempt from seizure
for the debts of the cooperative cor
poration. Another advantage of a
cooperative buying and selling asso-
citation of this character is that no
two, three or four stockholders own
ing a majority of the stock can at any
time assume full control of its bust
ness policies or operations. On this
feature such an association differs
from company regularly incorporat-
ed in the State of Missouri.
The new law specifically provides
that anywhere in Missouri any num-
Der of persons, not less than twelve,
are privileged to associate themselves
together as a cooperative associa-
ton, society or exchange with the
powers and privileges of a corporation
to conduct any agricultural or mercan-
tile business and to manufacture on
the cooperative plan. Included are
the powers of buying, selling, manu-
featuring, storing, transporting, han
ding or dealing in any agricultural
dairy or similar products, groceries,
provisions and all other ordinary mer-
chandise.
An important restriction in the for
nation of a cooperative buying and
selling club is that no shareholder can
own in excess of ten shares of the
stock. Another leading provision is
that in governing, regulating and con-
trolling the business policies of an as
ISOLATION each shareholder is only
entitled to one vote regardless Of
the number of shares Of stock such an
individual owns. A board of directors
to consist of not less than five share
holders, end a president, vice-presi
dent, secretary and treasurer are pro-
vided for. In the election of direc-
tors each shareholder is allowed one
vote for each share of stock he owns
in the association. The directors elect
the officers from their midst.
The State exacted an incorporation
fee of $50 for the first $4,000 of the
capital stock or any portion thereof
sum Of SIS for each additional $4,000.
The limitation of the capital stock is
the same as that of any other State
corporation. All articles of incor-
poration are first to be recorded in
the home county after all minor legal
requirments have been complied with
and then be certified to the Secretary
of State who issues certificate of in
corporation when all jurisprudence
formalities have been carried out.
Ten per cent of all annual net pro-
fits of each cooperative buying and
selling associations are to be regular
| ly set aside for reserve fund until
an amount has accumulated equal to
fifty per cent of the paid-up capital
stock With this requirement fulfilled
yearly, from the net profits remaining
a stockholders dividend not to exceed
ten per cent, if sufficient earnings are
at hand, can be declared. The remain
ing profits may then be divided be-
tween the stockholders as uniform
dividend, determined by and based up
on the total sales to or purchases Of
each stakeholder from the association
/ during the period in question. At the
option of the stockholders portion
of the net earnings may be paid as a
premium to non-members who have
transacted business with the associa-
ton, the amount payable to each be-
ing computed upon the total sales to
or purchases from the association dur
ling the twelve included in the calcula-
4 tions.
| The new law in no way effects the
standing or legality of cooperative
companies, similar in nature, in ex-
istence, before it became effective,
providing that such associations file
4 with the Secretary of State written