• TABLE OF CONTENTS
HIDE
 Title Page
 Preface
 Constitution and by-laws of capitalized...
 Constitution and by-laws of non-capitalized...
 Cooperative marketing act
 Interpretation of certain points...
 Intermediate credit for the...
 Federal intermediate credit banks...
 Legislative aid asked for farm...
 Federal and joint stock farm...
 U. S. department of agriculture...






Title: Florida quarterly bulletin of the Department of Agriculture
ALL VOLUMES CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00077080/00051
 Material Information
Title: Florida quarterly bulletin of the Department of Agriculture
Series Title: Florida quarterly bulletin of the Department of Agriculture.
Uniform Title: Report of the Chemical Division
Alternate Title: Cooperative associations
Physical Description: 9 v. : ill. (some folded) ; 23 cm.
Language: English
Creator: Florida -- Dept. of Agriculture
Publisher: Department of Agriculture. State of Florida.
Place of Publication: Tallahassee, Fla.
Manufacturer: Artcraft Printers
Publication Date: July 1927
Frequency: quarterly
regular
 Subjects
Subject: Agriculture -- Periodicals -- Florida   ( lcsh )
Agricultural industries -- Statistics -- Periodicals -- Florida   ( lcsh )
Genre: periodical   ( marcgt )
Periodicals   ( lcsh )
Statistics   ( lcsh )
 Notes
Dates or Sequential Designation: Vol. 31, no. 4 (Oct., 1921)-v. 39, no. 3 (July 1929).
General Note: Title from cover.
General Note: Each no. has also a distinctive title.
General Note: Many issue number 1's are the Report of the Chemical Division
General Note: Issues occasional supplements.
 Record Information
Bibliographic ID: UF00077080
Volume ID: VID00051
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 28473180

Table of Contents
    Title Page
        Page 1
    Preface
        Page 2
    Constitution and by-laws of capitalized cooperative association
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
    Constitution and by-laws of non-capitalized cooperative association
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
    Cooperative marketing act
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
    Interpretation of certain points in the law on cooperative associations
        Page 31
    Intermediate credit for the farmer
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
        Page 38
    Federal intermediate credit banks and the cooperative marketing act of Florida
        Page 39
        Page 40
        Page 41
    Legislative aid asked for farm cooperatives
        Page 42
        Page 43
        Page 44
        Page 45
        Page 46
        Page 47
        Page 48
        Page 49
        Page 50
        Page 51
    Federal and joint stock farm loans
        Page 52
    U. S. department of agriculture publications
        Page 53
        Page 54
        Page 55
Full Text








VOLUME 37 NUMBER 3


COOPERATIVE


ASSOCIATIONS












SUPPLEMENT TO
FLORIDA QUARTERLY BULLETIN OF THE
DEPARTMENT OF AGRICULTURE
JULY, 1927










NATHAN MAYO
Commissioner of Agriculture
Tallahassee, Florida


Art---raft Pr--nt-er Tallahasee Florid
Artcraft Printers. Tallah.as.ea Florida


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NUMBER 3


VOLUME 37



















PREFACE


It has been the purpose of this Bulletin to furnish
those interested in cooperative marketing with infor-
mation that would be of service in perfecting a co-
operative association.
The forms of Constitution and By-Laws herewith
presented are offered as suggestions. Numerous
variations will doubtless be made to accommodate
local conditions and preferences.
The article on Intermediate Credit shows the con-
nection between the Cooperative Associations and
the Federal Credit Act, which furnishes financial
aid on personal assets of associations. Those who
wish to iqke up the study of the history and prin-
ciples of cooperation will find a bibliography of
literature on the subject.
The "Cooperative Marketing Act" of 1923, under
which cooperative associations may be incorporated,
is published in full for convenient reference.
T. J. BROOKS,
Chief Clerk, Department of Agriculture.













Constitution and By-Laws of Capitalized
Cooperative Association


ARTICLE I

CONSTITUTION
NAME
Section 1. This Association shall be known as
PURPOSE
Sec. 2. The purpose of this Association shall be to
make sales and purchases for its stockholders by co-
operative methods, and aid in every way possible in
grading, standardizing, packing and shipping farm
products. It shall make contracts by which it shall,
do the exclusive marketing of all products included
in said contracts and render proper accounting there-
for.
LOCATION
Sec. 3. The principal office of this Aqsociation
shall be at
Sec. 4. This Association shall be composed of its
officers and stockholders, viz: President, Vice Presi-
dent, Secretary-Treasurer, Board of Directors of five
members and the Stockholders.
ELECTION
Sec. 5. At each annual meeting the stockholders
shall elect a Board of Directors of five members and
a Secretary-Treasurer. The Board of Directors shall
elect from its own members a President and Vice
President. The Board of Directors shall have power
to elect a Business Manager at any time.
OFFICERS
Sec. 6. The President shall preside ovar all meet-
ings of the stockholders and of the Board of Direc-
tors and issue all calls for special meetings. In his
absence the Vice President shall preside, with the











same powers. In the absence of both the quorum
present shall elect a presiding officer pro ter. A
quorum shall consist of two-thirds of the stockhold-
ers at a stockholders meeting and of three-fifths at
a meeting of the Board of Directors.
Sec. 7. The Secretary-Treasurer shall keep a com-
plete record of all meetings of the stockholders and
Board of Directors; a full and complete accounting
of the finances of the Assoication. He shall sign with
the President all legal documents and with the Busi-
ness Manager all checks authorized by the Board of
Directors to be paid out by the Business Manager.
His books shall be audited under the direction of the
Board of Directors as often as they deem fit. He
shall make full reports to the stockholders at each
annual meeting and to the Board of Directors when-
ever asked to do so in official meeting.
Sec. 8. The Business Manager shall have full con-
trol of the force working under his direction and
supervision. His duties shall be such as may be set
out from time to time by the Board of Directors. He
shall do the marketing of all products handled by
the Association, instruct in grading, packing and
shipping, and furnish market information to the
members in such manner as may be prescribed. He.
may or may not be a stockholder in the Association.
Sec. 9. The Board of Directors shall have general
management and supervision of the corporate busi-
ness. The Board shall elect a Business Manager, pre-
scribe his duties and fix compensation. He shall be
bonded in a surety company to cover all funds which
he is supposed to handle. The Board of Directors
shall also require surety bond of the Secretary-
Treasurer to cover all funds for which he is respon-
sible. It shall have the books of the Business Man-
ager and Secretary-Treasurer audited as often as
deemed necessary, and must have them audited just
prior to each annual meeting of the stockholders,
with an itemized statement of all receipts and ex-
penditures since the last report. These shall be read
at each annual meeting and may be demanded at any
call meeting. The Board of Directors shall have
power to remove from position any officer and em-











ployee and fill all vacancies, except the employees
directly under the Business Manager, who shall have
full power to employ and discharge any employees
under him. These shall be designated by the Board
of Directors in writing and filed with the Secretary-
Treasurer. The Board of Directors shall determine
the salary of the Business Manager.

ARTICLE II

BY-LAWS

Section 1. The capital stock of this Association
shall be $ . divided into shares of $...........
each; no member shall hold more than ....... shares.
Each shareholder shall be entitled to one vote re-
gardless of number of shares owned. All stock shall
be common.
Sec. 2. The stockholders at each annual meeting
shall elect a Board of Directors. They may nominate
other officers which may be elected by the Board of
Directors. (Section 13 of the law requires that the
President and Vice President shall be elected by the
Directors.) The meetings of the Association shall
be held at such time and place as designated by the
President, except the annual meeting, which shall be
held at the principal office of the Association. All
officers shall be elected by ballot. No proxies shall
be allowed.
Sec. 3. Six days notice shall be given in writing
by the President to the stockholders before each
called meeting.
Sec. 4. Any officer or member of the Board of
Directors shall be. subject to recall at any time by a
majority vote of all stockholders of the Association.
Sec. 5. A special meeting may be called at any
time by the President on legal notice, and shall be
called on petition of a majority of the Board of
Directors or of five per cent of the stockholders.
Sec. 6. The compensation of all officers shall be
fixed by the stockholders at the regular annual meet-
ing-(the Business Manager is not an officer).











Sec. 7. The Board of Directors shall have power
to set aside, out of any money belonging to the Asso-
ciation, as an emergency fund not to exceed ten per
cent of the capital stock.

MEMBERSHIP

Sec. 8. All members, other than the charter mem-
bers, shall be voted in on application filed with the
Secretary-Treasurer. A two-thirds vote shall decide
in all cases of admission of new members and the
vote shall be by ballot. Admissions can be made at
regular or called meetings. A stock certificate shall
be issued to each member on payment therefore; said
certificate to have printed thereon that it is not trans-
ferable except to persons engaged in the production
of the things handled by the Association, and then
only when the Board of Directors unanimously
agrees to the transfer.
Sec. 9. If a member be other than a natural
person (as provided in section 6 "e" and section 7
"c" of the law) such member may be represented by
anyone duly authorized in writing.

FINANCING

Sec. 10. The expenses of operating this Associa-
tion shall be met by a percentage on returns for pro-
duce sold or bought by the Association, or by a price
per package, the amount of such charges to be fixed
by the Board of Directors from time to time as
deemed expedient. Payments for produce shall be
made to the shippers on receipt by the Association
of returns for the sale of the produce. In making
sales all produce of the same grade shall be pooled
and all shippers of the same grade shall receive the
same price.
Sec. 11. After the season's expenses are paid
and the reserve agreed on provided, the remainder
of the funds shall be divided among the stockholders
in proportion to the value of their several shipments
and purchases made through the Association dur-
ing the last preceding season; provided that no
claims are held against the members for breach of











marketing contract, when, and in such case, all
claims must first be settled when full payments are
made.

WITHDRAWALS

Sec. 12. For cause deemed sufficient by unani-
mous vote of the Board of Directors the marketing
privilege may be withdrawn from a stockholder,
when, and in such case, the said offending stock-
holder shall be considered as expelled and his equity
in the Association shall be adjusted as in case of a
withdrawing stockholder. When a stockholder sees
proper to withdraw from the Association he can dis-
pose of his stock only by unanimous consent of the
Board of Directors by open vote and recorded in the
minutes of the meeting at which such action was
taken. In case the withdrawing member fails to find
a buyer satisfactory to the Board of Directors the
Board of Directors shall provide for the purchase of
said stock at the price paid when issued to the holder
in the following manner: A charge shall be added
to the regular charges on all shipments and the
added charges shall constitute a sinking fund with
which to purchase the stock of the retiring stock-
holder. The amount of the said charges shall be
determined by the Board of Directors and no time
limit shall be set for the date on which said stock
shall be paid for, the date of payment shall be at
such time as the reserve herewith provided shall
equal the value of the stock of the retiring member.
By a vote of a majority of the stockholders the Asso-
ciation may provide in similar manner for the retire-
ment of all stock outstanding and the Association
cease to be a joint stock Association.
Sec. 13. All stockholders shall be paid eight per
cent on the par value of the stock held.

MARKETING CONTRACTS
Sec. 14. This Association shall have power to
enter into marketing contracts with its stockholders,
requiring them to sell through the Association for
any length of time, not exceeding ten years, all or
any specified part of their products or commodities,









8

or through facilities or agencies created by the Asso-
ciation. New members may have their stock issued
by having the Association retain the refunds due on
shipments made by the Association for the member.
This agreement to be mutual by vote of the Associa-
tion. The Board of Directors may promulgate such
rules and regulations as they deem proper relating
to fines and penalties for breach of marketing con-
tract.
AMENDMENTS

Sec. 15. This Constitution and By-laws may be
amended by a two-thirds vote at any regular or
called meeting of the membership; provided all
amendments conform to the "Cooperative Marketing
Act" of 1923, under which this Association is
chartered.












Constitution and By-Laws of Non-Capi-
talized Cooperative Association


NAME
Section 1. This Association shall be known as the
. ..................... ........ ; incorporated under the
"Cooperative Marketing Act" of the State of Florida,
1923.
LOCATION
Sec. 2. The principal office of the Association
shall be in the town of.. ........ .................. ... ...
PURPOSE
Sec. 3. The purpose of this Association shall be
to market all kinds of farm products for its members;
to promote, foster and encourage the intelligent and
orderly marketing of agricultural products by co-
operate methods; to direct the proper grading and
standardization of products and make as direct sales
as possible from the producer to the consumer; to
advertise advantageously and buy cooperatively.
OFFICERS
Sec. 4. The Association shall consist of its officers
and members.
Sec. 5. The officers shall be a President, Vice-
President, Secretary-Treasurer and a Board of Direc-
tors of five members.
Sec. 6. The duties of the various officers shall be
those commonly exercised by such officers of cor-
porations and such other duties as may be pre-
scribed by the By-Laws. The President shall preside
at all meetings of the Association and of the Board
of Directors and perform such other duties as the
Board of Directors may prescribe from time to time.
The Vice-President shall perform all the duties of
the President in the absence of the President. The











Board of Directors shall elect from their own mem-
bers* a President and Vice-President. They shall
also elect a Business Manager who does not have to
be an officer or a member; they shall have power to
bond, determine compensation and discharge him.
The compensation of members of the Board of Direc-
tors shall be determined by the members at their
annual meetings.
Sec. 7. The Secretary-Treasurer shall keep a com-
plete record of all meetings of the Association and
of the Board of Directors. His books shall be
audited under the supervision of the Board of Direc-
tors as often as they may deem it advisable, but
must be audited in time for report at each annual
meeting of the Association. He shall make a full
financial statement giving the number of members,
amount of funds collected and sources from whence
derived, the amount of expenditures and purposes
for which expended, and balance sheets showing the
financial status of the Association. He shall sign as
(Secretary-Treasurer) all checks, and with the Pres-
ident, all notes, deeds and other instruments on be-
half of the Association, previously approved by the
business manager; serve all notices required by law
and these By-Laws; receive and disburse all funds
other than those designated by the Board of Direc-
tors to be received and disbursed by the Business
Manager.
Sec. 8. Due notice of not less than ten days shall
be given all members before each regular or called
meeting by the Secretary, and the same shall apply
to all meetings of the Board of Directors. Ten per
cent. of the members may file a petition with the
Secretary, giving reasons for a called meeting and
such meetings must be called by the President, or
the next in authority in case he cannot act.
Sec. 9. A quorum shall consist of a majority of
all members in a meeting of the Association, and the

NOTE.-This is required by the law. Should the mem-
bers desire to exercise the prerogative of electing the officers
it can be put in the By-Laws that the President and Vice-Presi-
dent shall be nominated by the Association at the annual
meetings.












same shall apply to meetings of the Board of
Directors.
Sec. 10. All officers shall hold for one year and
vacancies in the Board of Directors shall be filled by
the remaining members at a special meeting called
for that purpose; should the President vacate his
office the Vice-President shall succeed him.
Sec. 11. The Board of Directors shall elect a
Business Manager who may or may not be an officer
or member of the Association. The Manager shall
employ and discharge all employees under his direc-
tion; shall secure information as to crop and market
conditions and furnish same to members on request;
shall instruct in grading, packing and shipping
products. He shall have entire charge of the mar-
keting of all goods delivered by members of the
Association, subject to the action of the Board of
Directors and the By-Laws and rules of the Asso-
ciation.
MEMBERSHIP

Sec. 12. All members, other than the charter
members, shall be voted in on application filed with
the Secretary-Treasurer. A two-thirds vote shall
decide in all cases of admission of new members and
the vote shall be by ballot. Admissions can be made
at regular or called meetings. The Secretary-Treas-
urer shall issue a certificate of membership to all
members when admitted; said certificate to have
printed therein that it is not transferable except to
persons engaged in the production of the things
handled by the Association, and then only when the
members of the Board of Directors unanimously
agree to the transfer.
Sec. 13. All members must be producers of the
products handled or contemplated to be handled by
the Association, including lessees and tenants of
land, the lessors and landlords who receive as rent a
part of the crop raised on rented premises. If a
member be other than a natural person such member
may be represented by anyone duly authorized in
writing.











Sec. 14. Each member of the Association shall
have one vote and only one; providing all claims and
dues against said member have been fully paid. No
proxies shall be allowed.
Sec. 15. Any member may withdraw from the
Association between the first day of December and
the first day of the following April, but all claims
of whatsoever nature must first be settled.
Sec. 16. All members shall abide by the By-Laws
and rules of the Association; but any member feeling
that he has a grievance or cause for complaint may
appeal to the Board of Directors, or to the members
at any regular or called meeting. No member shall
be suspended or expelled from the Association with-
out first being heard in his own defense, either by
the Board of Directors or by the members in regular
or called meeting.
Sec. 17. Each member shall have a number or
mark which shall be permanently stamped on every
package or container shipped by the Association.
Any loss occasioned by improper packing or grading
shall be charged to the member whose mark is found
on said package or container.

FINANCING
Sec. 18. The expenses of operating this Associa-
tion shall be met by a percentage on returns for pro-
duce sold or bought by the Association, or by a price
per package, the amount of such charges to be fixed
by the Board of Directors from time to time as they
deem expedient. Payments for produce shall be
made to the shippers on the receipt by the Associa-
tion of returns for the sale of the produce. In mak-
ing sales all produce of the same grade shall be
pooled and all shippers of the same grade shall re-
ceive the same price.
Sec. 19. At the time of uniting with the Associa-
tion, and at the end of each succeeding three years
after the incorporation of the Association, each mem-
ber shall give a promissory note, payable on demand
of the Association. This note shall be for the sum
of Twenty-five Dollars ($25.00) and an additional











One Dollar ($1.00) for each acre of crops to be
planted and crops therefrom marketed through the
Association, then owned by the member. When a
new note is given the old one shall be cancelled and
returned to the maker. These notes shall be the
property of the Association and shall be used by the
Board of Directors as collateral security with which
to borrow needed money for the Association's busi-
ness. Whenever these notes are deposited as security
for a loan, all of the members shall individually
share the liability in proportion to the face value of
their respective notes. Each member shall pay an
annual membership fee of One Dollar ($1.00) at a
date to be determined by the Board of Directors. The
capital and credit thus obtained shall be used as
directed by the members in regular or called sessions.
Sec. 20. After the season's expenses are paid and
the proper sum set aside as a reserve, the remainder
of the funds shall be divided as follows:
(1) One-half shall be set aside as a surplus fund,
until it equals the sum of the notes provided for in
Section 19; when the Secretary-Treasurer shall be
authorized to withdraw all such notes from banks, or
otherwise in keeping and substituting a bank balance
therefore, canceling said notes and returning to the
makers.
(2) The remainder shall be divided among the
members, in proportion to the value of their ship-
ments and purchases made through the Association
during that season, provided, that when any member
has failed during the season to live up to his agree-
ments, by failing to ship exclusively through the As-
sociation, or by any other breach of his contract, and
provided further that the said failure on his part has
resulted in a loss or damage to the Association, then
the said defaulting member shall forfeit to the Asso-
ciation such share of his equity in the refund then
due as shall reimburse the Association for the loss or
damage thus sustained, in lieu of liquidated dam-
ages; or the Association may proceed to collect from
said defaulting member said damages out of any
other of his funds or property interest in the Asso-
ciation.











EQUITY OF WITHDRAWING MEMBER
Sec. 21. The cause for suspension or expulsion of
members shall be determined by the Board of Direc-
tors. They shall also determine the method of pro-
cedure in each case. In the case of the withdrawal
or expulsion of a member the Board of Directors
shall equitably appraise his property interests in the
Association and shall fix the amount thereof in
money, and for the purpose of paying off the amount
of such appraisal to such withdrawing or expelled
member, the Board of Directors shall collect an addi-
tional assessment or charge on the products of its
members handled by the Association equal to the
regular selling charges, and such assessment or as
much thereof as may be necessary, shall be applied
to transferring the interests of expelled or retiring
member to those remaining in the Association, said
additional assessments to begin at the date of the
expulsion or withdrawal.

MARKETING CONTRACT
Sec. 22. This Association shall have power to
make marketing contracts with its members requir-
ing them to sell through the Association for any
length of time, not exceeding ten years, all or any
specified part of their products or commodities, or
through facilities or agencies created by the Asso-
ciation. Said contract may be a part of the member-
ship agreement or separate therefrom as may be de-
termined by the Association. The Board of Directors
may also promulgate such regulations as they see fit
relating to fines and penalties imposed on members
for breach of marketing contract.

CONFORMITY WITH CHARTER
Sec. 23. All business of this Association shall be
in accordance with the "Cooperative Marketing Act"
of 1923, under which this Association is chartered.
Sec. 24. This Constitution and By-Laws may be
amended by two-thirds vote at any regular or called
meeting of the entire membership.













COOPERATIVE MARKETING ACT


A BILL
TO BE ENTITLED
AN ACT to Encourage the Cooperative Marketing of
Farm Products and to Authorize the Incorporation
of Cooperative Marketing Associations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE
OF FLORIDA:
Section 1. Declaration of Policy.-In order to pro-
mote, foster and encourage the intelligent and order-
ly marketing of agricultural products through co-
operation and to eliminate speculation and waste;
and to make the distribution of agricultural products
as direct as can be efficiently done, between pro-
ducer and consumer; and to stabilize the marketing
of agricultural products, this Act is passed.
Sec. 2. Definitions-As Used in This Act.-
(a) The term "agricultural products" shall include
horticultural, viticultural, forestry, dairy, livestock,
poultry, bee and any farm products;
(b) The term "member" shall include actual mem-
bers of associations without capital stock and holders
of common stock in association organized with capi-
tal stock;
(c) The term "association" means any corpora-
tion organized under this Act; and
(d) The term "person" shall include individuals,
firms, partnerships, corporations and associations.
(e) For the purpose of this Act, the words "Co-
operative company, corporation or association" are
defined to mean a company, corporation, or associa-
tion which adheres strictly in its business operations
to the following principles:
1. Return on capital invested restricted to not
more than eight per cent.
2. Authorizing and refunding in part or wholly
of any monies remaining after the payment of ex-











penses, return on capital stock invested and provid-
ing a member's reserve on the basis of or in propor-
tion to the patronage of members.
3. One member, one vote, regardless of number of
shares owned.
4. Option must be given the Association on all
shares offered for sale, and all transfers must be ap-
proved by the Association. Associations organized
hereunder shall be deemed non-profit, inasmuch as
they are not organized to make profit for themselves,
as such, or for their members, as such, but only for
their members as producers.
This Act shall be referred to as the "Co-operative
Marketing Act."
Sec. 3. Who May Organize.-Three or more per-
sons engaged in the production of any agricultural
products may form a non-profit, co-operative associa-
tion, with or without capital stock, which may act as
agent for its members or stockholders under the pro-
visions of this Act.
Sec. 4. Purposes.-An association may be organ-
ized to engage in any activity in connection with the
marketing or selling of the agricultural products of
its members, or with the harvesting, preserving, dry-
ing, processing, canning, packing, storing, handling,
shipping or utilization thereof, or the manufacturing
or marketing of the by-products thereof; or in con-
nection with the manufacturing, selling or supplying
of its members with machinery, equipment or sup-
plies; or in the financing of the above enumerated
activities; or in any one or more of the activities
specified herein.
Sec. 5. Preliminary Investigation.-Every group
of persons contemplating the organization of an as-
sociation under this Act, is urged to communicate
with the State Marketing Commissioner, who will in-
form it whatever a survey of the marketing condi-
tions affecting the commodities to be handled by the
proposed association indicates regarding probable
success.
Sec. 6. Powers.-Each association incorporated
under this Act shall have the following powers:











(a) To engage in any activity in connection with
the marketing, selling, harvesting, preserving, dry-
ing, processing, canning, packing, storing, handling
or utilization of any agricultural products produced
or delivered to it by its members; of the manufactur-
ing or marketing of the by-products thereof; or in
connection with the purchase or hiring for use by its
members of supplies, machinery or equipment; or in
the financing of any such activities; or in any one or
more of the activities specified in this Section. Any
such association shall limit its activities to the hand-
ling or marketing of products of its own members
only.
(b) To borrow money and to make advances to
members.
(c) To act as the agent or representative of any
member or members in any of the above mentioned
activities.
(d) To buy, acquire, own and hold copyrights and
trade marks.
(e) To purchase or otherwise acquire, and to hold,
own or exercise all rights of ownership in, and to
sell, transfer or pledge shares of the capital stock or
bonds of any corporation or association formed under
this Act engaged in any related activity or in hand-
ling or marketing of any of the products handled by
the association.
(f) To establish reserves and to invest the funds
thereof in bonds or such other property as may be
provided in the By-Laws.
(g) To buy, hold and exercise all privileges of
ownership, over such real or personal property as
may be necessary or convenient for the conducting
and operation of any of the business of the Associa-
tion incidental thereto.
(h) To do each and everything necessary, suitable
or proper for the accomplishment of any one of the
purposes or the attainment of any one or more of the
objects herein enumerated; or conducive to or expe-
dient for the interest or benefit of the association, and
to contract accordingly, and in addition to exercise
and possess all powers, rights and privileges neces-
sary or incidental to the purpose for which the asso-











ciation is organized or to the activities in which it is
engaged; and in addition, any other right, powers
and privileges granted by the laws of this State to
ordinary corporations, except such as are incon-
sistent with the express provisions of this Act; and
to do any such things anywhere.
Sec. 7. Members.
(a) Under the terms and conditions prescribed in
its By-Laws an association may admit members,, or
issue stock to persons engaged in the production of
the agricultural products to be handled by or through
the association, including the lessees and tenants of
land used for the production of such products and
lessors and landlords who receive as rent part of the
crop raised on the leased premises.
(b) If a member of a non-stock association be
other than a natural person, such member may be
represented by any individual, association, officer, or
member thereof, duly authorized in writing.
(c) One association organized hereunder may be-
come a member or stockholder of any other associa-
tion or associations, organized hereunder.
Sec. 8. Articles of Incorporation.-Each associa-
tion formed hereunder must prepare and file Articles
of Incorporation setting forth:
(a) The name of the association.
(b) The purpose for which it is formed.
(c) The place where its principal business will be
transacted.
(d) The term for which it is to exist, not exceed-
ing fifty (50) years.
(e) The number of directors thereof, which must
not be less than three (3) and may be any number in
excess thereof, and the terms of office of such
directors.
(f) If organized without capital stock, whether
the property rights and interests of each member
shall be equal or unequal, and if unequal the articles
shall set forth the general rule or rules applicable to
all members by which the property rights and inter-
ests, respectively, of each member may and shall be
determined and fixed; and the association shall have











the power to admit new members who shall be
entitled to share in the property of the association
with the old members, in accordance with such gen-
eral rule or rules. This provision of the Articles of
Incorporation shall not be altered, amended or re-
pealed except by the written consent or the vote of
three-fourths of the members.
(g) If organized with capital stock, the amount of
such stock and number of such shares into which
it is divided and the par value thereof. Whenever
*three or more persons desire to organize a co-opera-
tive corporation under the provisions of this Act,
they shall meet together and agree in writing to
adopt this Act as the basis of their organization,
and at the same time shall prepare a statement in
writing fully setting forth the purpose for which such
co-operative corporation is organized, and shall
therein declare the purpose of the organization; and
also the manner and method which is to be used in
the conduct of the business of said organization, a
copy of which statement shall be furnished imme-
diately to the Comptroller of the State of Florida,
together with a filing fee of Five ($5.00) Dollars,
and before any such organization shall be allowed to
do business in the State of Florida, or to sell stock in
the State of Florida, either by mail or otherwise, the
purposes of such organization and the methods out-
lined in such statement shall be approved by the
Comptroller and Attorney-General of the State of
Florida, or by such Board as may be provided for by
law having authority to grant permits to sell stock,
bonds and securities in the State of Florida. And
any person who shall sell, or offer for sale any stock
or shares in any organization organized under this
Act without first presenting such statement to the
Comptroller and the Attorney-General of the State
of Florida, or such other Board as may be authorized
under the laws of the State of Florida to grant per-
mits to sell stock, and who shall not have received a
permit from the Comptroller and the Attorney-Gen-
eral, or such other Board authorized under the laws
of the State of Florida to grant permits to sell stock,
shall be deemed guilty of a misdemeanor and upon
*See Sec. 14d.











conviction shall be punished as is provided for the
punishment of misdemeanors under the laws of the
State of Florida. Provided that no permit shall be
denied by the Comptroller and Attorney-General, or
such other Board authorized under the laws of the
State of Florida to grant permits to sell stock except
when it shall appear to such officers that it is the in-
tention of the proposed organization to perpetrate a
fraud, or to engage in an unlawful or fraudulent en-
terprise, or to engage in a promotion stock selling
enterprise or that the amount of money required to
be paid in by purchasers of stock is in excess of the
value of advantages to be received by such stock-
holders.
When a *permit shall have been granted as herein
contemplated, the proposed organizers of such cor-
poration shall thereupon file with the Governor and
the Secretary of State of the State of Florida, a copy
of the Articles of Incorporation and a statement in
duplicate under oath of one of the proposed organ-
izers in such substantially in the following form:

TO THE GOVERNOR AND SECRETARY OF
STATE OF THE STATE OF FLORIDA.
The following named persons, whose post office
address is as follows, to-wit:
NAME POSTOFFICE






have proposed to organize a co-operative corporation
under Chapter ......., Laws of Florida, Acts of 1923,
and hereby declare that if granted a permit to or-
ganize such co-operative corporation that the busi-
ness of said corporation shall and will be conducted
under the provisions of said Chapter ...... ., Laws of
Florida, Acts of 1923. That said organizers have
filed a statement with the Comptroller of the State of
*Permit not necessary if organized without capital stock.











Florida, therein setting forth the purposes for which
such co-operative corporation is organized, and de-
claring the manner and method which will be pur-
sued in the conduct of the business of such co-opera-
tive corporation; the name of said corporation is to
b e .................. ..... .. ... ...
and it shall continue in operation for the period of
... .. years, or until dissolved by law or by the
written consent of two-thirds of the members.
Wherefore, it is prayed that Letters Patent be
granted to those incorporators in pursuance of the
provisions of said Chapter ...... Laws of Florida,
Acts of 1923.
Signed and sealed at .. ... .........................
this ........ d ay of... ..... ... .. ............. A D 19........
....................... ........................... ... (S E A L )
...... .... ................. ................. ...... (S E A L )
......... ... ............................. ..... ... .... (SE A L)
.......... .......... .. ............ ............ .. (S E A L )
Within ten days after the receipt of such applica-
tion, if the Governor shall find the same to be in
proper form, and the business proposed to be con-
ducted to be legitimate and coming within the pur-
view of the provisions of this Act, he shall issue
Letters Patent to such organizers authorizing them
to proceed to conduct a corporation under the name
adopted under the provisions of this Act, which
Letters Patent shall be attested by the Secretary of
State under the Great Seal of the State of Florida.
Each application for Letters Patent when sent to
the Secretary of State shall be accompanied by a fee
of Twenty-five Dollars ($25.00) which shall be the
only fee required for filing such petition and procur-
ing Letters Patent for a co-operative corporation or-
ganized under the provisions of this Act.
Sec. 9. Amendments to Articles of Incorporation.
-The Articles of Incorporation may be altered or
amended at any regular meeting or any special meet-
ing called for the purpose. An amendment must first
be approved by two-thirds of the directors and then
adopted by a vote representing a majority of all the
members of the association. Amendments to the











Articles of Incorporation when so adopted shall be
filed in accordance with the provision of the general
corporation law of this State; provided, however, a
fee of only Five ($5.00) Dollars shall be required
therefore by the Secretary of State.
Sec. 10. By-Laws.-Each association incorporated
under this Act, must, within thirty (30) days after
its incorporation, adopt for its government and man-
agement, a code of by-laws, not inconsistent with the
powers granted by this Act. A majority vote of the
members or stockholders or their written assent is
necessary to adopt such By-Laws. Each association
under its By-Laws may also provide for any or all of
the following matters:
(a) The time, place and manner of calling and
conducting its meetings.
(b) The number of stockholders or members con-
stituting a quorum.
S(c) The right of members or stockholders to vote
by proxy or mail or both, and the conditions, man-
ner, form and effect of such votes.
(d) The number of directors constituting a
quorum.
(e) The qualifications, compensations, and duties
and terms of office of directors and officers; time of
their election and the mode and manner of giving
notice thereof.
(f) Penalties for violations of the By-Laws.
(g) The amount of entrance, organization and
membership fees, if any, the manner and method of
collection of the same, and the purpose for which
they may be used.
(h) The amount each member or stockholder shall
be required to pay annually or from time to time, if
at all, to carry on the business of the association, the
charge, if any, to be paid by each member or stock-
holder for service rendered by the association to him
and the time of payment and the manner of collec-
tion; and the marketing contract between the asso-
ciation and its members or stockholders which every
member or stockholder may be required to sign.











(i) The number and qualification 'bf meminters or
stockholders of the association and the conditions
precedent to membership or ownp#shipsof stock; the
method, time and manner of permitting mnemberi to
withdraw or the holders ofist6ck to traii4fer their
stock; the manner of assignment anrd the ttkansfer of
the interest of members, an4 -f lthie hare.s of stock:
the conditions upon which' and'time when meml.,er-i
ship of any member shaPl, ea,.,' The automatic ..is-
pension of the rights of a member when he ceases
to be eligible to membership in the as-sociatium a;nd
mode, manner and effect of ,the expulsion of a mem-
ber, manner of dete m~ingt ,,t.e elueo '41 ao, mIlm )be r s
interest, and provion i' itfsi j 1 I JLcit-'e by, the a ',)o-
ciation upon the death ir. iit lhd i irl o,' a member .r.
stockholder, or popn te,,eypulpip q,, member or
forfeiture of his,~nnlnlerishipi or at tiep option of the
association by,; Ii:raia ,of. the board of directors.
In case of the withdrawa,l .ol exp4.jllion ofra member
the board of directors slaill equitably .pppraise his
property interests iu thi. a;s'.it ttio, n and shall fix the
amount thereof in iiiney. anid for tie iidorpo'e of pay-,
ing off the amount of .-iueh appraisal to such with-
drawing 'or exp-elled imembArs, the Directors 'hall
collectan additional a.'.s)ienrt on the produ~dts of
its Immnberls eIqual o' the asessm'ent that'was col-
lected'on the- prolduict i6lf s'u.ichexpelled br retiring
mnemniei', and .ich 'a'-e.sment. orsd muc:hthereof as
may be necessary, shall be applied to transferring
the interest of' such expelled or retirinig member-. .
S. Sei ,, General and; Special; Meetipgs.--How
qalf1ed.1.In its:By-Laws each, association. shall; pro-
vide for one or more regular meetings annually, The;
Board.of Directors shall have the right to, call a spe-
cial, meeting at.. any time, .and ten Ier centum of the
meml.'er.s or 'tockholders rmay fle a petition stating
the p.seq c business to Ibe brought before the apso-
cation. andd demand a special meeting at ny time.,
Such meeting mqlst tlierveupon becalledby directors.
Notice If all meetings. togethpir.wit statement of
the purpose thereof, shall be nia led. to ap ,mremb.er
at least ten days prior to the meeting; provided, how-
ied ti~a th th i By LarwswmaAN a nirhinsteAd that such
notice *iJayt bb irtn hyripuhlitcakiW irin a newspaper











of general circulation, published at the principal
place of business of the association.
Sec. 12. Directors-Election.
(a) The affairs of the association shall be man-
aged by a board of not less than three (3) directors,
elected by the members or stockholders from their
own number. The By-Laws may provide that the
territory in which the association has members shall
be divided into districts and define the same, and
that the directors shall be elected according to such
districts. In such case the By-Laws shall specify the
number of directors to be elected by each district,
the manner and method of re-apportioning the direc-
tors and of re-districting the territory covered by
the association. The By-Laws may provide that pri-
mary elections should be held in each district to elect
the directors apportioned to such district, and the
result of all such primary elections must be ratified
by the next regular meeting of the association.
(b) The By-Laws may provide that one director
may be appointed by the Commissioner of Agricul-
ture. The director so appointed need not be a mem-
ber or stockholder of the association, but shall have
the same power and rights as other directors.
(c) An association may provide a fair remunera-
tion for the time actually spent by its officers and
directors in its service. No director during the term
of his office shall be a party to a contract for profit
with the association differing in any way from the
business relations accorded regular members or hold-
ers of stock of the association, or to any other kind of
contract, differing from terms generally current in
that district.
(d) When a vacancy on the board of directors
occurs, other than by expiration of term, the remain-
ing members of the Board, by a majority vote, shall
fill the vacancy, unless the By-Laws provide for an
election of directors by districts. In such case the
board of directors shall immediately call a special
meeting of the members or stockholders in that dis-
trict to fill the vacancy.
Sec. 13. Election of Officers.-The directors shall
elect from their number a President and one or more












Vice-Presidents. They shall also elect a Secretary
and Treasurer, who need not be directors, and they
may combine the two latter offices and designate the
combined office as Secretary-Treasurer. The Treas-
urer may be a bank or any depository, and as such
shall not be considered as an officer, but as a func-
tion of the Board of Directors. In such case the Sec-
retary shall perform the usual accounting duties of
the Treasurer, excepting that the funds shall be de-
posited only as authorized by the Board of Directors.
Sec. 14. Stock-Membership-Certificates-When
Issued-Voting Liability-Limitations of Transfer of
Ownership.
(a) When a member of an association established
without capital stock has paid his membership fee in
full, he shall receive a certificate of membership.
(b) No association shall issue stock to a member
until it has been fully paid for. The promissory notes
of the members may be accepted by the association
as full or partial payment. The association shall
hold the stock as security for the payment of the
note, but such retention as security shall not affect
the member's right to vote.
(c) Except for debts lawfully contracted between
him and the association, no member shall be liable
for the debts of the association to an amount exceed-
ing the sum remaining unpaid on his membership fee
or his subscription to the capital stock, including any
unpaid balance on any promissory notes given in
payment thereof.
(d)* No stockholder of a co-operative association
shall own more than one-twentieth of the common
stock of the association; and an association in its
By-Laws may limit the amount of common stock
which one member may own to any amount less than
one-twentieth of the common stock.
The association shall limit its dividends on stock
to an amount not greater than eight per cent (8%)
per annum; and all other net income, less specified
reserves, shall be distributed back to its members
*Which, taken with Sec. 8 (g), means that when a corpora-
tion is organized with only three members, 40 per cent of the
stock must be treasury stock (not issued).












only on the basis of percentage of products of mem-
bers handled by the association. Any receipt of
dividends from subsidiary corporation or from stock
or other securities owned by the association, shall be
included in the ordinary receipts of the association,
and shall be distributed accordingly.
(e) No member or stockholder may be entitled to
more than one vote.
(f) The By-Laws shall prohibit the transfer of the
stock of the association to persons not engaged in the
production of agricultural products handled by the
association, and such restrictions must be printed
upon every certificate of stock subject thereto.
(g) The association may at any time, except when
debts of the association exceed fifty per cent of the
assets thereof, buy in or purchase its stock at book
value thereof as determined by the Board of Direc-
tors.
Sec. 15. Removal of Officers or Directors.-Any
member may bring charges against an officer or
director by filing them in writing with the Secretary
of the association, together with a petition signed by
ten per cent of the members, requesting the removal
of the officer or director in question. The removal
shall be voted upon at the next regular or special
meeting of the association, and by a vote of a ma-
jority of the members. The association may remove
the officer or director and shall fill the vacancy. The
director or officer against whom such charges have
been brought shall be informed in writing of the
charges previous to the meeting and shall have an
opportunity at the meeting to be heard in person or
by counsel and to present witnesses; and the person
or persons bringing the charges against him shall
have same opportunity.
In the case the By-Laws provide for election of
directors by districts with primary elections in each
district, then the petition for removal of a director
must be signed by twenty per cent of the members
residing in the district from which he was elected.
The Board of Directors must call a special meeting of
the members residing in that district to consider the
removal of the director. By a vote of the majority











of the members of that district, the director in ques-
tion shall be removed from office.
Sec. 16. Referendum.-Upon demand of one-
third of the entire Board of Directors, any matter
that has been approved or passed by the Board must
be referred to the entire membership of the stock-
holders for decision at the next special or regular
meeting; provided, however, that a special meeting
may be called for the purpose.
Sec. 17. Marketing Contract.
(a) The association and its members may make
and execute marketing contracts requiring the mem-
bers to sell, for any period of time, not over ten
years, all or any specified part of their agricultural
products or specified commodities exclusively to or
through the association or any facilities to be created
by the associations. The contract may provide that
the association may sell or resell the products of its
members with or without taking title thereto; and
pay to its members the re-sale price, after deducting
all necessary selling, overhead and other costs and
expenses, including interest on stock, not exceeding
eight per centum per annum and reserves for retir-
ing the stock, if any; and other proper reserves.
(b) The By-Laws and the marketing contract
may fix, as liquidated damages, specific sums to be
paid by the member or stockholder of the association
upon the breach by him of any provision of the mar-
keting contract regarding the sale or delivery or
withholding of products; and may further provide
that the member will pay all costs, premiums for
bonds, expenses and fees in case any action is
brought upon the contract by the association; and
any such provisions shall be valid and enforceable
in the courts of this State.
Sec. 18. Annual Reports. Each association
formed under this Act shall prepare and make out to
the Board of Directors an annual report on forms
furnished by the Marketing Bureau of the State, con-
taining the name of the Association, its principal
places of business and a general statement of its busi-
ness operation during the fiscal year, showing the
amount of capital stock paid up and the number of











stockholders of a stock association or the number of
members and amount of membership fees received, if
a non-stock association; the total expenses of opera-
tions; the amount of its indebtedness, or liability and
its balance sheets, and such report shall be available
to the membership of the association and to the
State Marketing Commissioner.
Sec. 19. Conflicting Laws Not to Apply.-Any
provisions of law which are in conflict with this Act
shall not be construed as applying to the associations
herein provided for.
Sec. 20. Limitations of Use of Term "Co-Opera-
tive."-No person, firm, corporation or association,
hereafter organized or doing business in this State,
shall be entitled to use the word "co-operative" as
part of its corporate or other business name or title
unless it has complied with the provisions of this Act.
Any person, firm, corporation or association now or-
ganized and existing or doing business in this State,
and embodying the word "Co-operative" as part of
its corporate or other business name or title, and
which is not organized in compliance with the pro-
visions of this Act, shall within six months from the
date at which this Act goes into effect, eliminate the
word "Co-operative" from its said corporate or other
business name or title.
Sec. 21. Interest in Other Corporations or Asso-
ciations.-An association may organize, form,
operate, own, control, have an interest in, own stock
of, or be a member of any other corporation or cor-
porations, with or without capital stock, and engage
in preserving, drying, procuring, canning, packing,
storing, handling, shipping, utilizing, manufacturing,
marketing or selling of the agricultural products
handled by the association, or by the by-products
thereof. If such corporations are ware-housing cor-
porations, they may issue legal warehouse receipts
to the Association or to any other person and such
legal warehouse receipts may be used as collateral
to the extent of the current value of the commodity
represented thereby. In case such warehouse is
licensed or licensed and bonded under the Laws of
this State or of the United States, its warehouse re-
ceipts shall not be challenged or discriminated











against because of ownership or control wholly or in
part, by the association.
Sec. 22. Contracts and Agreements with Other
Associations.-Any association may, upon resolution
adopted by its Board of Directors, enter into all
necessary and proper contracts and agreements and
make all necessary and proper stipulations, agree-
ments and contracts and arrangements with any
other cooperative corporation, association or associa-
tions formed in this or any other State, for the co-
operative and more economical carrying on of its
business, or any part or parts thereof. Any two or
more associations may, by agreement, between them,
unite in employing and using or may separately em-
ploy and use the same methods, means and agencies
for carrying on and conducting their respective
businesses.
Sec. 23. Association Heretofore Organized May
Adopt the Provisions of this Act.-Any corporation
or association organized under previously existing
statutes, may by a majority vote of its stockholders,
or members be brought under the provisions of this
Act by limiting its membership and adopting the
other restrictions as provided herein. It shall make
out in duplicate a statement signed and sworn to by
its directors, upon forms supplied by the Secretary of
State to the effect that the corporation or association
has by a majority vote of its stockholders or members
decided to accept the benefits and be bound by the
provisions of this Act. Articles of Incorporation
shall be filed as required in Section eight, except that
they shall be signed by the members of the Board of
Directors. The filing fee shall be the same as for
filing an amendment to Articles of Incorporation.
Sec. 24. Associations Not In Restraint of Trade.-
No association organized hereunder shall be deemed
to be a combination in restraint of trade or an illegal
monopoly; or an attempt to lessen competition or fix
prices arbitrarily, or shall the marketing contracts or
agreements between the association and its members
or any agreements authorized in this Act be con-
sidered illegal or in restraint of trade.











Sec. 25. Constitutionality.-If any section of this
Act shall be declared unconstitutional for any reason,
the remainder of this Act shall not be affected
thereby.
Sec. 26. Application of General Corporation
Laws.-The provisions of the general corporation
laws of this State and all powers and rights there-
under shall apply to the association organized here-
under, except where such provisions are in conflict
with or inconsistent with the express provisions of
this Act.
Sec. 27. Annual License Fees.-Each association
organized hereunder shall pay an annual license fee
of Ten Dollars ($10.00), but shall be exempt from
all franchise or license taxes.
Sec. 28. Filing Fees.-For filing articles of incor-
poration, an association organized hereunder shall
pay Twenty-five Dollars ($25.00) ; and for filing an
amendment to the Article, Five Dollars ($5.00).
Sec. 29. All laws or parts of laws in conflict with
the provisions of this Act are hereby repealed. Pro-
vided however, that the provisions of this Act shall
not be construed to affect, limit or in any wise inter-
fere with the rights, powers or privileges of any cor-
poration or association which may have been organ-
ized and which now exists, or of any corporation or
association which may be hereafter organized under
the provisions of Chapter 5958, Acts of 1909, entitled
an Act for the organization, management and co-
operation of agricultural (vitricultural) and horticul-
tural non-profit cooperative associations, the same
being section 4510 of the Revised General Statutes
of Florida, and also corporations organized under
the Chapter 7383 of the Laws of Florida, the same
being Section 4515 of the Revised General Statutes
of Florida.
Sec. 30. This Act shall go into effect upon its be-
coming a law.














INTERPRETATION OF CERTAIN POINTS IN THE
LAW ON COOPERATIVE ASSOCIATIONS

COST OF SECURING A CHARTER

When the Association is Capitalized.-A fee goes
to the Comptroller, as a requirement under the Blue
Sky Law, of Five Dollars ($5.00).
Also a fee goes to the Secretary of State, as a regu-
lar charter fee, of Twenty-five Dollars ($25.00).
No advertising in newspapers is required.
When the Association is Not Capitalized.-A
charter fee goes to the Secretary of State of Twenty-
five Dollars ($25.00).
No advertising in newspapers is required.
When Amending the Charter of a Cooperative
Corporation.-A fee goes to the Secretary of State
of Twenty-five Dollars ($25.00).
When An Old Line Corporation Changes Its Char-
ter and Adopts the Provisions of this Cooperative
Marketing Act.-A fee must be sent to the Secretary
of State, the same as when amending a charter, of
Five Dollars ($5.00), and no newspaper advertising
is required; provided no new shares are sold.
When a corporation previously chartered under
the general corporation laws, or under a special cor-
poration law, changes its charter so as to come under
the provisions of the Cooperative Marketing Act pro-
ceeds to issue or sell stock under the Cooperative
Marketing Act it must pay the fee of Five Dollars
($5.00) to the Comptroller and secure a permit from
him under the provisions of the Blue Sky Law; Also
a fee of Five Dollars ($5.00) must be sent to the
Secretary of State for amending the charter, making
Ten Dollars ($10.00) in all.













INTERMEDIATE CREDIT FOR THE FARMER
A Pamphlet Containing Questions and Answers on Intermediate
Credit as Provided for in the Agricultural Credits Act of
1923 and Essential Facts Showing the Need for It.
Prepared by the
U. S. DEPARTMENT OF AGRICULTURE
What is the agricultural credits act of 1923?
It is an act to provide intermediate credit for the
farmer. It enables the farmer to borrow for produc-
tion and marketing purposes, for periods running
from six months to three years, depending upon the
purpose for which the credit is used. It establishes
12 intermediate credit banks.
What is meant by intermediate credit?
Intermediate credit, as the phrase is commonly
used, means credit granted to farmers for terms
longer than those covered by ordinary bank loans,
but shorter than those for which farm mortgage
loans are usually made. It is based on personal and
collateral security; that is to say, on the character
and standing of the borrower, and on commodities or
other personal property pledged to guarantee repay-
ment of the money loaned. Farm credit other than
mortgage credit, and running for terms of from six
months to two or three years, is properly spoken of
as intermediate credit.
What has been the source of intermediate credit in
the past?
There has been no regular source of intermediate
credit in the past. Our banking system has grown
up primarily to serve industry and trade and has not
been well adapted to the needs of agriculture. Farm-
ers have consequently been obliged to seek interme-
diate credit by the makeshift plan of renewing short-
term loans from bankers or merchants.
Why does the farmer need intermediate credit more
than other producers?
Compared with that of business men, the turnover
of the farmer is slow. Business men frequently turn












their stock two or three times a year. Loans of short
maturity therefore are suited to business needs. But
crop growers, with few exceptions, have only one
turnover a year. Loans obtained by them in the
spring as a rule can not be repaid conveniently until
crops are marketed. Even credit obtained later in
the season may be needed longer than six months if
the crop is to be marketed in an orderly way. Live-
stock producers have a yet longer turnover than
grain growers. Farmers need longer-term credit
than business men owing to the nature of their work.
How are the Federal intermediate credit banks
organized ?
One such bank serves each Federal land-bank dis-
trict. They are located in the same cities as the
Federal land banks, and have the same officers and
directors. They operate under the supervision of
the Federal Farm Loan Board, just as do the Fed-
eral land banks.
What is the amount and source of the capital for
the new banks?
Each intermediate credit bank is entitled to capi-
tal from the National Treasury up to $5,000,000.
The Secretary of the Treasury is authorized and
directed by the agricultural credits act to subscribe
the capital as it is called for by the directors of the
intermediate credit banks, with the approval of the
Farm Loan Board. Only $1,000,000 each was asked
for by the banks when they were organized. Sev-
eral of them have since called for additional
amounts.
Does this mean that the total amount of loans and
discounts which the 12 banks may make can not
exceed $60,000,000?
No. Each bank may issue collateral trust de-
bentures, or short-term bonds, based on discounted
or purchased farmers' notes and other agricultural
paper. Such debentures may be sold up to an
amount not exceeding ten times the bank's paid-in
capital and surplus. Proceeds of debenture sales
are available for making loans. On the basis of the












present total authorized capital of the 12 banks,
their maximum loaning power is $660,000,000.

How do the intermediate credit banks operate?
They discount farmers' credit paper for banks and
other financing institutions and for cooperative asso-
ciations. This means that these institutions may in-
dorse and turn over their credit paper to the inter-
mediate credit bank and obtain the money tied up
in the loan for the further extension of credit to
their patrons. The intermediate credit banks also
make loans direct to cooperative associations of agri-
cultural producers on the security of warehouse re-
ceipts or mortgages on live stock.

For what term may these banks make discounts or
advances?
The minimum term is six months and the maxi-
mum term three years. For the present the Fed-
eral Farm Loan Board has limited the term of dis-
count to nine months. Borrowers, whether these be
farmers' organizations or banks, have the assurance,
however, that renewals will be made where the
need exists and the security warrants. Loans made
by intermediate credit banks are not based on de-
posits which may be suddenly withdrawn, but on
funds obtained from the sale of securities with a
definite maturity.

At what rate are discounts and advances made by
the intermediate credit banks?
Interest or discount rates charged may not exceed
by more than 1 per cent the rate paid on the last
debentures sold. An issue of debentures was re-
cently sold at 41/2 per cent. Intermediate credit
banks, therefore, can not now charge more than 51)
per cent. No credit paper may be discounted for, or
purchased from, any bank or other institution if the
rate charged by that institution to individual bor-
rowers is more than 11/ per cent above the discount
rate. At present, therefore, the intermediate credit
hanks can not discount any paper carrying an in-
terest darge to the farmer of more than 7 per cent.












Can an individual farmer borrow direct from the in-
termediate credit banks?
No. If the banks should loan to the farmer direct,
the cost of setting up machinery for this purpose
would make interest rates too high. The banks serve
wide districts and would find direct dealings with
the individuals too expensive.
Must farmers necessarily obtain credit from the in-
termediate credit bank through local banks or
other existing institutions?
No. In most States they can form agricultural
credit corporations of their own to discount paper
with the intermediate credit banks. Such corpora-
tions must have a capital of at least $10,000. Inter-
mediate credit banks help in forming such corpora-
tions. Some of them have prepared suggested
articles of incorporation intended to comply with
State laws in their districts.
Can persons other than farmers form agricultural
credit corporations to obtain discounts from the
new banks?
Yes. Bankers or business men who wish to help
the farmers to obtain cheaper credit can form such
corporations. In fact, any group can do so. Bankers
in some cases may find it desirable to conduct such
credit corporations in connection with their banks.
Several of the kind have been organized.
Is it the intention of the Agricultural Credits Act of
1923 that credit accommodation should be pro-
vided by new local agencies rather than by ex-
isting banks or other institutions?
The evident intent of the law is that existing credit
machinery shall be used as far as possible. It is
desirable or advisable to form new credit agencies
only where the present ones are inadequate or do
not take advantage of the new discount facilities.
Improvement of existing credit agencies, rather than
their destruction, is the object of the law.











Are these intermediate credit banks now in opera-
tion?
Yes. They were chartered and organized shortly
after the. enactment of the law, and have been in
operation several months.
On what products stored and controlled by coopera-
tive marketing associations may direct advances
be obtained from these new banks?
The Federal Farm Loan Board has already ap-
proved the following commodities, when properly
stored, as security for loans: Grain, cotton, wool,
tobacco, peanuts, broom corn, beans (including soy
beans), rice, alfalfa and red top clover seeds, hay,
nuts, dried prunes, dried raisins, and canned fruits
and vegetables. Other commodities will be added
to the list when the board has determined whether
or not in its opinion they can be stored so that ware-
house receipts based on them will be good collateral.
Is the service of the new banks to be measured solely
by the discounts and advances actually ex-
tended ?
No. They are also valuable in that credit made
available by them encourages private financial insti-
tutions to extend loans. Farmers' cooperative asso-
ciations have often found commercial banks willing
to give credit on very reasonable terms as soon as
advances have been promised and approved by the
intermediate credit banks. An association that has
been deemed a safe risk by an intermediate credit
bank has thereafter a better standing with private
financiers.
How can additional information concerning the
operation of these banks be obtained?
Information about loans and discounts, or the or-
ganization of agricultural credit corporations where
such are needed, can be obtained from the interme-
diate credit bank in the district concerned.
Does the Agricultural Credits Act of 1923 contain
any other provisions for the improvement of in-
termediate credit to the farmer besides those
dealing with the intermediate credit banks?
Yes. There are four other important provisions:












1. The Federal reserve act is amended by in-
creasing the maximum term for which the reserve
banks may discount agricultural and live-stock paper
from six months to nine months.
2. The definition of agricultural paper is broad-
ened to include loans to cooperative marketing asso-
ciations for grading, processing, packing, preparing
for market, or marketing of any agricultural pro-
ducts handled for members.
3. The capital needed to make a State bank eligi-
ble for admission to the Federal reserve system is re-
duced to 60 per cent of the amount required for
national banks in cities of corresponding size to that
in which the State bank is located. It is provided,
however, that the State bank must agree to increase
its capital within a reasonable time to the amount
required of the national bank. Country banks that
take advantage of this provision will greatly add to
their ability to aid agriculture.
4. Privately financed and managed national agri-
cultural credit corporations may be organized under
Federal charter. Such corporations must have a
capital of at least $250,000 and will be supervised
by the Comptroller of the Currency. Existing live-
stock loan companies may reincorporate under the
law.
Where are the intermediate credit banks located,
and what States are served by each of them?
The Federal land bank and intermediate credit
bank districts, group of States comprising each dis-
trict, and location of each pair of banks are as
follows:















Location of
Federal Land Bank
STATES and
d Federal Intermediate
Agz Credit Bank
1 Maine, Massachusetts, Vermont, New Springfield, Mass.
Hampshire, Rhode Island, Connec-
cut, New Jersey, and New York.
2 Pennsylvania, West Virginia, Mary- Baltimore, Md.
land, Delaware, Virginia, and Dis-
trict of Columbia.
3 North Carolina, South Carolina, Columbia, S. C.
Georgia, and Florida.
4 Indiana, Ohio, Kentucky, and Ten- Louisville, Ky.
nessee.
5 Louisiana, Mississippi, and Alabama. New Orleans, La.
6 Illinois, Missouri, and Arkansas. St. Louis, Mo.
7 North Dakota, Minnesota, Wisconsin, St. Paul, Minn.
and Michigan.
8 Wyoming, Nebraska, South Dakota, Omaha, Nebr.
and Iowa.
9 New Mexico, Kansas, Colorado, and Wichita, Kans.
Oklahoma.
10 Texas. Houston, Tex.
11 California, Nevada, Utah, and Ari- Berkeley, Calif.
zona.
12 Idaho, Washington, Montana, and Spokane, Wash.
Oregon.












FEDERAL INTERMEDIATE CREDIT BANKS AND
THE COOPERATIVE MARKETING
ACT OF FLORIDA

By T. J. BROOKS
Chief Clerk, Department of Agriculture

For particulars address Federal Intermediate Credit Bank,
Columbia, S. C.
March 4, 1923, the Federal Intermediate Credit
Banks Act was passed. It is the short-time rural
credit banking law of the United States.
The Cooperative Marketing Act was passed by the
Legislature of Florida in May, 1923.
The Federal Intermediate Credit Banks Act, Sec-
tion 202, says: "The Federal Intermediate Credit
Banks shall have power:
(3) To make loans and advances DIRECT to any
cooperative association organized under the laws of
any State and composed of persons engaged in pro-
ducing, or producing and marketing, staple agricul-
tural products, or live stock, if the notes or other
such obligations representing such loans are secure
by warehouse receipts, and/or shipping documents
covering such products, and/or mortgages on live
stock: Provided, that no such loan or advance shall
exceed 75 per centum of the market value of the
products covered by said warehouse receipts-and/or
shipping documents, or of the live stock covered by
said mortgages."
"(c) Loans, advances, or discounts made under
this section shall have a maturity at the time they
are made or discounted by the Federal Intermediate
Credit Bank of not less than six months nor more
than three years."
The Florida Cooperative Marketing Act provides
that associations organized under it have the power:
Section 6 (a)
"To engage in any activity in connection with the
marketing, handling or utilization of any agricul-











tural products produced or delivered to it by its mem-
bers; or in financing any activities."
"(b) To borrow money and make advances to
members.
"(c) To act as the agent or representative of any
member or members in any of the above mentioned
activities." * *
"(h) To do each and everything necessary, suit-
able or proper for the accomplishment of any one of
the purposes or the attainment of any one or more
of the objects herein enumerated; or conducive to
or expedient for the interest or benefit of the asso-
ciation and to act accordingly, and in addition to
exercise and possess all the powers, rights and privi-
leges necessary or incidental to the purpose for
which the association is organized or to the activi-
ties in which it is engaged; and in addition, any
other rights, powers and privileges granted by the
laws of the State to ordinary corporations, except
such as are inconsistent with the express provisions
of this Act; and to do any such things anywhere."
Section 7.
"(c) One association organized hereunder may be-
come a member or a stockholder of any other asso-
ciation or associations, organized hereunder."
"Section 22. Any association may, upon resolu-
tion adopted by its Board of Directors, enter into all
necessary and proper contracts and agreements and
make all necessary and proper stipulations, agree-
ments and contracts with any other co-operative cor-
poration, association or associations formed in this
or any other State, for the cooperative and more eco-
nomical carrying on of its business, or any part or
parts thereof. Any two or more associations may,
by agreement between them, unite in employing and
using or may separately employ and use the same
methods, means and agencies for carrying on and
conducting their respective business."
This Act provides for both capitalized and non-
capitalized cooperative corporation. Its provisions
are in keeping with the Capper-Volstead Act, which
has been endorsed by the President of the United
States and declared valid by the Federal courts.
Thus we have the Federal Intermediate Credit









41

Banks empowered to loan money direct to co-opera-
tive associations organized under State laws, and co-
operative associations empowered to borrow money
and make advances to members. Here is the con-
necting link that makes it possible for farmers to
get money at low rate on six months or more time
up to three years.
The limitations placed upon the loans which the
Federal Intermediate Credit Banks may make to co-
operative associations organized under State laws
should be noted. "If the notes or other such obliga-
tions representing such loans are secured by ware-
house receipts, and/or shipping documents covering
such products, and/or mortgages on live stock."
(Sec. 202; Sub 3.)
However, Subdivision I of Section 202 provides
that-leaving out irrelevant clauses-Federal Inter-
mediate Credit Banks shall have power:
"To discount for, or purchase from, cooperative
credit or marketing association or agricultural pro-
ducers, organized under the laws of any State, note,
draft, bill of exchange, debenture, or other such
obligation, the proceeds of which have been ad-
vanced or used in the first instance for any agricul-
tural purpose or for raising, breeding, fattening or
marketing of live stock."
The cooperative associations have the power to
sell or negotiate notes, drafts, bills of exchange, de-
bentures, bonds and other like instruments and se-
curities; to pledge as security for payment any notes,
drafts, bills of exchange or acceptance, warehouse
receipts, bills of sale, chattel mortgages, bills of
lading, or other securities held by it. In other
words, it is a question of presenting acceptable
paper to the Federal Intermediate Credit Bank by
the cooperative association as to whether direct loans
can be secured or not.
Understand that the cooperative associations can
borrow money at any time from any source without
let or hindrance wherever they can find individuals,
associations or corporations willing to accept the
securities offered. In this article I have essayed to
show the possibility of linking together the Federal
Intermediate Credit Banks and the State-chartered
cooperative associations.












LEGISLATIVE AID ASKED FOR FARM
COOPERATIVES

Mr. Jardine Says Extension of Movement Is Essen-
tial to Efficient Marketing of Grain
Legislation designed to extend and strengthen the
farm cooperative movement in the United States was
advocated on May 5 by the Secretary of Agriculture,
William M. Jardine, as essential to the efficient mar-
keting of American grain.
Speaking to delegates to the International Wheat
Pool Conference in Kansas City, Secretary Jardine
pledged the support of the Department of Agricul-
ture to "the development of a constructive market-
ing program."
The cooperatives, he explained, must have suffi-
cient volume to enable them to stabilize the situation
and to check unwarranted price recessions. Ade-
quate information, also, he said, is necessary to ex-
ercise that control.
None of the cooperative marketing associations,
at present operating in the United States, he added,
controls as much as 2 per cent of the wheat produc-
tion, and none is in a position to make extensive im-
provements in marketing or to influence to an im-
portant degree the flow of wheat. He suggested
unification of the organizations as a solution.
The full text of Mr. Jardine's address follows:
The development and operation of wheat pools
in other countries have been matters of considerable
interest to American farmers and agricultural
leaders. We have followed the fortunes of the
movement in Australia and Canada. The presence
at this conference of delegates from these and other
countries, together with representatives of Ameri-
can pools, is tangible evidence that interest in this
method of marketing is more than local in character.
On this occasion it is particularly fitting that we
express our appreciation to the representatives from
Canada who during the past three years have
shown the grain producers of other countries what
can be accomplished by organized efforts. I feel











sure that delegates from other countries, and from
our own associations in the United States, will join
me in paying tribute to the accomplishments of our
northern neighbors.
Before passing on to an analysis of some of the
problems facing Amerian wheat producers, I want
to discuss briefly these Canadian pools. I realize, of
course, that most of the delegates present are
familiar with developments in Canada. My audience
tonight, however, is not confined to those attending
this conference, and for this reason it seems desir-
able to preface my remarks by calling attention to
the accomplishments of Canadian farmers in the
application of the pooling principle to grain mar-
keting.
The first of the Canadian pools was organized
in Alberta during the fall of 1923. This was fol-
lowed by similar organizations in Manitoba and
Saskatchewan in time to handle the crop of 1924.
The same year a central sales agency was established
to sell the grain of the three provincial organizations.

FIRST POOL IN CANADA ORGANIZED IN 1923
More than 81,000,000 bushels were handled by
the three pools during the crop year 1924-25 and
approximately 212,000,000 bushels the following
year. It is stated that 15,400,000 acres out of the 21,-
000,000 acres of wheat in western Canada are under
contract to the three provincial pools. The member-
ship now exceeds 142,000, which is approximately
56 per cent of the total number of farmers in the
Provinces of Manitoba, Saskatchewan and Alberta.
The pools have acquired more than 700 country
elevators, and terminal elevators on the Great Lakes
at Port Arthur, Fort William and Buffalo, and at
the Pacific ports of Vancouver and Prince Rupert.
Export offices are maintained at New York, Mon-
treal and Vancouver. Sales offices are maintained
at Toronto, Ontario, and Paris, France, and agency
connections have been established in the United
Kingdom and in all the principal importing countries
of Europe and Asia.
These achievements of our neighbors in Canada
bear splendid testimony to the resourcefulness and











ability of Canadian farmers and agricultural leaders
and are an example to grain producers in other
countries.
Advocates of the pooling plan in the United States
have wondered why it has not met with more general
favor among wheat producers here, in view of its
success in Canada, where conditions resemble those
in the United States. The explanation is probably
found in the fact that, although conditions of pro-
duction and marketing problems are similar in the
two countries, they are by no means identical.

PRACTICES STANDARDIZED IN CANADIAN WHEAT
AREA

The Canadian crop, consisting almost exclusively
of one variety of hard spring wheat, is grown in one
region, in which production and marketing practices
are standardized. The bulk of the crop passes
through one city and over one route to eastern and
export markets.
The marketing of the grain crop of the United
States, on the other hand, presents many complegi-
ties, more in fact than are usually appreciated.
Some of the problems to be solved by those inter-
ested in improving the existing situation are the re-
sult of geographic conditions. The location of vari-
ous producing areas with respect to market outlets
presents one kind of difficulty. For example, the
transportation and terminal problems involved in
the shipment of grain through ports on the Gulf of
Mexico differ from those experienced in shipments
to terminals on the Great Lakes or to Atlantic or
Pacific ports.
Climate and topography are responsible for other
differences between producing areas. These condi-
tions have resulted in the production of many differ-
ent kinds and varieties of grain. The marketing of
the wheat crop, with which you are all concerned, is
greatly complicated by the existence of several dis-
tinct classes and many varieties. The Southwest pro-
duces largely a hard red winter wheat; the North-
west, a hard red spring wheat; the Intermountain
States of the Northwest, a soft white variety; the
Middle Western States, a soft red wheat. Within












each of these producing areas, again, there are dif-
ferences of variety. These different kinds and varie-
ties find their way to different markets.
MARKETING FACILITIES AND METHODS VARY
The problem is further complicated by differences
in facilities for handling at country points and in
method of selling at terminal markets. These and
other differences have arisen as a result of more than
half a century of development and they must be
recognized by those interested in improving the ex-
isting system of marketing.
Having considered very briefly some of the diffi-
culties encountered in attempting to improve our
present facilities, let us now examine the efforts that
have been made to solve these problems and analyze
the objects, accomplishments and limitations of the
system which has up to the present been charged
with the responsibility of marketing the grain crop
of the United States. From such an analysis we may
arrive at certain conclusions which I believe merit
the careful consideration of all those who are inter-
ested in the problem.
Cooperative marketing of grain in this country, as
in Canada, began as a farmers' elevator movement.
In Canada, however, we have witnessed the develop-
ment of large cooperative line elevator companies,
while in the United States independent local farmers'
elevators have been the rule.
These local elevators were formed to remedy
abuses which the farmers believed existed in the
buying practices of country dealers. To a large ex-
tent they have been successful in correcting these
abuses. They have introduced at country points a
kind of competition which has operated to the ad-
vantage of the producer. They have corrected un-
fair grading and docking, and have enhanced the
value of the grain they handle by improved cleaning
and mixing practices. In the truly cooperative type
of farmers' elevator, these benefits-and they are
considerable-accrue to the producers.
NORTHWEST WAS FIRST TO OPERATE POOLS
The first of the wheat pools in this country was
organized in the State of Washington early in 1920.












This was followed by other pools in the Northwest,
and later by similar organizations in the Middle
West and Southwest. The pools formed in 1920,
1921 and 1922 encountered declining prices, and,
because of conditions over which they had no con-
trol, several of them have ceased operating.
Profiting by the experience of the earlier associa-
tions, many pools formed a year or two later cor-
rected certain weaknesses, and, being favored by
more stable prices, have succeeded in establishing
themselves as important factors in the grain market-
ing structure of this country.
The pools have endeavored to sell as much of their
grain as possible direct to mills or other users of
grain. They have endeavored to obtain better prices
for members than many of them would have ob-
tained had they sold either voluntarily or under the
pressure of creditors at certain seasons of the year.
They have, through the acquisition of terminal ele-
vators, endeavored to obtain profits resulting from
the operation of such facilities. In States where pre-
miums for kind or quality of grain are important
factors, they have in many instances obtained such
premiums for their members.
Perhaps the most important accomplishment of
the wheat pool movement, however, is that it has
aroused a more lively interest in grain marketing
among farmers, grain men, and the public in gen-
eral. Activities which are educational, which direct
attention to existing conditions, 'are likely to meet
with some degree of response. It is not unreasonable
to conclude that such activities on the part of the
pools have brought benefits to grain producers.

MANY OF PROBLEMS ARE STILL UNSOLVED
There remain, however, problems connected with
the cooperative marketing of grain which the pool-
ing associations and the farmers' elevators have not
solved.
The general problem of production is interwoven
with that of marketing. Are we producing wheat
as economically as we should? Are we in some in-
stances bringing into cultivation land not adapted to
the production of grain? Are we attempting to











grow wheat in sections which could be better util-
ized as range land or in the production of other
crops? Economical production on suitable land of
varieties adapted to the region; better seed; control
of weeds, and economical handling of grain at coun-
try points-these form a necessary groundwork for
improvements in the terminal markets.
Some 4,000 cooperative elevators and nine state-
wide wheat marketing associations are at present
engaged in marketing the grain crops of this coun-
try. No single cooperative organization controls as
much as 2 per cent of the wheat produced in the
United States. Obviously, therefore, none of them
is in a position to make extensive improvements in
marketing or to influence to any important degree
the flow of wheat to market. There is a splendid
foundation for cooperative effort, but the central
structure has not been built.
Because they handle a commodity whose price is
influenced by complex, world-wide conditions, co-
operative organizations must have complete infor-
mation regarding the supply of grain in all import-
ant producing countries and a knowledge of the con-
ditions influencing demand. They must also have an
historical basis for the use of this information in
order that they may interpret, with reasonable accu-
racy, the interplay of intricate forces which deter-
mine the basic price of the product they handle.

COOPERATIVES REQUIRED TO DO HEAVY BUSINESS
In other words, the cooperatives must know the
probable base price in advance of the marketing
season. Once the season is under way, they must
know whether price quotations accurately reflect
market conditions, or whether because of temporary
influences the price is lower or higher than the prob-
able average for the season.
Furthermore, the cooperatives must have suffi-
cient volume to enable them to stabilize the situa-
tion, and to check unwarranted price recessions.
It is often stated that price is determined by sup-
ply and demand. In the main that is a correct state-
ment, but it may be misleading.











Too often it is assumed that supply and demand
are static, that, once the crop is produced, the factor
of supply, for example, exerts a constant influence
on price. Is this necessarily true? Is it not probable
that an 800,000,000-bushel wheat crop held by many
independent marketing agencies creates a different
condition from the supply side than would be the
case if the same crop were controlled by one or two
producers' agencies?
Lack of organization to administer properly the
supply is a factor in the situation which exerts a de-
pressing influence on price. There is uncertainty
among buyers and sellers. There is no assurance
that existing price levels will be maintained, or that
the crop will be placed on the market as it is needed.
To deal adequately with marketing problems,
therefore, cooperative agencies must first have ade-
quate information. Secondly, they must have such
a degree of control over the flow of grain to market
as will enable them to utilize this information effec-
tively. They should be informed as to what the
situation is at any given time, should know what
action the situation demands, and should be able to
put their knowledge into effect.
The demand for grain, particularly for wheat, is
dependent on world-wide conditions. Terminal mar-
ket prices in this country reflect world conditions
with considerable uniformity, though country mar-
kets are somewhat more subject to local fluctuations.
Nevertheless, as I have already indicated, the con-
ditions under which grain is offered to the millers
and for export, the urgencies of the sellers, the effect
of speculative transactions, grade, protein content,
and other factors all have a bearing on the tone of
the market and on the price at which grain moves
into consumption.
SOME FACTORS CONTROLLABLE BY LARGE
ORGANIZATION
Some of these factors are controllable, but their
control presupposes a large, efficient cooperative or-
ganization, or at least a degree of coordination
among cooperative agencies which does not exist at
the present time.












It is not my purpose to offer the cooperative asso-
ciations marketing grain a ready-made plan. In my
opinion, it is the task of the associations to develop
such a plan on the basis of their knowledge and ex-
perience. In the development of sound plans to aid
the grain producers, research and service agencies,
such as the United States Department of Agricul-
ture, should give every assistance that is within their
power.
I can pledge on behalf of the department our
earnest desire to assist in the development of a con-
structive marketing program. Furthermore, I be-
lieve it is the duty of the administration and of Con-
gress to assist through the enactment of such legis-
lation as may be necessary to extend and strengthen
the cooperative marketing of wheat and other
grains.
The United States Department of Agriculture is
now rendering services that should help in guiding
future developments in the cooperative marketing
of grain. For example, the administration of the
Warehouse Act has made receipts issued by licensed
warehouses desirable collateral for loans. Conse-
quently, the cooperative associations offering this
class of security are able to borrow on desirable
terms and at interest rates in line with those paid
for commercial loans of the highest character.
The department also issues weekly an analysis on
the grain market situation. This report is available
to all the wheat marketing associations. Recently ar-
rangements have been made whereby it will be sent
to some 3,400 farmers' elevators which have defi-
nitely requested the service. Back of this market
analysis are the department's extensive crop and
market reporting services in the United States and
in foreign countries.
Since the organization of the Division of Coopera-
tive Marketing, the department is able to give closer
attention to the special problems of cooperative as-
sociations. The division is now studying the organ-
ization and operation of farmers' elevators in the
spring wheat States. Preliminary reports regarding
operating expense, storage practices, and the relation
of protein content to premiums paid for spring wheat












have already been issued and made available to ele-
vator managers.

DIVISION SPECIALIZES IN COOPERATIVE SELLING

A study of the Canadian wheat pools is now under
way. The purpose of this study is to analyze the
experience of the Canadian associations for the ben-
efit of the grain producers in this country. This will
be followed by a survey of the wheat pools in the
United States carried on (1) to measure the services
of these organizations, and (2) to bring the prob-
lems of the pools into relation to the whole move-
ment in order that the research and service work of
the department may most effectively serve the asso-
ciations.
Such intensive studies of the problems of the grain
marketing associations should assist measurably in
advancing the movement. But I wish again to em-
phasize that any program that is to be effective must
come from the producers and their organizations.
Cooperative marketing cannot be handed down to
the producers by the Government, or even by friend-
ly organizations. It must come from the farmers.
It must express their needs. It must serve their in-
terests.
I believe that the existing grain marketing asso-
ciations can solve their problems with the assistance
which Congress, the Department of Agriculture,
and the research and service institutions of the vari-
ous States can properly give.

UNIFIED ACTION URGED FOR WHOLE COUNTRY
What is the first step to be taken in the develop-
ment of this program? Is it not unity among the
cooperative associations marketing grain? I include
all cooperative marketing organizations, whether
they operate as farmers' elevators, as pooling asso-
ciations, or as terminal market agencies. Their pur-
poses are the same, their problems are similar. Is
it not time to subordinate personalities and non-
essential differences in methods in an effort to bring
all the experience and ability of all the cooperative
groups into a joint program which will adequately











serve the grain farmers? What is the future of co-
operative grain marketing unless this is done?
You are assembled with the laudable purpose of
discussing the common problem of grain marketing
in the countries represented. Much good should
arise from your discussions and the interchange of
ideas and experiences. I believe strongly in the
possibilities of cooperation, not only as an effective
method of marketing farm products but as a means
of coordinating production and marketing and of
bringing the farmer into contact with the require-
ments of the consumers of his products.
This meeting is another proof that cooperation can
bridge international boundaries and bring together
the producers of many nations. We in the United
States have many problems to meet in the coopera-
tive marketing of grain. The cooperation of all
groups is necessary to meet them, and we can co-
operate most effectively with the grain growers of
other countries when we have complete unity within
the cooperative grain movement in our own country.
Once we have adequate cooperation among agri-
cultural producers in each nation, we may look for
the beneficent results of the cooperative habit of
mind to be manifested in a deeper spirit of brother-
hood among all peoples of the world. Cooperation
will find its ultimate consummation not simply as a
business method, but as a way of life.












FEDERAL AND JOINT STOCK FARM LOANS

The number and amount of loans made by the
Federal Farm Loan and Joint Stock Land Banks up
to January 31, 1926, were as follows:


States
M aine ........ .
New Hampshire ...
Vermont
Massachusetts ......
Rhode Island ....
Connecticut ...
New York ..... ... .
New Jersey .........
Virginia
M aryland ...............
Delaware ......
Pennsylvania .......
West Virginia ........
North Carolina ......
South Carolina ......
G eorgia ................
F lorida ...................
Tennessee ............
Kentucky .............
Indiana ...............
O hio ....... .. ....
Alabam a .... .........
Louisiana ..............
Mississippi ... .....
Illinois ... ..... ...
M issouri .................
Arkansas ............
North Dakota .........
Minnesota ... .....
W isconsin ... .....
M ichigan ...........
Iow a .. ... ...
Nebraska ..... .....
South Dakota ........


Wyoming ...............
K ansas ...... .........
Oklahoma ............
Colorado ...............
New Mexico ............
T ex as .................
California ............
U tah .................
N evada .....................
A rizona ....................
Idaho .. ... ... .....
M ontana ........ ...........
O region .....................
Washington .. ... .......
Porto Rico ..............

T otal ........... ..


..... 2,883
585
.. ......... 1,337
....... .. 1,607
133
...... ... ... .. 1 ,4 19
.......... 8,992
.. ............ 1 ,68 7
...... 14,486
........... .. 1,7 14
............. ..... 1 3 1
..... .... .. 8,229
....... 6,274
.. .. .... 22,812
... ............... 9 ,8 1 7
....... 12,805
............. . 4 ,14 0
. .. ...... ... .. 1 1,8 84
....... 11,630
......... .. .. .. 20,04 1
............ ... 12 ,7 13
.... .......... 23 ,584
........... 13,895
........... ... .. 2 6,7 6 1
...... ....... . 1 5,8 58
.. .. ............ 14,454
....... ... ...... 1 7 ,4 4 2
.... ......... . 1 1,9 84
....... ........... 1 5,58 8
........... .... 9 ,7 0 0
............... 1 1,83 7
.. .. ..... .. . . 1 8,9 77
......... ...... .... 1 3 ,1 2 4
....... .. ....... 8 ,5 2 8
.... . ............ 3 ,3 5 6
...... ..... ...... 14 ,9 2 5
....... ......... 9 ,5 8 0
........ .............. 10,628
....... .... ... 5 ,6 0 7
...................... 63,585
...... ..... .......... 11,031
........ ......... 5 ,5 2 0
.. 320
.. .... .......... 1 ,9 7 1
....... .......... 8 ,4 7 8
.. ............... 9 ,0 0 5
......................... 8 ,3 8 6
.... ..... . .. 13 ,53 8
..... ........... 3 ,3 2 4


Amount
7,983,450
1,304,575
3,963,900
4,553,805
432,450
4,790,250
34,640,890
7,300,450
43,221,583
8,375,800
429,200
24,824,500
15,383,600
61,373,950
35,480,860
34,815,535
7,828,870
31,203,200
43,080,500
87,737,684
56,141,750
47,786,070
35,296,865
61,195,370
115,430,050
68,701,470
41,813,910
49,094,700
91,443,225
40,059,650
35,044,200
193,719,445
84,404,780
49,648,525
13,865,200
74,673,450
29,954,850
36,768,900
12,331,800
235,538,712
64,640,600
17,810,900
2,047,000
9,516,100
31,250,795
28,283,590
37,424,030
39,626,370
9,989,000


..526,305 $2,072,226,359


:..













U. S. DEPARTMENT OF AGRICULTURE
PUBLICATIONS

Farmers' Bulletin 1144-Cooperative Marketing.
Farmers' Bulletin 1145-Handling and Transpor-
tation of Cantaloupes.
Farmers' Bulletin 1196-Standard Containers for
Fruits and Vegetables.
Farmers' Bulletin 1232-Seed Marketing Hints for
the Farmer.
Farmers' Bulletin 1266-Preparation of Peaches
for the Market.
Farmers' Bulletin 1291-Preparation of Fresh
Tomatoes for Market.
Farmers' Bulletin 1292-The Organization and
Management of Cooperative Live Stock Shipping
Associations.
Farmers' Bulletin 753-Commercial Handling,
Grading and Marketing of Potatoes.
Farmers' Bulletin 809-Marketing Live Stock in
the South. Suggestions for Improvement.
Farmers' Bulletin 830-Marketing Eggs by Parcel
Post.
Farmers' Bulletin 922-Parcel Post Business
Methods.
Farmers' Bulletin 930-Marketing Butter and
Cheese by Parcel Post.
Farmers' Bulletin 970-Sweet Potato Storage.
Farmers' Bulletin 979-Preparation of Strawber-
ries for Market.
Farmers' Bulletin 1032-Operating a Cooperative
Motor Truck Route.
Farmers' Bulletin 1050-Handling and Loading
Southern New Potatoes.
Dept. Bulletin 267-Methods of Wholesale Dis-
tribution of Fruits and Vegetables on Large Market.
Dept. Bulletin 456-Marketing Creamery Butter.
Dept. Bulletin 541-Cooperative Organization By-
Laws.












Dept. Bulletin 688-Marketing Berries and Cher-
ries by Parcel Post.
Dept. Bulletin 937-Cooperative Grain Market-
ing.
Dept. Bulletin 977-Marketing Hay at Country
Points.
Dept. Bulletin 980-Inspection and Grading of
Hay.
Dept. Bulletin 1002-Open Types of Public
Markets.
Dept. Bulletin 1095-Producers Cooperative Milk
Distribution Plants.
Dept. Bulletin 1106-Legal Phases of Cooperative
Associations.
Dept. Bulletin 1109-Sales Methods and Policies
of a Growers' National Marketing Agency.
In addition to the above, the Department will fur-
nish copies of grade specifications for those com-
modities for which Federal grades have been estab-
lished.
STATE PUBLICATIONS
Co-operative Associations-Vol. 33, No. 4, Depart-
ment of Agriculture, Tallahassee, Florida.
Extension Bulletin-Marketing Farm Products in
Maryland, University of Maryland, College Park,
Maryland.
Extension Bulletin-Marketing Farm Products,
Circular No. 130, University of Kentucky, Lexing-
ton, Ky.
Extension Bulletin-Plans for Cooperative Mar-
keting, Circular No. 134, University of Kentucky,
Lexington, Ky.
Extension Bulletin-Cooperative Marketing in
Mississippi Through County Agents, Bulletin No. 15,
Mississippi Agricultural College, Agricultural Col-
lege, Miss.
STANDARD BOOKS
Powell G. Harold-Fundamental Principles of Co-
operation in Agriculture, Circular No. 222, Univer-
sity of California, Berkley, Calif.









55

Books on Marketing.
Hibbard, B. H.-Marketing Agricultural Products,
D. Appleton and Co., New York, 1921.
Macklin, Theodore-Efficient Marketing for Agri-
culture; Its Services, Methods and Agencies, The
Macmillan Co., New York, 1921.
Weld, L. D. H.-The Marketing of Farm Pro-
ducts, The Macmillan Co., New York, 1916.
Davenport-The American Livestock Market-
How It Functions, Drovers Journal Print, Chicago,
Ill., 1922.
Markets and Rural Economics by T. J. Brooks.




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