xt7h707wnm2z https://exploreuk.uky.edu/dips/xt7h707wnm2z/data/mets.xml   Kentucky Agricultural Experiment Station. 1922 journals kaes_circulars_001_2_115 English Lexington : The Service, 1913-1958. Contact the Special Collections Research Center for information regarding rights and use of this collection. Kentucky Agricultural Experiment Station Circular (Kentucky Agricultural Experiment Station) n. 115 text Circular (Kentucky Agricultural Experiment Station) n. 115 1922 2014 true xt7h707wnm2z section xt7h707wnm2z !  
I  `
“'‘L‘` L Extension Division y
il Ai THOMAS P. COOPER, Dean and Director
. BY
I . 0. B. Jaswnass
i Lexington, Ky.
f , January, 1922
i 0
3 ]`i1i'li#h··i in i··»i1m·i·ti·»u with thu ;1;;1‘i¤‘ullm‘:1l vxtpiisiiiii \\‘o1‘k C1l1`l‘i¤‘d
T "“ VY *`·>··1¤·*1‘:¤li¤¤i1 of 1h·~ <`·¤ll¤~:¤· of .\:i·i¤·i1ituiu~_ l`11ix·i~rsi.y of l{¤·11\ucl;1I1· 11t` I·£lI'Ill ]11·111I11··ts 2tI't,‘ t.‘&I}It‘I'I}' »1111;1ht.
\\`}.iI·· :I1·~ i11·Ii1‘i·I11z1I I.2|I'IIIt‘I' I.I't*l|IIt‘IlII}` <·1111 i111]11·111‘1·I1is ]IIl‘II1f1(IS
  111;11·I;··ti11u I1_1· I1i111>1·It`, IIlt‘I’l‘ 111·1· ]Il1III_\' i111111·111·1·1111·11ts \\'IIItfIl
.1xw·1I··11··111I»·11t IiII'j;`1‘I_\' 11111111 <11·g;111iz1·1I 1·tI`111·t 1111 thc 11e11‘t of ax
1;;1111I1··1· ··t` t`;11·111··1‘< IIRIYIIIQ >i1i1iI:11· IIIIIIIIIIIIIIS. IIIIIIII thc I.2Il'1l1t‘1`S
  thw I'11it···I $t:1t1·s I|2l\`(‘ 1·1·:1Iix1·1I th1~ \'ilIIl1‘ (II; 1·¤1-11111·1·;1ti\‘c
I!ILtl`I(t'IIII;!' i~ l’I{IIIII·\' i111Ii1#;1t1·1I hy th1~ Ill£IIl}` 1·<111111·1·;1ti1‘1· >1·IIi11g
~1·;1111En;1:i··11~ \\iIII(°II I1;11‘1· Il1‘t‘II 1·~t11I1Ii>I11·1I.
t`····1»··1·z1ti11· IItilI'I{t‘IIIl§1` 1·:111 I11· (II- $(‘I`\`Ik’C 111 \`iII'It>IlN ways i11
E1111·1··11‘i11g 111z11·I<1·1i11g‘ IIIUIIIIIIIS. (`;11·1·t`11I g'I`iItIIIl§ :1111I SIiIIltIilI'1I·
ix;1ti··11 iII't‘ IIIlIt¤>I`i2IIlI i11 llIilI'I{t‘IIII{.l' 1lIi1II_\' of thu 111‘111I111·ts of
tI1»·t`111‘111 111 thu IIl`\I :1·I1’z111t:1g<·. I·`1‘1·<1111~11tI)‘. I1·111‘1·1‘ct‘. Iittlc 11t-
11·11ti»»11 is11;1i¤I 111 th1— 1l11:1Ii1_1· 11t' t`111·111 [11·111I111·ts \\—II\`II s11I1I hy III-
1II1·i»I11;1I t';11*1111~1·s. III\·I°$II;.1IiIIIIIII$ IIil\'t‘ SIltt\\`Il IIIIII Iz11·I{ (II; 11t-
III Ill\\`t‘l' ]tI'It‘t‘< t11 III;III)' §'I`tI\\`t‘I'N. \\Y(l|)I 11I`t1·11   IIUIIQIII I`1‘<1111
1`a1t‘1111·1·s 11‘ith1111t 111111·h ;1tt1·11ti1111 I11·i11g· ]111i1I to its g1‘z11I1ln‘—
IMI 1t1`<>I1I1·111< ilIIlI I1:1s II(`IIIII\I` the ti1111· Il(II` thu I`;11·iIiti1‘s I`ttI'
IIIIIIIIIIIQ III 1·1111stz111t t11111·h with l‘\(‘I`&'IIiI|Ig`IIIg` 1Il2II`I(l‘I l’lIIllIII'It\IIS.
It is 1111t t11 I11- cx111—1·t1·1I tI1:1t tho 2l\'&*I`il§l‘ I.iII`lI1t‘l‘ SIIUIIIII I10 {III
1·xp1·1·t SilIL‘Nll1tlIl. Tho II2lI'g`&lIIlIIIg 111111*01* 11[ the i111Ii1‘i1I11z1I
. Q ' _

 4 Circular N0. 1/5
furmer is often limited by l1is smull volume of business uml :l.E\
nmy prevent him from obtuining the best possible 1‘esul;`j;_
the sule of products. er;
The preceding suggests wuys in whieh eooperutive lll€ll`l{~‘- 1`·»l
ing orgunizutions eun be helpful. 'l`he_v eun grude uml stunt.
urdize prodnets of members uml sell them on the busis ni. gi·_,§.._ ull
thereby eneouruging the prodm·tion ol` high quulity pi·utlut-5,  
Combining produets froin u number ot` furnts gives u volmue {
business whieh wurrunts the employment ot` truined uml ··.u»i· l‘
ble men to stmly nnirketi eomlitions uml to sell the p1‘  
to overcome eeonomie luws. The nrguuized furmers eun 1.*
expect their orgunizutions to obtuin nnreusonubly high pi-E i·vr ~ in
for their produets; the purpose of orgunizution is to sell ;E_·· Yi
products in the best niunner possible uml to keep the 1nen1l·-·:·~
uequainted with murket eomlitions uml demumls so thut tE,»j.· l‘·=
may plan their furming operutions intellig·entl_v.  
Furmers eun well uf`t`ord to give eonsitlerution to oi·g41i1£x.1- `H
tion for eooperutive murketing where present niethotls ure u:t· lll
sutisfuetory. If existing ugeneies ure remlering sutisfa1¤·t·»1‘j»‘  
service there is mneh less opportunity for eooperutive iuurltet- »·
ing to etteet iniprovements thun if the furmer hus well {fl't>llllll*»`*l N
dissutisfuetion with the quulity uml eost ot` sueh serx·iee. lf
I1 reul need exists, the fumners will look with niore l`2l\'(>l` eil
cooperutive murketing thun if this is not the euse. A <····*P·
erutive murketing orgunizution should not be estublished unless _
the volume of business uvuiluble is sutlieient to permit its ¤‘¤‘**  
nomieul operution. The runk uml tile of furniers ot` u lot·ulitl' »
should be reudy to go into il reul business orgunixution het`·»i·e 5
one is estublished. A survey of the loeul situution whieh tul1`1i|1|1 1‘<·<|1111‘1·111<·111s 1`<11‘ SII<‘I‘(‘SS 111 11 1_u1.1111. fi
1·1·1.111··· 1IIZ1l'1(l‘111I{I 111·;;11111z11111111 ]I|1I_\' 111· (‘f11|S111('1'(‘11 111I(l1‘1· 1110
11111·1<~T— 1`·»11·111‘111g 1II‘&l<1\Z
$11111*1* 1. 1`11/111111 1/_1‘ Il11.w1`111.<.<. S111·111‘11'|11 1111s1111·—s must 110 2I\'ii11·
·m.m1__ 1,I1l.·1`111·111·· <11‘:11111z:111¤111 111 <‘1Il1•1I>}' 1·111111111c 1l1}l1l&l{Zf‘Il)(,‘II1 111111 111
-11.1111-~1· 1·<‘111·11~11 111*` 11•···~·~~111·_\· 1`111·111111·$_
11111··11 2. f1'·1·1·/ .1I111111y;1111111/. 11I1‘~11|<‘~S II121lI2ILZ`1‘lIl1‘111 of 11111111_x·
1l,_ii_i_ 1111.·1·1·~~111·_1· 111 11 <··11<1111·1·1111v·· 111111·1<<·1111;: <11·g11111z1111<111 11` it is
l1·1~E`i‘ i11··1·1;1111 11··111·1· I‘~‘~1l11N 1111111 111(11\'1l1II211 (*11.1111.
limk 3;, ];11,·1`,11.-.1 _Il1{l1»11l.<, ('1<1>1· 1111s1·1·1·11111·1· <11` 1111>111<·:4s ]')1`1II-
Iy.,11-,.1·_ .·E111··~ 211141 111··111<>¤1s :11111 111<· 1(1‘<‘[>1Il§I 111 ('*11II]11•‘1<* 211I(1 111·1·111·111e
Lil1’111·‘I\ 1* ~···· 11‘11~ 111··· 111111111·111111.
1111 IIC ~1. -1r]1r[1/111r ["1'11¤l111‘11 ,\ 011-1>]11*I`z111\‘<‘ Il1&11‘1{¤·11I1;! <>I‘g21Il-
mg A,,, 1 E,<;1i11111 11111*1 1I&1\`l* 11I1‘ <·111111111 11l‘l‘41i‘i1 111 ]>I`l1\`1l1<‘ 11(‘2‘(‘SSi11`)` f111·11-
11·11 11_»· 1T1··~ 21!1¤1 1`·11‘ ··I·1·I'1111I1g l)111·l11)$l'$,
1111111..; 5. .1/’/II]/’}`.\`]1/I]! ].~_1111//_1/. If 111<· 111&‘llI1Il‘I‘$ 1111 1101 st1111d
11 11;..1- 11.11·1<·»1` 1111·i1· **1`!i1111Zi1111>11. i`111·111s11 11 \\'1111 11 s111`1i1·i1·11t x·111111111·
t ·1i1111~1111·~~. >11·· 111111 111111- ]lli11Iilg!'1'1I1l‘l11 1< 0111111·1y1·11 111111 11111]
1111~1111·~~ 111··111·111< l11`1‘ 11N(x(l. 1110 (}1’;I11111Z1111(111 w111 12111. \I(}11111()1.'
*11111 1‘¤>1l11`&1I'1< EI1`1‘ 111` 11111](}1'111111'(` 111 ]l12l1lI1i111l11IQ` 1110 1111*11111O1‘s`
mmm. ~11111111111 111` 11l1‘1I' .111·g·11111x1111·1111.· '1`110 1·11111111111·11 S11l‘('l‘$j of i1' 1·<>—
W Im- *11**‘1`&111\`1‘ 1I1£I1'1{¢‘11IIQ` <>1‘;‘11111z1111<»11 1< l1\`l1(`11l1'x111 11111111 11s 111.11111)*
?m'M__»_ 1**1'•‘1I<1<‘1'11¤‘111‘I' 111111 1l1111'l‘ 1·1·1111<»11111·111 >1‘1`\`1L'O 1112111 111111 1:1ll`1l·1S1lL‘·l1
ml_lW;_ 111 1111· 11;I(’111'1¥`< 111- ]11\`111(1I1N \\`1l11‘11 11 111<111111·1~s 111· 1111111 \\`1l1k‘11 11
1111111111 mU]ImM'
"‘1"` "" MARKETING LAw
1·1111II- 7
mlm; $111111* 1`111·1111—1·s` 1ll£l1'1{1‘111IQ' 111·g11111z11111111s iII`t‘ 11111*1‘111111g as
ts WL 1'·111lI11111‘_\' 11>~111·1;111<111< \\‘111111111 1111·111·]1111‘11111111 l111l1k‘l' S1&11l‘ 121\\`.
m_£l1m· ,1111* 1111‘;‘··1‘ 111111 111111*1- 11III>l11`1i11I1 lIl`Q`il111X2l11l111S, 1l<\\\`1‘\`C1', 111111 111-
1,01,,111 ""1`1"*I`i111·111 il<1\`1>&I1>1<‘. ,\11 l11'}l'i1II1Zi11111I1 1_1\`1A(’l11l\S 21 1·111·11111·;1111111
I mklq 1’}' 1'1’1il1111Il;' 11 1·11111·11·1· 1'I'<1l11 1111· S1111\\ 111 111·1·111‘1111111·1* \\`1111 1110
in (10 I·1‘·1<·<*11111·1~ »1·1 1.111.111 111 1I11· S11111— 1ii\\` l11111l*1' 11·1111·I1 1111·111·11111·1111·>11
um1L.l._ 1* ¤‘11.1‘1*1<·11. 1111·111·11111·11111111 givux 1110 111·g11111x11111111 11 11‘Q’il1 S12111<1·
WS, l‘1111111111g· 11 111 $ll1‘ 111· 111- s111—11 111 11s own 11111110. 10 l1\\`11 p1`0]1—
1 • · .

 ¢ I
6 Ct`rt·ttIur N0. II5
— crty, antl in ntany othrr rt·spt·t·»ts riigxttgxtt in a<·tivitit·s in tt,. `v _ vb
y sainc way as a natural pvrson. 'I`ht· liahility ol` tht· 1n··inh.-rt   M
an I11t‘0l`lN)I`2lI<‘(I assoriation for tho tlvhts ot` tho tll`;jlll|IX&lIIttll_   Mt.
definitely lintitvtl. whilv in an nnittrorporattttl assoriation ;¥_g Qi;
is nsnally not thu vasv. i ii
The early hnsinttss ot·;1aniAations ohlainrtl t·I1art··r~ Q;
spouitic lt·g·islatiyc arts. (lratlnally. ltowt~rt·r. as tht· t··»i·p·»:·a=·
forin het·ann~ hcttvr known, tho tlitl`t~rt-nt stains t·nat·t···l ·· :··  
poration laws. '1`hv ortlinary hn»int~ss uontpany ;;rant~    
t stot·kl1oltlt·rs a yotr for varh sharo ol` stot·l< ownotl antl tlZ~‘rf- ;;i·:;·
— lnttos prtifits to stot·lign<·tl for ortlinary I·tt~i;t··~~ {ii"
corporations arc not snitahltt for thv int·orpa»rati¤¤n ot` ·»·»~·y. Qii__,iQ
oratiye associations sint·t· tho lattrr grant cat·h int·niht·r only    
vote antl arc not opcratotl to pay prolits on capital itn·t·~···?_  
Most of the statvs tltvrt·forc have pas hy tht- Statr l··ui~lt.-  
tnrc which is hroatlt-r in sropc than thc I.tll'llll‘l' law in that Zi  
proyit rk i;zj1;
t but also for organizations i`ornn·tl on tha non-stottlq plan. 'I`Pt~ as-
ncw law also sets forth in grratt-r tlotail yarions l't·atnr··~ ~1` l"i*"
organizations whit·h may I`tll`1ll tl1<·rt*nntlt·1· antl thv SI£lIll*    
such organizations nntlrr certain othvr laws of the Stair.  
A sortion of tho t·o-oporatiyc tnarltrting law l'l‘l‘(‘I|II_\' t*i\"‘ ¤=*#·
T cd provitlns that assoriations prnvioitsly org;·anizt·tl may l¤t·ttttittt· ntn
I11Cf>l‘pt)l`2lI`(‘(I nntlor this law hy uontplyin;3 with iles pt‘<>\‘i~I·*'4‘*·  
antl sots forth tho pro<·t~11it···1 111 1111*11* >111*1·iz1l 111*11l111·111s w11i11· ()l]1(°1`S will 111111
"H i}·i` lj itiglily 'll°\il`1l1’l(. 111 11111111* 1111- 1·l1:111;_51·,
l`lll1!‘&:'·· , ,, ._ ....
.\X .\( I` :111111111‘1A111g tl11· 1`11T11111111111 111 11*111-111*11111, 1:0 f)]1Cl`21t1\°C HS-
"! ""i" ;1~_1;,1i1111s. wit11 111* \\`1111*(? of 1311e11ur;1g-
1l* Ti.·· 5;;;111.1 1.:·11·~:·1y 111Z11`1{l*Y111Z (11. :1g1*i1·1111111·:1l 111*1111111·1s 111:*1111gh 1·<1-11i11;r;1·
1l3·;f. 1;1·;;; 111·1i11i11: th·’* \'i11`1<11l$ t··1*111s 11>‘1~11 l11•·1`f·1I1§ 1·11111111·1*111111g the ;1c-
1·1ll·l`.1i ti1·iZi~·< :111<1 1111w··1·s (I1. s111·h :111 :1.1111··; ]11`1¤\`1t11lY§L 1`·l1` 11}*-11111s :11111 wha; they may
1ly·~:;·; 11:;*5:1; i1:·111*i11i11u 111;* 111·~t1;11·l 111 1·11··1i··11 11;* 1ii1*»·~1·11~»_ 1111111: 111 1*11-
\‘1*~‘1·~i. (.i1Z1i··¢§ ]1l`\\'t‘Z`§ 111111 t1111l•‘S 11‘ t1l!`*·t*T111`S§ 111visi1111 11111) 1·1··1·ti1111 11Zs·
'.m·i._.L, ;;·;1‘~; ;111111€1111111~:11 lll- 1~x1·1·11ti\‘· 11·1t1I111it1-·s iillll ii1lt1`111<'Z11 111 1·1111f‘·
[_I_£:t1_ \_v, 151:;;:11111 11111·.*··1*s; 111*111*i11i11: 1111* 1·11i1·•·1*s. 1111z11i1i1·z11i1111s. l*1'“!'[1(l11 :11111
f1;:;1ti·:1s: 11»:11I;11i11g iss11;1111·1· 111` 1111·111111·1*s11i11 1·~:*1i1i1·:1t~s 111* $111111
V .:;~ig1.11‘111··*1i1l1··:*·~Z`11;*; li111iti11u |·1~**>1111;11 11:1111111)*111`111··111111·:*s1111*1l1·11ts
lll ll'l* ·_~f ;1e<11·1,11i·=11: 1*•·;11Z;11i11; 1*111111; 1111w··:· 1*1 1111·:11111=:·:= :1111 $`1lL'1{j1a1l(1L‘1`Sf
1~~·1~·§1- ;11iE;~:*izi11: i.1` 11°11111\‘;11 111 111`1`i1·1·:‘s
l'_!i_1l;_ 1Z111111*1=1·1111*s; ;1:*111·i11i11g 1111* r1=1`1·1*1·111111111 1:1 1111—111111·1*s: 111*11vi11i11g 111:*
mm it 2 111:1:*111t111gA11·111i·:11·~1; :11111 1=1*1~s1·1*111111; 1*1·111•;.1i1·s 111;· 11:‘0;11·h 111 (‘<)11—
_ 1:*.111. 1111·l1111111; l11111111;111·.1 111111111g11s. 1111s :11111 1111 mists; :111th111*izi11g
I *1 "ll lll111Z11·ti1111 1111.1 ;1~111·1*:11 1*1111i1;11111· 1*1*1111·11i1—s 111 1111* l‘\`t‘111 111 l)Z`G1l(‘ll 111
1, 1111* i=LZ‘·*··Z11·111; statin; 111*1·s11111i1ti1111 111 1·1111t1·111 111 ]11*11111t1*1s 11y 1:111111111*11s
H-,11 .1;' 113111 11:111 si;111·11 111;11·11··ti11g :1g1*1=1*1111*11ts; 111*11vi11i11: 1`ll1` :1111111:1l 1*0-
MH Hf 1*v»*i`l#: l'1`ll\'1t1111§ 111:11 1111 111*11\*isi1111 111 l11\\' 111 1·1111t111·1 with this act
wl iilllll !1»· 1*1111s11·111·.l 115 i1l11\l}'1l1! 111 S11l‘l1 :1ss111·i;1ti1111s; ]11’ll\`1l1111§' 111111
~l¥·11 1~x1·11111i1111 111 £1§1'1l'll11111`111 111*1111111ts 111 1111* 1111ss<>ssi1111 0f 111*11-
·lll11*1‘s #11:111 1111111y 111 s111·11 111*1111111·ts 111 1111ss1·ssi1111 111. 111* l1llt1L‘l`
TIVE 1l1»· 1111111111 111. #:11-11 :1as111·i:1ti1111s; 1111111111Q th1· use 111 the w111‘11 "C0—
'l1*1·iilIi1‘1*" 111 11;11111=s 1111· ]11`11111l(‘(‘1`S` 1·11—11;*c1*:11iv0 111:11*1<1*ti11g :11*ti\*i1iGs;
¤¤l1l111*<¤s1·1·111111g 11 1*11111111)* 1*111- 1·i111;11i11g S111'11 i1111i11i111111: i11~1*111it1i11g
C ]l2l*" l1*#¤lt*iz1ti1111s 111 111·g_11iiz1· 111l11—;· 1·111*11111*:1111111s 111* 111 (1\\'I1 st111·11 111 11l111‘1`
1l111111111‘ l`°l`lllll`ili11111s; 111*11\*i1li11g l_()l` ;1;;1*111-1111111ts with 111111*1*1·11-11111*1‘zl11\'t*1tSS0t’lil-
`.i`i(,H;_ lll‘llF lll this 111* 11tl11·1* status ;1111l stating 11111 11111`]111s1~s 111* 1'L‘11St111$ illl‘l`l“-
`N]m_ §il;L)l1;l':i>;"11'1itlilgl lt-11:11 11si111·i11~tl11111:4 111·11~1111`111*1~ 111*;:111'iz1—1l 111:1)* 1*1*111*g:111i;€•J
h_(_m]I\4 his mlm-·.' 11111115 *11 .1 1111>.11·1111.111111 111 1111111111 .1 111L`*111ll(‘1` 111 1111.1111
_ * 1(‘llllA ((11111.11*1 \\1111 1111* :1ss111*1:1111111, 111* @111*:111 f;1ls:* 1‘1‘]1111is
`mivml 11111111 illltl 11t‘12s1*1*il1i11g il 111111 i`(ll` (,‘l1L'11 11|`1Q11s1*; 111:111111; 5111*11 111`1`1‘I111C1`
1 • · .

 = t
S ('lrvlt/¢1i· No. I/:7
liable to the assot·iation for a pr<·st·rih¤·d pvnalty tli¤·:‘t~t`ot· Ep A   Ar
suit; providing lialiility to tho association in a pvnal stun jp _.·;,_;_ 15
cases for any pwrson who lilltl\\`lll§l}' solirits, [ll'l`Sllllllvs ny tt.;-_
any inoinbur of thu association to l>rt·at·li his niarltwtiug tt.;4g;-_,; tw
authorizing an injtinvtiou against such \\'1ll`(‘llt>llSt‘lllllllI an·l ;·rr»‘..i.:; lla:
fOl` pitytitollt of all llws uml costs; uml Fl‘l[llll{ out tho l`•·il¥~Y.— fr
such provisions; providing that no such association shall l»··   31,
11 conspiracy or an illvgal coinliination or monopoly or in vi »ja:;v;, j
any law of this Statv; and providing that tnarl<··tin;; t·ontra :~   lr;
not be considurotl illegal; providing that il` any swtiou of t?.E—   {lg
shall be doularctl nnconstitutlonal. tho i‘t~i1taiinlt=:· of tho art `E,,t_j ;_· ,;
be tlicrehy at`t`t·t·tt·d; providing that tho gt·n<~ral t-orpo:·atit»n   5
this State shall apply to suvh ;tssot·iations. t~xt·t·pt vvli·~rt~ itu~»·;;;.· ·_g ;
with oxpiwss provisions ln·rt·ot`: providing tor taxation in-~g--t_·; Iv
the assot·iation`s sharos and prop¤~rty; providing t`·~<·s for tilin: az; Q-~ ,
of incorporation and ill1lCll(llll<*lll$ tlt··r<·to: providing that ii,}    
may be lieroaitcr iinloxotl, and cited as "'1`hc llinyhatn (`\»—.t;··i.j,:¤ Q,
Marketing Act," and d0t·laring an l‘!llt‘l`}.{t‘lll'}' to cxist,  
Bc if rmzwfwl lll; lll: (hmm! .l.~·,~vm/»/yy of {ln ('t»utu»ol~lt»   ;t<
0f1t'¢iztto·/.·_t;; ‘i
1. Declaration of Policy.
. (al In ordor to promote-, fostor and oitcotirago thu llll·‘llIQ··Z` 5-
and orderly inatkoting oi a;rit·ultnral protlu<·t< through t·o-t»p··:·.ai` it
and to eliniinato sp¢~<·ulation and wastv; and to tnalw tho tli~tv·:‘11t.: suv
of agricultural protlut·ts l>¤·twt—<~n pro;lnt·<~t· anti <·onsuni»~r as ·lit*~ 1   tii~
CZU1 bo @ffi<·it·ntly tlono; and to stahilixv tho tnarlwting ot` :t¥l‘l<1llT`i¥`—¥ lll?
I products, this act is passwd. ill?
2. Definitions.
As used in this act, vi~
(u) The U‘l`lll "agrit·ult,tn·al pt·odut·ts" shall iut·ludt— l1t~1‘tft"1Z· at
tural, viticultnral, torostry, dairy, live stovk, poultry. hw illl‘l #$7 ttyl
farm products. to
(bl The torin "1n<~n1h<·r" shall int-ludo actual itil-t1ili··1`S~·Y—<*‘ tu:
sociations without vapital stovk and holtlt-rs of connnou rtuvli ill  to
sociations organizod with capital stovlt. _ tilt
t<·» 'I`ho U‘l`Ill "assot·iation" ntoans aug.- t·ot·pot·atioi1 oi‘:2¤llii* th
under this act; and _ lh
(dl The t¢·r1n "p<·rson" shall int·ludt~ individuals, ll1`lil#.l*¥ll`l“:` $t‘
ships, corporations and associations. _` N
Associations organizod lu-rt·t11uloi· shall hn dt~<~ni¤·rl "1l*"l*l‘l"`m‘ in
iTlHSI1NlCl1 LIS llloy aro not organizod to iuako protit lvtll` ll1t‘lll**`l‘4€S‘ Cl

 ('¤;-npim/[i·¢ .lI<1r/at/[uy] 9
in ;t i;—,_j H, su.-tr nr for tli··ir tn<·tnl>¢·rs, as suvh. but only for their members
in :··rt.¤_; as i*l`·"i“"":"·
*1‘ h·Z‘::.,i· U., ]·`t.i· thi- ]»t1t`t.<»s¤=s of hI`t·vil)' and t·ot1\‘•:t1it·11t:e this act may ·‘
<·i:.ir_,;_ ih. mlt.·x.·tl. r··f•·rr··lit, t·¤>-il.ti; :;‘ sz ;i<.t1n~l··r th·· pritvisiotis of this art.
n ].a.i~ if
t~ii::si~‘·;.t 4v Purposes.
]""?"i?* _\it ;tsslt·i;iti:·t1 may lw <>rt:attiz··.l to »·tt:ag¢· in any activity in
1* ~*i'V V . ;;n··t:i in with tlw ntarl<··titii.: or s··Zlin: of the a::‘i<·ttltural products
[ YE-?   ti its n;»·;nl»··:·s. or wjth the harv··stint:. t»:‘·>s··r\‘iit:. drying:. process-
’"’?'*~*V" i;;;_ t·;tnnine. ]—at·l;xl·l•· SllL'<'•t‘SS.
lt is il('I`t‘ rt~t~ogiiizt·;l that aurit·nltnrt· is t'll11l'il(‘i€I`iZL‘ti by indi-
V t‘i~lt1al tiroiltirtioii in vontrast to the izrotin or fat·tory Syslétll that
lli‘i"i*"·l·` <·li1t:‘at·tet·izt>s otlior 1`orms of intlnstrial protlttctiott; anti that the
iiilil **4 cttlitiiiry hirm of t·tn·ptn·att— organization nerntits intlnstrial groups to
cuitiliiiie for the ptttrosu of group protltiriioii and the ensuing.; group
‘1‘F MY ·°*‘ tii2it’lti·tin: anti that tl1t· pnhlit- has an interest in ircrtnitting I`1\I`1llGl’S
**1* ill  ta bring their imltistty to the high tlegree of t~t`t`it·ieiit·y and lll0l`-
- rltanialisinx skill t~vitl<~ttt·<·;l in the lllilllllI`(ll'illl`ill§ intlnstrics; and that
""¥i‘M"`: mt liilhlic interest tn·gently nvetls to in·t~vetit the inigration from
the larni to the city in ·t·]it‘·ilil·` ililll ltiotw tlirt·t·t system ot inarlteting in thn snlislitntion ot iner-
1ettiF¤‘l‘4*S· °h*lllli#ill,! for the liliml, nnst·ientilit· antl stwcttlative selling of crtitis;

 1 t
10 W1`r1·11/111· N12. //:7
und thnt for this ]lllI'lillSl‘. thv l`:11‘1n1·1‘s shtnlhl >ll‘l`\ll`\‘ $]*\‘(‘iili ;;.1i1;1;_.,1 Y
nntl lllS[l'll&'[l\'(* ·l:1t;1 l`l'l>lll th1· I)l‘1lll of lh1· (`<>l|¤·1.:•· tll` .\g1·i1-11111;;-,1,;
the L'11iw1·sity of ]{t‘lll\lt'li)’. 11
6. Powers. T,
Eatuh il55llt'lZlIltlll lIltUl|llll`il[t(i llllti1‘l' this :11-t sl1;1ll h1v~· 1i1·· ij. L
lowing powers: H
(all To ungngu ill tiny ;11li\‘ity in ('tlllllUl'[ltlll xxith th·· !1;.1:}; ··‘» I
ing, suliing. 1l1‘t—st~1·yi11g, ilill'\'&‘SIlll¥. tlrying, 111·1l1-1·ssi11;, 111;111111.11t·;r.
ing, ueinniiig. }lLll‘i(lll§1, ;LI`(ttiiIl;1, ;11;·t},. ;
n1;1nnt;1t·tt11`i11g(11·111:11l<¤·ti11g11t`tl1·· ll)`·}»Z'l'iillt'iS tl1<·1‘1·1»I`; ¤11‘ ill1}` _1 1;·.;j;.· 1
in cotiiictttitvii with tho ]llll`l‘il1lSt‘, illl`lll§`. 111* nsw hy its 111·-:1;?»·»··~ tf
supplies, 1I1ilL'i1iI1L‘l'}' or t·1111i1»1111·11t; (11* ill thv llllilllvlllg 1·1` ;111y ~·;i_ 1
activities; or i11 nny t>n1· Lll` lIl1>t t`1>1· Silll`llg;L‘. T
(hl Tu li1>1·1·1>w lll(lIlt·}' witlnnit liinitzititln ns tn :1:11.1111n ·~i 1 r-
porzite ilEli<‘ili(·il1l’S$ (ll` linllility; :1111l to 111;1ll1l, tll\`Il. .1:.E
exercise all rights of ()\\'lli‘l`Fillll in; :1n1l tn sell, [l'illlSZvt'I` 1111 ;I··E;--
01· gi1;11‘;111te<1 the ]lil}`lllf`Il[ of 1livi1l1·111ls or i11te:·t·st (lll. tll‘ l:l·` 1`·  .
_ ment or 1·t·;l1·1n1¤ti1m ot`, $llillv('S nt the tlljlllili st1»1·lt (ll` ll 1111ls 115 .1:.3 i
C‘O1`]lOI'Ll[lOIl 01· ll$$fl('lil[i()Il engnghtl i11 nny 1·t~I;1t<·1l il('·Zl\'ll}` nr in TEL-
\\'Zil`Gil(}ll.*lll§ 111· hnntlling or lIl1ll'i{1‘[lll§ 1»t` illl}' (ii tl1·· 11:·1»1l111·ts h.lllli*i
by the i1ss11<·i.1ti1;11.
wl T11 11st;1l1lisl1 1·1·s··1·v1·.< :1111l tn lll\'l“.<[ tl1»· 1`11111ls ll1··¤‘~~·11` :11
buntls or in sn1·l1 11tl11·1· ;1*1111—:·ty ns lllil}` ll1· 111xlvi1l1·.l i11 tl11· il}`ri,t'.\'§
(tl To llny, holcl :11111 (‘X<‘l`(‘i$Q‘ nll p1`ivil1·g1·s 111` 1»w111·1·>l1111.111‘»·?
snch l‘<%;1l <11‘ }l¢·i‘sr111:1i ]»1’1>]>1·1‘ty ns 111:13* l>1· ]lt'<‘t‘,<$,!l`}' Ill` 1·1111\‘··ll?~!lZ
fU1‘ tht? C'1lll!ill*‘[ zillfi ()[ll‘l`2Zii(l1l ¢1t` nny 11t` tht; l111si1111ss ttf th·~ 115511fi-l'
tion, or int1i1l.
(gl T11 do •:·:11·h 211111 1·y1·:·y thint: I}·’t'(‘S§ill`}', s11it1lll1· 111‘ 1l!`1*ll1‘i`
for thc z1(·<·:>1ntllishn1<*Ilt (il` nny <>111~ (li` tl11· ]llll`[i()St`S (ll` thv ;1it.1fl1111·1i1Z
0f any 0110 OT lll(ll`C ot tl11· s11l>j1·1·ts ilt*l`l*lIl 1~11111111·1·;1t1·1l; 1»1· 1·1>11.l111·€11c
tO OI` QX[7f;1‘F$ itil
p0wc1‘s, rights z1111l 111·ivilt·g1·s ]l(‘(‘l‘S·(ll`}' 1l1· iI](ii{1(‘Il[1l] ttm th1· 1111i`ll1*#"$
for \vl1i1·h tho z1ss1>:·i11ti1l11 is 111·g1111iz<~1l 111- to t,l11· :11·tiyiti1·s in “'illl`h
it is 011;;:1::ml; Illlti, i11 ;11l1liti1111_ nny tll]1(·1‘ rights, ]ltl\\'t‘l`S illlll lll`l‘”
ilcgcs gfulltuil by tht: lnws <1t` this St;1\1~ to ()i`(llll{ll`}' t·111‘1l1¤1`11ll<‘llf·
except such ns llI`l? i111crl11sist1e11t with thc (*X1ll`(‘SS ]ll'(l\`i>ilUll$ lll lm
act; and tn do any sneh thing illly\\’il<‘I`0.

 ('0-::];:1*:1/ii·¢ .Vll7`]i`(’{l-II{] ll _
Ikllla:,·~ T- Members'
lim-_lt_; ia. L‘n¤l<·i· th•~ U‘l'lllS anal <·<>1ill>1 <¤Ill}' t*ll};il}.i4·tl in ll1l* ]¤!`litl11<‘litm of the 3g1‘i(;ul[ur3l
;,;·`»ilqii·ts to l»·· l1znn.l·»u. su··h us<·nil»»·i· may l>·· i···i»i·¤s··i1t··f. duly autlnirizcd in
a tzxiijr avfiiiiig.
e?»··;·< ~i at (ln·· assi»i·ia1i;»n <»i·;;aniz··¤l li<·i·t·uxnl<·i· may lwcmiio a incinhcr
uy sti; .l;~ sn»i*l;li.·Z·l·»i· of any <»th¤·1· ass.>ciati<>11 or assmiuiationg organized
izi tl- E1~,·rt~i1ii·lt·:·.
r, Articles of Incorporation.
lll or- l).n·l1 asstit·iatil·n 1`t¤:·1n¤·il lllllll,‘l` tl1i< awt niust ]=re·p;iru and iile
t·n;l~»t*<. a:‘tEiil··s ··1` i1it·i»:·;o:;lZiiii1, smiling llirthi
lll*‘YYi?*·T nai 'l`h·· nani·· of tho zissiit-iazitui.
thi Tho ;~iir;i.¤s<·s for whivh it is furiiieil,
"ll· iii it-» Tho pZat·»· wh··ia· its i»i·in¢·i3al liusinuss will hu tx‘ausact€.>l`. which innst he not lcss
` m  titan liy»· 1T»· and may liv any nunihvr in oxuuss Ill•.’l`L*Lll`[ the l€l`lll of
h`m`1‘1 <*l`l`il·»· of >llt‘ll ili:l~l·t¤»1·s; unil tha nanius anzl zitlilwssos of thuse who
__ 1iT`r*ll st;·:·y·· as lllt‘<>l`]»tll`llllllK iliimttirs for tht- iirst tvrni. ur until
`:I°",u in t·$~·~l€~llt anal l[iZ1lllllL'll[l 'll ll <*¥°¥4ll1lZ·‘¤l Wlthliut <·;lj~il.1l stnvk. wln~;ht¤i· [ho In-0;xm·;y
Xwllmi Ylxhts anil intt—i‘i~st of oavli lll1‘lllllt‘l' shall hw vqual or unuqual; and if
_inlil·ahh· to all ]ll£‘Il\ll(‘l`S hy which
  I lllr ll‘<¤ti··l‘ly rights anti in1¤·i`i·stS. l`¢‘$]ll‘l'll\`<‘l}`. of oarh IllCllll)<’l` 111:i)`
p:_\_w_ null shall l».~ il·:··i·n1ini~:l anil 1i`<·~•3l`S.
`whit-li Wl ll` lifxullizvil with cuilital stncla. the amount of suuh stool;
4] pm. illlll lhv 1llIlllllt‘l' of sliaws into which it is ilivitlml and the par value
mmmsl tliercol.
M mis 'l`h<···a1¤ita1 stiivla may liu tliyitlull into ]ll`0lt‘l'l`<‘ll and coininon
Sllwli- il S0 tliyiiluil, thu lll`llt'll‘s of i1n·tu·po1‘atian niust contain Ll

 1. Q
12 ("irctt/ur No. I/.7
stutement ot` the nttmhcr of shurcs ot` stock to which no l¤re1`»·r»·n...
is grunted uml the nuturo uml tlclinitc extent ot' the l1l't·l`t·l‘¤·l1t‘··Ltihl =-·
privileges grunted to euch.  
The urticles must he stthscrilicd by the iticorgiorutors unll ;, I
knowledged by one of them before un officer utttliorizetl by lll,. g_,_._ Q;
of this Stute to tulte uml certify ueltnowletluimuits or tleetlg null ln;. n
veyunces; uml shull he lilel in u<·t·or¤lum·e with the provisions or ;3_.. Z1.
generul corliorutioti luw of this Stute; uml when so lileil ;li.· ,.;.3 g_
urticles of lIl('Ol`[l0I'1l[lUll, or cert.ilied copies thereof. sZ1ull he l'¤·t·»·l‘.‘·i ;,
in ull the courts ot` this Stute uml other plures, us priniu fueie ·~x·i·l··t:·~ ,5
of the fucts contuined therein uml ot` the dm; im·ot`l>o:‘ution ol` rn.}; ti
ussociution. A certitictl copy ct` the urticles of lU<`lll`]N*Z`1lliIll sE;_.jj
» ulso be tiled witlt the lleun ot` the (`ollege of .·\§.{l`ll'lllI\ll`•* o1` the l`ni·.¤:·. gj
sity ol` lientncky. .
9. Amendments to Articles of Incorporation. ;;
The articles of im·orl2orution muy he ulterctl or utnemlel ut uzgjr E:
regulur meeting or un}: speciul meeting culled tor thut ]llll`llt\5v·, .\u E
amendment must tirst be Lll`lll'L)\'£‘(i by two-thirds ot` the tlireet nw tn;} ·
then adopted by u vote l`Gl)l`t‘50llilIlg u inujority ot` ull the iii··ziib·:·s ·
of the ussociution. i\memln;ents to the urticles ot` iiit·.»:·l·.»i·u:i·~:;. ii
when so adopted, shull be liletl in uccortlum-e with the provisions  t
the generul corporution luw of this Stute. 1
. 10. By·Laws. ·,
Euch ussociution im·orporute:l under this uct must, within tl1irtj~‘ ¤=
(30) duys ufter its incorlnorution, utlopt t`or its governinent uml inznx- I
agement, u code of by»luws, not im·onsistent with the powers erunttl A
by this uct. A mujority vote of the members or szoelthohlers. er Y
their written ussent, is nccessury to mlolit such hyluws. f‘:Lll'!l u~· l
sociation, under its by-luws, muy provide lor uny or ull or the follow- Y
ing matters:
(21) The time, pluce uml munner ot' culling.; uml comlueting its 1
(b) The number of stockholders or members constituting u . E
quorum. 1
(c) The right of members or sto<·lt.il