ences to the statutes, see Vol. I., Stimson's Am. Stat. Law, Art. 666. The enticement and harboring of apprentices is sometimes forbidden by more recent statutes. Compare § 5.1

Provision is now made in many of the states for industrial training, or the teaching of manual arts in the public schools.2

In New Jersey and New York provision is made for free lectures to working people on natural science and kindred subjects, and the purchase of books, stationery, charts, and other things necessary. These lectures are given in New York in the evening in public school-houses, one at least in each ward.3

In Pennsylvania special legislative encouragement is given to the Pennsylvania Museum and School of Industrial Art, which is declared to be the only institution of its kind in the United States.1

See Md., 1890, 811.

For special statutes upon this subject, see N. J., 1887, 173; 1888, 38; 1895, 294; Ct., 2118; N. Y., 1888, 334; O., 1887, P., 92; Io., 1621; 1874, 64; Ga., 1273; 1885, 423; Wy., 1895, 88. In other states it is provided for in many cases by the general school law.

3 N. Y., 1888, 545; N. J., 1895, 48.

4 Pa., 1888, 88.

CHAPTER IV

PROFIT-SHARING, CO-OPERATION, AND LABORERS'

STOCK

§ 42. Co-operative Associations.-The constitution of Wyoming provides that the legislature shall provide by suitable legislation for the organization of mutual and co-operative associations or corporations.1

The laws of several states provide for cooperative associations to carry on any ordinary manufacturing or distributive business. Of these the statutes of Massachusetts, Connecticut, New Jersey, and Minnesota are somewhat similar. They provide that seven or more persons may associate themselves with a capital between $1,000 and $100,000 (in Ct. $50,000) for the purpose of carrying on any mechanical, mining, manufacturing, agricultural, quarrying, or printing business, etc. Such corporations must distribute their profits and earnings among their workmen, purchasers, and stockholders at cer

1 Wy. Const., Art. 10, § 10.

Mass., 106, 9, 72 & 73; Ct., 1895-1904; N. J. Sup., p. 138; Minn. G. S., 34, 155, 165.

tain times and in such manner as prescribed by their by-laws, but at least (except in Connecticut) as often as once in twelve months. Except in New Jersey, no person may hold shares in such co-operative association to an amount exceeding $1,000 at their par value; and in all states no stockholder is entitled to more than one vote on any subject, and this provision is commonly followed in all such statutes. In Massachusetts, Connecticut, and New Jersey no distribution of profits can be made until at least ten per cent. (in New Jersey 5 per cent.) of the net profits has been appropriated for a sinking fund, until there has been accumulated a sum equal to thirty per cent. (in Connecticut 20 per cent.) in excess of its capital stock. No certificate of shares shall be issued to any person until the full amount thereof shall have been paid in cash. No person shall be allowed to become a shareholder in such association except by the consent of the managers of the same.3 The members are liable ratably upon dissolution for debts."

Similar laws exist in several other states.5

3 Minn. G. S., 34, 162; Ct., 1902; N. J., p. 140.

4 N. J.

5 In New York any number of persons, not less than three, may form a co-operative association, with a capital of not less than one thousand dollars, and must use the word " COoperative" as part of their corporate or business name, but are liable ratably for debts, etc. N. Y., 1867, 971; and so

§ 43. Special Stock.-In Massachusetts there is a law providing for special stock which may

66

in Kansas, each member having one vote. (Kan., 1456-58.) In Pennsylvania, co-operative associations, protective and distributive, may be incorporated by five or more persons, whose stock capital shall consist of the amount standing to the credit of the members; and there may be two classes of shares, one of which, known as " permanent stock," shall not be withdrawable, but may be transferred subject to the by-laws, and each member must hold at least one share thereof; and the other class, ordinary stock," which may be repaid, transferred, or withdrawn in accordance with the by-laws. The shares of either class, in amounts from five to twenty-five dollars each, may be paid for by installments, or otherwise, or by the interest thereon, or by profit dividends. No amount of stock to be held by any one person or firm shall exceed one thousand dollars, unless specially consented thereto, and no member to have more than one vote, to be given in person, and not by proxy. Minors may hold such shares. All transactions between such association and its members or other persons shall be for cash, the members to be severally and jointly liable for all debts for labor, and for other debts lawfully incurred to the amount of their unpaid capital stock and no more, and such company may be authorized to invest its funds in stock of other similar co-operative associations. (Pa. Dig., p. 389.) And by a recent statute, with the preamble that, "whereas associations of capital are protected by law, associations of labor should have the same privileges," it is enacted that five or more employees, three of whom must be citizens of the United States, may form themselves into an association for their mutual aid and benefit and protection in their trade concerns, with the ordinary corporate powers and authority to hold indefinite amounts of real estate and personal property, and adopt by-laws, etc., not inconsistent with law. (Pa., 1889, 194.)

be issued to the employees only of any corporation by vote of the general stockholders. The

This preamble is a glittering generality, but rather a dangerous one, as it would seem to be easy for any five persons who call themselves employees thereby to form a corporation with practically unlimited powers in holding real estate, etc., which is distinctly not a privilege granted to ordinary corporations of capital. It has been omitted from the new Digest. Pa. Dig., p. 2017.

In Wisconsin, any number of persons, not less than five, may form a co-operative association to carry on any trade or business with shares of a par value from one to ten dollars, and such association or its members may own shares in any similar association not exceeding one-third the capital stock thereof, but having only one vote therein. The capital stock

is exempt from execution or attachment except for debts of the association, and members are liable for such debts to an amount equal to the par value of their paid-up capital stock proportionately, and such associations may sue and be sued, hold property, and have all the rights and privileges of other corporations or citizens. Wis., 1887, 126.

In Michigan, five or more persons may unite as a co-operaative association for purposes of distribution or manufacture or agriculture, with capital stock consisting of shares from five to twenty-five dollars in par value, and not less than five thousand nor more than five hundred thousand dollars in amount. But both stockholders and directors are severally and jointly liable for all debts for labor performed for said corporation. Mich., 3935-3940.

"A co-operative business corporation is a corporation formed for the purpose of conducting any lawful business and of dividing a portion of its profits among persons other than its stockholders. Co-operative business corporations shall be formed under and governed by Division First, Part IV., Title 1, of the civil code of the state, and when so formed, may,