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Lea diagrammes suivants illustrent la mithoda. 1 2 3 1 2 3 4 5 6 •t:.:^ MICROCOPY MSOIU'ION TKT CHART (ANSI and ISO TEST CHART No 2) A /APPLIED IIVMGE Ir 16f)5 fosr MO'" St'e*t Nochesle- New forh M609 USA t^i6) *ei - 0300 - Phong (716) 286 - ■1989 - fao PAMPHLET NO. 1 Reoiaed December. 1915 1 CONTAINING THE SASKATCHEWAN CO-OPERATIVE EEVATOR COMPANY AQ Together with an Explanation of Its Provisions PUBLISHED BY The Saskatchewan Co-operative Elevator Co., Ltd. L AJJrtts alt CommunUution^ to ORGANIZATION DKPARTMF.NT. SASKATCHtWAN CO-OPERATIVE ELEVATOR CO . LTD., REGINA. tmmm The Elevator Adl in Plain English 111 this pamphlet the facts concerning The Saskatchewan ( "o-operative J'^levator Company, Ltd., are presented. Practically ever\'thing in it is contained in the Act creating the Company, but here the facts are presented in simple language free from legal phraseology. It has been deemed advisable to adopt the categorical, or question and answer, style of presenting the subject. In order that the facts may be veiified, the Act itself is included with this pamphlet and may be referred to. At the end of each answer the number of the section (of the Act) that applies to the point under discussion will be found. (Question — What is The Saskatchewan Co-oix-iative Elevator Companv, Ltd.? Answer- — The Saskatchewan Co-operative Elevator Company, Ltd., has been created by the Saskatchewan Legislature and has at this date (December 1, 19L')). over 16,000 Saskatchewan farmer shareholders. As other farmers suliscribe for shares, tliey. tfu), become members, (Section 2.) (Question- — Why has it l)een created; wliat is its ])uiposc? Answer — It has been created in res))onse to the requests of the organized farmers of Saskatchewan for I'elief from the exactions of corporate interests, controlling, in a large niea.sure, the grain trade and other industries. It was the m<).«t jiromising measure of relief that the Elevator Commission and Saskatchewan Legislature could devise and has the unanimous endorsation of The Saskatchewan (Jrain (Jrowers' Association. The pur])ose of tht? legislation is to create a company of fanners as well directed and as strong financially as aTiy existing ('ori)oration in the grain trade. This ( "ompany is by its mere piesence in the trade raising the level of l)usineters of tlie ( "tympany living in one district, first met and apjxtinted delegates or repi'e.sentatives to attend the general meeting of the ( 'ompany and repr(>sent their local eievittor. \ i)ody of shareholders who aie all interested in on<' elevator and live in one district is called a "local." i.Soctiou 1.) Thus these delegates from each grouj) of shan^holders or local constituted the first general meeting. M this meeting nine directors were (-Ituited, three of tlietn for three years, three for two years, and three for one year. These nine directors are responsible; for the affairs of the Company until the next general meeting, and so on. (Sections 7, S, 10.) (2iicsti()ii--\V)uM-(' is organization being conducted fioni? Answor-The head oHice of the Company is at RoKina. All in(,.nnes on anv sul.ject should .eaddressed toOi-Kanization Department.Saskatehevvan ( o-operative lUevator Couipany. J,td., Hegina. (Section o.) Question— What are the powers of the ( 'ompany? Answer-The powers of the Company are very\vide as it mas do "all ™"^^%""'"'?ntal to the production, storing and marketing of grain " Ihus if It wishes It mav not only own and op..rate elevators and l.uv and sell grain hut it may own and operate luml)er vards, deal in cmi wood, Hour, feed, twine and machinery and, in short, do anvthniLr TWr/<"'l-''% fjr'r'""'^''''^''' f" **''' P'-'»l"<-ti'»i of "grain Lnder >ection 2 of the Act, therefore, th(> Companv mav en-.iire in any business needful to grain growing, if it judg,>s that the farmers are no getting a square deal from those alreadv engaged in it It was te t very strongly that farmers were getting less than justice from those engaged in the business of [,uying, storing and handling grain; the creation of this Company is the result. It has taken ve rt of effort and agitation to secure it, but on account of the wide p.nvers given to this ( onipany it will never again be iiece.s.sarv for the ..rg.inized farmers to ask for as.sistance of tiiis kind from the Saskatchewan Government. There is now no business affecting farmers in this province in which farmers may not lawfullv and c-ffectively .n-aee on a co-operative basis. (Sections 2, 4.) ** (Question— What is the capital and how is it divided? Answer— The capital of the Company is not a fixed amount, as is the case with other compames; it may l)e changed from time to time bv the Government. The reason for this will be referred to later \il the capital, however is divided into shares of fiftv dollars each. * These shares can be held only by farmers and no person is allowed to take more than twenty shares. Thus, no farmer can hold mor(> than $1 ,000 worth ot shares m the Company. To secure $1,000 worth of shares, however It IS not necessary that a farmer pay $1,000 in cash. Only $150 need De paid in cash. 1 his represents 15 per cent, of the face value of the shares. 1 he remaining 85 per cent, will remain subject to call \ tanner may take any number of shares from one to twenty. (Section .V. ) Question— How may a local be organized? Answer— If a group of fanners wiach havinjr al)ont 100 acres \inder crop: ten, each having al>out 200 acres: five, each having ahout ;500 acres: and foui, eadi iiavin.!-; aliout 400 acres under crop, each took from one to twenty shares, afjsrre^atins at least ISO shares, and paid u)) from 87,00 to 81.')0 on their shares, the ttital acreage under croi) of the>e twenty-nine fjirmers would lie (i.lOO acies. The Act requires that the sharelioiders shall represent 2.'M)() acres of crop for eacli 10.000 Imsliels caiKiiity of the i)r()posed elevator. Thus, these twenty-nine farmeis and shaieholders would eiiaMe the Company to huiUl or "buy a :}0,000 bushel elevator. Tlie.se n>(iuirements are ((uite rea.sonal)le. and tuv designed to secure and retain the interest and suppoit of a sufficient numlxT of the actual grain-growing farmers to insui-e the success of the local, even if no grain othei than that grown by shareholders were handled by the elevator. The objectionable and unworkable feature of requiring a guarantee of support from the farmers of a district is absent: but the self-interest of a suHicient number is invoked and su])i)ort i)ractically assured. (Question — Does a shareholder pbdge or bind him.H'lf in any way to ])ut his grain through the ('om])any's elevator at his ])oint? Answer -No ]dedge or guarantee' of any kind, expressed or irni)lied, is e.\i)ected, asked for, or re(iuired. A shareholder is as much at liberty as any other farmer to ship his grain how he pleases or to sell it to the highest bidder, it has Ik en i)roven, however, that the Conrpany is able to do for its sui)porters at least as well as anyone else can do, and its shareholders realize that by dealing with it, they, instead of others, will receive the jjiofits, (Section 12.) (Question— Is the ("ompaiiy comiK'lled to organize .a local and acfiuire an elevator at every ]>oint that requests are received from? .\nswer--As the ('omi)any is a commercial concern— that is, it exists to conduct a certain line of business at a ])ro{it- it is evident that it must be allowed to carry on its affairs and develop in its own way. and always with a view to making a financial success of its work. There- fore,' it may not always be possible for it to estal)lish an elevator immediately it is asked to do so. The elevator might be far distant from any existing local so that the cost of insi)ection, etc., would be very heavy. To b(> administ(>red economically elevators should be located in groui)s or in lines (h(>nce the term '•line coini)anies") and if it is to .succeed iinaiicially ami othenvise the Comiiaiiy must act in harmony with economic laws, just as a i)rivate cojujiany would have to do. (Section 12.) (Question — Can the Company organize locals or establish elevators at jioints where the shareholders have not enough acreage. Answer-Provision is made in the Act for the estalili.shtnent by the Companv.with the consent of the (iovernnient. of elevators at jwints where tlie shareholders may not represent Coiniiany revic'wed. The meetmg mav also add to, or amend, the Ky-laws regulating the affairs of the Comp.any. (Question— Where is the necessary money to come from? Answer— The Company must have money to buy or build elevators, and t>^ buy grain. Of the money required for acquiring elevators 15 p'r cent, is paid by the farmer shareholders and 85 percent, by the -'askatchpwan fJovernment. This monev is loaned bv thi! (lovcniiu'iil and is not a uraut For the p.iiposc ol' Imyiiin grain, the Company may Itorrow from a hank on tlic s(( iirity of its uncalled capital stock. It may hypothecate to th(^ bank the grain wliich it buys. It may mortgage any real or i)ersonal property it ac(iuires, and, generally, it may arrange to raise the necessar> funds in exactly the same manner as otlur companies do. The Government neither gives nor loans to the Company any money with which to buy grain. (Sections 27, 24. M. 4.) (Question How are the earnings of the Company spent? Answ(M- The money earned by the Company is spent as (1) Kxi)enses (if operating and maintaining the e first paid; this includes head office expenses, salaries, etc. (2) .Vmounts due to the (lovermn<'nt for principal and interest loai\s made for the ])urpos(> of actpiiring elevators will next be paifl. lot lows: levators, etc are on Divisions of Profits. (li) .V dividend of not more tiian 10 per cent, may come next; it rests with t'lie Company to decide whether any, and if any, how much, of the i)rotits shall lu- distributed in the form of a dividend. (4) The balance, if any. may then be divided according to any one of s(,'veral i)lans. .\fter the dividend lias been i)aid, (and this has been the policy hitherto adoiHed) 50 per cent, of the balance of the surplus, or profits, may be ai>plied on the unpaid portion of the shares that were allotted prior to the first of April in the financial year during which such surplus was earned. That is to say, a c(rtain amount may l)e placed to tlie cnnlit of the shareholders for each share they hold, increasing its jiaid n\) vahi(> and lessening the unpaid portion for which the shan^holdcM- is liable, thus improving the Cfmipany's standing by increasing the iiaid \ip capital, without making further calls upon the shareholder. If this procedure is followed for a numlx'r of years tlie shaiciiolders may in time become posses.sed of fully paid up shares without having been called upon for more than the first ])ayment of 15 p(>r (H-nt. Or again, half of the remaining surplus, after the dividend has been paid, may be divided amongst the shareholders on the i)asis of the business brought by them to the Company; thus, tiie man putting Hve thousand bushels of wheat through a co-operative (^levator would receive five times as large a .share (,f tlu' balance after the dividend has beiMi paid as would the man putting oidy one thousand bushels through. This should naturally enc(Hirage loyalty to theii own elevator upon the [>art of the supporters of a local; or, half of the balance may be paid to the shareholders upcm the basis of the profits earned by the particular local to which each belongs compared with the profits earned !)y others. Having ilisposed of 50 per cent, of the profits i after the payment of the dividend, if anv, has been provided for) in accordance with one, or more, of the plans outlined, the balance nuist be placed to a reserve fund which woukl be a nest egg for u.se in a bail year, should one be experienced. Thus, several i^lans for the distribution of profits are provided in the Act. and the choice of any, or either, lies with the Conmanv. (Sections 20. 21.) 8 Question It is n».t a fact, then, that all prohts and losses must In'PooJ'.'l ^ and that the supporters of a successful local .^-lU get no more than the supporters of an unsuccessful one? Answer-It has been wrongly thought by many that all profits and losses must he pooled, and that the division of any surplus would be on he hi" ' of share and share alik(«. It wdl have been seen from he foregoing that this is not the eas,>. an.l that provision is made in the \"t^^ various divisions *,f a suq-lus, and tliat the choice of which division shall be made re^ts with the general meeting. Hu; earnings dl locals need onlv hv p.-ol.-d until operation and maintenance •hnruc^ on all have lu'cii paioveni- nu'nt iiav.- '-.><■.. •,. funded. Of <'oui>e, the basic principle ol a M ,.-'•• .;>-n>nse is that of union for strength, ami hat the r r .oitunat,. may uplioid the weak and untortunaf. 1 he sh, .olders are. therefore, shareholders m ti... ( ompany as a wholc ^ulv .•omu.-t.d with tlu.ir lespective locals on y as supporters and tr ons then /'. The piin.iples laid down by the ongmators . f the 111 - that eaci« slu;reh..lder shoui.l have a financial interest '.v* in his own l..cal, but in the Company as a whole, and that locaiS nst ca.l of being indepeiulent of ea.'h other, should be- inter-dependen hr vigh a svstem of centnd manag.m..nt-have lu..;n amply just.hed 1 eexpeVi..nce of the Company, and have Ik..,, impor ant fact oi-s i its success. Thus, though in unfavourable seasons the bu.s,, -s o a few lo<.ds mav be seriously affect.-d by drought or hail. uk. roHnuraliv.. f.>atu.r of the ( on. j. any 's organization proviues a link in ing th.' whole tog.-ther so that locals domg an unprohtable ,si "ss Mi-e h.'lpcd and carried over by those doing a good business Wen' the afTecte.l locals owned ami controlled by small mdepeiul, nt firn.-rs companies, the shaiehol.i.-rs wo,.l.l not only not revive ii 'ends, bu their <-oinpanies woul.l possibly 'ne ..ompelk-d to give busim'ss ..wing to th.' financial loss of operating their .-leva ..is der s 1 ii' a Iv.Jrse .....utitions. The policy of shaiv ami share al.k.. s ma advantag.s and were it n..t a featun- to some .;xtent th.- ' ,11, ■ V 1 hi los.' half i.s usefulness an.i use on y ha t its oppor- 3 Mat, to follow :hat policy .hrough thick an. thin might ■iv..l K .in.l.r .ertain .iirumstam ,>s, be almost jnitting a :r;nh m ." ■ . s, .l ...l .hsloyahy. as s.,me h,cal n.iglit slacken :S; St. war Is SU....SS an.l nst ..n the a^^uraiuH. that the ..th.Ts v.r. s cc. gaM.l that it w.,uUl sha.v in the profits. Ih.-r.. ore rnvi<^^ !■' vis,.iv b..n n.a.l.- for sev.-ral .syst..ms of .list ribut ion f " t ;^^^ ^ "I- tl.-' "">ul>er ..f shares hel.l ; or on a patronage Ul ha s in a....,-.lan... with tl... :.n...unt ..f busm.-ss br.„iglU ;, u> HMpanv bv ,.a.'h shaivh..ld.-r, ..r to tl..- si.pport,.rs .,f .-a.h in a ninlan..e with tl... a^v^atc n.h.t.v.^n.. I.nanc.al ivs.dt S il,.. b.isin.'ss .l..r. • by tl... ,vsp..ct.vc. l.....is. .N-.'t...n 20.) (h...stion What assistan... -h-s th.. ( ;ov..n..n.-nt ,.v.. t.. tl.. ( on.p.ny" Vnsw.T The (;..v.Mnmcnt will a.lvanc.. in -ash ,S5 per . ent ol the c..st '" "V h'",c.v ,■ i..».i;. ;;; .-I. ;.v :i;,;: ' i;»;i;;!;';;,„, ^ ■.TS;!'. it V-».l".''v^ •■' ll".»- »|.l."i"<'-'l '.V "»"'■ 'I'-'-"'" ""■"' """"■'"■ and the ( lovornincnt will put u). \\n- iiiuiiy. Ihis nioiify is to ho loaned to the Company, not to the local. (Sections 27. 24.) (Question— When is this money to 1><' repaid, and what is the ( loveni- inent's security? Answei— The C.overnment takes lor its security a fii-st luortRage on the elevator ami other proi)erty of the Comi)any at that i)oint, and also has a claim rest ; hut the first of these payments will not hecome flue until (in most cases' more than two v( ars after the elevator has heen huiU. Tor instance, the first instalment of money ioanc hy the Government to the Company in Mav. IIUI. did not hecome due and i)ayahle until \unust 13, 1913. 'Ihus an elevator huilt in 1011 had the whole of two crops passed thiouph it hefore it was called ui)on to pay one cent either of inincipalor intere.>^t ur.on its loan. (Sect ions 24, 25, 20.) Question— Why does the (".overnment control the amount of stock to he issued? \iiswer — The (loveniment has to horrow the money whioh it will loan to the Companv in the manner described. It also has to borrow luonev at intervals for a variety of capital expenditures, such as construction of telephone lines, bridges, luiildiiiKs. etc. It is expected to keep the credit of the province on a hinli level, and must ixurow money only at times when the money markets are in a buoyant condition; othenvise it cannot sell its i)onds— or iiromise to pay- to such good advantage. It is for tliis rea.-f the i»rovince and the other interests that must i)e provided for and i)roteete(l. the Covernment must he allowed to decide in a ueneral wav. hv controlling the amount of stock the Company may issue, how "much money it shall be called upon to advance for the construction nr imrchase of devatoi-s. (Sections 3, 20.) (Question Will a shareholder be lial'le. in the event of the failure of the Company for more than the amount of the stock he holi])any shall be ami are hereby dcclan'd to In- a \hhI\ corporate and ]K)litic under the name and style of "The Sjiskatchewan ( 'o-operative Klevator Company, Limited, " with ])ower to construct, accjuire, maintain and ojM'rate grain elevators within Saskatchewan, to buy :itid sell grain and generally to do all things imidental to the production, storing and maiketing of grain. 3. The cai)ital stock of the comi)any shall consist of such amount as shall from time to time be fixed by the IJeutenaiit Ciovernor in Council and shall be divided into shares of fifty ilollar each to be held only by jigriculturists: l*rovidefl that no i)ersoii shall hold more than twenty shares and no assignment or transfer of any share shall be valid unless ai)i)rovi i)y the directors. 4. The company shall have jMiwer to actiuirt' by purchase or otherwise and to hohl any interest in real or p<-rsonal property which the directors may deem reriuisite for the jiurposes of the company and to dispose of the same or .'uiy jiart thereof. 6. Thi" head office of the coini)any shall be at Hegina in the I'rovince of Saskatchi'vyan or at any such other place in Saskiitchewan as the directors may from time to time deter- mine bv i>vlaw. 11 6. Lutil directors are elected as hereinafter provided 'hp^/^;;';,;;;'^:''' aforesaid John A. Maharg, of Moose Jaw; Charles A. Dunning, ' "*'' '"" of Beaverdale; Fred W. Green, of Moose Jaw: A. G. Hawkes, of Percival; James Robinson, of Walpole; Dr. T. Hill, of Kinley, all in the Province of Saskatchewan, shall be the provisional directors; and they or a majority of them are hereby empowered to take subscrii)ti()ns for shares and to n'ceive payments thereon, to organise locals, to make all necessary payments for costs and exi)enses incident to the sale of shares and the organisation of locals and generally to perform all acts and things iiec(>ssary for I'.ie organisation of the company. 7. The company shall not commence l)usiness luitil twenty-j j_;'^'"J"«- Hve locals have been organised as hereinafter provided. buMn.- 8. As soon as the conditions for the cominencement ot'^^'er,.] business as set out in the next preceding section have tx-cn ".eotinB complied with tlie provisional directors shall call the first general meeting of the c()mi)any at the head office of the company by giving twenty days' notice of the holding of such meeting to each shareholder: such notice to be given liy registered letter; and at the said meeting a board of directors comprised of nine duly fjualified shareholders shall be elet tid who shall l>e paid such remuneration as the meeting iii.iy determine. 9. \\ the first g>'nerai meeting oi til" company lliree ilireclors i>ir,.(i,,r, shall be elected for three years, three for two years and three for one year and thereafter a sufficient numi)er of directors shall be elected each year to fill the vacancies occurring on the l)oard; and all directors elected annually subM-tpiently to the first general meeting shall hold office for three years. (2) The compaiiy in general meeting may by a resolution which shall ri>ceive a two-thirds iiiiijority of the delegates voting theriMJu remove any director before the exjjiration of his period of office and may subsetjuently by an ordinary resolution ajipoint another ])erson in his stead, the person so appointed shall hold office during such time only as th(> director in whose place he is ap])ointed would have held the same if he had not been removed. 10. The persons entitled to vole at the first general meeting it—,- and at all subseijuent general meetmgs of the company sliafl v.te be the shareholders who have Ix-en elected delegates liy the Iwals for that pun>«" under the provisions of section 14 hereof: each delegate shall have one vote; and excei)ting as i)rovided in this section no shareholder shall vote at any meeting of the company on account of any shares held by him or othensi.se and all acts done by a majoritv of the delegates nt any meeting of the C(mii)any shall I- deeme(l to i)e tiie act- of the eompimy. 11. The business of the company shall be managed by thec„«,r, ..i dirci'tors who may affix the seal of the comi)any and luakc '''"''"'" all contracts on behalf of the company and may exercisi' all mm ~-i:,-r powers not contrary to the provisions of this Act which may be conferred upon "them by bylaw of the company. •' Locals. 12 Any iHiml.,.r of sharclioi,l,.rs may re-. ...^ the directors to establish a local at any railway shippi. g point in the province. ' ■ f j 13. Tlie directors shall not without the con.sent of the l.ieutcnant (lorvernor m Council establish any local unless it appears to their satisfaction that the amount of shares held by the supporters of the proi,osed local is at least equal to tlic value of the projwsed elevator, that fifteen per cent, of the amount of such shares has been paid up and that the aggreeate aim- :i rop acreage of the said sharehol.lers represrnts a prop. .<■■ .n of not loss than 2.(«)0 acres for each lO.OOO bushels 01 (^levator capacity asked for. 14. Upon the establishment of a local and annually thereafter upon a date to be fixed by bylaw of the c.)mi)anv a nieetine of the supportercs of the said local shall be h.^hj at which all matters i)ertainmg to the management, operation and main- tenance of th(. eh.vator shall be reviewed and discussed and a local l)oard ot management consisting of five dulv qualified sup]M)rters shall be elected to hold office until their successors are ai)}H)mted; and at the said meeting there shall be elected from among the sui)po-ters of the local three delegates or such other number of delegates as tiie (•omi)anv mav bv bylaw (feterunne to attend the general meetings of the conipany." 16. Tnless otherwise provided by bylaw of the company at all meetings of the supjx.rters of any local each sh.an^holder siiall have one vote for each share held by him: I'rovidetl that no person shall have more"tlian five votes. 16. The local board of management shall have su( h i)oweis and duti<-« as shall be determined from time to time by l)ylinv of the en or as may be delegated to them by t Ik lirectors. Finance. 17. It shall be the duty of the directors to make provision for keeping an accurate account of all the business and financial transactions ot the comi)any and for tliat imrpose all books record.s, forms and methods of accounting shall be s'ibinitte«i to the Provin.'ial Treasurer and Provincial .\uditor forapprova' before being adopted. 18. The financial y.-ar of th(> company shall eml on the thirty-fu-st day of .July in each year, on which date the books and acc(.unts of the conipany >liall be clo.sed ;,„d balanced 13 /T 19. It shall he the duty of tlie Pro v'incial Auditor to arrange Audit by for a continuous audit of the accounts and inspection of theSudu"?"' hooks and records of the company. Such audit and insjiectioa shall Ixi under the supervision of the Provincial Auditor, and the cost and expenses thereof shall he paid by the company. 20. Out of the moni'ys received by the company as a result ^'ip'^«'''o«> of the operation of the elevatoi-s under its control there shall recelv'^^'by first be paid all charges for operation and maintenance including ""■ '^^""p-"'>' salaries. (2) If after the said charges are paid there remains a surplus on hand at the end of the financial year the coini)any may at its discretion pay out of such surplus to (>ach shareholder whose shares were allotted prior to the first day of Ai)ril of such financial year a dividend of not more than ten jx'r cent, upon the paid vip capital. (3) If after the said divid(>n<'s, if any, are paid there remains a balance on hand the company may at its discretion distribute (a) To the shareholders of the company such sums as may be fixed by the company but not exceeding fifty pc cent, of such balance on a co-operative i)asis, each shareholder Ix'ing entitled to receiv(> such sum hereunder as shall he fairly and ecjuitably proportionate to the volume of business which he has brought to the company; or (6) To the supporters of locals such sums as the company may fix hut not exceeding fifty per cent, of .such l)alance on the basis of the aggregate relative net financial results of the respective locals; or u) To the shareholders and supporters of locals partly according to each of the schenie.s of distribution provided for in clauses («) and (h) of this subsection such sums as the company niay fix but not exc(H'ding on the aggre- gate fifty per cent, of such balance; ('/) Or in lieu of any or all of the paym;'nts authorised under this or the next priu-eding sul)section as aforesaid it mav apply such surplus or balance to the extent of fifty per cent, thereof for the general purpos:'s of the company or in making i)rovision for the same: (c) Or it may apply such surplus or balance to the extent of fifty i)er cent, thereof in licpiidation or part liquidation of the unpaid balance of the capital stock of the company, an e(iual i)roi)ortionate i)ayment being nuuh' ui)on all shares allotted ])rior to the first day of .\i)ril in the financial year during which such surjilus was earned. (4) Should there remain a surplus on hand jifter all i)aymen: > u, and (iisburaemcnts are made as pro/idi-d in the next preceding 'j'- subse«'tion of this section, such suri>lus shall be set apart in ' a separate account to he styled "'■lie Elevator Reserv, .\ccount," which account may Ik; drawn U])on by the compan\ from time to time for the puri)o.se of purchasing grain, and at IS •;--^ c*-*- ^■ t>-" ^V^ ^•""■^^HT^fWi-S*'. upon next prccodinR soctinn d*',,o>it(>iitp;iti\ fuilfJs foi lo:.ti- 1 i-llii-- nl rfp:i> rnrnt niid Mffurit \ tliiTflor 14 the clo«' of tl.c grain stuson any sum so take, and invested shall be replaced in the a(;count out of the company's funds- i rovided that the funds in such account may be employed or such other puiposes not inconsistent with this Act as may l)e approved by the Lieutenant CJovernor in ("oujicil. 21. The i)rovisions made in the next preceding section for the paynunt of dnidcnds, the distribution of surplus moneys and the creation of a reserve fund shall not he put into effect unless and until all moneys then due and pavable to the Kovern- ment unfler this Act li:i\'e been paid. 22. All iiK'iieys received by th.> company or any of its officers on behalf of the conii)any shall be deposited forthwith in such chartered bank or banks as the directors may detennin(> and shall be i):ud out under regulations to be framed bv the (lirectors by clie(,ues signed l)y the president and treasurer ol the com])any or such officers as niav be appointed bv the pun)ose. 23. The treasurer of the coiiipanv and each of its officei-s • •inj)loyees or servants whose duty it is to receive or handle inoneys on behalf <.f the .ompaiiy shall before entering ui)on the duties of their office furnish a bond or covenant of some Kunrantee company to be named by the directors to secure he ,lue accounting by them for all monevs that come into their hands which bond shall in each case be in such form .■mil tor such amount as shall be approved bv the directors or such other offi.'crs as are appointed bv the board of directors lor that i)uri)ose and the directoi-s shall pav the premiums foi MKh guarantee lionds out of the funds of the company. Government Assistance. 24. The Lieutenant ( iovenior in Council is hereby authorised {I'.iii imie to lime and ou such terms and conditions as mav lie agreed on with the comijany to loan to the company for thV puiposcoi aiding in the a.quisitiou or construction, extension or ie.>,odelling ot any local elevator a sum not to exceed eightv- I. .(• ')er cent, ol tli- estimated cost of the said el<-vator or such .xtension or reiiKxIcllmg of any .such elevator as may from time to time be .-onsidered advisable or necessary- by the directors. (2) Lor the 1)111 pose of raising the funds recjuired for loans iiiK er tins .s<.cti()n the Lieutenant (lovernor in Council mav niitlK.rize the Provincial Treasurer from time to time to issue securities ot the province: and the sums reciuind shall be rai.sed .IS provi.led by The Saskatchewan Loans Act and shall form l)art o) the general revenue fund of Saskatchewan. 25. Any sums loaned to the comiiaiiv l.v virtue of the ik \i preceding section .shall be repayable in tw<'ntv e(|ual aimual in.Malnuiits of priiK ipal and interest, the fii-st of sii.-h instal- ;neiits to be due and payable cm the thirtv-hrst dav of August m lie second ye;ir next following the granting of the loan and .-li:ill he .vfcured by a mortgage or moilgages u|(.n the .said HPP 15 elevator and unv intirist in real or personal projM'rty which the company may hold and use in connection with th(> said elevator. 25a. All elevators, property or uncalled capital stock of the company and every interest which the company may have therein intended under this Act or by any agreement iK'tween the company and the government to be transferred to the government as security for any loan or advance made under the authority of this Act or any other Act to the company by the government shall jKmding the execution of such transfer or transfers be charged with the i)ayment of all moneys which may have been or may hereafter be advanced upon any such loan pui-suant to the terms of any agreement relating thereto lietween the government and the company and the company may not without the consent of the Lieutenant (iovernor in ( 'ouncil first obtained dispose of the same save sui)ject to any charge so created as aforesaid. 26. The form and terms of the mortgages and of anj- other I'vidences of debt which may be given by the company on account of any such said loan, the times and maimers in which the sums loaned shall be paid to the comi)any and the disposi- tion of ail moneys loaned shall be such as the Lieutenant (Iovernor in Council may apjirove. 26o. It shall be sufficient for the puqioses of this Act and The Chattel Mortgage Act if any chattel mortgage or other instnunent given by the (tjmjjany to the province or to any minister on ix'half of the province by way of security for any advance maile to the com[)any under the authority of this Act be without an> affidavit of execution or of bona Jidcs or without a detailed descrijitioii of the chattel i)ro])erty charged thereby filed in the office of the registrar of joint stock com- panies and such mortgage or other instrument shall have ])riority from the date of such filing over all executions, trans- fers, mortgages or other incumbrances or charges or dispositions of any sort atTecting the same (jrojierty or any i)art thereof and shall from the date ot the filing thereof as aforesaid l)e and remain in full force and effect without renewal \mtil discharged or satisfied. 27. The i.icuti'uant (iovernor in Council shall have power* ■'•■Mr.: to pay to the provisional directors of the com))aiiy any sum i'.'i'^,',!.V:im" not exceeding the amount granted by the Legislature for that J:';^';|^'|"" " pur])osi' which may be required to cover the expeus(>s incurred in the organisation of the company and of locals; any sums so jiaid to the i)rovisioiial directors shall be exiiended in such manner as may be approved by the Lieutenant (iovernor in Council and all such exixMiditures shall be subject to the audit of the i)rovincial auditor. 27a. Subject to the approval of the Lieutenant (iovernor in (.uaiu.t,, i Council and u])on such terms and conditions as may i)e fixc^l i',?|'!,'u'n'r ' by him the Provincial Treasurer may enter into an agreement i'liynteiit '■! ormiiii-rttioM m^ m 16 with the compuuv unci with any pei-son, bank or corporation to guarantee the repayment of nionej's advanccHi to the company for purjwses authorised by this Act, with interest, and the company maj- secure the government against loss through such guar-'-'^oe in such manner or form as the Lieutenant Governor ui Council may approve. General '■"'"'' 28. The Lieutenant (Jovernur in Council shall have power KiTenai.i to make all j)rovisions not inconsistent with this Act which c-num'i'i "" '"'^y ''^^ required for the better carrying out of the ]Mirposi's of the Act. burt'uu mtini-y Bylaws 29. The coniy)any may from time to time make such bylaws not contrary to law or inconsistent with this Act for the administration, management and control of the propertj' and business of the company and for the conduct in all particulars oi the affairs of the company as are considered necessary or expedient for carrying out the provisions of this Act according to the true intent and meaning thereof. 30. The company shall have p)ower to borrow money for the purpose of carrying out the objects of its incorporation and to hypothecate, pledge and mortgage its real and personal property, rights and assets and to sign bills, notes, contracts and other evidences of or seciuities for money borrowed oi- to be borrowed by the company for the jiurposes aforesaid. (2) The board of directoi"s may exercise these powers wiien duly authorised thereto l)y i)ylaws of the comiiany. VariaticMi ot Attrtt'iiienu tn hi' laiU befnn- Leiri-lAturp Agreements 31. Where the company has hitherto made or shall hereafter make an agreement with the government of Saskatchewan or with any person, bank or corporation or with the government and any person, bank or corporation, the terms of such agree- ment may be altered or varii-d with the consent of all the parties thereto. 32. The provincial treasurer shall lay before the Legislative Assembly within Hfteen days of the oi)e!iing of the annual session in e-ach yt>ar copi(>s of all agreemiMits entered into by the government with the company or with i-ny person, bank or corj)oration for the advance of money to the company, for the guarantee of any advance or for 'iie indenuiification of the government against its liability under any such guarantee. -Jj:^Ti" -: fsL:^