PRICE AND EXPORT AGREEMENTS OF FOREIGN COMBINATIONS. 505
FUNDS OF THE ASSOCIATION.

ArT. 2. The funds of the association shall be raised through a tax of 1 sucre
on each quintal of ‘cacao exported, which the producers shall pay. This tax
was legally established by a decree of the legislature on October 28, 1912, It
was assigned exclusively to the protection of cacao, and began when said decree
necame effective!
The activities of the association in regard to the quotations of cacao and the
maintenance of its price shall begin when the board of directors decides by a
majority of all votes to do so.
ArT. 3. Every producer on placing his cacao for sale in this market, or at
the other points described in section 9 of article 14, shall have the right to
receive from the office of the association a provisional receipt or certificate,
which shall state the number of quintals delivered. He must request said
certificate within 80 days after the delivery of the cacao, and he must have
the O. K. of the revenue collector on the bill of sale of the purchaser.
The certificate shall state: The name of the boat in which the cacao arrived,
the date of its arrival, and to whom it was consigned ; the name of the producer,
 the plantation, and the district or region in which this is located; the
grade of cacao and the number of guintals.
ArT. 4. The certificates referred to in the preceding article shall be exchanged
for shares of the association for the same number of sucres as quintals of
cacao delivered by the producer, less 8 per cent for unclean cacao, and 4 per
cent for clean cacao, this deduction being for the purpose of reimbursement
for the loss between the amount of cacao delivered and the amount exported,
und also for the general expenses of the association. The exchange of shares
for certificates shall be made only when the producers hold certificates to the
value of 500 sucres.?
ART. 5. The shares of the association shall be issued in the names of the
producers and shall be of two classes—shares of 500 sucres and 50 sucres, respectively.
 When the certificates for cacao delivered are exchanged for shares,
the number of quintals of cacao stated therein shall be added up and for any
amount less than 50 quintals of cacao that remains, the producer shall receive
a special certificate which shall be taken into account in the succeeding exchange.
 The certificates exchanged must belong to one producer; the certificates
 of different producers can not be put together for the purpose of exchanging
 them for shares.
When one producer has obtained 10 shares of 50 sucres each he may exchange
them for one share of 500 sucres.
ArT. 6. The certificates shall be nontransferable. The shares shall be transferable
 by means of an indorsement signed by the producer in whose name it
has been issued, or by inheritance; and they shall not be effective until they
have been registered in the books of the. association, after being approved by
the board of directors. When the shares are registered in the books of the
ussociation, it is necessary that the transfer be made to the owner of a cacao
plantation, since the association recognizes as shareholders producers of cacao
only, except in case of inheritance,
Arr. 7. Every producer of cacao who holds in his own name one or more
shares of the association .and who subscribes to the constitution and regulations
thereof, shall be considered as a member with a right to the benefits derived
from such status.
ArT. 8, The funds of the association shall be used for the following purposes
 :
1. To carry on all kinds of operations which are for the purpose of maintaining
 and increasing the price of cacao.
2. To undertake an efficacious propaganda of the cacao of Ecuador to increase
its consumption at home and abroad, and to procure the opening up of new
markets.
3. To come to an understanding with other associations and similar bodies
in other countries producing cacao, and to take steps leading to the protection
of the price of cacao by means of a union between the producing countries.
To this end the negotiations already begun for the immediate formation of

1 The legislative decree was promulgated in Quito, in the “ Official Register,” No. 92, Dee,
20, 1912, and became effective in Guayaquil, Jan. 16, 1913.
4 According to the decree issued by the President of the Republic, which is Inserted at
the end, this has been changed to read: * The exchange of shares for certificates shall be
made only when the producers hold certificates to the value of 50 sucres.”