506 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.

the league of producers of Ecuador with those of Portugal and Brazil shall be
renewed, and, if the board of directors think it necessary, a resident delegate
shall be appointed in Europe or Brazil. This appointment shall be made sub-Ject
 to the approval of the President of Ecuador.
. 4" To use means to bring about improvements in the cultivation of cacao, to
Increase its yield, and to prevent the deterioration of its quality by a study of
the methods employed in other producing countries, and by procuring the
application of the methods suitable to Ecuador.
5. To work out and put in practice the means considered necessary to solve
the problem of the scarcity of agricultural labor, and to try to secure the com
ing of field laborers to Ecuador by favoring immigration.
6. To work for the decrease of taxes that burden cacao and to negotiate for
the lowering of the high import duties now paid in some of the consuming
countries by aiding the Government in all ways possible in the labor of bringing
about this result by means of treaties of commerce which procure that advantage.

7. And finally to carry on any lawful commercial or banking operation, the
object of which is to facilitate the realization of the purposes for which the
association was formed. If necessary, the association, through its board of
directors may raise loans, giving as security for payment the tax referred to ip
article 2 and also the stock of cacao which the association holds in Guayaquil.
The approval of the President of Ecuador shall be necessary for the validity
and security of these loans. But in no case can the tax for more than one year
be given as security.

GOVERNMENT OF THE ASSOCIATION. .

ART. 9. The association shall be governed by a board of directors, composed of
the manager and nine principal members elected in accordance with this constitution.

ART. 10. The position of director is personal and shall last for one year. The
directors may be reelected indefinitely and shall not cease in the discharge of
their duties until the election of those who are to take their places. In case of
the absence or inability of the president and vice president, the directors in
order of their election shall take their place.
ArT. 11. The board of directors shall elect from among their own number a
president and vice president. They shall also elect the director on duty for the
month. The manager shall act as secretary, shall be elected for one year, shall
be reeligible, and shall have an advisory vote only.
ART. 12. The board of directors shall meet at least once a month; and also
whenever called by the president or the manager. A quorum shall consist of
five directors. Their resolutions shall be passed by a majority of all votes and
they shall be in the form of acts signed by the president and secretary. The
decisions of the board of directors shall be carried into effect without a formal
act unless the contrary is especially provided.
ART. 13. There shall also be nine alternate directors who shall act In order
of their election in case of the death or absence of any of the principal directors,
and with the same rights and duties.
ART. 14. The bpard of directors has authority—
1. To appoint the trustee (sindico) of the association.
2. To determine what the operations of the association shall be. At each
meeting the board of directors shall discuss the state of the cacao market and
its tendency, and shall fix for periods that shall not exceed 15 days the quotation
 for the purchase of cacao. This quotation shall be made public by notices
in the press. The association shall pay for cacao offered to it by the producers
the price fixed by said quotation in order to prevent its being sold at a lower
rice.
P If for any reason whatever, and especially through the necessity of maintaining
 the price, the cacao purchased can not be sold to advantage at home, the
board of directors shall export it to warehouses in the principal consuming
ports abroad, drawing bills of exchange for a part of its value, secured by the
bills of lading, to be reimbursed when the sales are made by the agents of the
association abroad. The proceeds of said bills of exchange shall be used to buy
more cacao delivered by the producers. .
8. To employ and discharge the employees of the association on the recomsmendation
 of the manager.