Page:United States Statutes at Large Volume 49 Part 1.djvu/1719

 167 4 74TH CONGRESS. SESS. II. CH. 690 . JUNE 22, 1936. the members of a fraternity itself operating under the lodge system ; and (B) providing for the payment of life, sick, accident, or other ben efits to the memb ers of su ch socie ty, order, or association or their dependents ; Domestic building and loan associations, (4) Domes tic b uildi ng an d loa n ass ociat ions subst antia lly a ll , et c. the business of which is confined to making loans to mem- bers ; and cooperative banks without capital stock organized and operated for mutual purposes and without profit ; coMutuals cemetery (5) Cem etery com panies o wned and operated exclusiv ely for the benefit of their members or which are not operated for profit ; and any corporation chartered solely for burial purposes as a cemetery corporation and not permitted by its charter to engage in any business not necessarily incident to that purpose, no part of the net earnings of which inures to the benefit of any private shareholder or individual ; Corporations, com- (6) Corporations, 'and any community chest, fund, or foundation, munity chests, et c., for religious, scientific, etc., organized and operated exclusively for religious, charitable, scien- purposes. tific, literary, or educational purposes, or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, and no substantial part of the activities of which is carrying on prop- aganda, or otherwise attempting, to influence legislation ; Business leagues, etc. (7) Business leagues, chambers of commerce, real-estate boards, or boards of trade, not organized for profit and no part of the net earnings of which inures to the benefit of any private shareholder or individual ; Civic leagues, em. (8) Civic leagues or organizations not organized for profit but etc9 ~s associations, operated exclusively for the promotion of social welfare, or local associations of employees, the membership of which is limited to the employees of a designated person or persons in a particular municipality, and the net earnings of which are devoted exclu- sively to charitable, educational, or recreational pur poses ; Pleasure, etc ., clu bs. (9) Clubs organized and operated exclusively for pleasure, recreation, and other nonprofitable purposes, no part of the net earnings of which inures to the benefit of any private shareholder ; Local life in surance , mutual ditch, etc (10) Benevolent life insurance associations of a purely local ., companies. character, mutual ditch or irrigation companies, mutua l or coop- erative telephone companies, or like organizations ; but only if 85 per centum or more of the income consists of amounts collected from members for the sole purpose of meeting losses and expenses ; Farmers' mutual casualty insurance (11 ) Far mers or ot her m utual hail, cyc lone, casu alty, or f ire c o mpanies. insurance companies or associations (including interin surers and reciprocal underwriters) the income of which is used o r held for the purpose of paying losses or expenses ; Farmers' cooperative (12) Farmers', fruit or like associations or anized and associations. ~ gr ower s', operated on a cooperative basis (a) for the purpose o marketing the products of members or other producers, and turning back to them the proceeds of sales, less the necessary marketing expenses, on the basis of either the quantity or the value of th e products furnished by them, or (b) for the purpose of purchasin g supplies and equipment for the use of members or other persons, and turn- ing over such supplies and equipment to them at actual cost, plus necessary expenses. Exemption shall not be denied any such asso- ciation because it has capital stock, if the dividend rate of such stock is fixed at not to exceed the legal rate of interest in the State of incorporation or 8 per centum per annum, whichever is greater, on the value of the consideration for which the stock was issued, and if substantially all such stock (other than nonvoting preferred stock, the owners of which are not entitled or permitted to partici-