52 STAT.] 75TH CONG. , 3D SESS.-CH. 289-MAY 28, 1938 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; (6) Corporations, and any community chest, fund, or founda- tion, organized and operated exclusively for religious, charitable, scientific, literary, or educational purposes, or for the preven- tion of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or indi- vidual, and no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation; (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; (8) Civic leagues or organizations not organized for profit but 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 exclusively to charitable, educational, or recreational purposes; (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 share- holder; (10) Benevolent life insurance associations of a purely local character, mutual ditch or irrigation companies, mutual 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; (11) Farmers' or other mutual hail, cyclone, casualty, or fire insurance companies or associations (including interinsurers and reciprocal underwriters) the income of which is used or held for the purpose of paying losses or expenses; (12) Farmers', fruit growers', or like associations organized and operated on a cooperative basis (a) for the purpose of 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 the products furnished by them, or (b) for the purpose of purchasing 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 pre- ferred stock, the owners of which are not entitled or permitted to participate, directly or indirectly, in the profits of the association, upon dissolution or otherwise, beyond the fixed dividends) is owned by producers who market their products or purchase their supplies and equipment through the association; nor shall exemption be denied any such association because there is accu- mulated and maintained by it a reserve required by State law or 36525°-3 8-31 481 Corporations, com- munity chests, etc., for religious, scientific, etc., purposes. Business leagues, etc. Civic leagues, em- ployees' associations, etc. Pleasure clubs, etc. Local life insurance, mutual ditch, etc.. companies. Farmers' mutual casualty insurance companies. Farmers' coopera- tive associations.
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