**OFFICE OF**  **THE A** **’ ITORNEY**  

### GENERAL **OF** 

### TEXAS
**AUSTIN**

Eonorrblr t. 2. EaDonrld, Comnirrionor D,jmrtnmnt of Agrloulture **Aurtin,** Tomu

Dear Sir! Attantlon:

rty-fltth LO#Jl~-

. 8. Ro. 24 Inil

oltru8 aontmat8 a? purohare under hlr prevlou~ oitrw dealbr’r lleenm v&ioh llaarue nn now be r8roke& or tomlnated ior any 8ause. or ii a3 not fully an8 tinalLy paid for 8ay w3 811 altror fruit h8rrrrt.d under hfr aontraatr 

### or ha8 not ially **00Ilt3~18d** with all of the r.q**tJ**rul **?r0ririonr OS**  the Cltrua 

### Bonalngand Llsm8lntr,**L8W, or**  **that** thoI


## ‘8

Hon. J. 1. YoDonrld; **AttMtfOu** &ir.&. 2. **Kaconalok,** page 2



### applicant 'L rlnanolal StatemIt, given to the 

### ~dS81OilOl 0r Agrlaultrue at 

### thet1pV of Sak**w a~liOatfOn**  **for liOUU4.**  **doer** not 8ha but little Or lruoiiiOibnt a88et8 to cillow

### 8uohap

### plf8Mt to humeot 

### business as a **Oftma d&altar**  

### witbou~plaol~~ in ~oopardythosotithwboahe trenaaatr eitxu8puroha88s?
$l+B8tfOZl

]IlO. 

### 2; "DO08 thi8 leV~&ite

### th8 tid8iOlur or A&rioulturo tho authority to 

### hold Bea.riPg8 sad to stipend or rovok8 tho Uauuse of a doalor who 

### tiioht0a hl8 oontraot **to purehase**  

### end/or handlo 

### oitru8 fruita dth 

### othrr Ooani8don merahents, dealers 

### or brokor8 with laid aftru8 purahaa

### reatrith said 

### 8Ooowl **doeler** 

### and haadlfag orgmIzatIc+nt

r*hore a 000 **oretivo e88OOiatiOn,**  ahartered 

### under Chapter 0, 3

### tired StatUt0e Of

### 1QWas **emended,** 

### Wloh psrtafns to marlmtlng eraoolatlonr, has sntersd Into awrlttsn Contraot dth a uommi88ion merahent, **dealor** 

### or broker. aIhor8by

### raid. essoafatlon ‘daalmwith or through a doalor, 

### broksr 

### or eoml88Qn 

### merohant, or thel.?duly author- 

### ;ti026atiathOpPrsha8~ and/or

### handl~oi 

# aftru8frdtr, end8ald #oal8r, 

### brokeror OOlldSl lon merahant, OT tholr agant violate8 the 

### terms end 

### oondftlonsof e aontraot between tho ascroala**tioa ad**  

### 8aid **dealor,** broker or 

### co~!amlS8lon**mar** 

### chant, 8813**aaid dealer,**  **broker or**  

### am~l88Ion nmrcheat 

### or their agent 

### ban hla lioense or bu ont'8 ideatlfleatfon card 

### revoked br tho &Xlirrg

3 

### 8Sfo1ker Of 

### 1oIdture ror rioletfon 

### of ulo CitX'U8pU?OhS8 

### or hanal- eontraat?n

s8atloa 4 of tilafo lUb, 

### Vernon*8 ¬ated ciril Btatutw,~provide8 la 

### parts

*All appliaations tar 

### lioonse UtLdsrthir AOt

### aball bo aaoonganied by a tendor 

### of aymant in full 

## orthe i80 for 

### ruoh liaetnre

### rbqvs
on rooei 

### redi

WIt bf said application duly cnoouted, togather 

### th requlrad fee it shall be tho duty 

### oi the 

### Cozdsrlonrr or 

### hi8 went8 and/or 

### employ008 **thorounto ~duly**  

### authorized to bim0biatoly 

### b8UO 8mOh 

### lio6M0, xl'Orid8a that M ~C8MO 

### 8haU 188~8taanypor8on8tien tho 

### appllaatfonEon. Jl E. UoDonaldj 

### Attention Mr. 

### C. E. YoCoxnlok, page 

### 5

for lloense tiled by such r&non 8hall indioats that suoh "OT801l 18 

### 5 ru8~ende4lIoeneoe wlthln tho :!tateO? Texas, Or that 8Uch @orBall'5mOn80 to 

### dobusiees8 In 

### T5x5s hea -evoked Until the COlrnI881Ontr 1mrnl8hed with eatle?eotorp ?coo? that the a.-DlIL OSIlt18, Oilthe dato O? th8 illlEg OS 8uoh ~~lIoation, 0miri0a to reoeIvo the 

### liOtn8t 

### 8?plIod rort 

### the lrsu~noe 

### of 

### lIoon8sto 3olnon8 who have **8Ufftrte prior**  **8U8D5Zl5iOIl OS**  **r&VO55.-** tlon of llooneo in thle state shall be

### dlsomtiOMry 

### with the t!Om18SiOner; in th8 

### l XOrOI8t Of 

### 8uohdi8OrttiOn,t\O COZC&siOner 18 euthorized to take lnto conbidoration the faots 

### and olroumetenoo8 ?ortaInIng to th8 prior 

### 8U8penslon end/orreYUcttIon; the 

### rlnanolsl oonCitlon ot the a3~llaant. ae of the date of thie a~plloetlon, 

### W-dthe obligation8 due tnb 

### OWtilng by th8 e,?pUOant to grower8 an@

**- ‘** **rOdUOOr5 Of**  **OitI%8 btit8**  and/or porlehable agrloultunl' **OOrnnOditiO8;** *oblIgatIon,~ a8 the toI% 

### 18 Mad in 

### thir850' tloa, rhell 

### be oon8trued to moan any 

### judgment Of tUiy**Court** wlthln thi8 **State** 

### Outstanding against tho o?plIaent or 

### 00rtititaolelme ee or the 

### date 

## orthe eppl1oe~lon under conslderetlon 

### by the Commiesloner; prior to rofural of lIoen8e 

### by tho ComI8sIoner. any ep:lloant for, 11ooneo 8hell bo mititl8d ta 02on he&ring oa the f8Ot8 pOrt&ning 

### t0 auah aa lIOatiOn, said hearing to be aonbuated 

### by the EocmIeeIoner, or his agont t!ereunto duly eut!~orlzed;if, attar euoh hearIng,,tho CO8Id85iOMr, 

### in the 

### orerolee o? 

### his dIeOrttIOn, retu858 

### the lioeneo a ior, tho ap?lioant 8hel1, within ton (10Ppl!od 

### days rros end artor the donlal of euoh 11OeIi80by the Comlislonor and not theroarter, tile hlr 

## l ppeaal rromtheardoro: theCom~Irelonertlonylng euoh llognse,inany ,Court of ooznpotent jurIs&lotIon wlthln this state; if the ComIeatoner 8hall detemine that the lloenee 

## l p~lled 

### for shall not 

### be granted, the Coanleeioner ehell deduct iros the licen~o tee tendered with such ap?llaatlon the cum a? Fire Dollar8 ($5). raid PIvctDollar8 ($5) to be retained by the Com?lis8lonerto dofray oosts and ox;onee8 

### lnaldent to the illlng 

### andexemlnatlon o? 8elC a?plIcetIOIiend 8ha11 roturn tho belenoe of 

### tho 1Ioon8e fee 80 tendered with 8uoh applloatlon to the ap-~lIoant.a (Undenloorlne ours).Hon. J. F..XoDonald~ AttuAIOB Ur. C. ‘L.

### KoConaIok, pego 4



### Station 6 read8 

### 58 **rOiiOW81** *Any lloerureirsued under the Qr0vi8iO~8 Of thlr aot 8hall remain in full for00 and effoot 

### rora porlod or twolro (12) month8 from and after th8 date O? i8aUtlLlO8 tk8r8Oi WI1088 

### 8dd ~OTIBit 8h811 be 

### oanoolled la the 

### manner horelnaftrr protldad l d puraumt to 

### the prooeodlng8 hrrdmftar required, to 

### wit1eDy person 8&?riorrd, Injured
or 

### damago&by rlrtue of eay rioletloa OS the tenns 

### and 9ror1810~ of this Aot **by** 

### any lIoensoe or by 

### tho transportln~ or buying agent or any lloexumo herauader, may ~SllOwith the CO8U5i88IOnOTor hI8 Culy aut?orlzed egont or eclplogoe

### a vorlfled oomplaint, setting out the 8;eOIiiO rlolatlon am

### plalnod or; the ComleeIonor, oa 

### reoolpt or seId rorIfIe4 00~

(105laint, shell 8ot 5 

### dato Bot 3101'8 than 

### ton day8 fnm the reooi?tof rush oomplblnt ior the hdarlng thoreot; 

### Cosxlsrlor,or 8hal1, b:.-roglstered ~aIl,to the le8t known 

### addroes, notify the person oospleinod oi 

### end shell furnirrh 

### euohperson with a oopp of 8uoh conplaint; the 

### Coani88ionor nay, 

### athis diearetion, raoose 

### tho hasring prorldod ror **in** thir Ssotlon froa 

### day to 

### d8y if in~his 

### di8OrotioB the end8 Of juetioe 

### demand 8UOh 0ont:nuanoot for thopurpO85 **0r** raid heerIag8 the ComIselon8r 

### shallhare the authority to 8umon wItnee8ea~ to laqalro into rietterr**0r** 

### iaoti to administer 

### oeth8,and to issue 

### the sub

### poonaffuaestemn, ror thepurpo8e 0r obtelning any books, reoords, !aetr\uentr 

### ofwriting, rnd other paper8 pertAaoat to the iBT88tiqetfOB 

### 8t hand; 

### upontheoOnClUelOa OS 85Id 

### huTiBg end the Introduotlon of all evldenoe by 

### the rerpoetlro perties thereto, 

### the ComIssionor lhell 

### makehlr **deai8loa on**  the basis of 

### the l rldonoo introduaed thoroln, end ehall, it tho etidenoe wafrantr, 18~ hi8 **or&or** o8Boelling the lioenso at tho ?ereoa bornplalnod of; any lIaeneoe, who80 lIoea8e 18 50 aanoolled **by** an **ardor** Or the Comalmloner, 8hel.lbo notIfIod Inwriting by **r ’** **egi8terOd** ml1 of the oeaoollatioa of said lIaeneo end it rh~ll be unlawful end a tlolatlon **0s** this 

### Aot for 

### anyll~~neee 

### or buying or trenr:ortin~ agent to operato txm **end** aftor 8eId notlfioatIoa oi oenoollatIon, provided that amid lloonsee or buy- or trensportlng 

### agent who80 lioenae 

### ha8been 80 ohnoolled, 8h811 here the right of e ptal from the or&or of tho 

### Cofmfr-Hon. J. It.MaDonald; Attention Xx.,. C. E. MoCormiok, page 5

rionor, oanoellng raid lIo4nae to any 

### CourtOS competent jurIadIotIon within this state, provided that such a peal shall be filed in said oourt within ten s10) days rrom and altar reoalpt by 1loenaeC ot notloe of aald oanoellatlon, and provided further that the effeot of said appeal by said lbo4naee or lIoenaee*a agent shall not aot to supersede the order of oanoellatlon issued by the Coaunlaalon4r,pursuant to tlnal determInatIon ot the question of oanoellatlon by said Court.R
geotlon 14 relates to the power and authority of the Commisalcinerot Agrloultaro in edtorclng the Aotr

'For the purpose of enforolng the provlalond o,fthis Aot, the Commlasloner Is hereby vested with full power and authority and It shall ba his duty, either upon his own lnltlatire or upon the reoelpt of a prooerly rrrltled ;;mggln;, to In~eatIgate all alleged violations
a ot and tor the purpose ot making such lnveatlgation, he shall have, at all times, free and unimpeded aooeaa to all books, reoorda, buildings, yards, warehouses, 

### atoraga, and tranaportation and other taollitlea or plaoea ln whloh any oltrua truit la kept, stored, handled, pro'-. oeaaed or transported, and in furtheranoe .otauoh investigation either the Commiaaloner In person or through his authorized r4preaentatlr4a, may examine any portion of the ledger, books, aocounta, memorandum, dooumenti, aoalea, measures, and other matters, objeota or peraonr pertlnent to auoh,alleged violation under investigation. The 

### Comlaaloner shall take auoh aotlon and.hold auoh pub110 hearings as in--hisju&ent are shown to be neoeaaary after auoh lnvestlgatlona, and shall take the proper action with reierenoa to the oanoellatlon or Buapenslon ot the lloenae of any dealer ,hereunder shown to have been guilty oi a rlolatlon ot the terma ot this Aot. guoh hearings shall be held in the nearest olty or town in the county where rlolatlona are alleged to hare ooourred. Any order made 

### by the Commlasloner with referspoe to the revooatlon or oaBoellatlon ot eny.lIoenae granted under the provisions ot this Aot, ahall.be eubjeot to revleviby a Court ot oompetent jurIadlotlon.W (Underaoorlng ours).

### Non.J. ?I. XoDonald; Attentlon Ur. C. E. UoCornlok, page 6

Aooording to the iaota sot out in your IlrSt Cusstlon, we are concorned with an applloant who 1s seeking to r?naw his lioa~ae **under** Article 118b. Said applicant has previously been 

### granteda lloenae, but 1s guilty of one or more ot the following ottenaea:

(1)Not tully end finally complying n%th ell OS hIa citrus osntraota ot purohaae **undar** his previous oltrua dea~ar*a license;

(2)Not 

### rullgandfinally paying tor any and all citrus fruit haneated under hla contract.;

(3)Not tully complying with all 

### OS there;ulred provisionsotthe Cltrua Sondlng and Lloeoalrg Law; and

(4)&vine lnauttlclent assets to transact bualneaa ae a citrus dealer tithout placing la jeo,~ardy those with whom he tranaaota citrus purcheaea.

It 

### la not stated that the previous llcenss of said ap3lloant m8 

### rovokeaor auspondad.

**Rhere** a licensee la guilty ot tloletlng a provlaion ot the Act, Seotlon 6 provides the procedure **wqeraby** hi8 lloenae Ia oencelled or 

### a~apbnded.

Conatrufiq Seotlona 6and 14 together, It la apparent th?-tthe Com~iaaIonsr may Imbstlgate Plolationa of the Act and hold heerlnga thereon *either upon his OWD inltlatire or **upon** the reoelpt **ot** a prosorly rorltled oomplaint .W Eo has the power and authority to Take the propor eotlon with rererenoo to the oanoellatIon or suspension ot the license ot any doa.lorhoreundor shown to hsre been guilty ot 

### aviolation of the tonne of this Act.”

It 1s ap;:arentthat whora there haa been a vlolatlon ot the prorIalona ot the Act, 

### tha Comzlaaloner of Agrlculture rho ld prooead against the offander as provided 

### in S4otIona 6 and 14. It on the basis et the evld4ncs before him, 

### the CotPmia6loner decide8 that the poraon compBlne6 oi la guilty, then he ahall olther reroka 

### or 

### sw?sna said parson*8 lloanae.

Furthoraoro, I? the person 

### whoselloenao has beon revokod or auapended applloa Tar a aubaoquent lloenae, theBoa. J. I. XoDonald~ Attantlon Mr. C. i3.XoCormlok, p8gr ?

prorlaIone or Sootion 

### 4 would apply, 

### In this l ootIon it la 

### expressly rtated 

## that8

%o lloen8e 

### l

h8ll lrsuo 

## touiy person whan tit.0 8ppllo8tion tor lIoe880 filed by such porron rh8ll 1ndloSte 

### that l uSh 

### p raon

Is a l uapondo& lloenroo within tha Stat0 oi Texas, or 

### that ruch porron*r lioenao to do buaIn8aa la Tom8 

### has b&an rewaked, until the 

### ComnIaaIonor la furniahod 

### with l 8tIatSotory j~ooi that th8 

### l ppliomt i8, onthe date ot tba flllng ot auoh cppllo8tIon, pu8lIfISd to raooire tlm lIo4nao rppii06 tot.*
lt la also porided 

### that *the Iaauaaoe 

### of lioonao to persona who hare rutloroa prior auapeaaIon or rorooatlon of lloenae In 

### thisStat0 l h8ll bo Qiaorotlolury with the Caula810ner.w

On&r Sootlon 4 it appears that 

### th9 Coawalaalonor ot hgiioulture has So 8lternatlto 

### but to iaeuo a lloenae whare **tb** 4p~lIoStion ffsrn

### I8 properly 

### madeout m4 the foe tendored udleaa tha 8ppliOMt hS8 previOuSlf had hi8 lioonae 

### auapondod or r8vokoa. 08ly wtire the ap2lIorst I8 a1reSdy 8 SUSpOndOd lloonaoo 

### or ha8 hod hi8 lISo88o roroked door 

### ‘the Codaaioaer h&te an7 dla~rotlon undortthe Aot 

### to 

### issueor 

### to return0 to lrauo l 

### iiOM8a. Tkalanguego of 3eotion 4 is olear aad unazblguoua on this point..

Under the terma 8nd provisions ot

### the Act ~8 one 

### or more ot the oondltlona described In t&o.flrat quoatIonJ It supported by ovldenoo, muld Juatlty up08 propor hoar?ing an.order 0r 

### a ano ollatlon 

### or l uap4nalonof 8 do8ler*S lloonao. See 

### l apoolklly Seotionr 4, br 9, 10, 14.

Ia 8nawar to your iirat queatlon, it la ooc opine Ion that Artlole 118b. Yemon’r.Annot8tod Fit11 Sktute8, 

### the Tens Citrw Bonding and Lioenaiig Aot, rOQuiXW a hem

### ing by 

### tha Codasloner OSh&rioulturo on 

### olmrgorottlolatlon of the A8t in 

### compliaaoe 

### dth the poTiaioM 

### of Sa83iOn 6,

### withrerooatlon 

### or l uaponaI8a ef Lti~naro

### as tho penalty; thst under the kraa’and provision ot Atilclr 118) lIoen8oo*8 f8llure to eoaply with tha oontmota OS purehaae, falluro to pay 

### tor fruit, inaolwmoy, and Other rIolatlona of t:;.o AOt are grouda 

### tor rsvooatlon 

### or oanoellation of 

### his 1100~0~ that unaor sootlon 4 ot Art1010 118b the Com3Iaaionor 

### lua no 8uthorlty or power to refwe t~r~l~~cWea8 tho .-Bon. f, I. UoDoneld; Attontion Ls. C. 11.YoCormlok, Page 8



### applioeut is l 

### rumpended 

### lioenaaa & hao had hla li~mao revoked; end tbt an 

## l pplloant

### whose lloanae 

### baa been re- +okad Or SwpM4led has the right toan open hearing 

### on the 

### iectapertaining to such application.

IDr ogard



### to your

l

### eaontlqwatlon, we dab to quote 

### .Subdl~ialoa (b) 

### ot Sotlon 4,wN& readaaa follower



### ‘AT1 ~oomIaal0u moroheut8*.8ud/or *Ggalors! ud ‘contraot

doa14rar,1 es

### tha tom8 l ro Inthis hot ao- 

### tIned, shell, In addition to the lloenao tee herein proaerlbod 

### dollvor 

## totho C~aalonor, together with theirSppliQtiOn ta 1iam88, 8gOOdand 

### uttioleat aurety bond peyable to the Oovarnor ot the State 

### or Texas and 

### hia auooeaaora In o??Ioo, la the $rlnoIpal ,a\110 ot 

### llro Thousand Dollars ((S,ODO), 

### said bond fo 

### bo In auab ?om as the OommIaalomr may preaorlba and ehau be 

### oOn~i%iOnedUpOntaithful oomplianoe 

### *withtheterms QI~

### provisiona u?thlr Act au6 upon 

### thetaIth?ul portormanooo? the condIt!oaa and terms 

### Ot

### 8u coatrsota 

### madaby 

### 8814~comiasion 

### mrahanta~ 

### 8nd/Orvdoalera’ and 9oontraOt doalora,’ pertaining to tbshandlingof oitnaafruitunder thl8 hoti



### end oaoh Nob 

### bond.shall ooatinut ln 

### ?ull toroe 

### aud’ l 

### ftaet until aotloo ot the tormIuat1on thoroot la given by 

### rqlatered ml1 to the 

### Coma!laaloner, wbloh 

### f8ot shall be set 

### torth in **ttm ia08**  **ot** 

### said bond, but aueh notloa ebb11 not 8ttoct the lieblllty whloh ray hare 8ocruid thoroon prior to tetplinetloa. A0 lloenre 

### 8hall ba issued to any ~ooakIaalon rorohant’

or 

### ‘doalor,’ or *oontraot dealer' 

### prior to 

### the dolivery to

### the ComIaalomr 

### 8nd.the approval by him ot the

### bona roqulroa under the prorldona o? this Sootloa. Ho ooop4ratIve l8aooIatl0n 0rganIzed pursuant

### .to Chapter 

### 8, Title OSof tha 

### Rerlao6 Cl~ll 3tatutea ot Toxaa, 

### 1925, as 

### 8mendod, tbet handlO fruitonlytor Lt.8muobora ahall bo nqulred to furnish bond as required 

### In thla %&ion. hw 

### auoh cooperative l



### 8fioolatlon doallag In citrus trult uthor then tor Its produoor ambora ehall

### bo ropulred to fwalah boo6 

### es any other dealor. It 

### lahoroby dealare to be the polloy 

### Oi the 

### ~giSlatW* TV m)te these 

## l

romptlona rdth 

### reterenoo t0 

### oooper+ivo 8aaocb tlona booauae of the faOt tbt the r;rod*Ooraiomborapool their trult tar se10 

### reth9r-than lamodlately aolling 

### It.” (Undoraoorlng 

### o-8),



### Eon. J. s. Yorkmdd~ attention m. C. E. ~cCornlok, page 9

Tramthe leaeeage above quoted it sppeare that the terms MA -AMlsP in al!rorl~lo~ of Artlola ll8b a ply to thu



### hlo ooatraetual relations hipawhathu the exlrt betwoaa himand a gPow@ror puroharer] 

### or betwean h 

### L and other oomnlarloa muohant8, 

### dealers **or** 

### brokers) or between hLaand a ooopuativo 

### uroolatloa. Tbfr cowlumulo~ 

### I8etlpported

by 

### the faot that *any person" rith whoma

‘dealer 

### trumaotsbusiness la hrdlling, 

## reUlng,andacoouat

### zaAfor sale6 of fruit raf maiatala an action oa said dealer.6 It is logloal to 

### a&sum that the purpose or tha 

### law 

### wee io protOCt d.l those Whodeal with the **dealer in**  

### the 3ie.nU and 

### selling ot oltrue fruit. This wuld Include other dsalors 

### MA al.80 coopemtlre 

### assoolat1on.s engaged5.n
the bwi.~,seUins 

### ~~5dbrrpblhg 0r 0m-w 

## rdt. FU&hemrO, aftu 

### con8IAerlngnztlcle ll8b a8 a whole a&dCarefully a'alJzing such Seotlons a~ Q, 

### 10, 15, 18 anA17, it Is our oplnloa that It vim the intention of 

### theLuglalaturo

thata brraoh of a oontraot to vhloh he ms a part by a lloonsed dealer eumunted to 

### aYiolatlon of the LiOUIE L and Bonding Aot itself. Ccmsmcwntly, 

### rhure a **dralmr violfated**  

### a oontrsot late whloh he had entered rlth another 

### dealer 

### or dth aooopratiw aeaoolatloa, hi.8 license would be subje+t to 

### oanoollatloa or uuq~enalon 

### under 

### Section Aupon 

### proper hearlag.

Jn4&u to.your last **quest~oa,** 

### 1 b our oplalclp that undm Artio&i Il8b thu 

### Ctiabionar of **Agrloulturo** 

### ha8 the

## l ut@wlty tsaubjeot to a hearing and to rovolm or buspen4 the ~loetase or a dotalar who violato hln @oatnot to puroha6a 

### sad/orh4adlsoitrus

## rruit -9th 

### another **dealur** 

### or 

## dmlua**’** or@bat10n.



### ?urthexMrs, lt I8 our option that the C+nlesloau O?Agri0titU.m 

### has the authori$~ to MYOk 

### Or 6Wp5d 

### UpOn 

### heering the lleun~ of 

### a dealer who dlrbotlf or 

### by ageat~ vIolate the **Citrus** 

### purohaaln&anA/or hamUng **OontraOt** 

### l.ato wbloh salA.dealer baa titered with 

### aoooperatlvs 

### assdolatloa.

mtlng that wohare fully aasvera&pru laqtirles,
m ~(ire

~,j@TORKU GENERAL OFTEXX3