The Mt. Sterling advocate., 1922-01-17
Farm Marketing
Act is Now Law

By vote of 81 to 0 the Kentucky
house Of representatives passed the
Bingham cooperative marketing act
creating a new Legislative record in
regard to the time required TO pass
bill through both houses. The Bing-
ham act passed the senate unani-
mously, the vote being 33 to 0.
Twelve other states-Texas, Ar
kansas, Arizona, North Caroinai
South Carolisa, Georgia, Alabama
Washington, Idaho, Montana, North
Dakota and Kansas-have similar
laws, Salifornia and New Mexico
have adopted the principle Of CO.
operative marketing in their laws
and 0rego and Wisconsin have to-
ken sections from some Of these laws
and made them into law.
Judge Bingham drew the Kentucky
act, assisted by Aaron Sapiro, Cali
fornia marketing genius and law
yer, and and the house passed the
senate bill in the time required for a
roll call after the Californian had
concluded a speech explaining the
measure to the house in committee
of the whole.
The purpose of the act is declar-
ed to be to eliminate speculation and
waste and encourage the intelligent
and orderly marketing of agricultu-
raj products" 1t applied to all
kinds of agricultural products and
is not confined to the producers OF
hurley tobacco.
Twenty or more agricultural pro-
ducers may form a cooperative as
sociation without capital stock fol
the plrpose Of handling their owl
products on non-proft, non-spec-
ulative basis, cables cooperatives tc
borrow money, limits membership tC
actual producers and defines tht
procedure of organization.
The act limits the amount of stocl
with the voting privilege that may
be held by and one member so as Il
prevent centralized control of any
such association and limits the liza,
bility of members of such associa.
ton to practically the same basis as
ordinary stockholders liability.
Specific remedies are provided fOl
breach of contract by any member
providing for injunction and hqui.
dated damages. Permission is giver
for one class of co-operatives t.
unite with another, should it b.
found desirable for the purpose o.
greater efficiency and increased ser
vice.
Fraud on the part Of speculativ,
buyers who might pretend to organ
ize cooperative associations, is pre-
vented by prohibiting the use Of tn,
word cooperative by any associa
ton not organized under the provis
ions of the new law.
The law makes it a misdemeanol
to spread false reports about coop
erative associations and provide
for the recovery of damages from
those who may persuade growers t.
break their contracts with the asso
Citations.
Annual reports of the business O
such associations are required to b.
made to the College Of Agricultur,
on forms prepared by the deas o
that college.
Fines of 500 to $1,000 are pro
vided for persons who may Undue,
growers to breach their contracts
together with civil liability to the as
sociation for damages in the sum o.
$500 for each such offense.
Warehousemen who may permit o.
encourage the delivery of tobacco ol
other products in violation of the
act are liable to damages to the as,
sociation in the same amount in ad-
dition to attorneys fees and costs
Because of the "demoralized con-
dition of the farming interests of the
state" which is declared to exist, an
emergency is declared to exist, an
emergency is declared and the bill
therefore, becomes a law with the