Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-04-17
The Co-oberat;ves Upheld


to the manifold interests that lean
upon that basic industry is the deci-
sion of the supreme court of North Carolina
UNFOLDING in full the validity of the contract
of the Tobacco Growers Cooperative asso-
citation. That this body is not combination
in restraint of trade; that far from fostering
monopoly, ,cfeats that evil; that its r-ac-
tees are as agreeable to the law of the land
as it's principles are consistent wi the law
rebounds to the benefit of producer and
consumer alike; and that it's Iong-term con-
tract is enforceable to the extent that judg-
ment for damages may be obtained against
violators therec"> hese are the salient fea-
lures of the decision, which has riveted ma
tion-wide attention.
How meaningful it is to Georgia may be
inferred from the fact that in all essentials
the contract thus upheld is identical with
that of this states Cotton Growers Co-opera-
tive association, Cane Growers Cooperative
association, and the Peanut Growers associa-
ton now being formed. Furthermore, the
cooperative marE-,ing act passed by the
Georgia le-.--ature in -921 is virtually the
same as the North Carolina statute which
has been declared altogether constitutional
est as vital as if the litigation had been their
own, the words of this epoch-marking deci-
sion, written by Chief Justice Clark his asso-
GATES Ii -limously a--onting.
OF the act and 80 plan under which the
tobacco "co-operatives'' are organized he
says: Every possible safeguard against
private profit manipulation by a few power
full members, squeezing cut of the weaker
members, and abuse Of powers are embraced
in the law" AS for restraint of trade:
INSTEAD of creating monopoly, the
object is by a rational method of put
ting the raw product on the market
from time to time as there is a legit-
innate demand for its manufacture, and by
the extension of credit to farmers to enable
this to be done, to prevent a monopoly" Di-
lating upon this point, the court declares:
sit is an entire misunderstanding of the fact
that an orderly, systematized cooperation
among the prod ors to prevent a sacrifice
of their products and realize a living wage
for the laborer and a reasonable profit for
the producers, has any analogy to the system
by which great combir 5 of capital have
prevented the laborer and the farmer alike
from realizing a reasonable reward and a
decent living" There is much in the deci-
! sion to show the value of the cooperative
system to business as we'll as agriculture and
to consumers we'll as growers. There is
much also to indicate how vast are the pro-
portions to which the system is growing in
America, and what it bet.des to the nations
prosperity.
OF especial Importance, however, is that
of the association to enforce its contract
| Touching this, the court says; "The law per
mits liquidate6 damages in case of breach;
indeed, such damages would have been al
lowed without q statutory provision For,
| Eve here quote Journal summary of the
decision): "On account of the cooperative
nature of the enterprise, and since it makes
no profit, grower who has preached his con-
tract must pay the cost of the suit, including
premiums for bonds, expenses and fees in the
action; because the membership of the asso-
citation is limited to growers, and contract
breaker breaches against his fellow mem
bers, so that it would be unfair to make them
pay for his violation
1t was against this vital joint of the CO.
operative marketing plan that foes of the
system turned their heaviest guns, realizing
that if by any means they could break the
strength of the long-term contract requiring
the delivery of the commodity to the associa-
| ton by all signatories, then the present
movement, now prospecting so vigorously.
would be do> ed to failure like those of the
past. But the contract stands, sustained in
the eyes of the court by inherent reasonable
ness and equity and by its worth to the com
mon veal A most significant and decisive
victory it is, for cause in which all agri-
cultural interests, none more deeply than
Georgia's, are concerned.
When man gets into a crowd he' thinks
that he is the only one in a hurry.