Evening star., 1924-07-08
milk PRODUCERS
WIN LEGAL FIGHT
W. A. Simpson, D. C. Dis
tributor, Must Pay Costs of
Frederick, Nd, Case.
Special Dispatch to The star.

cpeclal DlSpatcn 10 Inc star.
FREDERICK, Md, July S.-Sanc-
tion to enforce cooperative contracts
was awarded yesterday afternoon by
the Frederick county circuit court, in
the Injunction proceedings of the
Maryland and Virginia Milk Pro-
ducers' Association against five dairy
men here and w. A. Simpson, Wash
ington distributor. The verdict sus-
tanned all conventions of the associa-
tion. 1t holds that 1. S. Linton,
dairyman of this city, whose case was
taken up as test, must perform all
the terms in the association contract; ;
that an injunction be issued and that
Simpson pay all the costs of the liti-
cation. The question whether the
payment of liquidating damages. for
which the contract provides, was re-
served by the court.
The court held that it had to decide
whether the contract between the as
sociation and Linton is valid and
whether the co-defendant (Simpsof)
encouraged and aided Linton in the
preach of his contract and could be
restrained by injunction from con-
Lnoii5 SuSH COHuuCl.
Responsibility "Plain.,
The court said: 1T is undisputable
that Mr.. Linton is failing and refus-
ing to perform the contract with
which this suit is concerned. and
there is convincing proof that he is
pursuing this course with Mr.. Simp-
sons encouragement and co-opera-
ton. In opposition to the enforcement
iS oil
tract was procured by fraud: that it
was beyond the scope of the plaintiffs
corporate powers; that it is without
mutuality and consideration; that il
Is mere contract of agency and is
subject to right of reyocati,n
which has been exercised. and tint IL
is lnequItable, unreasonable and
against public policy.
Inc jurisdiction OF the court TO
ENFORCE the suit was also questioned
In bne .e eenarge OF fraud is not sustained
the contract by Mr. Linton is said
to have been induced by misrepresen-
tatlon. but the decisive weight and
evidence is to the contrary. 1t was
proved that he signed the contra ct
voluntarily, after it's provisions had
been read to him and fully explained.
ana that no improper influence was
used, and no deceptive statement was
made to influence his action. He
the agreement as one of it's numer-
Gus members, because of his inter-
est as dairy farmer, in the objects
which the organization promoted"
The plaintiff corporation was or
ganized to promote the mutual bene-
fit of its members by the more eco
nomical and profitable marketing of
their dairy products. the court said. 1t
Is non-profit cooperative associa-
ton of producers who are endeavor-
ing by collective action to secure for
themselves larger share of the
price paid for their commodity by
the ultimate consumer. The advan-
tage of such a policy of cooperation
is obvious. and it is of such special
and recognized Importance to the
farmers of our state and nation that,
with respect to them, it is encouraged
and supported by an act of the Cen
eral Assembly of Maryland and by a
statue enacted by the Congress of the
United States.
After quoting decisions involving
similar cases the court ordered that
the demurrer to the bill of COM
plant by the defendant be overruled,
tina. the defendants perform their
contracts and that Simpson pay the
costs.