Louisiana Farm Bureau Cotton Growers' Co-Op. Ass'n v. Clark

107 So. 115, 160 La. 294, 1926 La. LEXIS 2363
CourtSupreme Court of Louisiana
DecidedJanuary 4, 1926
DocketNo. 26967.
StatusPublished
Cited by17 cases

This text of 107 So. 115 (Louisiana Farm Bureau Cotton Growers' Co-Op. Ass'n v. Clark) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louisiana Farm Bureau Cotton Growers' Co-Op. Ass'n v. Clark, 107 So. 115, 160 La. 294, 1926 La. LEXIS 2363 (La. 1926).

Opinion

LAND, J.

This is a suit by plaintiff, Association, against defendant, one of its members, to compel the specific performance of an agreement signed by defendant to deliver to plaintiff all cotton owned, produced, controlled, or acquired by defendant during the years 1924, 1925, 1926, and 1927, and particularly a number of bales of cotton of the 1924 crop, and to recover as liquidated damages the sum of $3,750 for cotton which defendant failed to deliver under said agreement, together with the additional sum of $1,000 as attorney’s fees.

Plaintiff, Association, obtained a restraining order temporarily prohibiting defendant from selling, delivering, or otherwise disposing of any cotton owned, produced, controlled, or acquired by or for him during the years 1924, 1925, 1926, and 1927 to any person or persons other than plaintiff.

Plaintiff, Association, also caused to issue a writ of sequestration for the seizure of all cotton owned, raised, acquired, or controlled by defendant during the year 1924.

In answer to the rule to show cause why a preliminary injunction should not issue as prayed for by plaintiff, Association, defendant admits signing the agreement which is sought to be enforced in this ease, but alleges that said agreement is not binding upon him, and is null and void and of no effect for numerous reasons, among which are the following:

(1) That Act No. 57 of the year 1922, under which plaintiff, Association, is organized, is unconstitutional, null, and void, as said act embraces more than one object, and the title is not indicative of such object, in violation of section 16 of article 3 of the Constitution of 1921.

(2) That said act is in contravention of section 14 of article 19 of the Constitution of 1921.

(a) Section 16 of article 3 of the Constitution of 1921 declares that:

“Every law enacted by the Legislature shall embrace but one object, and shall have a title indicative of such object.”

*299 Act 57 of 1922 is entitled:

' “An act to authorize the formation of associations of producers of agricultural products, and to provide punishment for the violation theréof.”

The act clearly indicates in the title its object, and an examination of the various sections of the act shows that its provisions are germane to the object contemplated, and have been enacted solely for the purpose of carrying this object into effect.

. “To incorporate a [corporation] is to create it with certain powers and privileges; those powers * * * need not be detailed, for if they were, the title would be as long as the act.” Orescent City Gaslight Co. v. New Orleans Gaslight Co., 27 La. Ann. 138.

AS the conferring of rights and privileges upon a corporation is incidental and germane to • its incorporation, Act 57 of 1922 is not amenable to the objection that it has more than one object. St. Anna’s Asylum v. Parker, 109 La. 592, 33 So. 613.

(b) Section 14 of article 19 of the Constitution of 1921 provides that:

“It shall be unlawful for persons or corporations, .or their legal representatives, to combine or conspire together, or to unite or pool their interests for the purpose of forcing up or down the price of any agricultural product or article of necessity, for speculative purposes; and all combinations, trusts, or conspiracies in restraint of trade or commerce, and all monopolies or combinations to monopolize trade or commerce, are hereby prohibited in the state of Louisiana,” etc.

Section 1 of Act 57 of 1922 declares:

“That in Order to promote, foster and encourage the intelligent and orderly marketing of agricultural products through co-operation and to. eliminate speculation, unnecessary middlemen and waste; and to make the distribution of agricultural products as direct as can be efficiently done between producer and consumer, and to stabiViee the marketing of agricultural products, this act is passed.”

It is clear that the avowed purpose of any association organized under the act is to stabilize the price of cotton, or other agricultural products, so that such price will be uniform throughout the year, and not to force up or down the price of such products for merely speculative purposes. The act, apparently, does not contemplate ahy monopoly to corner the market, but merely permits associations organized under it to handle cotton produced or controlled by its own members, solely upon a co-operative marketing plan or basis.

Upon its face, Act 57 of 1922 does not authorize the making of a contract or the forming of a conspiracy or combination in restraint of trade.

It is therefore incumbent upon defendant to prove that a monopoly has been created, or that trade has been restrained by plaintiff, Association, in order to annul the agreement signed by him. This defendant has failed to do.

It is evident, therefore, that neither the act, nor the contract made under it by defendant, can be annulled in this case as violative of section 14 of article 19 of the Constitution of 1921. Potter v. Dark Tobacco Growers’ Co-op. Ass’n, 201 Ky. 441, 257 S. W. 33; Oregon Growers’ Co-op. Ass’n v. Lentz, 107 Or. 561, 212 P. 811; Tobacco Growers’ Co-op. Ass’n v. Jones, 185 N. C. 265, 117 S. E. 174, 33 A. L. R. 231; Kansas Wheat Growers’ Ass’n v. Schulte, 113 Kan. 672, 216 P. 311.

3. Defendant also attacks the marketing agreement in this case as a unilateral contract and therefore void for lack of mutuality.

We cannot concur in that view of the case.

Plaintiff, Association, promises upon its part:

(A) To buy all the cotton produced by or for defendant, or acquired by him. as landlord or lessor, during the years 1923, 1924, 1925, 1926, and 1927. Section 2.

(B) To make rules and regulations and provide inspectors or graders to standardize *301 and grade the quality and method of handling, pressing and shipping the cotton. Section 4.

(O) To pool or mingle the cotton with that of like variety, grade, and staple delivered by other growers, and to grade the cotton. Section 5.

(D) To resell the cotton and to pay the grower the net proceeds less authorized deduction. Sections 6 and 7.

(E) To borrow money on the delivered cotton, prorate it among the growers, and to accept drafts drawn against it. * Section 9.

Defendant promises upon his part:

(A) To sell and deliver to the Association his cotton for the years 1923, 1924, 1925, 1926, and 1927. Sections 2, 11, 12, 13A.

(B) To deliver at the earliest reasonable time at specified warehouses. Section 4A.

(0) To mail statistical data to the Association when requested. Section 14.

(D) To deliver to the Association any of the 1922 crop on hand. Section 17.

It is true that the Court of Civil Appeals of the state of Texas, in Texas Farm Bureau Cotton Association v. Stovall, 248 S. W.

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Bluebook (online)
107 So. 115, 160 La. 294, 1926 La. LEXIS 2363, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-farm-bureau-cotton-growers-co-op-assn-v-clark-la-1926.