162 THE MARKETING OF WHOLE MILK 



the dealer. Nineteen report contracts with the association. 

 Of fifteen contract forms at hand, one provides for a con- 

 tract for one year with no renewal features, two provide 

 for a continuous contract with annual periods for its dis- 

 continuance, if desired; and twelve are of the self-renew- 

 ing type. The following from the contract of the Milk 

 Producers' Cooperative Marketing Company of Chicago 

 is fairly typical of this latter type: 



"... This contract shall be self-renewing annually for 

 periods of one year each, beginning with the first day of 

 January, 1921, unless either of the parties hereto shall 

 notify the other party on or before thirty days before 

 January i in any year of his intention to terminate the 

 same on the first day of January following such notice." 



A considerable number of the contracts contain the 

 so-called "liquidated damage" clause, by which the pro- 

 ducer binds himself to consign his entire output to the 

 association for the periods stated and agrees that, in case 

 he defaults, the association is to be reimbursed in a certain 

 amount previously agreed upon as liquidated damages, 

 since the actual amount of damage suffered by the as- 

 sociation because of his breach of contract is difficult to 

 ascertain. Table XXXIII gives the amounts of such 

 liquidated damages and the basis upon which each is 

 determined in seventeen associations. 



The securing of adequate revenue has been a serious 

 problem with many of the associations. The ordinary 

 annual dues do not usually go far. It has been felt that 

 expenses should be shared more nearly in accordance with 

 the benefits derived from the association. It is difficult, 

 however, to collect on the basis of quantity marketed 

 when individual members ship their own milk and receive 

 their payments direct from the various dealers. To 



