LEGAL PHASES OF COOPERATIVE ASSOCIATIONS. 43 



resell raisins or raisin grapes at prices fixed in advance of such 

 resale; making it a condition of any agreement or understanding 

 that the purchaser of raisins or raisin grapes shall not deal in the 

 products of a competitor of the Raisin Co., are all enjoined. 



Jurisdiction over the case was retained by the court for the pur- 

 pose of enforcing the provisions of the decree or of modifying it in 

 case any of its provisions should be found inappropriate or inade- 

 quate. Two of the most significant elements involved in the decree 

 are that the "firm at opening price" contracts must be abandoned 

 and that the resale prices of raisin grapes or raisins can not be 

 fixed by the company. 



CAPPER-VOLSTEAD ACT. 



The Capper- Volstead Act became a law on February 18, 1922. It 

 is entitled "An Act to authorize association of producers of agri- 

 cultural products," and reads as follows : 



Be it enacted by the Senate and House of Representatives of the United 

 States of America in Congress assembled, That persons engaged in tlie pro- 

 duction of agricultural products as farmers, planters, ranchmen, dairymen, 

 nut or fruit growers may act together in associations, corporate or otherwise, 

 with or without capital stock, in collectively processing, preparing for 

 market, handling, and marketing in interstate and foreign commerce, such 

 products of persons so engaged. Such associations may have marketing 

 agencies in common ; and such associations and their members may make 

 the necessary contracts and agreements to effect such purposes : Provided, how- 

 ever, That such associations are operated for the mutual benefit of the mem- 

 bers thereof, as such producers, and conform to one or both of the following 

 requirements : 



First. That no member of the association is allowed more than one vote 

 because of the amount of stock or membership capital he may own therein, or, 



Second. That the association does not pay dividends on stock or membership 

 capital in excess of 8 per cent per annum. 



And in any case to the following: 



Third. That the association shall not deal in the products of nonmembers 

 to an amount greater in value than such as are handled by it for members. 



Sec. 2. That if the Secretary of Agriculture shall have reason to believe that 

 any such association monopolizes or restrains trade in interstate or foreign com- 

 merce to such an extent that the price of any agricultural product is unduly 

 enhanced by reason thereof, he shall serve upon such association a complaint 

 stating his charge in that respect, to which complaint shall be attached or 

 contained therein a notice of hearing, specifying a day and place not less than 

 30 days after the service thereof, requiring the association to show cause 

 why an order should not be made directing it to cease and desist from monopo- 

 lization or restraint of trade. An association so complained of may at the 

 time and place so fixed show cause why such order should not be entered. The 

 evidence given on such a hearing shall be taken under such rules and regula- 

 tions as the Secretary of Agriculture may prescribe, reduced to writing, and 

 made a part of the record therein. If upon such hearing the Secretary of Agri- 

 culture shall be of the opinion that such association monopolizes or restrains 



