ANALYSIS OF TOBACCO GROWERS' ASSOCIATION 47 



The question of the constitutionality of the cooperative market- 

 ing act of North Carolina was raised in the fall of 1922 by a member 

 of the Tobacco Growers' Cooperative Association in an action which 

 the association brought against him for liquidated damages covering 

 tobacco already sold, and for an injunction to prevent him from 

 disposing of the remainder of his 1922 crop of tobacco outside the 

 association. This member contended that the marketing act was 

 unconstitutional and that the contract between him and the associa- 

 tion was invalid because it was in restraint of interstate and intrastate 

 commerce. The Supreme Court of North Carolina held that the act 

 was constitutional. 19 



AUXILIARY LEGISLATION 



In addition to the cooperative marketing laws, auxiliary legislation 

 was later enacted, designed to establish helpful protection for the 

 farmers. 



A law of South Carolina, approved March 18, 1924, provides " for 

 the recording of marketing contracts or agreements entered into by 

 agricultural producers and cooperative corporations and cooperative- 

 marketing associations and their members." 20 This law after author- 

 izing those organizations subject to its provisions to record contracts 

 made with their members, states: 



When this Act shall have been complied with, and any such record as is herein 

 mentioned is made in the county in which the member of said association re- 

 sides such record shall operate as constructive notice of the existence of such 

 contract or agreement, and of the terms thereof (and all persons contracting or 

 dealing with any such member in relation to any such produce covered by such 

 contract or agreement shall be bound thereby, and all rights or liens acquired 

 by any such person in such produce subsequent to the date of such record shall 

 be subject in all respects to the rights of the association under such contract or 

 agreement) : Provided, hoicever, That nothing herein contained shall affect the 

 statutory lien of a landlord for rent and advances and labor's liens : And pro- 

 vided further, That this Act shall not have the effect of conferring upon such 

 association any power over its members, or of imposing upon its members any 

 duties not now possessed by the association or owing by the members under 

 existing contract. Nothing contained herein shall be construed to affect the 

 rights of a share-cropper as they now exist under the laws of the State of South 

 Carolina : Provided, That if any agricultural produce covered by such contract is 

 sold at public auction or on a warehouse floor, the warehouseman or purchaser 

 shall not be liable for any damages, provided to be paid by any member in such 

 contract, unless actual notice is given in writing before settlement that the 

 tobacco sold or offered for sale belongs to a member of the association. 



The State of Virginia has a law 21 providing for the recording of 

 contracts, which is similar to the South Carolina law quoted above. 



Laws to regulate warehousemen and to cause them to record and 

 disclose the true names of the owners of tobacco sold upon their auc- 

 tion floors have been enacted by the States of Virginia 22 and South 

 Carolina. 23 These measures are said to have assisted the cooperative 

 associations to check the practice of soliciting tobacco which associa- 

 tion members were under contract to deliver to the association and 

 selling it under assumed names on the auction floors. 



19 Tobacco Growers' Coop. Assn. v. Jones, 185 N. C. 265. 117 S. B. 174. 



20 Acts and Joint Resolutions * * * of South Carolina, 1924, p. 1074. 



21 Acts and Joint Resolutions * * * Virginia, 1924, p. 39. 



22 Acts and Joint Resolutions * * * of Virginia, 1923, p. 129. 



23 Acts and Joint Resolutions * * * of South Carolina, 1924, p. 993. 



