LEGAL PHASES OF COOPEKATIVE ASSOCIATIONS 57 
In view of the state of the law as indicated above, persons who 
buy farm products from producers who have entered into marketing 
contracts with their associations to sell such products to the associa- 
tion, run a great risk in doing so, even though they may be unaware 
of the marketing contract of the association, because it will be 
remembered that, if title to the products covered by a marketing 
contract has passed to the association, an association may be able to 
recover damages or the products from any person acquiring the 
same from a producer without its consent. 
The foregoing discussion is entirely independent of the statutes 
that have been passed in some States providing for the filing or 
recording of marketing contracts of cooperative associations for 
the purpose of giving notice to the world of the rights of an associa- 
tion under them. If such a statute has been passed in a State, third 
persons are undoubtedly bound who attempt to purchase or acquire 
liens on the products of members after the filing or recording of the 
marketing contracts. 
In Arizona, 21 Maine, 22 Oregon, 23 Virginia, 24 and Wisconsin, 25 pro- 
vision has been made for the filing or recording of marketing con- 
tracts for the purpose of giving notice to all concerned of the rights 
of the association with respect to the crops covered by marketing 
contracts. 
The cooperative marketing act of Indiana 26 provides that : 
Growers of agricultural products who have signed any such marketing agree- 
ments with cooperative marketing associations organized hereunder shall be 
permitted to place crop mortgages upon their crops ; but said crop mortgages 
and any other liens shall be subordinate to the right of such association to take 
delivery of any such crops covered by the marketing agreement. 
POOLING 
Pooling is widely practiced by cooperatives. Pooling should be 
thought of as an averaging process, an averaging with respect to pro- 
ducts, prices, expenses, or returns. In the case of products, this in- 
volves a grading of the products received from each member and a 
separation of such products according to grade for sale purposes. If 
the pool is a seasonal one, when all the products received from the 
members for a given crop year have been sold, the quantity that each 
member has had in each grade is multiplied by the average price 
per unit received for all the products in that grade, and thus the 
total amount that each member is entitled to receive after the de- 
duction of marketing expenses and any other authorized deductions, 
is determined. 
Daily, weekly, monthly, or seasonal pools, if authorized, could be 
established, or the pool could consist of a single shipment, say of 
livestock, but the principles underlying all of such pools are the same. 
Generally, in the case of long-time pools, one or more advances are 
made to members after the receipt of the products of a member, and 
then final settlement is made after the sale of all the products in the 
21 1923 Session Laws of Arizona, p. 137. 
22 1925 Laws of Maine, ch. 213. 
28 Laws of Oregon, 1929, p. . 
"Acts of Assembly of Virginia 1924, p. 39. 
25 1927 Laws of Wisconsin, ch. 167 ; construed in Watertown Milk Producers Co-op. 
Ass'n v. Van Camp Packing Co., Wis. , 225 N. W. 209. 
» Acts of 1925. d. 53. 
