LEGAL PHASES OF COOPERATIVE ASSOCIATIONS 125 
Any person or persons or any corporation whose officers or employees know- 
ingly induce or attempt to induce any member or stockholder of an association 
organized hereunder to breach his marketing contract with the association, or 
who maliciously and knowingly spreads false reports about the finances or 
management thereof, shall be guilty of a misdemeanor and be subject to a fine 
of not less than one hundred dollars ($100) and not more than one thousand 
dollars ($1,000) for each such offense; and shall be liable to the association ag- 
grieved in a civil suit in the penal sum of five hundred dollars ($500) for each 
such offense. 
27. Warehousemen liable for damages for encouraging or permitting delivery 
of products in violation of marketing agreements. — Any person, firm, or cor- 
poration conducting a warehouse within the State of Kentucky who solicits or 
persuades or permits any member of any association organized hereunder to 
breach his marketing contract with the association by accepting or receiving 
such member's products for sale or for auction or for display for sale, contrary 
to the terms of any marketing agreement of which said person or any mem- 
ber of the said firm or any active officer or manager of the said corporation 
has knowledge or notice, shall be liable to the association aggrieved in a civil 
suit in the penal sum of five hundred dollars ($500) for each such offense; and 
such association shall be entitled to an injunction against such warehouseman to 
prevent further breaches and a multiplicity of actions thereon. In addition, 
said warehouseman shall pay to the association a reasonable attorney's fee and 
all costs involved in any such litigation or proceedings at law. 
This section is enacted in order to prevent a recurrence or outbreak of vio- 
lence and to give marketing associations an adequate remedy in the courts 
against those who encourage violations of cooperative contracts. 
28. Associations are not in restraint of trade. — Any association organized 
hereunder shall be deemed not to be a conspiracy nor a combination in restraint 
of trade nor an illegal monopoly; nor an attempt to lessen competition or to 
fix prices arbitrarily or to create a combination or pool in violation of any law 
of this State; and the marketing contracts and agreements between the asso- 
ciation and its members and any agreements authorized in this act shall be 
considered not to be illegal nor in restraint of trade nor contrary to the pro- 
visions of any statute enacted against pooling or combinations. 
29. Constitutionality. — If any section of this act shall be declared unconsti- 
tutional for any reason the remainder of the act shall not be affected thereby. 
30. Application of general corporation laws. — The provisions of the general 
corporation laws of this State and all powers and rights thereunder shall apply 
to the associations organized hereunder, except where such provisions are in 
conflict with or inconsistent with the express provisions of this act. 
31. Taxation. — The shares of corporations organized under this act shall be 
taxable as against the owner thereof as of the period of assessment of other 
personal property for taxation in this State. 
Such shares will represent in the aggregate all the property held or owned 
by such corporation, and when taxed as against the individual owner all of 
the property in the name of said association will thereby be taxed. 
Under existing law crops grown in the year of assessment are exempt from 
tax whilst owned by the producer. So much of the value of each share of said 
stock as may represent the owner's proportion of crops grown by him and 
delivered to the association as herein provided, shall be exempt from taxation, 
inasmuch as it is the same thing exempted now by the constitution and laws 
of this State to such grower. 
32. Filing fees. — For filing articles of incorporation an association organized 
hereunder shall pay ten dollars ($10) ; and for filing an amendment to the 
articles, two and fifty one-hundredths dollars ($2.50). 
33. Whereas the agricultural interests of the State are of the utmost impor- 
tance to the people of Kentucky ; and 
Whereas a demoralized condition of the farming interests of the State exists, 
injuriously affecting all other business ; and 
Whereas the highest interests of the State generally demand immediate 
relief; and 
Whereas this act is designed and intended to afford such relief. 
Therefore, an emergency is declared to exist and this act shall become effec- 
tive immediately upon its passage and approval as required by law. 
Delivered, received, and signed this January 10, 1922. 
