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AUTHORIZING ASSOCIATION
PRODUCERS OF AGRICUL-

TURAL PRODUCTS

HEARINGS

BEFORE A

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SUBCOMMITTEE OF THE
COMMITTEE ON THE JUDICIARY

UNITED STATES SENATE

SIXTY-SEVENTH CONGRESS

FIRST SESSION

H. R. 2373

A BILL TO AUTHORIZE ASSOCIATION OF PRODUCERS

OF AGRICULTURAL PRODUCTS

JUNE 2, 7, 9, 10, 11, AND 20, 1921

Printed for the use of the Committee on the Judiciary

WASHINGTON
GOVERNMENT PRINTING OFFICE

1921

COMMITTEE ON THE JUDICIARY.

UNITED STATES SENATE.

KNUTE NELSON, Minnesota, Chairman. WILLIAM P. DILLINGHAM, Vermont. CHARLES A. CULBERSON, Texas. FRANK B. BRANDEGEE, Connecticut. LEE S. OVERMAN, North Carolina.. WILLIAM E. BORAH, Idaho.

JAMES A. REED, Missouri. ALBERT B. CUMMINS, Iowa.

HENRY F. ASHURST, Arizona LEBARON B. COLT, Rhode Island.

JOHN K. SHIELDS, Tennessee.
THOMAS STERLING, South Dakota.

THOMAS J. WALSH, Montana.
GEORGE W. NORRIS, Nebraska.
RICHARD P. ERNST, Kentucky.
SAMUEL M. SHORTRIDGE, California.

SIMON MICHELET, Clerk.

MEMBERS OF THE SUBCOMMITTEE.'

WILLIAM P. DILLINGHAM, Vermont, Chairman. GEORGE W. NORRIS, Nebraska.

THOMAS J. WALSH, Montana.

GEORGE L. TREAT, Assistant Clerk. 2

AUTHORIZING ASSOCIATION OF PRODUCERS OF AGRICUL

TURAL PRODUCTS.

THURSDAY, JUNE 2, 1921.

UNITED STATES SENATE,
SUBCOMMITTEE OF THE COMMITTEE ON THE JUDICIARY,

Washington, D. C. The subcommittee met, pursuant to the call of the chairman, at 10.30 o'clock a. m., in the committee room, Capitol, Senator William P. Dillingham presiding.

Present: Senators Dillingham (chairman) and Walsh of Montana. . Senator DILLINGHAM. This is a hearing given by a subcommittee consisting of Senators Dillingham, Norris, and Walsh of Montana, on the bill H. R. 2373. We will have printed in the record at this point this bill, and also the bill which was under consideration by the subcommittee during the last session of Congress (H. R. 13931).

(The bills referred to are here printed in full, as follows:)

(H. R. 2373, Sixty-seventh Congress, first session.]

AN ACT To authorize association of producers of agricultural products.

Be it enacted, etc., That persons engaged in the production 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, however, That such associations are operated for the mutual benefit of the members 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 centum per annum.

Sec. 2. That if the Secertary of Agriculture shall have reason to believe that any such association monopolizes or restrains trade 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 thirty days after the ser ice thereof, requiring the association to show cause why an order should not be made directing it to cease and desist therefrom. An association so complained of may at the time and place so fixed show cause why such order should not be entered. The evidence giten on such a hearing shall be reduced to writing and made a part of the record therein. If upon such hearing the Secretary of Agriculture shall be of the opinion that such association monopolizes or restrains trade to such an extent that the price of any agricultural product is unduly enhanced thereby, he shall issue and cause to be seri ed upon the association an order reciting the facts found by him, directing such association to cease and desist therefrom. On the request of such association or if such association fails or neglects for thirty days to obey such order, the Secretary of Agriculture shall file in the district court in the judicial district in which such association has its principal place of business a certified copy of the order and of all the records in the proceeding, together with a petition asking that the order be enforced, and shall give notice to the Attorney General and

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