James Clark McReynolds

“ The Bingham Act (32 sections) authorizes the incorporation of nonprofit co-operative associations for the orderly marketing of agricultural products, and provides only producers may become members and that the corporation may contract only with them for marketing such products. It declares that these contracts shall not be illegal, prescribes penalties for interfering therewith, and further provides that the association shall not be deemed a conspiracy, illegal combination, or monopoly. ”

“ It sprang from a general, if not well-nigh universal, belief that the present system of marketing is expensive and wasteful, and results in an unconscionable spread between what is paid the producer and that charged the consumer. It was for the purpose of encouraging efforts to bring about more direct marketing methods, thus benefiting both producer and consumer, and thereby promoting the general interest and the public welfare, that the legislation was enacted.'
The purpose of the penalty clause (section 27) was pointed out by the Supreme Court of Tennessee in Dark Tobacco Growers' Co-op. ”

“ The statute penalizes all who wittingly solicit, persuade, or induce an association member to break his marketing contract. It does not prescribed more rigorous penalties for warehousemen than for other offenders. Nobody is permitted to do what is denied to warehousemen. ”

“ That the association was organized to provide means for orderly marketing of tobacco grown or acquired by members and no others. Identical contracts (the standard form is exhibited) with many growers obligate them to deliver to it all of their tobacco during five years. Tobacco received under these contracts is sold to manufacturers and dealers as market conditions permit and the proceeds less expenses are distributed among the members, according to quality and quantity of their deliveries.
That one Mike Kielman joined the association and executed the standard contract. ”

“ When it contracts to sell, it must fill its contracts with tobacco delivered by its members. It cannot replace defendant's tobacco by purchasing upon the open market. Its charter prohibits it from so doing. For each pound of tobacco which is not delivered to the association by a member, there is a pro rata increase in the operating costs of the association ”

“ The third seems to be based upon the Kentucky Declaratory Judgment Law. It advances a counterclaim; also asks the court to determine whether the Bingham Act is valid and for a declaration of rights and duties.
The trial court struck section 3 'from the records' and sustained demurrers to sections 1 and 2. The warehouse company elected to plead no further. Trial by jury was waived, 'the petition being submitted to the court on the law and facts.' Judgment for $500-the prescribed penalty-and $100 attorney's fees went for the association, and was affirmed by the Court of Appeals. ”

“ The pleadings allege no burden upon interstate commerce amounting to regulation, nor do they property and definitely advance any claim under a federal statute.
A corporation does not possess the privileges and immunities of a citizen of the United States within the meaning of the Constitution. ”

“ The provisions for protecting the fundamental contracts against interference by outsiders are essential to the plan. This court has recognized as permissible some discrimination intended to encourage agriculture. ”