160 Ga. 30 | Ga. | 1925
Concurrence Opinion
concurring specially. I can not agree that the very important questions raised by the present record should be dismissed in the casual and summary manner, as it seems to me, in which they are disposed of in the syllabus. I concur in the conclusions reached in the first and second headnotes. I can not concur in the ruling stated in the third headnote, because it is perfectly plain to me that the assignment of error referred to in the third headnote refers to article 4, section 2, paragraph 4, of the constitution, and it is my opinion that the use of the words “section 1” instead of section 2 is a mere clerical or typographical error which should not be taken advantage of to avoid a decision upon the question whether the provisions of the co-operative marketing act create a monopoly or authorize contracts which are in restraint of trade. Furthermore, the record presents for adjudication several questions not mentioned in the decision of the majority of the court, upon which I feel it my duty to rule as far as I am able by the expression of my individual opinion. My opinion upon the questions involved in this case, stated seriatim, is as follows:
1. The necessities of a great public interest may authorize a reasonable classification of citizens, as between diverse interests or occupations. It is within the power of the legislature to consider and act upon existing or varying conditions as affecting the public welfare in conformity with those economical conditions; and existing economical conditions may of themselves justify or compel legislation classifying farmers as a class requiring, beneficial legislation. The classification of farmers as a producing class, whose labors are individualistic and not by the group, as in many other forms of labor, is a reasonable, just, and proper exercise of the power of classification.
2. The title of the co-operative marketing act is sufficiently broad to include the provisions of sections 3, 4, 5, and 23 of said act; and for that reason said sections are not void as in violation of art. 3, sec. 7, par. 8, of the constitution of Georgia.
3. Section 15 of the co-operative marketing act, supra, which authorizes the by-laws and marketing contract to fix liquidated damages and to require the members to pay all costs; premiums
4. The co-operative marketing act of 1921 is not unconstitutional because it permits one who has contracted to deliver his products to be restrained from breaching and violating the contract to the irreparable injury of the opposite party. The General Assembly in providing the remedy of injunction as provided in the co-operative marketing act only exercised its constitutional powers. The power of providing forms for administering justice by specific remedies is inherent in the General Assembly, and legislative control over forms of remedies is unlimited as long as there is no deprivation of due process of law. The legislature had the power to provide injunction if in its discretion that form of remedy or mode of redress is better adapted to accomplish the object proposed than another form of judicial proceeding. By reason of the declared object and purposes of the association which the General Assembly authorized to be created, associations organized under the co-operative marketing act would be entitled in any event to specific performance in the enforcement of the contract.
5. It plainly appears from the terms of the co-operative marketing act of 1921, as well as from the mode of business to be carried on by the association authorized to be created by said act, and from the contract in evidence, that the Cane Growers CoOperative Association is not intended to create a monopoly, within the meaning of that word as used in art. 4, sec. 2, par. 4, of the constitution. So far as appears from the present record, it will be impossible for it to create0a monopoly (within the ordinary significance of that term) in the agricultural product with which it deals. Nor is the contract between the Cane Growers Co-Operative Association and its members invalid as in restraint of trade.
6. The contract upon which the plaintiff in the lower court based its action is in conformity with the terms of section 15 of the co-operative marketing act, which authorizes the making of a
7. The plaintiff in error, being a member and officer of the association upon which the act of 1921 confers special benefits and privileges, is not in position to attack the act upon the ground of unconstitutionality.
In 1921 the General Assembly of this State passed a law, the title of which is as follows: “An act to promote, foster, and encourage the intelligent and orderly marketing of agricultural products through co-operation, and to eliminate speculation and waste; and to make the distribution of agricultural products as direct as can be efficiently done between producer and consumer; and to stabilize the marketing problems of agricultural products; and for other purposes.” This act provides that this law shall be referred to as the “co-operative marketing act.” This law is a mere enabling act. The General Assembly, by the express terms of this enabling act under the provisions of which the Cane Growers Association and other similar associations are authorized to be formed, entered a new field of legislation; and since there has been no reason prior to this time for this court to construe the provisions of the law, I deem it proper to advert briefly to some of its main features. The business operations of the associations authorized by the co-operative marketing act are expressly confined to the sale of the products grown by members of the association. Their association can not buy from or sell for producers who are not members of the association,, nor can it perform similar services for dealers or manufacturers. The association has no capital stock. It is forbidden to make any profits. It is obvious from these provisions (not to refer to many similar features of the act) that the law was intended to effect only the purposes set forth in the
The legislatures of thirty or more of the principal agricultural States of this Union have enacted enabling acts, practically, if not precisely, identical with the act in question. The validity of this new character of legislation has been upheld in all its phases by the Supreme Courts of North Carolina, Tennessee, Kentucky, Texas, and several other States, and the principles underlying it have been affirmed by the Supreme Court of the United States in rulings made where the provisions of the Sherman act and features of the Clajdon act were involved. There is not a single substantial issue of fact in the case now before us. Each assignment of error will be hereinafter specifically dealt with. However, as if is perfectly plain that, if any of the exceptions.presented by the plaintiff to the judgment in this case aré meritorious, the design of this legislation will be marred, and the Cane -Growers5 Association, and other similar associations designed for the sole purpose of relieving a condition of extreme economic depression in all agricultural pursuits, will be blighted, shrivel and die, it is proper that the basis upon which the General Assembly has attempted to exercise its right to legislate be considered. It may be said, what has this to do with constitutional questions? The reply is that the General Assembly is the author of every law, and it is the only authority to say what shall be enacted. What has current public opinion to do with constitutional inhibitions and guaranties ? Just this: It affords a very proper method of approach to the determination of the meaning of constitutional provisions. The assignment of error that the judgment before us for review was erroneous because the judge issued a mandatory injunction, and because he issued an injunction without any allegation or proof that the de
It is within the power of the General Assembly to consider and act upon varying conditions as affecting public welfare, in conformity with changing economic conditions; and existing economic conditions may, of themselves, justify or compel legislation classifying farmers as a class requiring beneficial legislation. The New York Court of Appeals in People v. La Fetra, 230 N. Y. 429 (130 N. E. 601, 16 A. L. R. 152), clearly states the principle: “Novelty is no argument against constitutionality. Changing economic conditions, temporary or permanent, may make necessary or beneficial the right of public regulation. The question comes back to what the State may do for the benefit of the community at large. Plere the legislation rests on a secure foundation. The struggle to meet changing conditions through new legislation constantly goes on.” As said by President Harding at the agricultural conference, Jan. 23, 1922: “From the very nature of things farmers can not produce in groups. Their occupation is essentially personal and individualistic. A great manufacturing industry can consolidate under the ownership of a single corporation,. with a multitude of stockholders, a great number of originally separate
The State has the power to reasonably classify its citizens or to recognize and approve an actually existing classification. The classification of farmers as a producing class whose labors are individualistic and not by the group is a reasonable, just, and proper exercise of the power of classification. Classification of persons whose labors or production is by the group has long been recognized, both in the State and Federal courts, as will appear from the authorities hereinafter cited; and it would seem that it would be an equally reasonable exercise on the part of the General Assembly to make another and different classification, including only producers of agricultural products, with the necessary subdivisions embracing all the kinds of agricultural products from cotton to cucumbers. Though the trite statement, “everything rests upon agriculture,” may have been often used for demagogic purposes, I deem it not unjudicial to reaffirm the proposition and to say that even the constitution itself relies for its support upon the pursuit of agriculture under healthful conditions; for if there were no production of food to maintain life, there would be no people for the constitution to serve and no people to support the constitution.
The first insistence of the plaintiff in error is, that the defendant
When the purposes of the act, as stated in the caption, are considered, it will readily appear that a recovery of damages for a breach of the contract entered into between the plaintiff and defendant in this case would so completely fail to furnish relief, in case there was a breach of the contract to deliver produce, that the whole object for which the association was formed would be defeated. Compensation in damages could not be made, because the injury is of such nature that the computation is impossible. The plan upon which the association is conducted makes its success depend, not upon the making of money for the association, but upon having such influence on the market price of the article which the defendant and other cane-growers produced as would be beneficial to the producers within the association and enable each and every one of them to obtain a fair market price. As said by Mr. Chief Justice Clark in Tobacco Growers' Co-Operative Association v. Jones, 185 N. C. 265 (117 S. E. 174, 176, 33 A. L. R. 231), “Damages, of course, are of no real value. The association must have crops to market, or it will go out of business; therefore relief in equity is provided, and it is an essential point in this case.55 Without the provision of section 15 of the co-operative marketing act, affording an injunction preventing the member of the association who has promised to deliver his crop to the association from delivering it to another until a decree of specific performance can be rendered, the entire act would be nothing more than “a sounding brass and a tinkling cymbal.55 The effort of the General Assembly to provide a measure which might tend to enable the great farming class of our people to obtain a fair market price would be completely frustrated by holding that specific performance could not be decreed, and it would be futile to provide specific performance; for after the produce has been delivered to another, under a well settled rule the right of specific performance must be denied, because specific performance is then impossible.
Whether the defendant was released because the contract was breached by the plaintiff (the Cane Growers Association) by failure of the plaintiff to carry out its contract must be determined by the stipulations of the contract with reference to the matter. The pith of the defendant’s contention is that the association has not paid him for the syrup furnished by the defendant the amount of money which the association received from the sale thereof. For this reason the defendant contends that he is released from any obligation to furnish the syrup produced by him for the succeeding year. The nature of the contract, which the defendant voluntarily entered into, does not impose any obligation on the association to pay to any one producer the amount received from the sale of that particular article, or pay him the entire proceeds of a sale if the entire crop delivered by him be sold as a whole. The member agrees to enter a pool, and, in consideration of the benefits anticipated as a result of the pooling arrangement, he agrees to accept the best price the association is able to get for the membership as a whole upon produce of the same quality as that furnished .by him, after a complete accounting has been made and payment of all debts and expenses necessary in effecting the sale of the syrup as a whole. The record discloses without contradiction that at the time the defendant refused to deliver the crop produced by him in 1922 there had been no final settlement by the association with its members for the syrup sold by them in 1921, and that in fact the sales for the year 1921 had not been completed. It is
So we come to consider the objections based on the alleged unconstitutionality of the co-operative marketing act. Is the act unconstitutional as in violation of article 3, section 7, paragraph 8, of the constitution? It is contended that the act in question contains in the body thereof matter different from what is expressed in the title. A substantial and not a literal compliance with this requirement of the constitution is all that is necessary. Macon &c. Ry. Co. v. Gibson, 85 Ga. 1 (11 S. E. 442, 21 Am. St. R. 135). It was never contemplated that the title of the act should give a complete synopsis of the act. The title of the co-operative- marketing act is sufficiently definite to indicate its general purpose and scope. “The body of the act contains nothing that is different from what is expressed in the title of the act” (Hill v. Decatur, 22 Ga. 203), and all of the provisions of the act are in accord with the declared purpose stated in the caption. In Jones v. Columbus, 25 Ga. 610, Judge McDonald, speaking for the court, held that the title, “to raise a revenue for the City of Columbus, is broad enough to admit any provision for that purpose,” holding at the same time that even “the addition” to the language “to raise a revenue,” etc., “of the words ‘amendatory of the act of 1841/ can not re
The reason assigned why the co-operative marketing act offends the above-recited provision of the constitution is that there is nothing in the caption of the act to indicate a purpose on the part of the General Assembly to allow the corporation for the creation of which provision is made to exercise the powers conferred by section 15 of the act in regard to attorney’s fees and other expenses of litigation in addition to the usual costs provided by law. It is contended that there is no allusion in the title to these provisions. Even in the criminal case of Brown v. State, 73 Ga. 38 (and in such cases the law must always be strictly construed), this court held adversely to such a contention. The title of the act in question in that case was, “to provide for the collection of the special taxes imposed by law on dealers in spirituous or malt liquors or intoxicating bitters, and for other purposes.” In the body of the act the non-payment of the tax was made a crime, and it was provided that upon a failure to pay such tax the dealer might be indicted and punished as for a misdemeanor. Yet the court held that the act was not objectionable either as containing matter different from its title or as containing more than one subject-matter. It may be stated as a general rule, based upon the general principle that all legislation is presumptively constitutional, and that he who attacks the constitutionality of a legislative enactment carries the burden of establishing its constitutional invalidity, that an act will not be declared unconstitutional upon
said in the Pope case, supra, the object of the provision is to insure separate consideration of-each subject presented for legislative action and a declaration of such subject. In Ex parte Connor, 51 Ga. 573, it was said that one of the reasons why a clear statement of enough of the general purpose of the act is required is to prevent “logrolling.” In Robinson v. Bank, 18 Ga. 65, 89, it was held that where the title of an act indicates the legislative purpose to extend the charter of a corporation, provisions in the act setting out the terms and conditions under which the extension is granted are not at variance with the title. A case which seems to be in point upon the precise question now before us is that of Davis v. Bank, 31 Ga. 69, in which it was held, that, in an act granting a charter to a bank, any grant of franchise or franchises may be conferred without embodying matter different from what is expressed in the title of the act. Having already held that the general purposes of the act were not in conflict with, any provisions of law, under the above rulings it was not necessary to state these lawful purposes in the caption of the act. Likewise in the Goldsmith case, supra, it was held that the omission in the title of the act granting a charter did not render that provision of the act unconstitutional.
The exception to the order of the court granting the temporary
“See. 3. Be it further enacted, that an association may be organized to engage in any activity in connection with the marketing or selling of the agricultural products of its members, or with the harvesting, preserving, drying, processing, canning, packing, storing, handling, shipping, ginning, or utilization thereof; or in connection with the manufacturing, selling, or supplying to its members of machinery, equipment, or supplies; or in the financing of the above-enumerated activities; or in any one or more of the activities specified herein.
“Sec. 4. Be it further enacted, that each association incorporated under this act shall have the following powers: (a) To engage in any activity in connection with the marketing, selling, harvesting, preserving, drying, processing, canning, packing, storing, handling, ginning, or utilization of any agricultural products produced or delivered to it by its members; or the manufacturing or marketing of the by-products thereof; or in connection with the purchase, hiring, or use by its members of supplies, machinery, or equipment; or in the financing of any such activities; or in any one or more of the activities specified in this section. No association, however, shall handle the agricultural products of any non-member, (b) To borrow money and to make advances to members, (c) To act as the agent or representative of any member or members in any of the above mentioned activities, (d) To purchase or otherwise acquire, and to hold, own, and exercise all rights of ownership in, and to sell, transfer, or pledge shares of the capital stock or bonds of any corporation or association engaged in any related activity or in the handling or marketing of any of the products handled by the association, (e) To establish reserves and to invest the funds thereof in bonds or such other property as may be provided in the by-laws, (f) To buy, hold, and exercise all privileges of ownership over such real or personal property as may be necessary or convenient for the conducting and operation of any of the business of the association or incidental thereto, (g) To establish, secure, own, and develop ’ patents, trade-marks, and copyrights, (h) To do each and everj’-thing necessary, suitable, or proper for the accomplishment' of any one of the purposes or the attainment of any one or more of the*57 objects herein enumerated, or conducive to or expedient for the interest or benefit of the association; and to contract accordingly; and in addition to' exercise1 and possess all powers, rights, and privileges necessary or incidental to the purposes for which the association is organized or to the activities in which it is engaged; and in addition, any other rights, powers, and privileges granted by the laws of this State to ordinary corporations, except such as are inconsistent with express provisions of this act; and to do any such thing anywhere.
“See. 15. Be it further enacted, that the association and its members may make and execute marketing contracts, requiring the members to sell, for any period of time, not over ten years, all or any specified part of their agricultural products or specified commodities exclusively to or through the association or any facilities to be created by the association. The contract may provide that the association may sell or resell the products of its members, with or without taking title thereto; and pay over to its members the resale price, after deducting all necessary selling, overhead, and other costs and expenses, including interest on preferred stock, not exceeding 8 per cent, per annum, and reserves for retiring the stock, if any; and other proper reserves; and interest not exceeding eight per cent, per annum upon common stock; or other items deemed proper. The by-laws and the marketing contract may fix, as liquidated damages, specified sums to be paid by the member or stockholder to the association, upon the breach by him of any provision of the marketing contract regarding the sale or delivery or withholding of products; and may further provide that the member will pay all costs, premiums for bonds, expenses and fees in case any action is brought upqn the contract by the association; and any such provisions shall be valid and enforceable in the courts of this State. In the event of any such breach or threatened breach of such marketing contract by a member, the association shall be entitled to an injunction to prevent the further breach of the contract, and to a decree of specific performance thereof. Pending the adjudication of such an action and upon filing a verified complaint showing the breach or threatened breach, and upon filing a sufficient bond, the association shall be entitled to a temporary restraining order and preliminary injunction against the member.
“See. 23. Be it further enacted, that no association organized*58 hereunder shall be deemed to be a combination in restraint of trade or an illegal monopoly, or an attempt to lessen competition or fix prices arbitrarily; nor shall the marketing contracts or agreements between the associations and its members or any agreements authorized in this act be considered illegal or in restraint of trade.”
The first exception raises the question, whether the provision as to injunction in the co-operative marketing act of 1921 is constitutional; and second, whether the caption of the act was broad enough to include the provisions of sections 15, and 3, 4, and 5 of said act, so as to authorize the creation of the corporations and the grant of the powers set forth in these sections. It is the purpose of the law to provide a remedy for every wrong; and in determining whether the legislature has the power, which is generally conceded, to provide any remedy which may be necessary to reach and cure the wrong, it may not be amiss to consider that from the very beginning of our judicial history it has been held that the legislature may charter any form of corporation which it may select. In the early case of Dartmouth College v. Woodward, 4 Wheaton, 518 (4 L. ed. 629), it was held that the purpose for which a corporation was created was a matter entirely for the State and such as would carry out some design which the State desired to promote, the benefits to the public constituting the consideration for corporate authority. In the Slaughter-House Cases, 16 Wallace, 36 (21 L. ed. 394), a charter granting the exclusive right to slaughter meat in the city of New Orleans was sustained on the ground that the legislature had plenary powers to charter any form of corporation. To the same effect was the decision of the Supreme Court of the United States in New Orleans Gas-Light Company v. Louisiana Light Company, 115 U. S. 650 (6 Sup. Ct. 252, 29 L. ed. 516). Also, Penobscot Boom Corporation v. Lamson, 16 Maine, 229 (33 Am. D. 656); Killingsworth v. Portland Trust Co., 18 Oregon, 351 (23 Pac. 66, 7 L. R. A. 638, 17 Am. St. R. 737). The attack made upon the provision for injunction is that it is unconstitutional to give the plaintiff injunctive relief. Legislative control over forms of remedies is unlimited so long as there is no deprivation of due process of law. In Iowa Central Railway Co. v. Iowa, 160 U. S. 393 (16 Sup. Ct. 345, 40 L. ed. 467), where the defendant attacked a statute providing for remedy by mandamus without a jury trial, the court held:
But it is insisted that the injunction provided by the act of 1921 is mandatory, and for that reason section 15 is unconstitutional, because this is a special law in conflict with the general law as to injunctions. Aside from the fact that the general law to which plaintiff in error refers is not pointed out, if, as we have already held, the power of the General Assembly to provide appropriate remedies is within its exclusive jurisdiction as a co-ordinate department of our government, then it is within the power of the General Assembly, as it frequently does by the passage of a general law, to vary or even destroy enactments previously of force. In the act of 1921 the General Assembly has made provision for a new economic condition, for a new class of incorporations, and for a new class of contracts, and is about to provide a remedy in case of violation of such contracts. It seems perfectly plain, under the generally recognized power of the General Assembly to pass upon the form of remedial legislation to be employed in any case, that it may direct the grant of injunctive powers by the court in a new class of cases to which it may determine the remedy is appropriate. As said in the case of State v. Diamond Mills Co., supra, “The legislature not infrequently extends the jurisdiction of courts, both of law and of equity, to new cases, and it assigns them to the one court or the other in conformity with the
Is the association created by the act of 1921, known as the cooperative marketing act, a monopoly, or does the act “encourage monopoly?” And is the contract sub judice, by reason of the fact that it tends to encourage monopoly or for any other reason, in restraint of trade? Art. 4, sec. 2, par. 4, does not undertake to define the word “monopoly,” from which it results that the courts have authority and the right to submit a definition. Citation' of authority is unnecessary to support this proposition; for our reports contain many decisions where the duty devolved upon the courts
*62 “An examination of this statute shows, we think, that this association is authorized for the purpose, not of creating - a monopoly, but to protect the tobacco producers against oppression by a combination of those who buy, and not to authorize, and does not empower, those who produce the raw material to create a monopoly in' themselves. Indeed, it seems to us plain that the plaintiff, under the provisions of its charter, is not and never can become a monopoly, for many reasons: (1) As a corporation of North Carolina, the moment it should become dangerous to the public, if that were possible under the terms of its charter, the General Assembly can at any time repeal its charter (Const., art. vm, sec. 1), and the courts will intervene to prevent it becoming a monopoly. (2) The plaintiff has neither capital stock or surplus, nor credit, except as given it by the statute, and this latter may be withdrawn at any time. It is wholly dependent upon its ability to borrow in large sums, which is necessarily under the control .of the Federal Reserve Banking System, . . which is a function of the Government, only on such terms as that board deems consistent with the public welfare, and that board will not permit hoarding or monopolizing by the plaintiff. The power of the Federal Reserve System was shown in October, 1919, when by mere announcement of its policy it caused the deflation of the stock market. In May, 1920, when the operations of the War Finance Corporation were suspended by direction of the Secretary of the Treasury, so that it could not extend credit for the export of cotton, because cotton was scarce and a cotton famine was threatened, there resulted a drop in cotton of 30 cents a pound in six months. Therefore, were- the plaintiff to attempt to monopolize the sale of tobacco, not only it would fail to control its sale by the large numbers of producers who are not members of the organization, but it would be faced with the power of the General Assembly to repeal its charter, . . and it would be denied the privilege of borrowing from the Federal Reserve Bank or any of its correspondents. It would be subject to the visitorial powers of the Secretary of Agriculture under the anti-trust laws; and finally it would be confronted with the huge increase' in the acreage devoted to tobacco, and, by the holding off from the market the normal production of any one year, the result would be the selling of two crops within a single year. As was well said by Mr. Pou, one of the counsel for the plaintiff, These conditions make it physically, economically,*63 and financially impossible for the plaintiff to become a monopoly/
“The plaintiff will continue to exist only if it provides for a normal, orderly marketing of the tobacco crops, and by putting on the markets of the world annually the production for that year. Its sole purpose is by an orderly marketing of the crop to make large saving, and to secure to the producers a fair and reasonable price therefor without increasing the price the consumer will pay for the manufactured article. The sole object of the association is to protect the producer of the raw article from depression in price by the combination of the large manufacturing corporations controlled by a few men who can at the same time not only decrease the price to the producer, but can increase it at will to the consumer and thereby accumulate in a few hands sums beyond computation. The co-operative association purposes to eliminate unnecessary expenses in selling, and to prevent artificially forced reduction in the price paid to the producers. ■ Instead' of creating a monopoly, the object is by a rational method of putting the raw product on the market from time to time as there is a legitimate demand for its manufacture, and by the extension of credit to farmers to enable this to be done, to prevent a monopoly of the tobacco industry by those who manufacture it.”
Paraphrasing the reasoning of Mr. Chief Justice Clark to the case in hand, the enabling act was only passed “to promote, foster and encourage the intelligent and orderly marketing of agricultural products through co-operation, and to eliminate speculation and waste; and to make the distribution of agricultural products as direct as can be efficiently done between producer and consumer; and to stabilize the marketing problems of agricultural products; and for other purposes.” The provisions of art. 4, sec. 2, 'par. 4, above quoted, refer to specific situations or conditions arising from the conduct of corporations, and the only inhibition is against “monopoly.” It is clear that 'there is nothing in the act of 1921 violative of the inhibition against authorizing a corporation to buy shares of stock in another corporation fox the purpose of defeating or lessening competition, and that the contracts which the association is permitted to make within the scope of its charter powers will not defeat or lessen competition in the business to be carried on by the contracting parties. Unlike other classes of our citizens, farmers are producers only. Unlike other classes of
It is said that the act is unconstitutional and in restraint of trade, because it violates art. 4, see. 1, par. 4, of the constitution. As there is no paragraph 4 in section 1 of article 4 (section 1 consisting of only one paragraph, which relates to taxation), I assume that the plaintiff in error intended to refer to the only place in the constitution where the word “monopoly” is mentioned, to wit, art. 4, sec. 2, par. 4, and that the use of the figure 1 instead of 2 is a mere typographical error. I have heretofore quoted the exception as contained in paragraph 10 of the defendant’s answer. Art. 4, see. 2, par. 4, of the constitution upon the subject of monoplies is as follows: “The General Assembly of this State shall have no power to authorize any corporation to buy shares of stock in any other corporation in this State or elsewhere, or to make any contract or agreement whatever with any such corporation, which may have the effect, or be intended to have the effect, to defeat' or lessen competition in their respective businesses, or to encourage monopoly; and all such contracts and agreements shall be illegal and void.” This paragraph deals only with contracts made on the part of one corporation with another, and only refers to such of these as have the effect or are intended to defeat or lessen competition in their respective businesses. It is plain that there is nothing in the co-operative marketing act which falls within the provisions of this article of the constitution. Section 23 of the co-operative marketing act provides that no association organized under the provisions and in accordance with the terms of that act “shall be deemed to be a combination in restraint of trade, or an illegal monopoly; or an attempt to lessen competition, or to fix prices arbitrarily; nor shall the marketing contracts or the contract between the association and its members or any agreement authorized in this act be considered illegal or in restraint of trade.”
Is the contract in question in restraint of trade? We think not. The question as to whether certain contracts are in restraint of trade has been dealt with by this court in Holmes v. Martin, 10 Ga. 503, Jenkins v. Temples, 39 Ga. 655 (99 Am. D. 482), and Rakestraw v. Lanier, 104 Ga. 188, 196 (30 S. E. 735, 69 L. R. A. 154). In the Bakestraw ease the court applied the yardstick by
“It has been said that contracts in partial restraint of trade have been upheld when they are agreements: (1) by the seller of property or business, not to compete with the buyer in such a way as to derogate from the value of the property or business sold; (2) by a retiring partner, not to compete with the firm; (3) by a partner, pending the partnership, not to do anything to interfere, by competition or otherwise, with the business of the firm; (4) by the buyer of property, not to use the same in competition with the business retained-by the seller; and (5) by an assistant, servant, or agent, not to compete with his master or employer after the expiration of his time of service. Still an agreement in restraint of trade need not fall within these divisions, to be valid.” 13 C. J. 468, § 411. U. S. v. Addyston Pipe Co., 85 Fed., 271 (46 L. R. A. 122, 29 C. C. A. 141). After providing the tests to which we have already referred, the rule in the Ralcesiraw case declares that if “the restraint contracted for appears to have been for a just and honest purpose for the protection of the legitimate interests of the party in whose favor it is imposed, reasonable as between them and not specially injurious to the public, the restraint will be held valid.” This court and all other courts, as far as we have been able to find, have recognized a distinction, ofttimes controlling, between a contract which is in partial restraint of trade and a contract which is whoEy in restraint of trade. In the Ralcesiraw case this court recognized' this distinction and stated, in the quotation last made, instances under which a contract only partially in restraint of trade may nevertheless be valid and binding. The con
This State is largely agricultural. Agriculture forms the biggest element of its earnings and increased wealth. It must contribute more largely than anything else to the future prosperity of our State. Agricultural prosperity in the future may be largely dependent upon diversification, and a State policy of attracting part of our agricultural population to the production of cane rather than cotton might afford a necessary stimulus to the production of cane. Various considerations well understood by those versed in agriculture, of which the legislature had the right to take notice, may have induced it to hold that this partial restraint of trade would be really beneficial to the public interest. For this reason it does not appear to me “that the restraint contracted for” is “specially injurious to the public interest,” and the contract must be held to be “supported by a sufficient consideration,” and that the restraint is reasonable. Speaking in Horner v. Graves, 7 Bingham, 743, Mr. Chief Justice Tindall said: “We do not see how a better test can be applied to the question whether reasonable or
Manifestly the General Assembly can not by the passage of an act make lawful that which is forbidden by the constitution. But, as said by this court, “in all independent States and nations absolute power rests somewhere. In this country it is neither lodged with the executive nor the legislative nor the judicial branches of the government, nor with all combined; but sovereignty rests with
With the power of the State relating to agriculture thus defined and apparent, and with the term “monopoly” left undefined in article 4, section 3, paragraph 4, of the constitution, speaking for myself, I am prepared to hold that section 33 of the co-operative marketing act is not unconstitutional because it creates a monopoly, or because the association may operate in restraint of trade. The primal question is, has the legislature the right to accomplish the result of fostering agriculture, providing an orderly mode of marketing agricultural products? If so, the doctrine stated by Mr. Justice Miller in the Slaughter-House Cases, 16 Wall. 64 (supra), applies, “that wherever a legislature has the right to accomplish a certain result, and that result is best attained by means of a corporation, it has the right to create such a corporation, and to endow it with the powers necessary to effect the desired and lawful purpose,” and that the proposition just quoted “seems hardly to admit of debate.”
6. However, even were the co-operative marketing act unconstitutional, the plaintiff in error here is not in position to take advantage of that fact. He was one of the signers of the articles
Concurrence Opinion
I concur in the principle of law stated in the sixth division of the concurring opinion of the Chief Justice; and that being true, do not think it is necessary, to pass upon the other constitutional questions of law. I also concur in the rulings made
Lead Opinion
1. The title of the eo-operative marketing act (Acts 1921, p. 139) is sufficiently broad to include the provisions of sections 3, 4, 5, 15, and 23 of said act; and for that reason said sections are not void as in violation of article 3, section 7, paragraph 8, of the constitution of Georgia.
2. So much of section 15 of the acts of 1921, referred to in the preceding division, as seeks to authorize the by-laws and marketing contract to fix liquidated damages and to require the members to pay all costs, premiums for bonds, expenses and fees, ■ as well as providing for injunction and a decree of specific performance, is not unconstitutional and void as being in conflict with article 1, section 4, paragraph 1, of the constitution of Georgia, in that the general laws of the State have provided for the issuing of temporary injunction, for the payment of court costs, and other provisions stated in said section.
3. An attack upon the entire act of the legislature mentioned in the preceding division, - and upon the contract upon which the suit was based, on the ground that they are null and void as being “in violation of article 4, section 1, paragraph 4, of the constitution, in that it was the intention of the plaintiff and the members forming the same to combine all of the cane products grown in southwest Georgia so as to be able to fix the price at which the cane would be sold, and be able to effect a corner of the syrup manufactured in southwest Georgia, so as to enable the association to dictate the price to be paid for such syrup by the canners who depended upon said crop for their material to operate their canneries,” is insufficient to present any question for consideration, there being no section 1 in article 4 of the constitution.
Judgment affirmed.