The city operate a st and its dele. was granted But even the constitute a vi the passage of. ileges or immu Co. v. Birmingh Bienville Water. 46 L. ed. 1132 (190 The Uniform Te successful bidder th schools for a term monopoly and grant a Const. 1901, sec. 22. not to confer any pecu. or publishers, but to con inson v. Cunningham, 140 An agreement between association providing for t. the association is a reasona interest. Section 7152 (L. 1: producers to enter into such a.. art. IV, section 103. Warren v. 213 Ala. 61, 104 So. 269 (1925). Application of Statutes.

For the purpose of eliminating senting nearly all of the cottonseed b.

would constitute an unreasonable burden upon the ortation of persons or property or would be inconPublic interest of the state. Violations are subject e than $5,000 for each month of violation.

L. 2d Ex. 1936, act 66
Liquor

and 7) provides that the application for distribund retailers' licenses shall contain the following ements: That the applicant is not in any manner

either directly or indirectly in the profits of siness regulated by this act; that he alone is in this business sought to be licensed; and that De interested therein during the continuance of as hereinafter permitted.

des that it shall be unlawful for any licensee ectly employed by any other licensee engaged rage, transportation, or sale of spirituous, or or malt, or brewed beverages.

es that no manufacturer, and no officer or dir, shall at the same time be a distributor, enser or an officer, director, stockholder, or except as hereinafter provided, be the owner ered directly or indirectly by any distribualt or brewed beverage liquor license. ilar provisions concerning distributors or

hat no licensee shall directly or indirectly any financial interest in, any other class his act.

hat, except as hereinafter provided, no distributor shall in any wise be interested, in the ownership or leasehold of any e against the same, for which a liquor granted; nor directly or indirectly lend ent thereof to any retailer in equipping, conducting, either in whole or in part, operated under a liquor retail dispense usual and customary credits allowed ntainers in which vinous and/or malt ked for market by the manufacturer. provisions concerning manufacturers iness of distributors or wholesalers.

agreements between producers, between wholesalers, or between retailers. See Vol. State Price Control Legislation: Resale Price Maintenance.

Code Ann. (Michie, 1928)
Cooperatives

Section 7152 provides that an agricultural cooperative marketing association organized pursuant to sections 7127 to 7155 shall not be deemed to be a combination in restraint of trade, an illegal monopoly, or an attempt to lessen competition or fix prices arbitrarily. See Tying Contracts and Exclusive Dealing Arrangement, infra.

Cooperatives.

Judicial Decisions

Section 7152 (L. 1921, p. 38) exempting cooperatives from the antitrust laws is constitutional. Warren v. Alabama Farm Bureau Cotton Association, 213 Ala. 61, 104 So. 264 (1925); Bishop v. Alabama Farm Bureau Cotton Association, 215 Ala. 388, 110 So. 711 (1926).

A bylaw of a cooperative organized under sections 7156 and 7161, providing for the payment of dues of 3 percent of the members' gross sales, whether or not sold through the cooperative, is a valid exercise of its power and not in restraint of trade. The cooperative is authorized to secure sufficient funds from its members for its operation and management. Ex parte Baldwin County Producers Corp., 203 Ala. 345, 83 So. 69 (1919).

C. SPECIAL ANTITRUST LAWS

1. Special Industry Antitrust Acts
Code Ann. (Michie, 1928)
Railroads

Section 9978 provides that it shall be unlawful for two or more railroads to enter into any pool agreement, the purpose or effect of which is to prevent free competition among such companies or to operate in undue restraint of trade in the localities affected.

Section 5368 provides that any officer or agent of a railroad who aids in making or carrying out a pool agreement between railroads whereby trade is restrained, may be subjected to a fine.

Code Ann. (Michie, 2d Supp. 1936)

Sections 9988 (1) to 9988 (3) provide that no steam railroads or terminal railroads shall unify or consolidate where such unification

or consolidation would constitute an unreasonable burden upon the intrastate transportation of persons or property or would be inconsistent with the public interest of the state. Violations are subject to fines of not more than $5,000 for each month of violation.

L. 2d Ex. 1936, act 66
Liquor

Section 21 (b) (6 and 7) provides that the application for distributors', wholesalers', and retailers' licenses shall contain the following information and statements: That the applicant is not in any manner pecuniarily interested either directly or indirectly in the profits of any other class of business regulated by this act; that he alone is pecuniarily interested in this business sought to be licensed; and that no other person shall be interested therein during the continuance of the license; all except as hereinafter permitted.

Section 24 (7) provides that it shall be unlawful for any licensee to be directly or indirectly employed by any other licensee engaged in the manufacture, storage, transportation, or sale of spirituous, or vinous liquors, alcohol, or malt, or brewed beverages.

Section 25 (5) provides that no manufacturer, and no officer or director of a manufacturer, shall at the same time be a distributor, wholesaler, or retail dispenser or an officer, director, stockholder, or creditor of any such, nor, except as hereinafter provided, be the owner or lessor of any place covered directly or indirectly by any distribu tor's or wholesaler's malt or brewed beverage liquor license. Section 25 (6) makes similar provisions concerning distributors or wholesaler.

Section 25 (7) provides that no licensee shall directly or indirectly own any stock of, or have any financial interest in, any other class of business licensed under this act.

Section 25 (8) provides that, except as hereinafter provided, no manufacturer, wholesaler, or distributor shall in any wise be interested, either directly or indirectly, in the ownership or leasehold of any property, or in any mortgage against the same, for which a liquor or retail dispenser's license is granted; nor directly or indirectly lend any moneys, credit, or equivalent thereof to any retailer in equipping, fitting out, or maintaining or conducting, either in whole or in part, an establishment or business operated under a liquor retail dispenser's license, excepting only the usual and customary credits allowed for returning packages or containers in which vinous and/or malt or brewed beverages were packed for market by the manufacturer. Section 25 (9) makes similar provisions concerning manufacturers interested in the licenses and business of distributors or wholesalers.

Section 25 (10) provides that no distributor, wholesaler, or retail dispenser shall in any wise, either directly or indirectly, receive any credit, loan moneys, or the equivalent thereof from any other licensee, or a subsidiary or affiliate thereof, or from any firm, association, or corporation except banking institution in which another licensee or any officer, director, or firm member of another licensee has a substantial interest or exercises a control of its business policy for equipping, fitting out, payment of licensee fee, maintaining, and conducting, either in whole or in part, an establishment or business operated under a distributor's, wholesaler's, or retail dispenser's license, excepting only the usual and customary credits allowed for the return of packages or containers in which vinous or malt or brewed beverages were packed for the market by the manufacturer.

Section 28 provides that wholesalers or manufacturers or distributors cannot directly or indirectly give, supply, furnish, or grant to any retailer any accessories, furniture, or fixtures, etc. Any person who violates any of the provisions of this section, or any rule or regulation promulgated in conformity therewith, shall be guilty of a misdemeanor and, upon conviction, shall be fined not more than $500 for each offense, and in addition may be imprisoned in the county jail for not more than 6 months.

2. Public Contract Provisions

Code Ann. (Michie, 1928)
Public Sales

Sections 6804 and 6806 provide that no person shall receive any consideration for bidding or not bidding at any public sale. All contracts in violation of this provision are declared void; and any person entering into such a contract may be subjected to forfeiture, to any person suing for the same, of double the amount of the consideration paid.

No provisions.

3. Anticoercive Financing Statutes

II. CONTRACTS NOT TO COMPETE

Code Ann. (Michie, 1928)

Sec. 6826. Contract in restraint of trade, void.-Every contract by which any one is restrained from exercising a lawful profession, trade, or business of any kind, otherwise than is provided by the next two sections, is to that extent, void.