Capper-Volstead Act
Encyclopedia
Capper-Volstead Act the Co-operative Marketing Associations Act (7 U.S.C. 291, 292) was adopted by the United States Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....

 on February 18, 1922. It gave “associations” of persons producing agricultural products certain exemptions from antitrust laws. It is sometimes called the Magna Carta
of Cooperation.

Origins

The law was passed in response to challenges made against cooperatives using the Sherman Act (15 U.S.C. 1 et seq.), the Clayton Antitrust Act (15 U.S.C. 12 et seq.), and the Federal Trade Commission Act (15 U.S.C. 41 et seq.). As a consequence of the depression of agricultural prices subsequent to the World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...

, farm organizations intensified their drive for government aid and managed to get a farm bloc established in Congress. Senator Arthur Capper
Arthur Capper
Arthur Capper was an American politician from Kansas. He was the 20th Governor of Kansas from 1915 to 1919 and a United States Senator from 1919 to 1949....

 was a member of this bloc and the Capper-Volstead Act was a part of the farm legislative program. (The law carries the names of its sponsors, Senator Arthur Capper of Kansas and Representative Andrew Volstead of Minnesota.)

Content

The act authorized various kinds of agricultural producers to form voluntary co-operative associations for purposes of producing, handling and marketing farm products - that is, it exempted such associations from the application of the antitrust laws. The United States Secretary of Agriculture
United States Secretary of Agriculture
The United States Secretary of Agriculture is the head of the United States Department of Agriculture. The current secretary is Tom Vilsack, who was confirmed by the U.S. Senate on 20 January 2009. The position carries similar responsibilities to those of agriculture ministers in other...

 was given power, on his own motion, to prevent such associations from achieving and maintaining monopolies. He could hold hearings, determine facts and issue orders ultimately subject to review by federal district courts
United States district court
The United States district courts are the general trial courts of the United States federal court system. Both civil and criminal cases are filed in the district court, which is a court of law, equity, and admiralty. There is a United States bankruptcy court associated with each United States...

.

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
x
OK