The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1883-05-14
OPTION DEALS.
Report of the Committee of the Illi-
nois Legislature on this In-
teresting Subject.
Mitchell

SPRINGFIELD, III 70 Mr.. Mitchell.
from the special house committee appointed to
investigate the methods of the board of trade
| of Chicago aud of bueket-shops, submitted his
report yesterday afternoon. 1t reads as fol-
lows:
TO the Speaker of the House: The under
signed, your committee appointed under reso-
luton OF the house. for the purpose OF inves-
uSatng the matters of the Chicago board of
trade and like organizations in relation To
option deals and grain gambling, respectfully
submit the following: We met at Chicago,
April IS, and remained there until May ?, dur
ing which time several of the most prominent
shippers of grain and operators on the board
of trade and the various exchanges or bucket
shops were called before the committee to tes-
tify The evidence is here presented to the
house The committee also visited the board of
trade, call board and metropolitan exchange and
examined into the manner of conducting bust
ness. From the evidence taken and such per
sonaf investigation we are satisfied that the
manner OF conducting business on the various
boards does not materially differ The board
OF trade deals IN large lots and the bucket shops
smaller ones, but all alike profess to make
actual deliveries of the produce on maturity of
tae contract II the purchasers desire, ana we
are satisfied that the proportion of actual de
iveries is as great in the latter as in the for
mer. We find that large proportion of the
operators are mere spectators, who do not
deal at all in the actual produce, and who
never expect to handle the commodity or de
liver what they sell No record of deals is kept
nv the bOtrd, aud 1t Is impossible to estimate
the deals made; but, by system of settlement
and ringing" deals, most of the transactions
except as between the broker and his princi-
pal, are wiped ont as soon made. The
amount of purely speculation dealings, which
are only bets the future prices, almost
passes comprehension AS illustration:
One member testified that probably billions of
bushels of May wheat had been contracted
not over 5000, 900 or 100000 bushels
were in Chicago, and probably only small
portion of this was delivered. The balance
of course, is merely in the imagination aud
these deals were merely bets on the
price in May. We believe from 80 to 81
per cent on all deals are purely fictitious, not
differing in principle from ordinary gambling.
One member testified that 1T was not
poker" Such practices must have
peTnIcious effect on the interests of tho conn
try, and we are unable to why 1t should
receive the sanction of the law, while other
gambling is prohibited criminal. We have
become satisfied that no line can be drawn be
tween the board of trade and the bucket shops,
because their methods are substantially the
same We believe all such Institutions should
be required to keep record 80 that each
transaction could be followed The quotations
should be free to the public and, finally, OPP
ton deals or sales of grain and produce for fu-
ture delivery, except where the property has
actual existence. should be prohibited In
other words, man should be prohibited by
law from selling what he has not got, and never
expects TO have, and from the buying OF what
he never expects to receive.
In conclusion the committee recommends
that option dealing be prohibited by law.