The morning news. [volume] (Savannah, Ga.) 1887-1900, 1890-04-09
WAR ON THE GRAIN PITS.
THE COMMITTEES REPORT ON THE
BUITERWORTH BILL.

A Declaration That the Price of Farm
Products is Reduced Below the Cost
Of Production by Bucket Shop Spec
ulation-A Tax of $1,000 on Dealers
One of the BilPs Provisions.
WASHINGTON. April S.-The House com.
nittee on agriculture to-day reported tc
the House, with amendments. Mr.. Butter
worth's bill to define options and futures,
and to impose special tax upon dealers
therein, etc.
The first and second sections of the bill
define the character of transactions known
as ''futuresn and ''optionn contracts.
The third section mentions the articl es to
which the bill applies They are wheat,
corn, oats. cottoa, pork aud some other
farm products.
HIGH LICENSE.
Section four imposes a special tax OF
$1,000 upon dealers in options and futures
as defined in the bill, and a tax of cents
per pound, and 20 cents per bushel upon
articles which are the subject matter of sales
under future aud option contracts.
The other, sections of the bill provide for
carrying the provisions of the act into
effect.
An elaborate report was also submitted
In it the committee says the bill in terms
does and is intended to apply to that class
of transactions conducted in the "bucket
shops" and grain pits'' of the country, aud
known as "pntsn and 'calls" including the
whole range of mere speculative gambling
in fictitious farm products. IL does not
affect injuriously any legitimate trader or
dealer in foreign staples.
OPPOSED BY THE EXCHANGES.
NEW YORK, April S.-A great deal OF
opposition is manifested here by the men,
bers of the produce and cotton exchanges
against tho so-called Butterworth bill now
before congress To-day it was deter
mined to send to Washington q committee
from the two exchanges TO appear before
the committee on agriculture. They will
leave for Washington tomorrow afternoon.
From the Chicago board OF trade and the
New Orleans cotton exchange similar COM
mittees have gone to Washington, and will
work in conjunction with the New York
York delegation,
A STRANGE SET OF DEALERS.
The bill seeks to impose an internal
revenue tax upon those dealers" in grain
cotton, and pork, who, as rule,
never see, own or handle one
peck or pound of the article:
transactions have the least possible refer
ence to the supply, and still less reference to
the demand for consumption, who are
not concerned whether the harvests
are blighted or plentiful. The
bill in its terms affects transactions for fu-
ture delivery which are innocent in them
selves, and do no harm to, any one, but it is
intended to reach that class of spectators
only who sell what they do not own, who
sell with no purpose or intent to
deliver what they sell. who require little
capital or stock in trade and yet who sell in
the bucket shops" of the United States
every month more wheat than is grown in
the whole world in year. thus, in a great
measure, destroying trade, driving mer-
chants from the field and forcing the price
of farm products below the cost of produc-
tion.
WON'T AFFECT TRADE.
It is urged, says the committee, that the
influence of the bill will greatly hamper
aud restrict trade, but SO far frorn the pro-
posed measure affecting trade the exact
reverse is true 1t is not the object of the
proposed law nor with its effect be to I'M
properly interfere with the prosecution of
any legitimate industry which adds to the
supply of anything needful; but obviously
those who deal in futures and option con-
tracts do notaccomplish any useful purpose
on the contrary, they speculate in fictitious
products.
The committee states that the influence
upon the market Of dealing in ''puts" and
''calls" is to reduce the market price to a
rate below the cost of production.
The committee has no doubt of the con-
stltutionality of the measure. 1t has added
an amendment to section 2 of the original
bill providing that the amendment shall not
apply to any contracts or agreements for
future delivery of any of said articles made
with the United States or any state or
county, or with duly authorized officers or
agents thereof, nor to contracts or agree
ments made by farmers for the sale and
delivery of any of the, articles aforesaid
which are in actual course of production by
such farmers at the time of making such
contract or agreement. These contracts
are obviously not improper. says the COM
mlttee, because the exceptions do not open
the door to contracts made by the grain
pits.
NEW ORLEANS AGAINST IT.
New ORLEANS, April Sat meeting
of the board of directors of the New Orle-
ans Cotton Exchange to-day a series of
resolutions were adopted. in which they
earnestly invoke the aid of the senators and
representatives in congress from Louisiana
toward the defeat of the Butterworth bill,
practically prohibiting the sale of articles
for future delivery.
rO1ryhN Nr5C arCTrrmrAr