The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-02-23
House Committee Reports
Woodland Bill.
MAKES LAW effective
Heretofore Houses Have Been Able to
Operate Because Testimony Could
Not Be Obtained-.-BilI Relieves
Witness Of Liability. Other
Business of Committee.

The judiciary Committee of the
House yesterday decided to make a
favorable report on the Woodland bill
TO prevent the making of contracts FOR
future delivery of cotton, stocks or
grains.
The bill, together with another or
practically the same import, has been
before the committee since nearly the
beginning of the session, previous
hearing having been given the gem
eral question involved at which the
representatives of the commission
houses concerned were heard ana Ut
which they were represented by coun-
sci, Messrs. Busbee & Busbee ana py
Mr. Hill, of the Chicago Board OF
Trade.
All opposition to the bill was based
upon the theory that it was too broad
in it's scope in the inclusion IN the m
hibitions of the act the houses Whlch
are branch agencies of firms DONG
business on the accredited exchanges
of the several large cities as Wen as
the bucket shops, where the bet OF
one customer is played against that
of another. there being never any
legitimate contract of delivery made
ard the principals of the shop getting
the commission from the TWO sloeS Oh
the market.
From the beginning of the discus
sion of the merits of the Dill the
bucket shop has been abused and dlS-
credited by all parties who nave APP
peared before the committee.
Mr.. Woodlands view is that any firm
which sells contracts in which a del1V-
cry is not absolutely necessary and re-
uuired by the terms of the contract Is
against public policy and an evil that
H.. Ssfn
boards of trade are nothing more imam
associations of gamblers, which are le-
galized and that, barring the small
amount of business done by merchants
and mill men as a hedge to the legl-
innate trades, the bulk of the busi-
ness done by all of the shops, whether
thev arc in the strictest sense 'bucket
or are members of an exchange, is IN
reality a gambling enterprise.
At Yesterdays meeting of the com
mittee there was introduced by MI.
McNinch an amendment which he had
been requested to place before the
COMMITTEES excepting those firm which
we're branch agents of either the New
York. Chicago or New Orleans Boards
az Trade. Cotton Exchanges or STOCK
Exchanges Mr.. McNinch did not
himself speak to the amendment ana
il was voted down and the Dill report
ed favorably.
Exchange Houses Same as bucket.
Mr.. Norman johnson, editor of the
Merchants Journal, appeared before
the committee as attorney Tor the
Adams Grain and Provision company
of Charlotte and read a long letter
from his clients, arguing that Whlie
bucket shops should be run out Oh
business. the representatives OF iegit-
mate exchange houses We're neces-
sity to merchants who deal IN pro-
duets having and being subject TO Vlo-
lent changes in prices as a protectlo;i
to legitimate business. He declaie Ell
that the exchange houses were PFC
lection and q necessity. both TO the
Wholesalers in grain, provisions ana
cotton. and also to the manufacturers
of cotton goods. ,,.
Mr.. Woodland in explaining his Dill,
said that he knew something OF the
oDeration of the exchanges, ana thaS
they were all in their essence nothing
more than gambling devices his DIN
did not attempt to change the law. II
had been on the statute books Tor III :
teen years. What was desired was TO
create the machinery for the enforce
,nent of the act that was already VIII
ron i'm tho laws. AS the law stands 1t
is imDossible to secure the conviction OF
the yiolators thereof, because witnesses
decline to answer on the ground lnat
they would by testifying render lheui'
selves liable TO criminal prosecutor
The purpose of the act was 10 pafooli
the witness as far as any liauin.s -.
his part was concerned and thus en-
able the solicitor to procure testimony
and to demand evidence.
Mr.. Woodland strongly attacked the
exchange houses. saying that 1t was
all gambling, whatever name tHes
travelled under. The exchange was
merely an association of gamblers
IaI sold.
he. on the New York Cotton Exchange
over 100 900, 900 bales of cotton year
and there were delivered not more
than 500 900 bales. He defined the
difference in practical operation pc
tween an exchange house and bucket
shop to be merely that the exchange
house would not sell less than a GER
tain fixed amount on one contract ana
said that this was easily evaded by TWO
or more small gamblers getting to-
gether and pooling their interests in
n common deal. Quotations. he said,
could be obtained at a small price by
business men who desired to ''hedge"
on the market legitimately and they
could easily make such contracts as
they desired directly with New York
and Chicago. Mr.. l.. Banks Holt and
Senator Odell, both large cotton man.
ufacturers. had both expressed them
selves in favor of the bill said he; II
was the salvation of the small gambler
he was aiming at, and the removal
Of the temptation to gamble afforded
nv the Offices and the continuous quo
tation system.
Mr.. Stewart here stated that if tn
,voodard bill was reported favorabl.
he would be willing for his bill TO b'
reported unfavorably. The commit
tee however. after reporting TN
Woodland bill, decided TO report tn
stewart bill without prejudice it bein'
understood that he would report it ant
ask permission of the House to with
draw it from consideration.
The terms of the bill, which is Yer,
stringent in its provisions against tn
business of futures in any shape o
form are as follows: \
Tho Text of the Bill.
A bill to be entitled an act as sub