The Birmingham age-herald., 1907-03-16

No. 942) AN ACT. (s 175. To further regulate and prohibit the
 dealing in future contracts in the
 State of Alabama.
 Section 1. Be it enacted by the Legis- lature of Alabama, That every contract
 whether In writing or not, whereby any
 person shall agree to sell and deliver | any cotton, Indian corn, wheat, rye, oats tobacco, meal lard, bacon, salt pork, salt fish, beef cattle, sugar, coffee, stocks, bonds and choseS in action, at a place and at a time specified and agreed upon therein to any other person, whether the person to whom such article is so agreed
 to be sold and delivered, shall be a party
 to such contract or not when in fact, and
 notwithstanding the terms expressed of such contracts, 1t is not intended by the parties thereto that The article or things so agreed to be sold and delivered shall be actually delivered or the value there of paid, but it is intended and under
 stood by them that money or other thing
 of value shall be paid to the one party by the other, or to a third party the party to whom such payment of money
 or other thing of value shall be made to
 depend, and the amount of such money
 or other thing of value so to be paid
 to depend upon whether the market price or value of the article so agreed to be sold and delivered is greater or less at the time and place so specified than the price so stipulated to be paid and received for
 the articles so to be sold and delivered and every contract commonly called "fu-
 tures' as to the several articles and
 things hereinabove specified, or any of them, by whatever other name called, and every contract as to the said articles and
 things, or any of them, whereby the par
 ties thereto contemplate and intend no real transaction to the article and thing agreed to be delivered but only a pay ment of d sum of money or other thing
 of value such payment and the amount thereof and the person to whom the same is to be paid to depend on whether or not the market price or value is greater or less than the price so agreed to be paid for the said article or thing at the time and place specified in such contract shall be utterly null and void and no action shall be maintained in any court to en-
 force any such contract, whether the same was made in or out of the State, or part
 ly in and partly out of the State, and
 whether made by the parties thereto by themselves or by or through their agents, immediately or mediately or shall any party to any such contract, or any agent
 of any such party, directly or remotely connected with any such contract in any way whatever have or maintain any ac- tiDn or cause Ol dttlOn Dll account OI any money or other thing of value paid
 or advanced or hypothecated by him or
 them in connection with or on account of such contract and agency This section
 shall not be construed so $ to apply 10 any person. firm corporation or his their agent engaged in the business of manufacturing or wholesale merchandls-
 ing in the purchase or sale of the neces-
 sary commodities required in the ordi-
 nary course of their business
 Sec , Proof that anything of value
 agreed to be sold and delivered was not
 actually delivered at the time of mak-
 ing the agreement to sell and deliver, and that one of the parties to such agreement deDosited or secured, or agreed to deposit or secure what are commonly called margins" shall constitute prima fracie
 evidence of the contract declared void by
 the preceding section.
 Sec. 3. If any person shall become a party to any contract for the sale and
 future delivery of any article per sonal property in which it is not in tended by the parties thereto that such property shall be actually delivered, but
 the difference between the contract price
 and the market price on the day of de- livery shall be paid in money, or if any
 person shall be the agent, directly or in- directly of any such party in making or
 furthering or effectuating the same, or if
 any agent or officer of any corporation
 shall in any way or manner knowingly
 aid in making or furtherlng any such con
 tract to which such corporation shall
 be party, he shall be guilty of a mis- demeanor and on conviction shall be fined not less than S100 nor more than 500, and may be sentenced to hard labor for not less than one month nor more than six months
 Sec. f If any person shall. while in this State consent to become a party
 to any contract contrary to preceding
 section made in another State. or if any person shall, as agent of any per- son or corporation, becone a party to any such contract madt in another State or in this State do any act. or in any way aid in the making or further oh, con Ira .t made In nnathct.