The Montgomery advertiser., 1907-02-06
SENATE HITS
 BUCKET SHOPS Passes Most Sweeping
 Measure. LIKE NORTH CAROLINA LAW Goes Through Upper Branch With out Opposition. Proposed Enactment Has stood Test of Supreme Court-Is Death to All Dealing in Margins.

The Senate of Alabama yesterday passed one of the most sweeping anti "bucket-shop" bills ever presented to a State Legislature. The bill was l identical with the North Carolina law preme Court of the United States. The author of the bill was Senator Reese, of Dallas County, but the bill was the same as the North Carolina law which has stood the test of the courts. The opponents of the alleged bucket shops desired to have meas ure which would not be declared un- constitutional by the courts and they took up the North Carolina law which had stood the test of all the courts. The affirmative decision on the valid- ity of the North Carolina law was made by the Supreme Court of the United States December 9 of last year. The bill WAS passed through the Senate yesterday without any opposi- ton Not member of the Senate spoke against the measure, and not a Senator voted against it.
 Following Is the definition of the kinds of business which are forbidden by the act.
 Section 1. Be 1t enacted by the Leg fslature of Alabama, That every con- tract. whether in writing or nor, where by any person shall agree ro 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 ac- tion. at 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 party to such contract or not when. in fact and not standing the terms expressed of such contracts 1t is not intended by the par ties thereto that the articles or things 50 agreed to be sold and delivered shall be actually delivered. or the value | thereof paid, but 1t is intended and ! understood by them that money or | other thing of value shall be paid to the one party by the other, or to 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 to be sold and delivered. and every contract common ly called futures" as to the several l articles and things hereinabove speci-
 
 name called, and every contract as to the said articles and things. or any iof them, whereby the parties hereto Icontemplate and intend no real trans- actions to the article and thing agreed to be delivered. but only payment of 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 wheth- CT 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 speci- fed in such contract, shall be utterly null and void. and no action shall be maintained in any court to enforce any such contract, whether the same was made in or out of the State, or partly in and partly out of the State. and whether made by the parties thereto by themselves or by or through their agents. immediately oT mediately, or shall any party to any such contract or any agent of any such party, di- rectly or remotely connected with any such contract in any way whatever nave or maintain any action or cause of action pi account of any money or other thing of value paid or ad- vanced or hypothecated by him or them in connection with or on account of such contract and agency. This section
 
 to any person, firm, corporation, or his or their agent engaged in the bus mess of manufacturing or wholesale merchandise in the purchase or sale of the necessary comodities required in the ordinary course of business.
 The second section of tho bill pro- vides that proof that anything of value sold or delivered was not actually delivered at the time the contract was made and that one of the parties to the contract deposited what is com monly called margins. constitutes prima facie evidence the provisions of the bill have been violated.
 Section makes 1t unlawful for any party to a contract for the sale and delivery Of any article for future de- livery, in ghich it is not intended by the parties making the contract that such deliveries shall be Gade.
 Section provides that any party who even opens a house for dealing in 'fu- lures" ar forbidden by the provisions of the act shall be guilty of q misde- meanor.
 Section provides that no party shall be excused from prosecution by reason of any statement ha may make to the corut but that such statement shall not be used against him.