The Washington herald., 1910-04-06

Cotton exchanges throughout the coun-
try will be hard hit by the anti-opton
bill which has just been agreed upon by
the Committee on Agriculture, and which
will be reported TO the House OF Repre-
sentatives probably to-day. Grain ex-
changes are not interfered with in any
respect by the measure.
Of the seventeen members Of the Agri-
cultural Committee. not more than six
will vote against the anticipation bill,
which prohibits future dealings in cotton.
with the imposition Of rigorous penalties
for violations.
It Is considered likely that the measure
will be passed by the House inside OF a
month.
Cannot Use the Wires.
The bill. as agreed upon. makes 1t IN
lawful for any person to send any mes
sage over any telegraph or telephone line,
wireless or cable, or through the mails.
offering to make or enter into any con-
tract for the purchase or sale for future
delivery Of cotton without intending that
such cotton shall be actually delivered or
received. Violations of this prohibitory
section are made punishable by fine of
from 500 to $1,000 and Imprisonment from
one TO six months. Each message of the
character indicated is made TO constitute
a separate Offense.
Section Of the bill requires any person
or association using telephone or tele-
graph lines, transmitting any information
relating to contracts for cotton, to make
an affidavit stating that he is the owner
or such cotton, and that he intends TO
deliver IL. and that the cotton is at the
time in the course Of growth on land
owned. controlled. OF cultivated by him.
This section is designed 10 permit bona
fide owners Of cotton TO sell it for future
delivery. and, the subcommittee believes.
will serve to make future trading safe,
free, and legitimate
This same section also provides that
any person may file with the agent Of any
telephone or telegraph line an affidavit
that messages sent by him for the next
ensuing six months do not and will not
relate TO any Of the contracts so forbid
den. The purpose of this is to permit a
cotton merchant 10 avoid undue multi
plicity OF affidavits.
Any person making a false statement
in such affidavit is made subject to a fine
of from $l.00O to 5000 and imprisonment
from one to two years. Proof OF failure
TO make any affidavit required under the
law will be regarded as prima faeIe evil
denee that the messages sent over such
lines did relate TO forbidden matters. This
provision, it is explained. is intended to
shift the burden Of such proof from the
government to those participating in cot
ton transactions
Should the law be enacted, failure TO
deliver or receive any amount OF cotton
which has been contracted for will also
be held a prima facie evidence that there
was no intent at the time the contract
was entered into 10 receive or deliver.
Another section deals with the telegraph
companies. 1t is made unlawful for any
person operating a telegraph. telephone.
or wireless line knowingly to use or allow
TO be used such property for transmission
OF the prohibited messages, and prescribes
penalty for violation OF this Injunction
Of from $500 to S1,OOO fine. Other sections
prohibit the use OF the mails for this pur-
pose and provide heavy penalties for
violations