Omaha daily bee., 1910-02-23
Spectators Fill Gap Between Pro
ducer and Consumer.
PICKELL CAUSE OF BIG SENSATION
Chicago Editor Says BucketshOps Are
Back of Scott Bill.
WOULD AID CANADIAN MARKETS
witnesses Insist that han on Trad
ing I'm Futures Would Drive
some Dealers Across the
Border.

WASHINGTON, Feb. 22.-Grain ex-
changes today closed their side of the case
! in the movement to abolish transactions in
futures. The committee has yet to hear
the 'insurgent" wing of the New York
| Cotton exchange and delegation from the
New Orleans Cotton exchange which does
not agree to all Of the statements made by
the ruling faction. These hearings probably
will be held some time next week. after
which the committee win be ready to vote
upon the proposed legislation.
Vice President Merrill of the Chicago
Board of Trade, Edward H. Culver, chief
grain inspector at Toledo, and president
of the Chief Inspectors National associa-
ton; ]. Ralph Pfckell, editor of the Ma
tonal Hay and Grain Reporter Of Chi
cago; j. w. Snyder of Baltimore, e. T.
Gushing Of New York all in opposition to
the Scott bill and other similar measures,
and Representative Gronna OF North Da-
kota, in advocacy of it, were today's wit
nesses.
Would Aid Canadian Markets.
Mr.. Culver read telegram from Frank
1. King of Toledo, pointing out that the
., United States has no monopoly on trading
in grain futures; that Winnipeg and other
Canadian markets would expand rapidly
If congress should restrict American grain
trade, and suggesting that congress should
not confuse bets made in Nbucketshops, or
puts and calls, with grain contracts for
future delivery made upon legitimate
boards of trade.
There is as much difference between reg
ular boards Of trade and bucket shops" he
Mr.. Pickell therw a bomb into camp by
declaring that the bucket shops are BIZ
hind the Scott bill Pickell is a neighbor
; of Scott. Mr. Scott expecting a sinister
d Interpretation, asked wheat he meant.
= Mr.. Pickell explained that he meant tn hat
e the bucket shops, barredHby- state legisla-
D. ton, favored legislation to restrict or
: abolish the exchanges. Mr. Pickell read
: lette rfrom the Kansas Grain Dealers
y association urging that the Scott bill be
( enacted into law.
8 Merrill Is Star witness.
Mr. Merrill was a star witness Fol-
= Ahirty-two years he had been a member
u tof the Board OF Trade, he said, and never
: had executed a speculative transaction
o He declared the decision of the supreme
II court in the Chrlsty case had given tn,
Chicago Board of Trade clean bill o.
health and he believed the Scott bill wal
unconstitutional. He said there is Away
an intent to receive or deliver in it's trans
actions, that hedging of grain is an alb
{ solute certainty to the banker, that specu
lators fill a gap between the produce
N and the consumer.
- Chairman Scott again read the marke
5 letter to which he referred last week a
sent from member of the Chicago board
and containing extravagant objectionabl
statements. Mr. Merrill agreed that tn
statements were undignified and said tina
Al | thcy appeal to the small spectators, VIII
n are undesirable on the board, as they ar
al not equipped for transacting business, H
s said probably 80 per cent of the ChicaR
De board agreed In this view. 1t was a mat
al ter of a private business and 1t was hardl
er feasible to establish a censorship of sue
RS letters, though there has been some tai
of righting the evil. Chairman Scot
n thought action was feasible and suggeste
~ that the elimination of such objection
% able matter would go far toward doin
IN away with the criticisms of the boart
ne There was no complaint, suggested M
D. Scott. as to the purely legitimate hedgin
transactions.
- speculative Business Small.
v Mr., Merrill replying to the chairman, d,
4. clared the withdrawal of the class OF trad
that uses the board in the same way
It would use the bucket shops involved tC
small a business to be felt on the Chicas
board.
~ IF the Scott BILL" asked Representa-,
: Burleson. confines itself exclusively
On transactions where the buyer has no II
ad tent to receive or the seller to deliver, the
n you have no objection to the Scott bill p
A. mot If that is the provision of thi
o. Lii. but 1t is not And, let me say thi
ay no insurance scheme could work in pla,
of OF hedging. The biggest spectators
.al gambler or bettor Is the insurance compar
lc- which bets the face OF its policy again
n, the premium. The percentage of the cor
be panies that fail is larger than the percen
age of spectators"