Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-02-17
REPORTS SCOTT BILL
But Senate Committee Makes
No Recommendation.
faction after A HEARING
Opponents of Anti-0ption Measure
Express Their Views.
THREE SECTIONS ELIMINATED
Cotton Men Declare Proposed Law
Would Enable a Few Persons
to Control Business.
ACTION AFTER A HEARING
THREE SECTIONS ELIMINATED


important sections of the bill climi-
mated. the Scott bill to prohibit deal
ings in contracts for the future delv-
cry of cotton where there is no inten-
ton to deliver. which has passed the
House. was ordered reported today by
the Senate committee on interstate
commerce. The action on the bill came
at the close of a hearing at which OPP
position to the measure was voiced.
Before discussion on reporting the bill
had proceeded far it became evident that
a favorable report on the measure to-
day was impossible. It's friends, how
ever. were anxious to get the measure be-
fore the Senate and asked support for a
motion to report the bill without recon-
mendation,' just to get it before the Sem
ate.
On that motion Senators Tillman, Tay
Tor, Clarke of Arkansas, Clapp. Cummins
and Newlands voted in the affirmative
and Senators Crane, Kean, Nixon. Foster
and Cullom in the negative. In voting to
report the bill, however, Senator New
lands reserved the right to oppose the
bill on the floor of the Senate and vote
against it.
The committee voted to eliminate
thi &C VI the eight SecIlOnS OIL the Dill.
One section eliminated gave telegraph
companies authority to administer
oaths required to be made by persons
sending any message relating to cot
ton future contract-oaths relating TO
the bona f1de character of the contract
The other two sections eliminated pro-
hibit the use of the malls to news
papers or publications of any kind
tending 10 II in nf
tracts where there is no intention to
deliver.
THE enactment of this bill will throw
the cotton business into the hands of
three or four huge cotton dealers. =
Judge +. II. Farrar OF New Orleans.
Would Lessen Land Values.
THE va ue of every acre of cotton
| land in the south would be lessened. y
w. B. Thompson, president of the New
Orleans Cotton Exchange.
| Such were the concentrations of the
anti option bill voiced at the hearing.
Judge Farrar was the first to be
heard. He began by setting forth the
harm which the enactment of the legis-
lation would do to the cotton business.
THE object of the bill is TO prevent
dealings in contracts for the future de-
| livery of cotton on the exchange" Judge
dTFdT Sd-us a. one Tune.
Where there is no intention to de-
liver the cotton Senator Tillman
| added.
where there is no intention to de-
| liver the cotton Mr. Farrar repeated.
! But only to gamble, to STEAL, added
Mr.. Tillman.
View of Judge Farrar.
| To that Judge Farrar did not entirely
agree. He declared that if a senator went
on the exchange and bought one of the
contracts and held it until it was time to
deliver the cotton, the senator would find
he would have to deliver.
LAS l read this bill, if the seller does
intend to deliver the cotton the bill
doesn't touch him. if he doesn't intend to
deliver, the bill makes the sending of mes
SaSeS with relation to the contract I'M
| lawful remarked Senator Cummins.
| But the bill provides that if the con-
| tract is not fulfilled that Is prima facie
evidence of an intention not to carry out
| the contract" protested Judge Farrar.
| Judge Farrar admitted that there was
| some speculation in the transactions.
| IF you eliminate speculation from any
business it Is dead he argued further.
! Judge Farrar outlined the reasons for
| the transactions in cotton contracts that
they were to hedge" contract of a
factory proprietor to deliver cloth in
| Tic iutuiS. ~ 10 III INC udtuIC VI III
surance. he maintained. one person trans
| ferring his risk to another through the
medium of the cotton futures contracts.
Should Seek Maximum Good.
| Admitting that view. Senator Cummins
| and Senator Clarke Of Arkansas con-
| tended that there must be a gambler
| in the transaction fnally-the last man to
| whom the risk Is transferred. 1t is i'll
| the last transaction that the speculation
comes, Judge Farrar commended. such
| speculation as is necessary to all human
| business. In such matters, Judge Farrar
thought Congress ought to look for the
maximum good. If it is found that the
| evil cannot be destroyed without destroy
ing the greater amount of good, he ar
gued then it would be wrong to destroy
the entire business.
| More than % per cent of the con-
tracts in cotton futures are legitimate,
Judge Farrar told the committee. That
prompted the question II 1t were posi-
BILE for Congress to frame law to pre-
| vent the illegitimate contracts. His
opinion was that Congress could pass a
law to put exchanges out of business un-
less they complied with certain rules and
regulations. by saying that their CORE
| spondence should not be carried in the
federal mails and that the newspapers
| publishing their quotations should not be
admitted to the mails.