The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-04-19
COTTON SMITHS MEASURE,
JUNIOR SENATOR INTRODUCES
BILL GOVERNING TRADE IN
COTTON FUTURES.
Calls for Standard Grades ard Pro-
vides That Contracts for Delivery
Shall Specify Kind Of staple to be
Sold.


ID. Smith of South Carolina has intro
duced in the senate a bill to provide
for specific performance of cotton
contracts in interstate commerce;
that is, that the contract shall pro-
vide the grade to be delivered and
that the vendor must furnish that
grade or a grade one degree above or
one degree below it. The difference
in price is to be the actual CONNER
cial difference between the values of
the grades on the day before the set
Elements
This bill, if passed, will have the
effect Of making every future contract
sale potentially a spot sale, in that
the purchaser can demand and Sc
cure cotton of a grade which he can
use, and will not be forced, as at
present, to accept any one of dozen
grades which may or may not be suit
able for his purpose.
The bill also provides for long
staple cottons, setting forth that the
length Of such cotton shall be stated
in the contract and must be approx
imated on delivery.
The bill denies the use of the mails
and other interstate carrying agencies
to those who violate the law, and
further provides for fine.
The bill was read twice in the sem
ate and referred to the committee on
agriculture.
The bill follows:
That any person, partnership.
Joint stock company, society, asso-
citation or corporation, their managers
or officers engaged in interstate COM
merce, in making or Offering for sale
any cOtract or contracts for the fu-
ture delivery of cotton, shall specify
the grade or grades contracted for in
each. and every contract; and such
grade as is, or grades as are, con-
tracted for shall be according to
United states government standard
ization: Provided, That the seller Of
such contract as is herein provided
for may have the option of delivering
in settlement of such contract not
more than one grade above or one
grade below such grades as is con-
tr1nfp6 hn ~.T
the difference between the price Of
the grade contracted for and the
grade delivered shall be the actual
commercial difference in the price of
such grades on the day previous to
the settlement of such contract. And
it shall be the duty of the secretary
OF agriculture to standardize the
grades of 'uplands' and 'gulf' cottons
separately; and such grades as are es-
tablished for both upland and gulf
cotton shall not be below good or
dinary or above middling fair. 1t
shall be the duty of the secretary Of
agriculture also to standardize accord
ing to grades, stains and tinges.
Sec. ?. That in case long staple
cottons are bought or sold for future
delivery the length of the staple shall
be designated in the contract, and
the cotton shall be, when delivered.
of staple designated in the contract
Sec. 3. That the use of the mails,
telegraphs, express companies or any
other method Of interstate communi-
cation shall be denied any person.
partnership, joint stock company, So
ciety, association, corporation, their
manager or officers or employees in
making such contract or contracts not
conforming TO the provisions Of this
act; and that any employe, agent
owner or officer Of the above means
Of communication prohibited in this
section who shall know use such
property or agencies Of communica.
ton or knowingly to allow such prop.
erty to be used for the transmission
of any message relating to such con.
tracts as are prohibited by the terms
, of this act shall, upon conviction
, therefor, be punished for such offcnsC
by a fine Of not more than $1,000
, nor less than $500; and the sendinl
, of each message in violation of the
provisions of this section shall con
stitutc a separate Offense.
SEC. 4. That any contract or con,
tracts for the future delivery of cot,
ton not having the specification!
herein enumerated shall he deemed
null and void; and any person, part.
nership, joint stock company, society
association or corporation, their man
: ayers -, officers, who shall make ol
| sell or attempt to sell any contract ol
contracts for the future delivery o
: cotton not conforming To the pro
r visions of this act or shall fail to de