The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1914-04-08
Smith BILL PASSES
SENATE UNANIMOUSLY ADOPT
COTTON TRADING BILL
Means Much To FARMERS

Senator-Bill Has Strict Rules for
Handling Futures Transactions
Smith Greatly Pleased.
After the Senate Friday had pass
ed a 5ill to regulate cotton futures
trading, Senator Kenyon, who with
others had misunderstood an amend
ment to legalize pooling operations,
moved for a reconsideration and paw
ed the way for reopeping the fight
on the measure Saturday. The
amendment would annul the supreme
court decision in the Patten case that
pooling, with an agreement not to
sell On an exchange violates the Sher-
man law.
After striking out the amendment
legalizing pooling, the Senate Sa:ur-
day repassed the bill regulating trad
| ing in cotton futures. Reconsidera-
ton of the bill was brought about
by the stand of Senator Kenyon, who
stated Friday night after the meas
ure was passed, that he did not un-
derstand it included the pooling
amendment. Mr.. Kenyon was an as
sistant Federal attorney in charge Of
the prosecution against, James A. Pat
ten and his associates in their cotton
transactions Of 1910.
After Senator Kenyon called up his
motion for reconsideration Of the bill
Friday he offered to withdraw it up
on the assurance of Senator Smith Of
South Carolina that the pooling
| amendment would be eliminated In
the House. Senator Borah, however,
contended that the Senate should
strike out the amendment, and Mr..
Smith, declaring the pooling clause
was not pertinent to the body Of the
bill, asked for reconsideration and
moved to strike out the Objectionable
features. This done, the altered
measure was passed by unanimous
consent.
The bill as passed would provide
that no person connected with an e1-
change shall send through the mails
matter promoting enforcement OF q
future delivery contract unless the
exchange requires all such transac-
tions to comply with certain condi-
tions, among them that contracts
must provide for delivery within de-
partment Of agriculture standards.
The pooling amendment, introduc-
ed by Senator Hoke Smith Of Georgia,
was advocated by him to prevent such
prosecutions as that Of Patten and
associates, indicted by the federal
government on charge Of pooling cot
ton in 1910, with the purpose OF with
holding it from the market until they
had reaped profits of some s10.ooo.-
600. Senator Smith declared these
men should have been regarded as
berefactors, not as criminals.
The passage of the bill ends fight
led by Senator Smith of South Caro-
lima for legislation against practice
on cotton exchanges denounced as
injurious to the cotton industry. Sen
ators Smith of Georgia and Ransdell
OF Louisiana also introduced bills.
The three senators Friday, after a
two-day debate, reached an agree
ment on a compromise measure ond
was passed without roll call.
Among the conditions the measure
would require exchanges to impose on
futures transactionse is on providing
that if the cotton sold Of the mid
ding basic grades and the delivery
is of other grades, then the CONNER
cial difference in value between the
grade delivered and the grade sold
must be paid. At present the New
York cotton exchange has in force a
fixed difference in value Of the grades.
An attempt was made to require the
delivery Of the grade specified IL the
contract, but Senator Ransdell de-
nounced this amendment as unduly
restricting speculation and unjust to
the New Orleans cotton exchange.
The bill provides that no one shall
use mail or telegraph lines to send
out cotton exchange quotations, un-
less the exchange adopts the speci-
fed contracts. The sending OF such
matter through the mails is made a
misdemeanor punishable by fine not
to exceed $1,000 or by one years i'm
prisonment.
Senator Smith gave out the follow
ing statement: "Of course, to say
that I am gratifed at the action OF
the Senate in passing my bill, for
which I have been fighting to regu-
late the cotton exchanges Of the coun-
try, would be but mildly to express
my feelings in the matter. Ever since
introduced the measure, have felt
that there was no question which
meant more for the welfare Of the
cotton producers Of the country than
this which in its terms sought to
regulate practice which had grown
upon the exchanges during the last
40 years and which he's caused
losses to the cotton producers OF mil
lions of dollars.
Certain amendments have been
added to the bill by others interested
in the welfare Of the cotton produ"-
ers. In my Judgment, this bill Is
fraueht with more good to the cotton
farmers than any measure that has
been passed for their benefit in the
history of agricultural legislation.
I believe that this bill, in conjunction
with MY grading tests. will give to
the farmers Of the South a square
deal in the sale Of their cotton.
feel that the promises made my peo-
pie have been fulfilled. I have used
every legitimate method to bring
about that which occurred to-day in
the Senate