Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1914-04-07
TUESDAY, APRIL 7, 1914
LEVER MEANS BUSINESS
Chairman of Committee on Agriculture
Wants Sure Enough Law.


Chairman Lever of the committee
on agriculture, says Washington
special of Saturday to the News and
Courier, has introduced a bill to tax
the privilege Of dealing on exchanges,
boards Of trade and similar places in
contracts for the sale Of cotton for
future delivery. The provisions Of the
bill follow very closely the idea con-
tanned in the Smith-Lever amendment
to the tariff bin which passed the
house by substantial majority, but
was lost in conference, the senate
having passed the amendment intro
duced by Senator Clarke, OF Arkan-
sas. Mr.. Lever said:
THE bill which have introduced,
believe, provides complete regula-
tion Of the cotton exchanges and in
such manner as to eliminate from
them the abuses into which they have
fallen, and at the same time to pre-
serve their useful functions The bill
places a prohibitive tax on all con-
tracts for the future delivery Of cot
ton which do not conform to the fof-
lowing specifications, namely:
The contract shall be in writing,
plainly stating the quantity of cotton
involved and the names Of the seller
and buyer. The contract shall specify
III,
date OF purchase or sale and the time
when the contract Is to be filed, and
1t provides also that the cotton dealt
In or deliverable shall be only within
the grades for which standards are
established by the secretary of agri-
culture.
'The contract shall provide also
that In case cotton or other grades
than the basis grade be rendered or
delivered, settlement above or below
the contract price shall be the actual
commercial differcnce to be determin-
ed by the secretary Uf agriculture,
taking the average spot price Of eight
bona fde spot markets. Provision is
tender shall give to the person receiv-
Ing the same five days notice Of the
date Of delivery and such notice shall
state the grade Of each individual
bale to be delivered with adequate
Identification Of each. The bill pro-
hibits the delivery upon contract of
cotton that Is ''repacked" or false
packed" or "mispacked," that shows
an excess Of seed, sand, or dust or
shows excessive damage in ginning, or
bales containing any picking or lint
ers, or cotton that is of a grade lower
than low middling or lower than strict
middling stained, or has q staple
length less than { inch or more than
IL inch. Upon all contracts which
comply with the provisions Of the bill
mere nominal tax is levied to the
amount Of twenty-five cents for one
hundred bales.
II have introduced this bill because
1 believe the taxing power is the
strongest weapon available for dealing
with the situation. There Is no ques-
tion about the right under the Consti-
tuition to use the taxing power for
such purposes. There Is some doubt
In the minds Of some lawyers as to
the use Of the commercial clause of
the Constitution in such connection.
Full consideration will be given to all
the bills pending before the commit
tee on the subject, and while have
my personal views as to the best
methods to be used am willing to
join my associates in reporting out
any bill which will meet the situation
vigorously and which will stand the
tests Of the courts