Goldsboro weekly argus., 1914-07-02
LEVER BILL IS SENT
tn SENATE nu 'nare :
Should Senate Not Agree to the Sub.
stitution, Bill Will be Taken Up
In Conference Between
Both Branches.

Washington, June 29-The House
| today substituted the Lever bill for
regulation of cotton exchanges through
prohibitive taxes for the Senate meas
ure proposing regulation by means OF
prohibiting the use of the mails and
the telegraph for so-called gambling g
| transactions.
The House put the bill through un-
der suspension of the rules by a vote
of "a to 21 and sent it to the Senate
If the Senate fails to agree to the
substitute the differences will be TAX
en- up in conference.
| Senator Smith, author of the Sen
ate bill, is now campaigning in South
Carolina, and consideration of the sub
stitute may be delayed until his re-
turn, though Senator Smith, of Geor
gia, or some other Southern Senator
may call it up in the meantime.
Both the Senate and House meas
ures aim to regulate alleged evil prac-
| tees on the cotton exchanges which
the cotton producers contend keep
down the price of cotton. The Senate
bill through the Postoffice Department
and the Interstate Commerce Com
missions jurisdiction over the tele-
graph, would prohibit the transmission
Of quotations and lists of sales of cot
ton that did not comply with the re-
quirements as to standardization pre-
scribed in the bill. Both bills would
regulate, though they would not pro-
hibit transactions in futures.
The House bill relies on the govern
mont ia nnwnr inctoad of nrobibi-
tions on the mail and the telegraph
proposing a tax of SIS bale On con-
tracts that do not comply with the re-
quirements.
No tax would be imposed on what
are regarded as legitimate contracts
The measure would require that con
tracts must be in writing; must spe-
city the quality of cotton involved in
each transaction and give names and
addresses of buyers and sellers, with
the basis grade of the cotton involved.
Other sections would provide that
the cotton must be of or within the
grades specifically established by the
Secretary of Agriculture and in case
other than basis grade is delivered,
the differences above or below the
| contract price must be the actual COM
mercial differences and not the diff
ferences arbitrarily fixed by the. cot
ton exchanges, the commercial differ
ences to be determined by the Secre
tary of Agriculture by comparison of
prices of five spot cotton markets.
A lively debate preceded the vote
on tht bill Democratic Leader I'm
derwood favoring the measure, point
ed out that the whole proposition rest
ed on the proposal that Congress
should either suppress or regulate the
cotton exchanges of the country.
Whatever particular power You
use to enforce the law" he said, sis
secondary proposition, but there is
no better power in the government
than the power to tax, which is in
| this bill.
! The Scott bill was intended to wipe
out the cotton exchanges. The Lever
bill is intended to regulate them. In
| two different Congresses I have sup
ported legislation along the lines OF
| the Scott bill and they have died in
committee in the Senate. A similar
bill at this time would meet a similar
| fate"
81 believe that the practices of the
New York Cotton Exchange cost the
Southern producers annually 100000
OOO,", declared Representative Lever,
of South Carolina, chairman of the
Agriculture committee, and author of
the bill. The purpose of this bill is to
eliminate the practices which consti-
tute such an enormous burden.
Representative Wingo, of Arkansas,
insisted upon legislation along the
lines of the Scott bill.
Representative Aswell, of Louisiana.
sought to introduce, as substitute
for the Lever bill, a measure OF SINH
lar intent framed by officers of the
National Farmers Union, but was rul-
ed out of order. The Aswell bill would
levy a tax of 20 cents a pound.
Representative Hughes, of Georgia
/ opposed the bill, because, he declared:
certain features were detrimental to
cotton growers.
Progressive Leader Murdock, of
Kansas, also opposed the bill. He
favored the Smith bill.
/ Representative Sims, of Tennessee
spoke against the measure.