The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-07-04
SUMTER. s. c. SATURDAY, JULY T. 1914
BAN ON FUTURES.
HOUSE ADOPTS LEVERS SUBSTI-
TUTE FOR SMITH MEASURE.
Cuts on Some Of Drastic Provis.
ions Of Senate Plan, Eliminating;
Proposal to Bar Future Dealings
From Mails and Interstate Tcle-
graph.

Washington. juno 29.-The house
today substituted the Lever bill Fer
regulation Of cotton exchanges
through prohibitive taxes for the sem
ate measure, proposing regulation by
Means of prohibiting the use Of the
mails and tho telegraph for soca.led
gambling transactions.
The house put the bill through un-
dor suspension Of the rules by vote
Of 81 to Fl and sent it to the senate.
IL the senate fails to agree to the
substitute in the differences will lie
taken UP in conference. Senator
Smith, author Of the senate bill, is
new campaigning in South Carolina,
end consideration Of the substitute
may be delayed until his return,
though Senator Smith of Georgia or
some other Southern senator may call
it up in the meantime.
Both the senate and house meas
urcs aim to regulate alleged evil prac.
tices on the cotton exchanges which
the cotton producers contend keep
down the price Of cotton. The senat z
bill through the postofiice department
and the interstate commerce commits
siOn's jurisdiction over the telegraph
would prohibit the transmission OF
quotations, and lists Of sales of cotton
that did not comply with the require
mcntS as to standardization pre-
scribed in the bill. Both bills would
regulate. though they would not pro-
hibit, transactions in future.
The house bill relies on the gov
ernment taxing power instead of in
hibitiOn Of the mail and the telegraph,
proposing tax of IS bale ON con-
tracts that do not comply with the
requirements.
No tax would be imposed on what.
are regarded as legitimate contracts:
The measure would require that con-
tracts must be in writing; must speci-
fy the quantity of cotton involved in
each transaction and give names and
addresses Of buyers and sellers, with
the basis grade Of tho cotton involved.
Other sections would provide thlt
the cotton must be Of or within the
grades specifically established by the
secretary of agriculture and that in
case other than the basis grade is dc.
livercd the differences above or be-
low the contract price must be the
actual commercial differences and not
the difference arbitrarily fixed by the
cotton exchanges, the commercial diff
, fcrences to be determined by the Sec
rctary of agriculture by comparison
Of prices Of five spot cotton markets.
A lively debate preceded the vote.
Democratic Leader Underwood, favor
ing the measure, pointed out that tho
whole proposition rested on the pro-
posal that congress should either sup
press or regulate the cotton exchanges
Of the country.
Whatever. particular power You
r"e to enforce law" he said, as
secondary proposition, but there is
no better power in the government
than the power to tax, which Is in
this bill Tho Scott bill was intend
cd to wipe out the cotton exchanges.
The Lever bill is intended to regulate
thcm. so as to wipe out the evils that
exist in the exchanges. In two dic-
fcrent congresses l have supported
legislation along the lines of the
Scott bill and they have been sent
over to the senate and there have died
in committee. A similar bill from
this house at this time would meet
similar fate"
Il believe that the practices of the
New York cotton exchange cost the
Southern producers annually $780,
OOC,OOO," declared Representative
Lever, who is author Of the bill.
The purpose of this bill is tb elm
mate the practices which constitute
such an enormous burden. Any man
voting against it puts himself in the
attitude of favoring continuance Of
practices that have been denounced
in every cotton growing state in the
Union"