Pine Bluff daily graphic. (Pine Bluff, Ark.) 1893-1942, 1914-06-30
Smith-Lever Bill, Fixing
Standards, Will Likely Be
come Law This Session.
AIMED TO PREVENT
PRICE MANIPULATION
All contracts, Except Those in Accord
with Law Specifying Grade. to BE
Taxed from ~ to $500 Per Bale,
VIII Profit cotton Grower.

Washington, June 29-Thc Lever
bill regulating operation of the cot
ton exchanges through the use Of the
taxing power of the government, pass
ed the house today arr. will be sent
to conference by the senate. The
prospects are bright for the passage
OF the legislation ut this session. The
Lever bill is a complete substitute for
the bill which passed the senate.
The bill requires acceptance by
cotton exchanges Of government es-
tablished standard in grades and inn
poses Il tax of / cent pound on all
contracts for future SAILS. except
when within the established grade
and representing the value of spot
cotton. Each contract of future sales
not complying with established grade
standards, is TO be taxed $500. This
tax is said to be prohbitiye and will
force immediate abandonment Of such
market deals.
Report All Sales.
Cotton exchanges are to keep open
accounts on all sales transactions in
actual delivery or in futures for in
spection by government officials
charged with the collection of the
taxes imposed. Although no tax is
levied on straight sales for delivery
OF standard grades, such sales must
be reported. Where the taxes are
levied there are to be collected
against all foreign sales in futures
specified under the proposed law.
Opposition to the bill came from
those who contended it was not SUI
flciently drastic to prevent gambling
in cotton sales. Some urged control
by the Interstate commerce commits
sion of cotton exchanges and others
demanded elimination of all ex-
change dealings in cotton by invok-
ing postal laws to preent vquotations
Of exchange prices.
Representative Underwood, favor
ing the regulation of the exchange.
and correction of abuses, urged, the
invocation of the taxing power OF the
government. He said experience had
demonstrated that through taxation
the best results could be obtained in
the regulation OF a given industry
or pursuit because of the publicity in
volved. He opposed whole sale con-
demnation of operation on cotton ex-
changes.
Means millions to South.
Chairman Lever. of the house agri-
cultural committee, urging the inn
mediate need for the passage OF the
bill; with it's corrective legislation,
declared the South is losing annual
ly from $50,0O0,0O0 to $1O0,OOO,0OO
through unfair manipulations Of cot
ton prices. He said that if the reguia-
tory measures fail to correct abuses
there should be complete abolition OF
cotton exchanges, boards Of trade and
other institutions dealing il cotton
and cotton futures.
while there has been undoubtedly,
at times, much vicious speculation on
the exchanges" said Mr.. Lever, 1.-The
concensus of opinion is that the ex-
changes may become useful function
aries in establishing prices in
furnishing correct quotations of the
market value of cotton, in elimina-
ting the risk of violently flunctuating
values and deciding the profits OF the
middle maa in furnishing ready
market for cotton at all times, ana
in all markets at its market value,
Continued on Page 81