Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1916-01-12
COTTON FUTURES BIId. UP AGAIN
Lever Reintroduccs Measurc Recently
Declared Unconstitutional.

tive Lever, Of South Carolina, au-
thor Of the cotton futures law recent
ly declared unconstitutiona by Fede-
raj Judge Hough, Of New York, to-
day reintroduced the bill. Mr.. Lever
said he consulted many lawyers in
the Senate and House and their
opinion is substantially unanimous
that the Supreme Court would not
uphold Judge Hough."
Judge Hough," Mr.. Lever said,
declared the cotton futures statute
OF August 1S, 1914, unconstitutional
upon the ground it originated in the
Senate instead of in the House. The
facts are that during the 63d Con-
gress, Senator Smith, Of South Caro-
lima, introduced bin framed under
the post office clause regulating cot
ton exchanges; l introduced a bill
on the same subject, seeking to ac-
complish the same economic ends,
framed under the tax clause Of the
constitution. Senator Smiths bill
passed the Senate previous to house
action on my bill. When the matter
came before the House my bin was
substituted for Senator Smiths bill
and in order to get an advantageous
calendar position it was assigned the
Senate number OF the Smith bill. The
government contention is that con-
stitutionally the bill originated in the
House.
Would Upset. Trade.
Nevertheless, II the Supreme
Court should sustain Judge llough.
the cotton trade would be so much
upset and disorganiZed during the
period intervening between the Su-
preme Court decision and a reconsid-
GRAFTON Of the question by Congress,
that ! have deemed 1t the part Of
prudence, In the public interest, to
submit to The Congress the bill for
the re-enacment Of the statute"
Mr.. Lever said the immediate cf-
feet of the decision was to disturb
prices. The market was steadicd
however, by official announcement
that the act would be considered in
force pending an appeal to the Su-
preme Court. Should Congress re-
enact the law. Mr.. Lever said, the
only issue passed on by Judge Hough
remaining for decision by the Su-
preme Court would he whether the
plaintiffs who paid the government
money under protest in order to test
the validity Of the statute were enti-
tied to recover those taxes.
"There has been every evidence
from cotton producers, spinners, mer-
chants and the great majority Of cot
ton exchange members" said Mr. Le-
yer, that the law was wise legsla-
ton and has been beneficial to all of
them alike
Mr.. Lever said that the bill en-.
bodies no change in substance from
the law as originally enacted
Only One Question.
There is only one respect in which
there has been any considerable con-
troversy as to the value and wisdom
Of the cotton futures act" sa.u Mr..
Lever. "Section / treats orders
sent from this country for execution
on foreign exchanges in substantially
The same way as transactions on
American exchanges. This was to
avoid evasion OF the act and to pre-
vent the transfer to foreign cotton
exchanges OF business which lcgiti-
mately belongs to American eX-
changes. a certain class Of cotton
merchants engaged in exporting cot
ton have complained that the law has
had result of hindering the proper
transaction OF the business OF ex-
porting cotton, by preventing hedges
on foreign exchanges which have not
50 altered their methods Of doing bus
mess as to conform to the require
ments which the act prescribes as
condition to eXempting from taxa
ton orders sent from this country for
execution on those foreign cx-
changes"
Opportunity would be afforded to
the cotton trade. he said, to present
to the committee any facts or argu-
ments bearing upon this question.
-------------.- -
"CASCARETS" BEST III