The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-12-04
TO START RAID
ON WHEAT PIT
Senator Capper Announces Bill
to Stop Future Trading.
Chicago Grain Market Gamb-
ling Den, Says Kansas SOlon.
TO BE INTRODUCED MONDAY
Will Impose Tax of Ten Per
Cent on All Future Deals.
Great Bear Raid Cost American
Farmer Billion Dollars.

Washington, Dec. 4. = Asserting
gambling in grain is the chief reason
for the slump in prices of farm prod
ucts, Senator Capper, of Kansas, to-
day declared there is a grain gam
blers' conspiracy to blk the people
and farmers out. of hundreds of mil
lions of dollars"
With his statement, Capper made
public the bill he will introduce in the
isenate Monday to break up grain gam
bling by imposing a tax of 10 per cent
on all deals in grain futures, except
when actual delivery is contemplated.
Futures Not Bona Eide.
This bill" said Capper, will stop
all gambling in wheat, corn, cotton
and other farm products. 1t will
eliminate the wheat pit and black
board. 1t will put out of business the
thousands of wire houses and bucket
shops opening in every city of the
United States.
The Chicago board of trade as now
conducted, is the worlds greatest gam
bling institution. More wheat was sold
in Chicago in October than was raised
in the United States this year. This
years corn crop was sold fourteen
times in Chicago before a bushel of
corn had reached the markets Only
in futures represents bona fide trans
actions for actual delivery.
Will Stop Gambling.
1.-The bill will stop gambling in
wheat, corn, cotton and other farm
products" said Senator Capper. TT
will eliminate the wheat pit and the
black board. 1t will put out of busi-
ness the thousands of wire houses and
bucket shops by making it impossible
m
on boards of trade.
1.-The bill undertakes to preserve the
legitimate hedge but cuts out all
gambling and manipulations."
Farmers. dealers and manufactur-
ers buying or selling grain or cotton
for actual delivery would not be re-
stricted by the proposed law, Senator
Capper said. Penalties of SO per cent
of the proposed federal tax, a fine of
500 and one years Imprisonment
for violation of the bills provisions
are incorporated in the Capper bill.
Grain Holders Exempt.
Sellers of grain, grain products and
cotton who, at the time of sale, would
be owner of the actual physical prop
erty'' and traders regularly engaged in
growing, dealing in or manufacturing
and registered with the internal
revenue bureau, would be exempt from
the 10 per cent tax Such traders,
dealings to three times their actual
transactions during the preceding
year, and would be required to report
all dealings to the internal revenue
bureau.
There is not the slightest doubt
that the gigantic raid made by the
bears on the board of trade was the
chief cause of the recent disastrous
slump in the price of farm products.
Because a lot of market gamblers
find it convenient to bet on the daily
quotations the farmer who has been
forced to sell his hogs and cattle at
loss while meat still sells at war
prices is again made the goat.
Farmers Lost Billion.
1.-THE farmer already has lost more
than a billion dollars by the bear raid.
Brokers and commission houses have
cleaned up over forty millions in mar
gins and commissions alone. The
lambs who play the market have lost
more than one hundred million dol
lars in the last ninety days in specu-
lating in cotton and wheat.
"I find all grain and cotton dealers,
millers and spinners recognize the
evils of the present system and are
anxious to stop gambling in food
products. They will heartily support
this measure to place the business on
a legitimate basis. 1 am also assured
of the support of the farm organiza-
tions. The commission houses. brok-
crs, bucket shops and market specula-
tors generally will fight it,