The Birmingham age-herald., 1921-02-05
SOUTH CAROLINA SENATOR DEFENDS
 HIS AMENDMENT
Wrong He Says Exists In Per- hitting Seller an Option on Any One of Ten Grades
 While Buyer Has None
By HUGH w. ROBERTS Washington Bureau Tho Ass-Hsrait
 800 Davidson Building

Washington, February 4.-(Special.l-- full report of the statement made by Senator Dial of South Carolina, before the House committee on agriculture on his cotton futures bill, became available today. In addressing the committee, Senator Dial said in part:
 "An my life I have heard that the far nners were robbed of d great proportion of the value of their product. I am an optimist and never took much stock in that, and do not like to say that people are robbed. After I came here, however concluded that l would look into this question and see whether there was any Foundation for the statements that I had heard.
 Now, I understand that the futures contract law states that the seller has the option of rendering any one or all of 10 grades. There are only 10 grades that are tenderable under contract. Many years ago there were 20 grades. Ibut few years back they eliminated fBome of these grades, and made only 10 grades tenderable. Under the law the fNealcr has the option of rendering any or Fall of the 10 grades. The purchaser has no option, except to sell out or to &C., kept whatever is rendered him.
 ~Now right there, I think. is where the lWrong exists Any contract which all laosve one party 10 options, and which al- toows to the other party no options, is an Pan1Air contract. Now I have proposed ian amendment, and I hope you will study Eat.
 THE AMENDMENT
 Tt provides: That section of the tUn1ted States cotton futures act, ap- lDeoved August Ii, 1916, as amended, be-, lend the same hereby is, amended as fol- lDws:
 ssTn the Fourth subdivision of Section V of said act, insert '(a)' after fourth, }ond before provide and add at the end 5ee such fourth sub-ditision:
 s1h> Provide that unless cotton in tlho basis grade be rendered In settle- kUemt of such contract the buyer shall Have the right to demand that one-half kof the amount deliverable under the con Mxzct shall be delivered in equal quantity Fin two grades, to be specified by him. land that the seller shall have the right kto tender one-half of the apount deliver Iinhle under the contract in equal quantity 1n two grades to be specified by such aelIer.
 "'The foregoing amendments shall be effective on and after the thirteenth day after the approval of this amendatory act, but }nothing herein shall be con- Gtxued as applicable to contracts entered into prior to the effective date of this amendatory act, or to affect rights ac- uuired or powers exercised hereunder
 Hast year Senator Conner was here IS senator from Alabama Senator Conner Introduced an amendment to the futures contract law, and his amendment, in brief, was to let the purchaser have the option of selecting one-half of the quan- tity of the contract in middiing cotton and above Well, to be candid with you. I had never studied the futures contract law, notwithstanding I have raised cot -h tfA 10A hnt law was reasonably honest. did not think that Congress would allow law to exist which would be oppressive to any class or any section of our people. I will state further that have no fav- crs to ask for any particular class, but If had any favors to give l would cer- tainly extend them to the producer.
 COMER'S PLAN
 '.Now, Senator Conner introduced that amendment and l will just give you very briefly the proposition that he made in regard to it. First, l will say that Senator Conner is very success full business man. He is the president of the Avondale cotton mills and sew eral other cotton mills in Alabama and not only that but he is also the largest farmer in the state of Ala bama, am told, and has been very successful indeed in business affairs and has the good of the country abso- lutely at heart and he wanted to see a flair law passed. His idea was to let the purchaser select ne-half of the quantity of the contract in middling and above; to let the purchaser select one-half the quantity of the contract instead of the seller selecting all of the quantity. Senator Comers amend .ment was passed in the Senate, but 01AloA in the House.
 Now, there was a great propaganda gotten up against Senator Comer's amendment, the idea being at that time that there was c great deal of off grade cotton in the south. When you spoke of middling, which was good grade cotton and fair, you wanted a higher grade. Now, we have a great deal of this off-grade cotton in my own town. l was president of a bond house in my town. and I know some thing about the conditions at that time We had a great deal of that off-grade cotton. and the farther west you went and the farther south you went you found more of it. Now, that was not by reason of any contract law, as l understand, but it was directly re- gult of the war During the war the government had its goods made out ot fine grades of cotton, and that to my mind was very foolish. I was not in the senate at that time, But In my opinion that was simply an unneceS- aary expense. And it consumed <prac- ttcaliy all of the good grade cotton that was grown and left great quan. uty of off-grade cotton. Now, as gay, by reason of the government talk. ing all of the good grade cotton for its purpose. and also by reason of Ger many and Austria not being in thu market-and they had been taking 2 probably 3,000,000 bales per annum be. fore the war-there was a great ac. emulation of this off-grade cotton ir the south. Therefore. Senator Corners amendment aroused a considerable amount of opposition on the part of a great many of our southern friends.
 PRICE WOULD SOAR
 ~Now. took this matter up with the department of agriculture last sum nAn. .aa->