Evening star., 1921-08-21

cess at all times, 30 tney may cneck
up on the exchanges.
It provides that the Secretary of
Agriculture may designate such
boards Of trade as contract mar
kets." where grain futures may be
dealt in. only when these boards of
trade comply with conditions and re-
quirements set down in the act itself.
1t uses the taxing power of the gov
ernment to put the gambling in grain
out of business. '>- .-ar o.
In making use of the taxing power
to control the situation. the bill pro-
vides there shall be levied a tax of
90 cents per busheI on each bushel in
for contract either Of purchase or
sale Of grain. intending thereby only
to tax the transactions known to the
trade as privileges" bids" OFFERS"
puts and calls" ''indemnities or "ups
and downs"
Tax ON Unowned Grain.
Furthermore. the bill imposes a tax
of 20 cents per bustel on every bushel
Of grain involved in a contract for
future delivery. except where the SELL
er is at the time Of making the con-
tract the owner of the actual grain,
or is the grower. and except where
such contracts are made by or through
a member of board Of trade which
has been designated as contract
market by the Secretary. of Agricul-
ture, and a record Of the transaction
is kept for tie inspection of the Sec
retary.
This tax Of 20 cents a bushel on
these transactions-the kind of gamb-
ling transactions that the bill aims
ats, in effect. prohibitive. But the
bill does not prevent the legitimate
hedge" 1t will. however. put out
of business thousands Of wire houses
and bucket shops operating in every
city of the country by making 1t i'm
possible for gamblers and specula-
tors to do business on boards of
trade. i<.5-
Before board of trade can be des-
ignated contract market" by the
Secretary of Agriculture, the board
must comply with the conditions set
down in the bill. These conditions
include the location Of the board at
a terminal market where grain is
dealt with in large quantities.. the
keeping of records of all transactions
on the board for the inspection of the
secretary and his agent or any agent
Of ). fhea pepartment Of Justice. the,
prevention by the board Of the dis
Summation of false or Inaccurate re-
ports concerning crop or market con-:
ditions, the prevention by the govern
ing board Of the manipulation of
prices or the cornering Of any grain
by the dealers or operators, ,.on the
board. and the admission to member
ship in the board OF any lawfully
formed cooperative association of
producers.
Any board desiring to be designated
a contract market" must show to
the Secretary of Agriculture that
with
Severe Penalties Provided.
A commission. composed of the
Secretary of Agriculture, the Secre-
tary of Commerce and the. Attorney
General is authorized to suspend for
a period not exceeding six months. or
to revoke the designation Of any board
of trade, when any of the conditions
prescribed are violated. Provision is
made for hearings and for appeals to
the federal courts. Any person who
fails to keep the records Of the trans-
actions in grain as laid down in the
proposed law, will be liable to fine
of not more than $4,000 or imprison-
ment for not more than a year. or
both: and aleo. shall be compelled to
pay the tax Of 20 cents bushel and
an additional tax of 10 cents a bushei.
The father of this legislation is
Sc natpr Arthur Capper of Kansas, who
introduced the original anti-grain
gambling bill. Senator Capper has
given the measure his unfiagging in
terest and attention. The support
for the bill grew rapidly and the
farmers have gotten behind 1t prac-
tically to a man. They. see in it an
opportunity to escape from competi-
tion with the grain gamblers. with
whom. as matter Of fact. they have
had no chance.