The Manitowoc pilot. [volume] (Manitowoc, Wis.) 1859-1932, 1922-05-18
j. s. CONTROL Of
PIT" IS Upset
U. S. High Court UphoIdS Tax on
Puts and Calls.
SECTION q is UNENF0RCIBLE
Supreme Tribunal Also Kills the Child
Labor Law, Holding Act Unconsti-
tutional and Not Vald-Taft
Delivers Opinions.

Washington, May l6.-The Supreme
court held section 4 of the future
trading act was unentorcible. It held
that sections ), . and other sections
could be enforced.
Chief Justice Taft delivered the
opinion
The court announced that the in
junction against the Chicago board of
trade and its officers and the injunc-
ton against the collector of internal
revenue and the district attorney
should be granted, SO far as section
is concerned, and the regulations
of the act interviewer within it,
Law Taxed Futures.
The future trading law was enacted
recently by congress. Among its other
provisions ii extended to farmers CO.
operative associations, privileges in
tended to promote their marketing
facilities. including membership upon
grain exchanges which became CON
tract markets. It imposed pro-
hibtive tax upon contracts made upon
delivery of grain when not made upon
contract" markets.
Eight members of the Chicago board
OF trade sought an injunction in the
United States District court at Chi
.Cago TO prohibit the board from COM
plying with its provisions, but Judge
Lands decided against them. They
then appealed to the Supreme court,
which suspended the operation of the
law so far us the Chicago board of
trade was concerned, pending deter
mination of the validity Of the law.
Section i, declared to be unenfCrci-
bic, proposed TO levy virtually pro-
hibtive tax of 20 cents per bushel on
all future trading banned under the
act. 1t made exceptions of actual
owners of grain or legitimate hedging
contracts.
Ban on puts" and "Calls" Upheld.
The decree Of the lower district
court was reversed to the extent
stated. In announcing his dissent,
Justice Brandeis stated briefly that he
could not agree with the opinion of
the court which, in substance, held the
law invalid.
Section of the act provided for
a tax of 20 cents a busheI upon
privileges" puts and call" bids and
Offers and other so-called speculative
trades.
Section . of the law, which was
sustained by the court empowers the
secretary Of agriculture to investigate
boards Of trade, requires them to sub
nit statistical and other information,
except confidential trade matter, and
TO publish reports to the public,
Knocks Out Child-Labor Law.
The court held the child-labor law
was unconstitutional and not valid.
This law was enacted after the
Supreme court had declared invalid
an act of congress which excluded
from interstate commerce products in
whose manufacture child labor had
been used The law affected by to-
days decision was virtually the same
except that it imposed an excise tax
of 10 per cent upon the annual net
HIbhlS " tStdbllNullClllS tIlIlOAllS
child labor. Opponents of the law
contended the new law was an I'M
constitutional invasion of the police
powers of the states.
Other decisions of the court were:
That liquor while within the boun-
daries of the United States en- route
from one foreign port to another can
be seized under the national prohi-
bitiOn act.
That New York statutory gas rates
of so cents were confscatory during
the calendar years 1919 and 1920.