The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1922-11-03
FUTURES IN GRAIN
ACT BEING TESTED
Chicago Board of Trade
Makes Move
INJUNCTION IS SOUGHT
Law Enacted To Take Place Of
Capper-Tuicher Measure
Effective Nov. !

. Chicago, October 30.-The Chi
cago board Of trade made its first
move to test the constitutionality of
the grain futures act when 1t filed
in federal district court here a
petition restraining the government
from enforcing the provisions of
the act. -.
District Judge Carpenter issued a
stay order preventing the enforce
ment of the act until November 13
when he will hear the petition for
q temporary injunction against en-
forcement Of the regulating act.
The law, enacted to'take the place
of the former Capper. Tincher act,
which was declared unconstitutional
by the supreme court, was passed
to become effective November, /.
The bill OF complaint filed by
Henry s. Robbins, counsel for the
board, charges that the, law seeks
to regulate as interstate commerce,
trade that is wholly; state; that 1t
interferes with state rights to goy-
ern exchanges, and that it seeks to
deprive board members of their
property by admitting representa-
tives Of cooperative bodies and per-
hitting them to rebate commits
sions In violation OF rules observed
by other members.
Further. Charges illegally
Further charges OF unconstitu-
-tionality are made on the ground
that the law makes violations Of its
provisions crime. "and constitutes
the secretary OF agriculture, the
torney general commission with
power to deprive Offenders Of their
rights to thereafter pursue q law
full avocation; whereas. such Grim
inal laws are, under the constitu-
ton, enforceable only in courts"
with a jury trial
Other sections grating with pow
ers of control to the secretary oil
agriculture who is given authority
to designate what exchanges shall
or shall not be contract markets,
are attacked as unsound.
Fear of what might result from
the drastic provisions OF the law,
the complaint says, may bring on
"a serious disturbance OF the grain
markets Of the country
Many owners Of grain" It
states, will be deprived of the
privilege Of insuring themselves
against price fluctuations through
hedging contracts and irreparable
loss to members and others would
result"
other Statements
Statements contained in that Sec
ton of the law summarizing al
legged evils of marketing are at
tackled by the exchange as 'inac.
clirate." These assertions of sup
Sosea- evils, the board contends,
were disproyen at the numerous
bearings on the bills.
Statements before committees did
not show that the transactions and
prices of grain in futures trading
are susceptible to spet ulation, man,
ipulauon or control. to the detri-
ment OF producers and consumers,
the complaint says. The statements
did show. it continues, that such
fluctuations as do occur are not
and never has been an obstruction
TO. or burden upon interstate com
Inerce in grain"
Action Not Expected.
Washington, D. g., October 90
Action of the Chicago Board Of
Trade, in filing its petition in the
federal district court today for an
injunction restraining the govern
ment Of agriculture which has
charge or the admniserauon OF the
law.
Preparations have been under
way for some time to combat any
such action by the grain exchanges
and the government 10 prepared to
go forward Immediately it's defense
OF the law. The federal district at
torney at Chicago with representa-
ives OF the solicitor Of the depart
ment of agriculture will conduct the
defense !
Preparations for the enforcement
of the law on its effective date,
1, have been completed
by the gran futures law admins
tration and Chester Morrill,, assist.
ant to the Secretary of agriculture,
ind in charge Of the Administration
grain exchanges have received des-
ignations unde the new law as con
tract markets. These are Los An
geles, Milwaukee and the Chicago
open board Of trade.
4