New-York tribune., 1922-10-31
stay order in Chieago


CHICAGO, Oct. so. - United States
District Judge Carpenter issued a stay
order to-day spspending operation OF
the grain futures trading act until No.
vember 13, when he viii hear the petit
tSon OF the Chicago Board of Trade
sor @ permanent injunction. The PC
dtion was brought 5y Henry S. Rob-
bins, counsel FOR the Board of Trade.
The Boald Of Trade suit was based
largely or the report of legislative
committee, issued to-day. which covers
a ftwo-year period of Legislative tur-
noil outlining evidence placed be-
fore the Senate agricu tural commit
tee. which, Il declared. showed clearly
the unsoundness of the old Gamer
Tfncher law, held unconstitutional by
ne Supreme Court.
"As result of a series of confer
ences between representatives of the
grain trade and the Secretary of Agri-
culture, the report sa S, 'there was
evolved number of amendments
which, in the opinion Of the grain trade,
would, II adopted, make it possible for
the exchanges to function under the
act If fairly administered"
The bill was reported out for pas
sage, the report continues, without in
cooperating many of the most impor-
tant suggested amendments" after it
had seemed probable the Senate com
mittee would adopt practically ali" of
the proposed changes.
Attacks Section Three
ssDeclarlng Section of the bill con-
mined San arraignment Of futures
tfading unsupported by evidence" the
report said 1T was evident throughout
tie hearings that the intent of the
Department of Agriculture was not
that Section should convey an accu-
rate picture of the operations involved
10 future trading, but should establish
a. firm foundation for the contention
that future trading was affected with
anationai public interest, that it was
az times q burden upon or an ohstrue~.
tSen to interstate commerce and that
Consequently Federal regulation was
necessary"
The bin of complaint filed by counsel
for the board charges that the law
steks to regulate an interstate COM
merce trade that is wholly state; that
it interferes with state rights to gov
ern exchanges, and that it seeks to de-
prive board members of their property
by admitting representatives Of coop
erative bodies and permitting thcai to
rebate commissions in violation of
rules observed by other members.
Further charges of unconstitutionality
are made on the ground that the law
makes violations Of it's provisions a
crime "and constitutes the Secretary
Of Agriculture, the Secretary OF Com
uierce and the Attorney General a
commission, with power to deprive Of
tenders of their rights to thereafter
pursue lawful vocation, whereas such
criminal laws are, under the Constitu
tion, enforceable only in COURTS" with
- jury trial.
? Other sections granting wide powers
os control to the Secretary of Agricul-
ture, who Is given authority to desig-
nate what exchanges shall or shall! not
be contract markets, are attacked as
unsound.
WASHINGTON, Oct. 3o.-The action
OF the Chicago Board of Trade in fling
It's petition in the Federal District
Court there to-day for an injunction
restraining the government from en-
forcing the grain futures law was ex-
pected by Department OF Agriculture
officials who have charge of the admin
.stration of the law.
Preparations have been under way
for some time to combat any such
action by the grain exchanges, and
the government is prepared 20 so for
ward Immediately with it's defense of
the law. The Federal District Attorney
at Chicago, with representatives of the
solicitor of the Department Of Agrcul-
ture. will conduct the governments