The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1922-10-30
SUIT STARTED
BY CHICAGO
TRADE BOARD
Declares Act Prevents Grain
Men from Insuring Against
Market Flunctuations
SAY LAW is INVALID
Summarizes Charges Against
Dealing in Futures as
'eInaccurate''

Chicago, Oct. 3O.-The Chicago
Board of Trade made it's first move
to test the constitutionality of the
grain future act when it filed in
federal district court here a petition
for injunction restraining the gov
ernment from en- Jrcing the provi-
sions of the act
District Judge Carpenter issued a
stay order preventing the enforce
ment Of the act until Nov. 13 when
he will hear the petition for tenn
porary injunction against enforce
ment of the regulating act.
The law, enacted to take the place
of the former Caper-Tincher Act,
which declared unconstitutional by
the supreme court, was passed to be-
come effective Nov L
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 it
interferes with state rights tosgpv-s
ern exchanges, and that it seeks to
deprive board members of their prop
erty by admiring representatives of
cooperative bodies and permitting
them to rebate commissions in vlo-
lation of rules observed by other
members. f."
Further charge, of unconstitution-
ality are made on the, ground that
the law makes violations Of its pro-
visions a crime, "and constitutes the
secretary Of agriculture, the secre-
tary Of commerce and the attorney
general commission with power to
deprive offenders of their rights to
thereafter purjue lawful avoca-
ton; whereas, such criminal laws
are, under the constitution enforce
able only in courts" with jury
trial.
Other sections granting wide pow
ers of control to the secretary Of
agriculture who is given authority
to designate what exchanges shall
or shall not be contract ma. .ots, are
attacked as unsound.
Fear Of what might result from the
drastic provisions of the law, the
complaint says, may bring on "a seri-
Gus disturbance of the grain markets
of the country"
"Many owners of grain," it states,
twill be deprived of the privilege of
insuring themselves against price
fluctuations through hedging con-
tracts and irreparable loss to mem
bers and others would result"
Statements contained in that sec
ton of the law summarizing alleged
evils. of marketing are attacked by
the exchange as inaccurate" These
assertions of supposed evils, the
board contends, were disproven ct.
the numerous hearings on the bills
Statements before committees did
not show that the transactions and
prices Of grain in future trading arc
susceptible to speculation, manipula
ton or CONTROL" to the detriment OF
producers and consumers, the COM
plant says. The statements die
show, it continues, shat such fuctu-
ations as do occur are not and never
has been an obstruction to, or burden
upon interstate commerce in grain"
Action of the Chicago Board of
Trade, in filing its petition in the
federal district court here today for
an injunction restraining the govern
ment from enforcing the grain fu-
lures law wa; not unexpected by the
department of agriculture which has
charge of the administration of the
law.
Preapratio.s hae bee under way
for some time to combat any such
action by the grain exchanges and
the government is prepared to go
forward Immediately with its de-
fense of the law. The federal dis
trict attorney at Chicago with repre-
sentatives of the solicitor of the de-
partment of agriculture will conducc
the case.
Preparations for the enforcement
of the law on its effective date, Nov.
/, have been completed by the grain
futures law administration and Ches-
ter Morrill,, assistant to the secre-
tary of agriculture and in charge OF
the administration grain exchanges
have received designations under the
new law as contract markets. There
are Los Angeles, Milwaukee and the
Chicago open Board of Trade.