Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-06-01
GRAIN TRADING
REGWhT|ON|S
A|M-0F CAPPER
Bill Introduced After
Part of Present Law
Held imperative.
Measure Is Approved by
Farm Bloc and Men of
Wallace Department.

Washington, May 31.-A new bill
for regulation of future trading on
grain exchanges, designed to meet the
recent decision of the supreme court
holding the present trading act inopera-
tive in part, was introduced in the
senate Wednesday by Senator Capper.
republican, Kansas, chairman of the
unofficial senate agricultural bloc and
author of the original act.
In presenting his new measure Sena-
tor Capper said it had the support Of
the agricultural bloc and of Secretary
Wallace and others of the department
of agriculture. 1t was referred to the
agricultural committee.
The bill is similar to the act de-
clared imperative by the supreme
court except that its fundament prin-
gress to regulate interstate commerce
instead of the taxing power, which
was the basis of the present law and
which the supreme court held could
not be exercised in that respect. The
bill, like the present law, provides for
designation and regulation of con
tract markets" by the secretary of
agriculture and for admission to grain
exchanges of farmers cooperative as
sociations, the latter a provision OPP
posed vigorously by the established
boards of trade.
Another important change" said
Senator Capper. in a statement ex-
planning the new BILL" is the provision
which substitutes regulation of the use
of the mails and interstate commerce
commission for the taxing provisions
of the previous statute. A further
provision not found in the preceding
statute is designed TO give the secre-
tary of agriculture power to deal with
the question of grades that may be
delivered on contracts, premiums and
discounts. Inadequate elevator capa-
city. and any other conditions that may
have similar Importance in relation
to the prices and executions of con-
tracts.
Grain Exchanges Oppose
The grain exchanges have been Bit
terly opposed to the provision Of the
Capper-Tincher law, which compelled
them to admit cooperative associa-
tons to membership. This provision
is retained in the new bill and makes
it clear that with the exception of
the patronage dividend basis of opera
ton cooperative associations of pro-
ducers are subject TO the same condi-
tons as other members of the boards
of trade"
The packed control law. Senator
Capper added was in part the model
the new bill to reach grain ex-
changes. Similar TO the original law,
the new bill declares purely specuia-
tive grain contracts unlawful and
the public interest.
One of the news features of the bill
actual owners or produc-
ers of grain and approved trades made
in contract markets declares:
That it shall be unlawful for any
person to deliver for transmission
through the mails or in interstate com
by telegraph, telephone. wire
less or other means of communication,
any offer to make or execute, or any
Of the execution of. or
any question or report of the price, any
of sale of grain for future
delivery on or, subject to the rules of
board of trade in the United States
for any person to make or execute
contract Or sale, which is, or
nay be used for (A) hedging any
transaction in interstate in
or the products or ~by-products
hereof. or OBJ determining the price
oasis of any such transaction in in
erstate commerce, of Co delivering
for the fulfillment
hereof
Violation of this and other clauses
# the bill would entail fines of S10,-
MO and one years imprisonment.