The Rock Island Argus and daily union., 1922-05-31
SEN. CAPPER
OFFERS GRAIN
TRADING BILL
Measure Calls Specu-
IafiUe Contracts
UnIosUfuI.

Associated Press.)-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 imperative in part, was intro
duced in the senate today by Sena-
tor Capper, Republican, of Kan
sas, chairman of the unofficial SEN
ate agricultural bios and author of
the original act
In presenting his new measure
Senator Capper said it had the sup
port of the agricultural bloc and
Secretary Wallace and others of the
department of agriculture. 1t was
referred to the agricultural COM
mittee.
The bill is similar to the act de-
clared imperative by the supreme
court except that its fundamental
principle is based on the power of
congress to regulate interstate COM
merce 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 contract markets"
by the secretary of agriculture and
for admission to grain exchanges
OF farmers cooperative associations,
the latter a provision opposed Wig
orously by the established boards
of trade
Capper Explains Bill
Another important change,
Senator Capper said in a statement
explaining the new bill, lis the
provision which substitutes regu-
| lation of the use of the mails and
! interstate commerce for the taxing
| provisions of the previous statute
| a further provision not found in
| the preceding statute is designed
! TO give the secretary of agriculture
power to deal with the question OF
| grades that may be delivered on
contracts, premiums and discounts
inadequate elevator capacity, and
any other conditions that may have
similar importance in relation tl
the prices and executions of con
tracts.
The grain exchanges have been
bitterly opposed to the provision OF
| the Capper-Tincher law which COM
PEELED them to admit cooperative as
| sociations to membership. This
provision is retained in the new bill
and makes it clear that with the
exception OF the patronage dividend
basis of operation, cooperative as
| sociations of producers are subject
| to the same conditions as other
members of the boards of trade"
Packer Law Is Model
The packer control law, Senator
Capper added, was in part the mod
el for the new bill to reach the
grain exchanges. Similar to the
original law, the new bill declares
purely speculative grain contracts
unlawful and against the public in,
terest-
One of the new features of tn,
bill declares purely speculative
grain contracts unlawful anC
against the public interest.
One of the new features of thu
bill exempting actual owners Of
producers of grain and approved
trades made in contract" market
declares:
That it shall be unlawful TO
any person to deliver for transmits
sion through the mails or in inter
state commerce by telegraph, tele
phone, wireless or other means O
communication, any offer TO max
or execute, or any confirmation o
the execution of, or any quotation
or report of the price, any contrac
of sale of grain for future deliv
cry or on subject to the rules o
any board of trade in the Unite
States, or for any person to max
or execute such contract or sale
which is, or may be used for Ia
hedging any transaction in inter
tsate commerce in grain or tn
products or by products thereof
or (b) determining the price basi
of any such transaction in inter
state commerce or (c), by deliver
ing grain sold, shipped or receive
in interstate commerce for the ful
fillment thereof"
| Violation of this and othe
clauses of the bill would enta
fines of $4,000 and one years i'm
prisonment