The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1922-05-31
CAPPER SEEKS
REGULATION OF
GRAIN TRADING
New Bill Decision TO Meet Re-
cent Decision of Supreme
Court Holding Trading Act
imperative Introduced.
FARM BLOC SUPPORTS
(Bv Associated Pressl

WASHINGTON, May 31.-A new
nill for regulation of future tradinz
on grain exchanges. designed to meet
the recent decision of the supreme
court in holding the present trading
act imperative in part, was introduc-
ed in the senate today 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 o.
The agricultural bloc and 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 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 which the supreme court held
could not be exercised in that respect.
The bill, like the present law, pro
vides for designation and regulation
Of contract markets" by the secre-
tary of agriculture and admission TO
grain exchanges of farmers coop
erative associations and the latter
provision opposed vigorously by all
established boards of trade.
Another important change" said
Senator Capper, in a statement ex-
planning the new bill, "is the provis-
ion which substitutes regulation OF
the use of mails and interstate COM
merce for the taxing provisions OF
the previous statute. A further pro
vision not found in the preceding sta
tute is designed to give the secretary
of agriculture power to deal with the
question of grades that may be de
livered on contract, premiums and dis
counts, inadequate elevator capacity,
and any other conditions that may
| have similar Importance in relation to
the prices and executions Of contracts.
THE grain exchanges have been
| bitterly opposed to the provision OF
the Capper-Tincher law which com
PEELED them to admit cooperative
associations to membership. This pro
vision is retained in the new bill and
makes it clear that with the exception
/ of the patronage dividend basis OF
operation, cooperative associations Of
producers are subject to the same con
ditions as other members of the boards
of trade"
| The packer control law, Senator Cap
per added. was in part the model for
| the new bill TO reach the grain ex-
changes. Similar to the original law.
the new bill declares purely specula
tive grain contracts unlawful and
against the public interest.
New Features
One of the new features of the bill
exempting 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 interstat,
! commerce by telegraph. telephone
wireless or other means of communi
cation, any offer TO make or execute
or any confirmation of the execution
of, or any quotation or report of the
price, any contract of sale of grain
for future delivery on or subject tc
the rules of any board of trade in this
United States, or for any person Il
make or execute such contract or sale
! which is, or may be, used for "a
hedging any transaction in interstate
commerce in grain or the products o.
by-products thereof, or tb) determin
ing the price basis of any such trans
action in interstate commerce. or &c
delivering grain sold. shipped or re
ceived in interstate commerce for tht
fulfillment thereof"
Violations of this and other clause
of the bill would entail fines of $1,000
and one years imprisonment.