Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-11-02
GRAIN FUTURES ACT
ATTACKED IN COURT
BY BOARD Of TRADE

Board of Trade made it's first
move to test the constitutionality of
the grain futures act when it filed
in federal district court here pc
tition for injunction restraining the
government from enforcing the pro-
visions of the act.
District Judge Carpenter issued a
stay order preventing enforcement
of the act until November Is, when
he will hear the petition for tenn
porary injunction against enforce
esment Of the regulating act.
Theilaw enacted to take the place
of the former Capper-Tincher act, de-
! clared unconstitutional by the SUI
preme court, was passed to become
I effective November /.
I The bill of complaint, filed by
!. Henry S. Robins 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 to gov
en- exchanges and that it seeks to
deprive board members of their
property by admitting representa-
tives of cooperate bodies and per-
hitting them to rebate commissions
in violation of rules observed by
other members.
Further charges of unconstitution-
atty are made on the ground that
the law makes violation of its pro-
visions crime land constitutes the
secretary of agriculture, the, secre-
tary of comerce and the attorney
general commission with power to
Deprive offenders of their rights to
thereafter pursue lawful avoca-
! ton; whereas, such criminal laws
are, under the constitution, enforce
able only in courts" with a jury
4 trial.
Other sections granting .J.de pow
ers of control to the secretary of
agriculture, who is given authority
to designate what exchanges shall
or shall not be contract markets,
are attacked as unsound.
Fear of what might result from
the drastic provisions of the law, the
complaint says, may bring on "a
serious disturbance of the grain
markets of the country.
MANY owners of grain" it states,
will 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 !, the
hoard contends wara diSproyad of
the numerous hearings on the bills.
Statements before the committees
did not show that the transactions
and prices of grain in future trad
ing are susceptible to speculation,
manipulation or CONTROL to the
detri tent of producers and con-
sumers," the complaint says. The
statements did show, it continu IS.
that such fluctuations as do occur,
are not, and never have been, an OBJ
struction to, or burden upon inter-
state commerce in grain
The suit which resulted in the
former law being declared uncon-
stitutional was brought by indiv;d-
ua1 members Of the exchange, but
Chief Justice Taft declared in, the
decision that the board itself should
have contested the law. Such a pol
icysis being followed by the board
in the present fight, with the ap-
nfoval of the other grain exchanges.
GOVERNMENT rs REALLY
TO FIGHT THE INJUNCTION
:. WASHINGTON, Nov. 1.-The ac-
ton of the Chicago Board of Trade,
N filing its petition in the federal
district court there for an in
junction restraining the government
from enforcing the grain futures law
was not unexpected by the depart
ment of agriculture officials who
have charge of the administration of
the law.
a Preparations have been under way
for some time to combat any such |
action by the grain exchanges, and
the government is prepared to go
forward Immediately with it's defense
Of the law. The federal district at
torney at Chicago with representa-
t1ves of the solicitor of the depart
nnent Of agriculture, will conduct
the governments defense.
Preparations for the enforcement !
Of the law on it's effective date, No |
vember 1, have been completed by
the grain futures law administra.
ton under Chester Morrill,, assistant
to the secretary Of agriculture, and
In charge of the administration. |
Three grain exchanges have received |
designations under the new law as |
contract markets. These are Los |
Angeles, Milwaukee and the Chicago |
open board of trade. The San Fran. |
cisco exchange has its papers in the