Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1922-05-18
PUTS AND CALLS
TAX is UPHELD
U. S. Supreme Court Holds Sec
ton a of Act Is Unen-
foreible.
ALSO KILLS CHILD-LABOR LAW
Held Unconstitutional and Not Valid
Decision Is Rendered IN Case
Brought Against North Caro-
lima Furniture Company.

Washington, May 16.-The Supreme
court held section A of the future
trading act was unenforcibe. It held
that sections 3, 8 and other sections
could be enforced.
Chief Justice Taft delivered the
opinion.
r The court announced that the in
junction against the Chicago board of
trade and its officers and the injunc-
ton against the collector of internal
revenue and the district attorney
should be granted, so far as section
Is concerned, and the regulations
Of the act interviewer within 1t.
Law Taxed Futures.
The future trading law was enacted
recently by congress. Among its other
provisions it extended to farmers CO.
operative associations, privileges In
tended to promote their marketing
facilities, including membership upon
grain exchanges which became "con-
tract" markets. 1t imposed pro-
hibitive tax upon contracts made upon
delivery of grain when not made upon
contract" markets.
Eight members Of the Chicago board
OF trade sought an Injunction in the
United States District court at Chi
cago to prohibit the board from com.
plying with its provisions, but Judge
Lands decided against them They
then appealed to the Supreme court,
which suspended the operation Of the
law so far as the Chicago board of
trade was concerned, pending deter
mination of the validity of the law.
Section 4, declared to be umenforcl-
bic, proposed TO levy virtually a pro.
hibitive tax of 20 cents per bushel on
all future trading banned under the
act. 1t made exceptions of actual
owners of grain or legitimate hedging
contracts.
Banton "Puts" and "calls" Upheld.
The decree of the lower district
court was reversed to the extent
stated. In announcing his dissent,
Justice Brandeis stated briefly that he
could not agree with the opinion of
the court which, in substance, held the
raw invalid.
Section 3 Of the art provided for
n tax of 20 cents bushe upon
privileges" puts and CALL" bids and
offers" and other so-called speculative
traces.
Section 8 of the law, which was
sustained by the court, empowers the
secretary of agriculture to investigate
boards of trade, requires them TO sub
init statistical and other information,
except confidential trade matter, and
TO publish reports to the public.
Knocks Out Chlld-Labor Law.
The court held the chlld-labor law
was unconstitutional and not valid.
This law was enacted after the
Supreme court had declared invalid
an act of congress which excluded
from interstate commerce products in
whose manufacture child labor had
been used. The law affected by to-
days decision was virtually the same
except that II imposed an excise tax
of 10 per cent upon the annual net
profits of establishments employing
child labor. Opponents of the law
contended the new law was an I'M
constitutional invasion of the police
powers of the states.
Other decisions of the court were:
That liquor while within the boun-
diaries of the United States en- route
from one foreign port to another can
be seized under the national prohi-
bition act.
That New York statutory gus rates
of SO cents were conflscatory during
the calendar years 1919 and 1920.