The Topeka state journal., 1922-05-31
CAPPER'S new
GRAIN MARKET
BILL is READY
Future Trading Regulations
Are Altered to Meet Law.
Agricultural Bloc Supports His
Measure, Senator Says.
TAKING FEATURE ELIMINATED
Few Other Changes From Bill
Recently Declared No Good.
Senate Hears Presentation of
New Provisions Today.
TAKING FEATURE ELIMINATED
Senate Hears Presentation of
New Provisions Today.
(By the Associated Press.l

10y AnG AbsuNAhLE0 EEGo1.l
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 in
operative in part, was introduced in
the senate today by Senator Capper,
Republican, Kansas. chairman of the
unofficial senate agricultural bloc and
author of the original act
No Taxing Provisions.
In presenting his new measure.
Senator Capper said it had the sup
port of the agricultural bloc and Sec
retary Wallace and others of the de-
partment 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 upon 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. pro-
vides for designation and regulation
of contract markets by the secretary
OF agriculture, and for admission TO
grain exchanges or farmers co-opera-
sion opposed vigorously by the estab-
lished board of trade.
Another important change" said
Senator Capper. in a statement ex-
planning the new bill, lis the provision
which substituted regulation of the
use of the mails and an Interstate
commission for the taxing provision
of the previous statute.
Ag. Secretary Given Power.
"a further provision not found in the
preceding statute is designed to give
the secretary of agriculture power IL
deal with the question of grades that
may be delivered on contracts, pre-
miums and discounts, Inadequate ele-
vator capacity and any other condi-
tions that may have similar impor-
tance in relation to the prices and ex-
ecutions of contracts"
The grain exchanges have been Bit
terly opposed to the provision of the
Capper-Tincher law which compelled
them to admit cooperative associa-
tions to membership.
This provision is retained in the new
bill and. makes it clear that with the
exception of the patronage dividend
Citations of producers are subject to
the same conditions as other members
of the boards of trade.
Modelled on Packer Control Law.
The packer control law, Senator
Capper added, was in part the model
changes, Similar to the original law
the new bill declares purely specuia-
tive grain contracts unlawful and
against the public interest. One of
the new features of the bill exernrt-
ing actual owners or producers OF
grain and approved trades made in
contract" markets declares:
That it shall be unlawful for any
person to deliver for transmission
thru the malls or in interstate com
merce by telegraph. telephone, wire
less, or other means of communica-
ton. 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 fu-
.ure delivery on or subject to the rules
Of any board of trade in the United
States or for any person to make or
execute such contract or sale. which
Is, or may be used for (A) hedging.
any transaction in interstate commerce
n grain or the products or by-products
thereof, or (B) determining the price
basis of any such transaction in in
erstate commerce. or (C) delivering
81 ain sold, shipped or received in in
-erstate commerce for the fulfillment
thereof"
Violation of this and other clauses
favorable would entail fines OF s10.-
300 and one year Imprisonment.