Evening star., 1925-05-14
j. S. MAY FORBID
GRAIN QUOTATIONS
Jardine Advises Exchanges to
Curb Data That Makes
| Manipulation Possible.

Adoption of rules by the grain eX-
change limiting the spread in daily
quotations was recommended by Sec.
retary Jardine yesterday as a means
of preventing unreasonable fluctua-
tions and manipulation of grain
prices.
The recommendations We're con-
tanned in a report on the prellmi-
nary investigation by the Depart
Inent of Agriculture, under the grain
futures act. of the sharp fluctuations
In future grain quotations on the
Chicago Board of Trade, beginning
in January.
Secretary Jardine declared i'll the
report that unless the exchanges of
their own accord took some effective
action, he woul be obliged, in the
public interest. to suggest legislation
giving the department additional au-
thority To meet the situation.
Thinks Market Manipulated.
The investigation so far, he said,
has brought out publications o.,
evidence did exist which would show
AN attempted or actual manipulation
Of the market, but proof necessary
for the conviction of those who might
ne charged with a violation of the
act had not thus far been obtained.
He emphasized that the inquiry
had not been concluded and that he
was determined to utilize the re-
suits of this INVESTIGATION for the
purpose of instituting whatever pros
ecutions may he justified under the
law" He added, however, that he
was concerned more particularly in
the development of some method by
which a repetition Of such erratic
and destructive, price changes may
be obviated.
II is the Secretary's purpose, the
report said, to undertake by the eX-
ercise of such authority as is con-
ferred upon him by the grain futures
act TO bring about a condition where
The quotations in future trading will
more accurately reflect the prices in
cident TO supply and demand.
Chicago Board Warned.
The report disclosed that Secretary
JarT.ine told Frank l.. Carey, presi
dent of the Chicago Board of Trade,
and other representatives of that or
ganization, on May IL, that if the
organization wished to continue en-
joying the benefits of designation as
a. contract market, 1t was desirable
that it promulgate rules that will
facilitate the operation and mainte-
nance Of Federal supervision, prevent
the development and dissemination of
rumors in the nature of false. mis-
leading and inaccurate reports and
statements, prevent actual or at
tempted manipulation or cornering of
the markets and discourage any ten
dency toward extensive overspecula-
ton
Results of the investigation, the
Secretary said. clearly show that the
wide fluctuations during the first
three months this year, were due
primarily 10 the heavy trading of a
limited number of professional specu
lators; likewise, that their operations
were facilitated TO considerable de-
gree by the large participation on the
part of the public after material ad-
vance in prices had occurred the last
half of January"
Probe 69.Cent Raise.
The investigation was prompted by
fiuctus tions beginning January ,,
when May deliveries closed at S1.76L
until April g. when May deliveries
closed at S1.3612 The market scared
10 its peak on January 2s, when it
reached a high of S2.05Ts
Dr. J. W. T. Duvel, acting in
charge of the grain futures admin
istration, had charge of the inquiry.
which was conducted by agents of
the Departments of Agriculture and
Justice. II included a thorough eX-
animation of records of the Chicago
Board of Trade and files of telegraph
and telephone companies for evidence
that would show concerted action or
understandings between spectators
to manipulate the market.