Evening star., 1932-07-24
Board of Trade PenaIized for
Ban on Farmers National
Corporation.
IS DAYS is ALLOWED
TO CHANGE ITS STAND
Expectation of Court Test Implied
in Decision of Three Cabinet
Officers.

Official notice was given the Chicago
Board of Trade yesterday to suspend
for so days its operation Of the princi-
pal exchange center of the world for
grain trading as penalty for alleged
violation of the grain futures act.
However. 15-day stay Of application
OF the penalty was allowed to determine
whether the trade board would with
draw from its threatened expulsion OF
the Farmers National Grain Corpo-
ration from membership, while the Ian
guage of the decision further implied
that an appeal to the courts against the
execution of the order was anticipated
Three cabinet members, Arthur M
Hyde, Secretary of Agriculture; William
D. Mitchell, Attorney General, and
Robert P. Lamont, Secretary of Com
merce, acting as members of the COM
mission empowered to enforce the act
signed the suspension order.
Cause of Action Stated.
The Farmers National Grain Corpo-
ration, an organization of co-operatives
supported by the Federal Farm Board
the decision said, had been refused per-
mission to clear its transactions through
a subsidiary corporation, which held a
membership in the Board of Trade. and
had been refused likewise the right tc
undertake direction transactions in its
own behalf.
Reviewing the contest between the
Board of Trade and the grain corpo-
ration prior to issuing the order, the
commission decision remarked that its
members had taken the view that
where questions of law are debata BILE
doubts should be resolved in favor OF
the petitioner (the Grain Corporation
so that the case may reach the courts
for judicial settlement of the contro-
yerted questions"
A large part of the controversy hinged
around the threatened refusal of right.
to clear futures trades through tht
boards clearing corporation, which tht
semm5ssisn sseney o} the es!a r4ass %sssly rb
Grain Corporations cofitention was tha
the loss of such privileges would cost i
100000 a year more in expenses thar
it now encounters on its average trad
ing. due to the necessity of paying com
mission to brokers who hold clearing
privilege.
Believe in Their Power.
I'VE believe we have power to re-
serve jurisdiction to mitigate the pen.
atty hereafter on a proper showing tina
the board of trade has so modified 1t.
action as to warrant mitigation" tht
decision proceeded, and also stated
"The commission having duly consid
cred all the evidence in this case ant
the arguments of counsel, and having
made its findings and conclusions afore
said, it Is hereby ordered and adjudge,
Fthat the designation of the Board o
Trade of the City of Chicago, respon
, dent herein, heretofore made by tn
Secretary of Agriculture in pursuance O.
the grain futures act Of 1922, be ant
the same hereby is suspended for a pc
riod of 60 days from the date this orce
shall become effective. This order shal
not become effective until the expira
tion of Is days from its date. The com
mission hereby reserves jurisdiction t.
entertain an application for mitigation
of the penalty herein imposed, upon no
tice to all parties and after prope
hearing and upon a showing that tn
board of trade has receded from it
position with respect to the petitioner.
Want Full Privileges.
Ruling on details Of the points Il
contest. the commission held it to
essential that the incorporated Co
operative Association as such shall itsel
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