Full text of Grain Futures Act of 1922
The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
SIXTY-SEVENTH CONGRESS. 998 Resratonsite. Septembr 21, 1922 [Public No. 33. L , p. i. Ae Terms onrued. A s sitpefp xe: SESS. II. CHS. 368,369. 1922. (d) Description of reservation site, situated in Kalawao and Makanalua, Molokai, Territory of Hawaii, selected by Surgeon General Walter Wyman, Public Health and Marine Hospital Service, as portion of Federal leprosarium: Beginning at Hawaiian government survey trigonometry station Kaukaho, on the southwest rim of Kauhako Crater near graves, the true azimuth and distance to Hawaiian government survey trigonometry station Kalawao, being one hundred and seventy-five degrees forty-five minutes eight thousand and eighty-eight and ninetenths feet; to Hawaiian government survey trigonometry station Leinaopapio, being two hundred and ninety-one degrees fifteen minutes nine seconds fourteen thousand four hundred and sixty-one and six-tenths feet, as shown on Government survey registered map numbered seventeen hundred and twenty-eight, and running by true azimuths: (1) One hundred and thirty-seven degrees twenty-one minutes one thousand six hundred and ninety-two feet; (2) two hundred and twenty-seven degrees twenty-one minutes six thousand nine hundred and forty-two feet high-water mark at seacoast; (3) thence along seacoast along high-water mark, the direct azimuth and distance being three hundred and thirty-six degrees ten minutes three thousand seven hundred and sixty-two feet; (4) forty-seven degrees twentyone minutes three hundred and fifty feet to Hawaiian government survey trigonometry station Kaupikiawa, the true azimuth and distance to Leinaopapio A, being three hundred and twelve degrees twelve minutes seven seconds eleven thousand one hundred and sixty-four and five-tenths feet; (5) forty-seven degrees twenty-one minutes five thousand three hundred and seventy-eight feet to an iron bolt on the north side of main government road; (6) one hundred and thirty-seven degrees twenty-one minutes one thousand eight hundred and sixty-nine feet to the point of beginning. Area, five hundred and two and six-tenths acres. Approved, September 21, 1922. CHAP. 369.-An Act For the prevention and removal of obstructions and burdens upon interstate commerce in grain, by regulating transactions on grain future ex- changes, and for other purposes. Be in enacted by the Senate and House of Representatives of the United States of America in Congress assembled, This Act shall be known by the short title of "The Grain Futures Act." SEC. 2 (a) For the purposes of this Act "contract of sale" shall be held to include sales, agreements of sale, and agreements to sell. The word " person " shall be construed to import the plural or singular, and shall include individuals, associations, partnerships, corporations, and trusts. The word "grain" shall be construed to mean wheat, corn, oats, barley, rye, flax, and sorghum. The term"future delivery," as used herein, shall not include any sale of cash grain for deferred shipment or delivery. The words "board of trade shall be held to include and mean any exchange or association, whether incorporated or unincorporated, of persons who shall be engaged in the business of buying or selling grain or receiving the same for sale on consignment. The act, omission, or failure of any official, agent, or other person acting for any individual, association, partnership, corporation, or trust within the scope of his employment or office shall be deemed the act, omission, or failure of such individual, association, partner- ship, corporation, or trust, as well as of such official, agent, or other ao ",lnter- state camr. person. The words "interstate commerce" shall be construed to mean commerce between any State, Territory, or possession, or the SIXTY-SEVENTH CONGRESS. SESS. II. CH. 369. 999 1922. District of Columbia, and anyplace outside thereof; or between points within the same State, Territory, or possession, or the District of Columbia, but through any place outside thereof, or within any Territory or possession, or the District of Columbia. (b) For the purposes of this Act (but not in any wise limiting the strucdatoficles in foregoing definition of interstate commerce) a transaction in respect interstate commerce. to any article shall be considered to be in interstate commerce if such article is part of that current of commerce usual in the grain trade whereby grain and grain products and by-products thereof are sent from one State with the expectation that they will end their transit, after purchase, in another, including, in addition to cases within the above general description, all cases where purchase or sale is either for shipment to another State, or for manufacture within the State and the shipment outside the State of the products resulting from such manufacture. Articles normally in such current of commerce shall not be considered out of such commerce through resort being had to any means or device intended to remove transactions in respect thereto from the provisions of this Act. For the .purpose of this paragraph the word "State" includes Territory, the District of Columbia, possession of the United States, and foreign nation. SEC. 3. Transactions in grain involving the sale thereof for future Territorylcudedby S tate. inDerest affected by delivery as commonly conducted on boards of trade and known as salesonboardsoftrade for future delivery. "futures" are affected with a national public interest; that such transactions are carried on in large volume by the public generally and by persons engaged in the business of buying and selling grain and the producand nd by-products thereof in interstate commerce; that the prices involved in such transactions are generally quoted volume of transa- o ti ns. preterinepridcoumer and disseminated throughout the United States and in foreign countries as a basis for determining the prices to the producer and the consumer of grain and the products and by-products thereof and to facilitate the movements thereof in interstate commerce; that such ftilized by handlers transactions are utilized by shippers, dealers, millers, and others ofgraet engaged in handling grain and the products and by-products thereof in interstate commerce as a means of hedging themselves against possible loss through fluctuations in price; that the transactions and laStinuepne of spec prices of grain on such boards of trade are susceptible to speculation, fiuctuations, etc.. o- manipulation, and control, and sudden or unreasonable fluctuations commerce. in the prices thereof frequently occur as a result of such speculation, manipulation, or control, which are detrimental to the producer or the consumer and the persons handling grain and products and byproducts thereof in interstate commerce, and that such fluctuations in prices are an obstruction to and a burden upon interstate commerce in grain and the products and by-products thereof and render regulation imperative for the protection of such commerce and the national public interest therein. SEC. 4. It shall be unlawful for any person to deliver for transmis- sale Ori"ng contract of of grain for future sion through the mails or in interstate commerce by telegraph, tele- delivery,unlawful. phone, wireless, or other means of communication any offer to make or execute, or any confirmation of the execution of, or any quotation or report of the price of, any contract of sale of grain for future 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 of sale, which is or may be used for (a) hedging any transaction in interstate priced sisor delivery commerce in grain or the products or by-products thereof, or (b) of grain in interstate determining the price basis of any such transaction in interstateommerce. commerce, or (c) delivering grain sold, shipped, or received in inter- Exceptions. state commerce for the fulfillment thereof, except(a) Where the seller is at the time of the making of such contract owner or the owner of the actual physical property covered thereby, or is the pgrowical. SIXTY-SEVENTH CONGRESS. SESS. II. CH. 369. 1922. grower thereof, or in case either party to the contract is the owner or renter of land on which the same is to be grown, or is an association of such owners, or growers of grain, or of such owners or renters of land; or (b) Where such contract is made by or through a member of a Made by member of contract maret, etc. board of trade which has been designated by the Secretary of Agriculture as a "contract market," as hereinafter provided, and if such contract is evidenced by a record in writing which shows the date, the parties to such contract and their addresses, the property covered Pervaon of rec- and its price, and the terms of delivery: Provided, That each board member shall keep such record for a period of three years from the ordso saleso date thereof, or for a longer period if the Secretary of Agriculture open to inspection, shall so direct, which record shall at all times be open to the inspection of any representative of the United States Department of etc. Agriculture or the United States Department of Justice. SC. 5. The Secretary of Agriculture is hereby authorized and contract markets. f directed to designate any board of trade as a "contract market" o~% re9T9of when, and only when, such board of trade complies with and carries Condions. out the following conditions and requirements: (a) When located at a terminal market where cash grain of the nl et. cmarkets, kind specified in the contracts of sale of grain for future delivery to be executed on such board is sold in sufficient volumes and under such conditions as fairly to reflect the general value of the grain and the differences in value between the various grades of such grain, and where there is available to such board of trade official inspection service approved by the Secretary of Agriculture for the purpose. (b) When the governing board thereof provides for the making mentsfor detailedecounting of transac- and filing by the board or any member thereof, as the Secretary of tions,etc. Agriculture may direct, of reports in accordance with the rules and regulations, and in such manner and form and at such times as may be prescribed by the Secretary of Agriculture, showing the details and terms of all transactions entered into by the board, or the members thereof, either in cash transactions consummated at, on, or in a board of trade, or transactions for future delivery, and when such governing board provides, in accordance with such rules and reguRecordsotf al trans- rations, for the keeping of a record by the board or the members of the board of trade, as the Secretary of Agriculture may direct, acns, showing the details and terms of all cash and future transactions entered into by them, consummated at, on, or in a board of trade, such record to be in permanent form, showing the parties to all such transactions, including the persons for whom made, any assignments or transfers thereof, with the parties thereto, and the manner in which said transactions are fulfilled, discharged, or terminated. n,isPc- Such record shall be required to be kept for a period of three years uoPnr from the date thereof, or for a longer period if the Secretary of Agriculture shall so direct, and shall at all times be open to the inspection of any representative of the United States Department of Agriculture or United States Department of Justice. (c) When the governing board thereof provides for the prevention reenrt pmisetcdng of granin interstate of dissemination by the board or any member thereof, of false or misleading or knowingly inaccurate reports concerning crop or market information or conditions that affect or tend to affect the price of grain in interstate commerce. (d) When the governing board thereof provides for the prevention r ¶iPrePip~ of manipulation of prices or the cornering of any grain by the dealers or operators upon such board. (e) When the governing board thereof does not exclude from soinpe tio membership in, and all privileges on, such board of trade, any duly not excuded. authorized representative of any lawfully formed and conducted cooperative association of producers having adequate financial respon- SIXTY-SEVENTH CONGRESS. SESS. II. CH. 369. 1001 1922. sibility which is engaged in cash grain business, if such association has complied, and agrees to comply, with such terms and conditions as are or may be imposed lawfully on other members of such board: Pm Provided, That no rule of a contract market shall forbid or be construed to forbid the return on a patronage basis by such cooperative Return of bimembe earnings not for- association to its bona fide members of moneys collected in excess of the expense of conducting the business of such association. (f) When the governing board provides for making effective the barred rmebiie to final orders or decisions entered pursuant to the provisions of paragraph (b) of section 6 of this Act. SEC. 6. Any board of trade desiring to be designated a "contract ontract maret. market" shall make application to the Secretary of Agriculture for ignatonsas. such designation and accompany the same with a showing that it complies with the above conditions, and with a sufficient assurance Commission that it will continue to comply with the above requirements. author- (a) A commission composed of the Secretary of Agriculture, the =edto susped, Secretary of Commerce, and the Attorney General is authorized to quirements. etc., suspend for a period not to exceed six months or to revoke the designation of any board of trade as a "contract market" upon a showing that such board of trade has failed or is failing to comply with any of the above requirements or is not enforcing its rules of government made a condition of its designation as set forth in section 5. Such suspension or revocation shall only be after a notice to the officers of the board of trade affected and upon a hearing: Provided, That such suspension or revocation shall be final and conclusive unless within fifteen days after such suspension or revocation by the said commis- Pbonconcisive ii noappealfSed'ndrcui coart of appeals to set aside, etc. sion such board of trade appeals to the circuit court of appeals for the circuit in which it has its trincipal place of business by filing with the clerk of such court a written petition praying that the order of the said commission be set aside or modified in the manner stated in the petition, together with a bond in such sum as the court may determine, conditioned that such board of trade will pay the costs of the proceedings if the court so directs. The clerk of the court in ommissiontocertify records,etc.,tocourt. which such a petition is filed shall immediately cause a copy thereof to be delivered to the Secretary of Agriculture, chairman of said commission, or any member thereof, and the said commission shall forthwith prepare, certify, and file in the court a full and accurate transcript of the record m such proceedings, including the notice to the board of trade, a copy of the charges, the evidence, and the report Acceptedasevidence and order. The testimony and evidence taken or submitted before the said commission duly certified and filed as aforesaid as a part of the record, shall be considered by the court as the evidence in the case. The proceedings in such cases in the circuit court of appeals shall be made a preferred cause and shall be expedited in every way. Such a court may affirm or set aside the order of the said commission or may direct it to modify its order. No such order of the said corn- oders,t ytlimitde mission shall be modified or set aside by the circuit court of appeals unless it is shown by the board of trade that the order is unsupported by the weight of the evidence or was issued without due notice and a reasonable opportunity having been afforded to such board of trade for a hearing, or infringes the Constitution of the United States, or is beyond the jurisdiction of said commission: Provided further, That sionifsecretry ree if the Secretary of Agriculture shall refuse to designate as a contract to designate board market any board of-trade that has made application therefor, then ket. such board of trade may appeal from such refusal to the commission described therein, consisting of the Secretary of Agriculture, the Secretary of Commerce, and the Attorney General of the United States, with the right to appeal as provided for in other cases in this section, the decision on such appeal to be final and binding on all parties interested. Disionfis. of 1002 SIXTY-SEVENTH CONGRESS. SESS. II. CH. 369. 1922. omplaints against sioso Act, etc. (b) If the Secretary of Agriculture has reason to believe that any person is violating any of the provisions of this Act, or is attempting Noticeofhearings. to manipulate the market price of any grain in violation of the provisions of section 5 hereof, or of any of the rules or regulations made pursuant to its requirements, he may serve upon such person a complaint stating his charge in that respect, to which complaint shall be attached or contained therein a notice of hearing, specifying a day and place not less than three days after the service thereof, requiring such person to show cause why an order should not be made directing that all contract markets until further notice of the said commission refuse all trading privileges thereon to such person. ,oinmissClionorereC to.conduct hearings. Said hearing may be held in Washington, District of Columbia, or a J.ursdii'on .esecr- retary of Agriculture as chairman of the said commission. That for the purpose of securing effective enforcement of the provisions of this Act the provisions, including penalties, of section 12 of the ingtestimon-y, -f-orc ment,etc. l. , p. 743. elsewhere, before the said commission, or before a referee designated by the Secretary of Agriculture, who shall cause all evidence to be reduced to writing and forthwith transmit the same to the Sec- Interstate Commerce Act, as amended, relating to the attendance and testimony of witnesses, the production of documentary evidence, and the immunity of witnesses, are made applicable to the power, jurisdiction, and authority of the Secretary of Agriculture, the said commission, or said referee in proceedings under this Act, and to Offendertoberafused pdviiEg by contract markts. persons subject to its provisions. Upon evidence received the said . . commission may require all contract markets to refuse such person all trading privileges thereon for such period as may be specified in said order. Notice of such order shall be sent forthwith by Apeo coupt order ct registered mail or delivered to the offending person and to the govAfter the issuance of the order by the commission, as aforesaid, the person against whom of appadtoit erning boards of said contract markets. de, etc. it is issued may obtain a review of such order or such other equitable relief as to the court may seem just by filing in the United States circuit court of appeals of the circuit in which the petitioner is doing business a written petition praying that the order of the commission be set aside. A copy of such petition shall be forthwith served Pcdure. Juridcon of cort, upon the commission by delivering such copy to its chairman or to any member thereof and thereupon the commission shall forthwith certify and file in the court a transcript of the record theretofore made, including evidence received. Upon the filing of the transcript the court shall have jurisdiction to affirm, to set aside, or modify the order of the commission, and the findings of the commission as to the facts, if supported by the weight of evidence, shall in like toreo ewby supre manner be conclusive. In proceedings under paragraphs (a) and (b) the judgment and decree of the court shall be final, except that the same shall be subject to review by the Supreme Court upon Court. 36, p. 157. depsiationotr mart, t IssueO' Raedesignaton or a . certiorari, as provided in section 240 of the Judicial Code. SEC. 7. Any board of trade that has been designated a contract market in the manner herein provided may have such designation vacated and set aside by giving notice in writing to the Secretary of Agriculture requesting that its designation as a contract market be vacated, which notice shall be served at least ninety days prior to the date named therein as the date when the vacation of designation shall take effect. Upon receipt of such notice the Secretary of Agriculture shall forthwith order the vacation of the designation of such board of trade as a contract market, effective upon the day named in the notice, and shall forthwith send a copy of the notice and his order to all other contract markets. From and after the date upon which the vacation became effective the said board of trade can thereafter be designated again a contract market by making application to the Secretary of Agriculture in the manner herein provided for an original application. SIXTY-SEVENTH CONGRESS. SESS. II. CH. 369. 1003 1922. SEC. 8. For the efficient execution of the provisions of this Act, Investationso and in order to provide information for the use of Congress, the Sec- of trade. retary of Agriculture may make such investigations as he may deem necessary to ascertain the facts regarding the operations of boards of trade, whether prior or subsequent to the enactment of this Act, and may publish from time to tune, in his discretion, the result of Publicationofresults such investigation and such statistical information gathered therefrom as he may deem of interest to the public, except data and information which would separately disclose the business transactions of any person and trade secrets or names of customers: Provided, Proo. That nothing in this section shall be construed to prohibit the Sec- gr retary of Agriculture from making or issuing such reports as he may deem necessary relative to the conduct of any board of trade or of the transactions of any person found guilty of violating the provisions of this Act under the proceedings prescribed in section 6 of this Act: Provided further, That the Secretary of Agriculture in any Statement of facts. report may include the facts as to any actual transaction. The Cortivs'eeStinaSecretary of Agriculture, upon his own initiative or in cooperation ditions. with existing governmental agencies, shall investigate marketing conditions of grain and grain products and by-products, including supply and demand for these commodities, cost to the consumer, and handling and transportation charges. He shall likewise compile formation as to grain and furnish to producers, consumers, and distributors, by means of marketsetc. regular or special reports, or by such methods as he may deem most effective, information respecting the grain markets, together with information on supply, demand, prices, and other conditions in this and other countries that affect the markets. tsoedo SEC. 9. Any person who shall violate the provisions of section 4 fnlTmt of this Act, or who shall fail to evidence any contract mentioned in qirements prohibisaid section by a record in writing as therein required, or who shall nte, p.99. knowingly or carelessly deliver for transmission through the mails or in interstate commerce by telegraph, telephone, wireless, or other means of communication false or misleading or knowingly inaccurate reports concerning crop or market information or conditions that affect or tend to affect the price of grain in interstate commerce, shall be deemed guilty of a misdemeanor, and, upon conviction thereof, be fined not more than $10,000 or imprisoned for not more than one year, or both, together with the costs of prosecution. SEC. 10. If any provision of this Act or the application thereof to vit'sl any person or circumstances is held invalid, the validity of the remainder of the Act and of the application of such provision to other persons and circumstances shall not be affected thereby.tie SEC. 11. No fine or imprisonment shall be imposed for any violation of this Act occurring before the first day of the second month fanpento afect remainder of At, etc. not e for two months following its passage. SEC. 12. The Secretary of Agriculture may cooperate with any agecies department or agency of the Government, of theGovern any State, Territory, ment, states, etc. District, or possession, or department, agency, or political subdivision thereof, or any person; and shall have the power to appoint, remove, oAethoety f etc- and fix the compensation of such officers and employees, not in conflict with existing law, and make such expenditures for rent outside the District of Columbia, printing, telegrams, telephones, law books, books of reference, periodicals, furniture, stationery, office equipment, travel, and other supplies and expenses as shall be necessary to the administration of this Act in the District of Columbia and elsewhere, and there are hereby authorized to be appropriated, out of any moneys in the Treasury not otherwise appropriated, such sums as may be necessary for such purposes. Approved, September 21, 1922. Athoperiations Post, . 1003.