House.. HEARINGS BEFORE THE 4-OCT 18 Copy1967 COMMITTEE ON AGRICULTURE. HOUSE OF REPRESENTATIVES PRD NINETIETH CONGRESS HEARINGS BRINT CONTENTS Page H.R. 11930, a bill to amend the Commodity Exchange Act, as amended__ Brooks, William F., National Grain Trade Council_ Bryant, Harold, vice president, Maine Potato Council. Clark, Reed, president, New York Coffee & Sugar Exchange, Inc.--- Graham, Harry, legislative representative, the National Grange.... Harris, É. B., president, Chicago Mercantile Exchange. Hathaway, Hon. William D., a Representative in Congress from the Heimburger, John J., attorney, on behalf of the New York Coffee & 125 Knell, Frank, president, Wool Associates of the New York Cotton Hendrickson, Roy F., executive secretary, National Federation of 151 96 Loomis, Philip A., Jr., General Counsel, Securities and Exchange 156 Magdanz, Don F., executive secretary-treasurer, National Livestock Martin, Robert L., chairman of the board, Chicago Board of Trade__ McDonald, Angus, director of research, National Farmers Union... Mehren, Hon. George L., Secretary for Marketing and Consumer Ober, Rice B., president, American Cotton Shippers Association_ Parrott, Robert B., chairman of the Commodity Exchange Committee of the Grain & Feed Dealers National Association_ Rhodes, F. Marion, president, New York Cotton Exchange_ Smith, Stewart, potato grower, Exeter, Maine... Theis, Willis C., president, Board of Trade of Kansas City, Mo- Watts, Llewellyn, Jr., chairman of the board of governors, New York Wilkens, George, executive vice president, Minneapolis Grain Ex- 148 Correspondence submitted to the committee: Freeman, Hon. Orville L., Secretary of Agriculture, letter of Septem- 161 Heimke, Karl F., vice president, Chicago Mercantile Exchange letter 137 III AMEND THE COMMODITY EXCHANGE ACT TUESDAY, AUGUST 15, 1967 HOUSE OF REPRESENTATIVES, Washington, D.C. The committee met, pursuant to notice, at 11:10 a.m., in room 1301, Longworth House Office Building, Washington, D.C., the Honorable W. R. Poage, chairman, presiding. Present: Representatives Poage, Gathings, Abernethy, Jones of Missouri, Stubblefield, O'Neal, Vigorito, Dow, Montgomery, Belcher, Teague of California, Mrs. May, Dole, Goodling, Wampler, Miller, Burke, Mathias, Mayne, Zwach, Kleppe, Price, and Myers. Also present: Christine S. Gallagher, clerk; Hyde H. Murray, assistant counsel; Francis LeMay, consultant. The CHAIRMAN. The committee will come to order. We have for consideration this morning H. R. 11930 and H.R. 12317. This is with reference to amending the Commodity Exchange Act. This will be made a part of the record at this point. (H.R. 11930 by Mr. Poage and H.R. 12317 are similar bills. The text of H.R. 11930 follows:) [H.R. 11930, 90th Cong., first sess.] A BILL To amend the Commodity Exchange Act, as amended Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 2(a) of the Commodity Exchange Act (42 Stat. 998), as amended (7 U.S.C. 2), is amended as follows: (a) By adding a comma after the word "soybeans" in the third sentence of the section and deleting the phrase "and soybean meal" in such sentence and substituting therefor the phrase "soybean meal, coffee, sugar, livestock, and livestock products"; (b) By changing the eleventh sentence defining "floor broker" to read as follows: "The words 'floor broker' shall mean any person who, in or surrounding any 'pit', 'ring', 'post', or any other place provided by a contract market for the meeting of persons similarly engaged, shall purchase or sell for any other person any commodity for future delivery on or subject to the rules of any contract market."; and (c) By substituting a comma for the period at the end of the last sentence of the section and adding thereafter the following: "or an official or employee of each of the executive departments concerned, designated by the Secretary of Agriculture, the Secretary of Commerce, and the Attorney General, respectively; and the Secretary of Agriculture or his designee shall serve as Chairman." SEC. 2. Section 4a (1) of the Commodity Exchange Act, as amended (7 U.S.C. 6a (1)), is amended by deleting the second and third sentences thereof and substituting the following: "For the purpose of diminishing, eliminating, or preventing such burden, the commission shall, from time to time, after due notice and opportunity for hearing, by order, proclaim and fix such limits on the amount of trading which may be done or positions which may be held by any person under contracts of sale of such commodity for future delivery on or subject to the rules of any contract market as the commission finds are necessary to diminish, eliminate, or prevent such burden. In determining whether any person has exceeded such 1 |