[RULE XXII.]

Duty of
Clearing

House in

sold or of whom bought, and shall be signed by the party or firm making the same. All transactions of the same date made with any member or firm may be included in one memorandum, and all such memoranda shall be sent to the Clearing House by the member or firm making the same, in sealed envelopes addressed to the member or firm with whom such transactions were made. It shall be the duty of the Clearing House Manager to assort and have ready for delivery by 8 o'clock A. M. of the following day, and to deliver, on application, all envelopes containing such memoranda as are left with of trades. him in compliance with this section. In order to enforce this section, Penalty for it is hereby provided that any member or firm failing to comply with its provisions, shall be fined $5 for each offense, and for repeated offenses they may be disciplined by the Directors under the provisions of Section 9 of Rule IV.

relation to confirmation

neglect.

of offsets,

SEC. 8. It shall be the duty of each member or firm making an Confirmation offset of any outstanding contract for future delivery, to confirm the manner of. same by sending to the Clearing House a memorandum of the same by 6 o'clock P. M. of the day on which it is made; such memorandum shall be in writing, and shall state on its face the date of the offset and the amount proposed to be paid or collected. When several offsets have been made on any one day, the memorandum shall state the net amount only of the proposed payments or collections; such memoranda shail be sent to the Clearing House by the member or firm making the same, in sealed envelopes addressed to the member or firm with whom such transactions were made. It shall be the duty of the Clearing House Manager to assort and have ready for delivery by 8 o'clock A. M. of the following day, and to deliver, on application, confirmation all envelopes containing such memoranda as are left with him in by offsets. compliance with this section. In order to enforce this section it is hereby provided that any member or firm failing to comply with its provisions shall be fined $5 for each offense, and for repeated offenses they may be disciplined by the Directors under the provisions of Section 9 of Rule IV.

Duty of
House in

Clearing

relation to

of settlements

Penalty for

neglect.

commission

May settle

trades and

substitute new principal.

SEC. 9. In case any member of this Association, acting as a Rights of commission merchant, shall have made a purchase or sale by order merchants. and for account of another, whether the party for whom any such purchase or sale was made be a member of this Association or not, said member shall be deemed authorized to settle such contract through the Exchange Clearing House of this Association, and under the Rules and Regulations relating to such Clearing House; and the Board of Directors of this Association are authorized to establish Rules and Regulations governing the Exchange Clearing House of this Association, and to change, add to, or modify such Rules and Regulations from time to time. In case any member of this Association, acting as a commission merchant, shall have made purchases or sales by order and for account of another, whether the party for whom such purchase or sale was made be a member of this Association or not, such order shall be deemed to have been made with reference to, and to be executed and carried out in all respects under the Rules, Regulations and Customs of this Association (including

Guarantee.

Offer to buy or sell. Rights of

lation thereto.

40

[RULE XXII.] the Exchange Clearing House Regulations) the same as though they were in terms incorporated into such order; provided, that in case of substitution of one contract for another, or of offsets or settlements of contracts in pursuance of such Rules, Regulations or Customs, the member or firm making the same shall be held to guarantee to his or their principal the ultimate fulfillment of the original contract made under such order, and the principal also continuing liable on such original contract, the same as though no substitution, offset or settlement were made.

SEC. 10. In all sales of grain or flax seed by car loads for future delivery, a car load of oats shall be deemed to contain 1,000 bushels: of wheat, corn, rye and flax seed 625 bushels; and of barley 700 bushels.

In case property of any kind is weighed by a public or disinterested weigher and is paid for in accordance with such weights, the cost of such weighing shall be borne by the seller, provided such cost does not exceed 15 cents per car; should such cost be in excess of 15 cents per car it shall be divided equally between the buyer and seller. It shall be the duty of members of this board, or of firms or corporations represented in its membership, either acting as commission merchants in the sale of grain or flax seel on the Chicago market, or acting as purchasers of grain or flax seed at country points, when Chicago weights are the basis of settlement, to furnish the consignor or seller, as the case may be, a public or disinterested certificate of weights. The proportion of the cost of such weighing paid by the commission merchant or purchaser in accordance with the provisions of this section, shall be charged to the consignor or seller.

SEC. 11. Any offer to buy or sell on a time contract any commembers in re- modity dealt in under the rules of this Association by a member of the Association, when made openly in the exchange hall during the hours for regular trading, may be accepted by any other member of the Association at the time such offer is made, and the contract shall be made with the member first accepting such offer.

Corporation, status of and liability of officers.

SEC. 12. No member shall give the name of a corporation as his principal on any trade or contract made in conformity with the rules and regulations of this Association unless the President and Secretary of such corporation are both members of this Association in good standing. In case the said corporation is accepted by the other party to such trade or contract and defaults in the execution of the same on its part, or fails to comply with the terms of any business obligation made in conformity with the rules and regulations of this Association on which the said corporation has become liable, the President and Secretary of such corporation and such other officers and managers of such corporation as shall be members of this Association, shall be subject to be disciplined in the same manner as they are subject to be disciplined for failure to comply with the terms of any business obligation of their own; and in case of such default or failure on the part of said corporation, it shall be suspended from the privileges of the clearing house until all its outstanding obligations to members of this Association shall have been settled.

[RULES XXII XXIII.]

sample, status

with relation thereto.

SEC. 13. Whenever grain or mill feed is sold by sample the pur- Grain or mill chaser must accept or reject such grain or mill feed by 12 o'clock M. feed sold by of the business day next succeeding the day of sale, unless it shall of purchaser have been impossible for an official Board of Trade sampler to sample such grain or mill feed during that time. If it be impossible to sample such grain or mill feed within the time specified, such grain or mill feed shall be sampled as soon as possible thereafter by the official grain sampler, and the purchaser must accept or reject such grain or mill feed immediately after the report of the official sampler is made.

SEC. 14. Whenever grain, mill feed, hay or seeds are sold by sample and are not paid for within twenty-four hours after any such articles are unloaded, or before 10 o'clock of the business day next succeeding the day when a bill of sale accompanied by a proper bill or bills of lading, and necessary certificates shall have been presented to the purchaser, the purchaser shall pay, in addition to the contract price, one-half of one per cent. per day as liquidated damage for each day's delay in paying for any such articles.

notify custom.

order.

SEC. 15. Whenever a member of the Association, acting on his Obligation to own behalf or as the representative of a firm or corporation, shall ers of the exehave made a purchase or sale for another party for future delivery cution of an of contract grades of commodities dealt in on the Exchange, such member or the firm or corporation of which he is the representative, as the case may be, shall notify the party for whom such purchase or sale was made, of the price at which and the party with whom such purchase or sale was made, such notice to be in writing and to be given upon the day of such purchase or sale. A non-compliance with the requirements of this section shall be deemed uncommercial conduct and punishable, in the discretion of the Board of Directors, by suspension or expulsion from membership in this Association under the provisions of Rule IV.

RULE XXIII.

FAILURE TO DELIVER OR RECEIVE ON CONTRACTS.

vendors may

property on

SECTION 1. In case any property contracted for future delivery Rights of is not delivered at maturity of contract, the purchaser may, if he be forfeited. shall so elect, consider the contract forfeited; or he may purchase May purchase the property on the market for account of the seller, by 1:15 o'clock the market. of the next business day, notifying him at once of such purchase; or he may require a settlement with the seller at the average market May require price on the day of maturity of contract, and any damages or loss market. due to the purchaser, by reason of such purchase or declared settlement, shall be due and payable by the seller immediately.

settlement at

vendors.

receive.

SEC. 2. In case any property contracted for future delivery is Rights of not received and paid for when properly tendered, it shall be the Failure to duty of the seller, in order to establish any claim on the purchaser, to sell it on the market at any time during the next twenty-four hours, at his discretion, after such default shall have been made, notifying the purchaser within one hour of such sale; and any loss resulting to the seller shall be paid by the party in default.

Inspection
Committee.

Powers.

Fees of
Committee.

Chief

Inspector of
Provisions.

Bond.

Deputy Inspectors, how appointed.

Inspecting.
Reports.

Registrar of
Provisions.

RULE XXIV.

PROVISIONS.

[RULE XXIV.”

SECTION 1. The Board of Directors shall appoint five members of the Association as a Committee on Provision Inspection, who shall have and exercise a general control over the inspection of provisions, and shall act as referees in case of complaint against the Chief Inspector of Provisions or the inspection of any lot of provisions, or any matter of difference pertaining to the same, except as hereinafter provided. The committee shall be authorized, in determining the correctness of any inspection they are called upon to revise, to adopt any measure they may deem necessary under the circumstances for the ascertainment of its true character. The committee shall be entitled to fees amounting to three dollars each for each case of reference decided by them, to be paid by the party against whom the decision shall be made.

SEC. 2. The Board of Directors will also appoint a suitable person as Chief Inspector of Provisions, who shall be required to give a bond in such amount as shall be fixed by the Board of Directors, conditioned for the faithful performance of his duties as prescribed by the Rules and Regulations of the Board of Trade of the City of Chicago, and the Regulations of the Board of Directors; which said bond shall be made to the Board of Trade of the City of Chicago, for the use and benefit of any parties having claims under the Rules and Regulations of the said Board of Trade for damages against said Chief Inspector on account of any of his official acts. Said bond shall be satisfactory to and approved by the Board of Directors before the said Chief Inspector shall be entitled to enter upon the discharge of his official duties.

SEC. 3. The Chief Inspector of Provisions shall appoint, to be confirmed by the Committee on Provision Inspection, a sufficient number of competent deputy inspectors, who shall be under his control and subject to his orders in all matters pertaining to the performance of official duty.

SEC. 4. The Chief Inspector, through and by his deputies, shall furnish the necessary labor and materials for inspection. The several deputy inspectors shall make a report in detail of every inspection or examination they may make, which report shall be returned to the Chief Inspector, and be by him preserved for future reference.

SEC. 5. The Board of Directors shall also appoint a competent person as Registrar of Provisions, whose duty it shall be to provide and cause to be kept suitable books, in which shall be registered all warehouse receipts for beef, sheep and hog product issued as "regular" or for the "regular delivery" of such property in the Chicago market under the Rules of the Board of Trade; such receipts, after being so registered, shall be stamped or written across their face with the word "Registered," and the date of such registry, and signed, in writing, by the said Registrar or some person duly authorized by him Requirements for that service. All warehouse receipts, before being registered, registration. shall be plainly numbered, and shall indicate on their face the num

for

be marked.

ber or mark of the particular lot of property intended to be covered or represented by such receipt. All such receipts issued from or by each warehouse or other place of storage shall be consecutively numbered and no receipts of duplicate numbers issued from the same place of storage shall be registered. All property covered or repre- Property to sented by registered warehouse receipts shall be plainly marked in such manner as will clearly distinguish it from all other property stored in the same warehouse or place of storage, and by such marks, numbers or characters as may be approved by the Registrar of Provisions; such marks to be so arranged as to avoid the possibility of duplication or uncertainty as to the identity of the property so receipted for. No warehouse receipt shall be registered until a report shall have been received at the office of the Registrar of Provisions from a duly authorized deputy that the property represented by the receipt is actually in the place of storage and is marked as indicated in the receipt; such reports shall be in a form prescribed by the Registrar, and shall be preserved by him for future reference. No second warehouse receipt for the same property shall be registered unless the original is presented at the time, and its registration canceled by the Registrar. In such case, new receipts, either New receipts. for the whole or parts of lots, or the consolidation of different lots, may be registered upon the report of a deputy that the property is in the place represented, and is marked as represented. All new receipts so registered shall bear the same date, as near as may be, with the originals so canceled, and no receipts differing in date more than thirty days shall be consolidated into a new receipt.

to be removed registration

No property shall be removed from the place of storage indicated Property not by any registered receipt issued to represent it until the registration until of such receipt has first been canceled in the office of the Registrar is canceled, of Provisions, by writing or stamping across its face the words, "Registration Canceled."

of Chief

Compensation

SEC. 6. The Chief Inspector shall receive for his services and Compensation for the compensation of the deputy inspectors employed by him, the Inspector. fees for inspecting as established by the Board of Trade. The Registrar shall receive, as compensation for his own services and the of Registrar. necessary expenses of his office, such sum, to be paid from the funds of the Association, as may be determined by the Board of Directors.

damages.

SEC. 7. All claims for errors of inspection, or damages resulting Claims for from improper inspection, shall be made to the Chief Inspector, and in case of dispute as to the validity of any claim so made, the ques- How decided. tion shall be decided by the Committee on Provision Inspection, or by a special arbitration, if either of the parties so prefer. In the latter case the arbitrators shall be chosen either by mutual agreement, or an equal number, not exceeding two, may be selected, each by the Chief Inspector and the claimant; and the persons so chosen shall select an additional arbitrator. Arbitrations, either by the Committee on Provision Inspection or special arbitrators, shall be conducted under substantially the same form of proceedings as regular arbitrations under the Rules of the Board of Trade, and shall