Division of rates, etc.

Rates of commission.

Rates of brokerage.

Penalty for violation or evasion

Reward for conviction.

snall notify, in writing, the party from whom such purchase was made, of the price and terms of such purchase, on the same day upon which such transaction takes place.

It is hereby provided that in cases where property is bought or sold for immediate or future delivery for account of members of this Association, or for firms one of whose general partners is a member, one-half of the foregoing minimum specified rates shall be charged and shall be the minimum rates in such cases. Nothing in this rule shall be so construed as to prevent special agreements by which higher rates of commission may be charged in special

cases.

SEC. 7. For the purchase and sale of the following described articles, to arrive, whether the contract for purchase or for sale be first made, the following, being just and reasonable, shall be the minimum rates of commission:

On flaxseed in car-load lots, 1 per cent.

On flaxseed in 5,000 bushel lots, of one per cent.

On clover seed in car-load lots, 1 per cent.

On all other seeds, 14 per cent.

For the purchase and shipment of grain by vessels:

On rye and barley, cent per bushel.

On other grain, cent per bushel.

For the purchase and shipment of wheat by rail, in less than 5,000 bushel lots, cent per bushel.

For the purchase and shipment of wheat by rail, in 5,000 bushel lots or more, cent per bushel.

For the purchase and shipment of corn and oats by rail, i cent per bushel.

For the purchase and shipment of rye and barley by rail, cent per bushel.

The following rates of brokerage being just and reasonable, governing the purchase or sale of all kinds of grain for shipment by water or rail, are hereby established. For buying or selling for account of a member of the Chicago Board of Trade one-eight of one cent per bushel in lots of 5,000 bushels or more, and one-quarter of one cent per bushel in lots of less than 5,000 bushels, and these charges shall be the minimum rates of brokerage. Nothing in this rule shall be so construed as to prevent special agreements by which higher rates of brokerage may be charged.

Any member who, or whose firm or corporation, shall be convicted by the Board of Directors of a violation or evasion of any of the provisions of this section, either directly or indirectly, in any manner whatsoever, shall be expelled from this Association.

The Board of Directors is authorized to offer reward of not more than twenty-five hundred dollars to any person who shall furnish evidence that does convict any member, firm or corporation of a violation of Sections 3, 6 or 7 of this rule.

Transactions for joint account by two members, when made for Joint account. their own account only and when actually executed by themselves and by no other member, and are cleared through either party to the joint account, may be cleared at the rates for clearing prescribed in Section 3 of this rule, provided the purpose of such joint trade is not to evade the provisions of Rule XIV. All trading for joint account other than as above stated must pay the established rates of commission.

another party,

A member or members cannot clear through another member, Manner of clearing as contemplated in Section 3 of Rule XIV, any trade which is not through for his or their own account, but a member receiving orders from an- restrictions, eto other member may fill them himself and turn over such trades, with the names of his customers, to another member, in which case the latter may pay the former the minimum broker's commission as compensation for executing the order.

member may

A member can clear for another member, as provided in third when one clause of Section 3 of Rule XIV, only when the latter himself both clear for buys and sells, or vice versa, but where the clearing member either another. buys or sells he must charge the rates prescribed between members, but may pay the member for whom he clears the trade the minimum broker's commission for the exact quantity personally bought or sold (as the case may be) by the latter.

aggregate

In no case shall the aggregate amount of brokerage allowed on Limitation of any transaction be such that the net commission to members on such brokerages. transaction shall be less than the minimum rates prescribed in Section 3 of this rule for clearing trades for members.

rates to officers

On all transactions for the account of any officer, agent, employe Non-members' or stockholder of any such corporation, or other persons not mem- of corporations bers of this Association, such corporation must exact non-members' etc., when not rates of commission.

members.

A firm whose only member of the Exchange is a special partner Non-members' rates to special in such firm is not entitled to members' rates. partners. No member can abate or divide with another member the rates Cannot abate of prescribed in the third clause of Section 3 of Rule XIV for clearing. with another The omission of a charge for sampling is not construed as a violation of Rule XIV.

divide rates

member.

The present commission rates do not apply to transactions in Present rates force prior to March 13, 1900, the date when the present rule went not applicable into effect.

1900.

prior to March, A commission or brokerage, as prescribed in Rule XIV, must Commission or be paid on every transaction.

The provisions of the paragraph in Section 6, providing for the sending of notices by buyers to sellers, apply only to shipments from country points, either made to Chicago or to other markets if purchased in the Chicago market, whether such grain is to be shipped, is in transit or is already arrived.

On all transactions where the purchase or sale of cash grain is made contingent on the price ruling for future delivery, and where the purchase or sale of the future delivery is at once accomplished, fixing by such transaction the value of the cash grain so bought or sold, it shall be construed that the purchase or sale of the future

brokerage.

Cash grain
price for future
considered one

contingent on

delivery, when

transaction.

When otherwise

Appropriations

Hours for
Trading

delivery shall be a part of the cash transaction. Should the purchase or sale of grain for future delivery upon which the cash transaction is based be held subject to the convenience or subject to the orders of the parties with whom such transaction is made, then all such business for future delivery shall be subject to the regular rates of commission as prescribed in Rule XIV.

SEC. 8. Any corporation, having for one of its executive officers and stockholders a member of this Board, may submit to the Board of Directors, or a committee appointed for such purpose, a full disclosure of the relations of such member to such corporation, and if such member shall, upon such investigation be found to be a real bona fide and substantial executive officer and stockholder of such corporation, and that such relation is not created for the sole purpose of obtaining members' rates, such corporation shall be thereafter, and so long as such member shall remain such officer and stockholder, entitled to members' rates provided in this rule; provided that, for the purposes of this rule, not more than one corporation can be represented by the same member of this Association as its executive officer.

Whenever any such corporation shall be so found entitled to members' rates, it shall, whenever requested by the Board of Directors, or such committee, make a full disclosure of the then existing relations of such member to such corporation. If it shall refuse so to do, its right to members' rates shall thereupon cease.

SEC. 9. No member can be deemed the representative of two corporations, or two firms, or a firm and a corporation, for the purpose of giving either firm or corporation members' rates under this rule.

RULE XV.

APPROPRIATIONS.

SECTION 1. No appropriation of money or other property of the Association shall be made except to defray its legitimate business expenditures or to promote the purposes of its organization.

RULE XVI.

HOURS FOR REGULAR TRADING.

SECTION 1. No trade or contract for the future delivery of grain or provisions shall be made, or offered to be made, by any member or members of this Association, in the exchange room of the Board, nor in any of the public streets, courts or passages in the immediate vicinity thereof, or in any hall, or exchange hall, or corridor in any building located or fronting on any such streets, courts or passages, on any business day, except from 9:30 o'clock A.M. to 1:15 o'clock P.M., or upon any Saturday except from 9:30 o'clock A. M. to 12 o'clock M., nor on any day or that part of any day on which the Board shall hold no business session; it being the object and intent of this rule that all such trading which may tend to the maintenance of a public market shall be confined within the hours above specified. On any alleged violation by a member of this Association of the provisions of this rule which shall be brought to the attention of the President of the Board by credible report, it shall be the duty of the President to cause said member to be summoned before the Board of Directors, and if the party shall be found guilty of such violation of the rule, he shall be suspended for not less than one month nor more than one year, and for a second violation he shall be expelled.

SEC. 2. All transactions in future contracts for property shall Penalty. be deemed irregular when on the basis of money considerations added to or deducted from the contract price; and such transactions shall be esteemed misconduct and punishable by suspension at the discretion of the President or Board of Directors.

of price.

SEC. 4. All contracts and offers to contract for grain for future Definite figure delivery shall be at one figure of price, having as the multiple of price one-eighth of a cent per bushel; provided, however, that offers and contracts may be made to include one-half the total amount of each contract at any given price, and the remainder of said contract at a price one-eighth of one cent per bushel higher or lower than the other moiety and not otherwise; the same prinicple to apply on transactions for the future delivery of provisions; and every infraction of this rule shall be deemed misconduct and punishable by suspension at the discretion of the Board of Directors.

RULE XVII.

SMOKING.

SECTION 1. Smoking in the Exchange room of the Association Prohibited. shall be deemed discourteous and offensive conduct, and the same is hereby prohibited.

RULE XVIII.

SEAL.

SECTION 1. The Association shall have a seal, bearing a figure Description. of Justice with a ship in the distance, surrounded by the words "Board of Trade of the City of Chicago.”

RULE XIX.

QUORUM.

members a

SECTION 1. One hundred members of the Association shall One hundred constitute a quorum, but a smaller number shall have power to quorum. adjourn.

RULE XX.

DEPOSITS TO SECURE THE FULFILLMENT OF TIME CONTRACTS.

purchasers.

SECTION 1. On time contracts, purchasers shall have the right Protection to to require of sellers, as security, a deposit of ten (10) per cent., based upon the contract price of the property bought, and further security, from time to time, to the extent of any advance in the market value above said price. Sellers shall have the right to require as security from buyers a deposit of ten (10) per cent. on the contract price of the sellers.

Protection to

Securities, where deposited.

property sold, and, in addition, any difference that may exist or occur between the estimated legitimate value of any such property and the price of sale. All securities shall be deposited, either with the Treasurer of the Association or with some bank duly authorized by the Board of Directors to receive such deposits; and shall, in each instance, be accompanied by the following form of memorandum or statement:

Manner of

deposits.

Excepted depositories.

Bonds.

The above form of memorandum shall state the name of the depository, the date on which the deposit is made, the name of the depositor, and also the name or names of the party or parties in whose favor the deposit is to be made, together with the amount or amounts of such deposit in detail, and also in the aggregate. The left-hand part of the memorandum or statement before described shall be retained by the depository selected, and the right-hand portion thereof taken by the depositor, after being duly signed by the person authorized to receipt for the said deposit, and, without delay, placed in the office of the Secretary of the Board; it being distinctly understood that the provisions of Section 2 of this Rule are and shall remain in force, and that the issuance of the certificate in the form and manner prescribed in said Section 2, is unaffected by the provisions of this section. It is hereby provided that such deposits shall not be made with any bank or banks to which the party calling for the said security shall expressly object at the time of making such "call"; but in such case the deposit shall be made with some duly authorized bank not thus objected to, or with the Treasurer of the Association, as the depositor shall elect

SEC. 2. All banks which may be appointed to act as depositories for securities, shall be required to have one or more of their executive officers, members of this Board, who shall be held amenable to the Rules of said Board in matters of dispute arising from any trans