actions on the Board of Trade of the City of Chicago, between the banks they represent and any of the members of said Board of Trade, and shall execute and file with the Secretary of the Association a good and sufficient bond, with sureties, to be approved by the Board of Directors, for the proper disposal of the said deposits, in accordance with the provisions of the Rules, Regulations and ByLaws of the Association. Said banks shall issue certificates in Certificates duplicate, not transferable, for all such deposits. Said certificates for deposits. shall state by whom the deposit was made, and for whose security the same is held, that the deposit has been made under the Rules of

the Board of Trade and is payable upon the return of the certificate How payable. or its duplicate, duly indorsed by the parties to the contract or contracts, or on the order of the President of the Board of Trade, as provided by Section 6 of this Rule. Said certificate shall be in the Form for following form, to-wit :

...has deposited with this Bank
..Dollars as security on a contract or

contracts between the depositor and.....
which amount is payable on the return of this certificate or its dupli-
cate, duly indorsed by both of the above-named parties, or on the
order of the President of the Board of Trade of the City of Chicago,
indorsed on either the original or duplicate hereof, as provided by
the Rules of said Board of Trade, under which the above-named
deposit has been made.

certificates.

Cashier.

held as

contracts

All deposits so made shall be held to have been made as security Deposits to be for the faithful fulfillment of any contracts made or to be made security on all between the parties during the time the deposit shall remain unpaid; between the provided, it shall be competent for either party to a contract to parties. demand that the certificate shall express the particular contract upon which the deposit shall have been made, and in such case the deposit shall be applicable only to the settlement of that contract.

Exception.

the

SEC. 3. The Treasurer of the Association shall, in like manner Margins with and under like safeguards, receive deposits for security, and issue Treasurer. certificates for the same, payable as is provided by Section 2 of this Rule.

deposit of

SEC. 4. The party depositing security shall, within one hour Notice of from the time such deposit shall be called, deposit with the Secretary security. of the Association, or with the party calling for such deposit, the duplicate certificate for the same, in due form, as provided for in Section 2 of this Rule.

deposit.

SEC. 5. Should any party called upon, as herein provided for, Failure to fail to deposit the security called, within the next banking hour Contractsmas thereafter, the party making such cail shall have the right, if he be be closed.

the seller, to resell the property for account of the delinquent, such resale to be for the same delivery as was named in the original contract; if he be the buyer he shall have the right to repurchase the property for account of the delinquent, deliverable at the time named in the original purchase; in either case he shall at once communicate to the delinquent the action he has elected to take, and all losses or damages on such defaulted contract shall be at once due and payable, the same as though said contract had fully matured. The party so calling may, however, elect to permit the contract to stand, in which case no notice to that effect shall be necessary to the Notices of call delinquent. All notices for the call of deposits as security, or of the closing of contracts under this Rule, may be served on the party called, either in person or by leaving a written notice at his place of business, or may be served in person upon his authorized representative, or upon any clerk representing the party on 'Change; and in case the party called upon shall not be known to have a regular place of business, a written notice left in the office of the Secretary of the Board shall be deemed sufficient.

or of the closing of contracts.

Belease of margins on settlement.

Failure to

adjust contracts.

submitted to a committee.

SEC. 6. Upon the fulfillment or settlement of any contract, or upon the closing of any contract under the provisions of Section 5 of this Rule, deposits upon which have been made, and when the full adjustment of all differences relating to the same shall have been effected, the deposits shall thereupon be payable to the party depositing the same; and the joint indorsement of both parties upon the certificate shall be a sufficient authority to the party holding the deposit to pay the same to the holder of the certificate; or in case of a failure between the contracting parties to adjust and settle their respective claims upon the deposit within three (3) business days after the maturity of all contracts upon which the deposit is appliDisputes to be cable, the matter in dispute shall, upon the application of either party to such contracts, be submitted to a select committee of three disinterested persons, members of the Association, to be appointed by the President, which committee shall, without unnecessary delay, summon the parties before them, and hear such evidence under oath as either may wish to submit touching their claims to the deposit, and shall by a majority vote decide, and report to the President of the Board, in writing, in what manner and to whom the deposit is payable, either wholly or in part; whereupon the President shall indorse on either the original or duplicate certificate an order for the payment of such deposits in accordance with the decision of said committee, and such order shall be a sufficient warrant to the party holding the deposit to pay the same in accordance with such order. In case any member neglects or refuses to indorse a certificate of deposit to the party entitled to receive the money thereupon when all contracts upon which the deposit is applicable are settled, and all money due upon such contracts has been paid, he shall be liable to a penalty of one per cent. per day on the amount of such certificates, for every day such refusal or neglect is continued; and for refusal to promptly pay such penalty, the party may, upon due complaint, be suspended from all privileges of the Board until the same is paid.

President release.

Penalty for refusal to release.

In case it should occur that by reason of changes in the market, or Excessive deposits, how of delivery upon, or the settlement of a portion of the contracts upon released. which security has been deposited and to which such security is properly applicable under this Rule, that a larger sum remains on deposit than is contemplated by Section 1 of this Rule upon then existing unadjusted contracts between the parties, and either party to such contract should refuse to release such excess of deposit. the President of the Board is authorized, upon a representation of the facts and admission or proof that such excess ought to be released, to order such release and payment to be made to the party to whom it rightfully belongs, by the indorsement of an order to that effect on either the original or duplicate certificate or certificates issued for such deposits; provided, in case of such disagreement no surrender of the deposit shall be ordered pending any arbitration touching the rights of the parties under the said contract or contracts, or in case the party refusing to adjust the dispute shall signify his willingness to submit the matter to arbitration.

Value of

Rule, how and

determined.

SEC. 7. In determining the value of property under this Rule, property its value in other markets, or for manufacturing or consumptive under this purposes in this market, together with such other facts as may justly by whom enter in the determination of its value, shall be considered irrespective of any fictitious price it may at the time be selling for in this market. Such value, for the purposes of this Rule, in case of disagreement, shall be determined by the Board of Directors, and communicated to the parties in interest through the President or Secretary.

RULE XXI.

REGULAR DELIVERIES.

warehouse

SECTION 1. All deliveries upon contracts for grain or flax seed, Tender of unless otherwise expressly provided, shall be made by tender of reg- receipts. ular warehouse receipts, which receipts shall have been registered by an officer duly appointed for that purpose. All such warehouse receipts shall be made to run five days from date of delivery on regular or customary storage charges, which regular or customary charges shall follow such warehouse receipts and be chargeable upon the property covered by the same, and shall be issued by such houses as have complied with the Rules of the Board of Trade and the Regulations and Requirements of the Board of Directors, and have been declared regular warehouses for the storage of grain or flax seed by said Board of Directors; and it shall be the duty of the Board of Directors, prior to the first day of July in each year, to inspect all for regular warehouses, the proprietors or managers of which shall apply to have their receipts declared regular for delivery on contracts under the Rules of the Board of Trade, and no warehouse shall be declared a

Requirements

warehouses.

Rates of storage.

regular warehouse unless it is conveniently approachable by vessels of ordinary draft and has customary shipping facilities, and unless the storage rates on all grain or flax seed in such warehouse in bulk and in good condition, from and after May 15th, 1900, shall not be in excess of three-quarters (4) of one cent per bushel, for the first ten days or part thereof, and one-fortieth (%) of one cent per bushel for each additional day thereafter until from and after January 1st, 1901, when the additional daily rate of storage shall not exceed one-fiftieth (%) of one cent per bushel, so long as such grain or flax seed remains in good condition; and unless the proprietors or managers of such warehouse are in good financial standing and credit, and are carrying on and intend to continue to carry on the legitimate business of public warehousemen under the laws of the State of Illinois and in accordance with the Rules of the Board of 'Trade of the City of Chicago and the Regulations and Requiresufficiency of. ments of the Board of Directors and until the proprietors or managers of such warehouse shall file a bond with sufficient sureties in such sum and subject to such conditions as may be deemed necessary by the Board of Directors, under the Rules of the Board of Trade and the Regulations and Requirements of the Board of Directors in reference to warehouses.

Bond,

Shipments by
proprietors-

only
"off grades."

Requirement for removal of

grain from warehouses applied to be regular.

Supervising inspector.

And furthermore, the proprietors or managers of such warehouse shall be required to sell their regular contract grades of grain or flax seed in the Chicago market only, and shall not ship any grain from any regular warehouse, of which they are proprietors or managers, except those grades which are denominated and understood to be "off grades"; provided, however, that the Board of Directors of the Board of Trade may, upon application, grant to such elevator proprietors or managers the privilege of shipping such quantity of grain from their elevators as will sufficiently relieve such elevators from being overloaded, or as will maintain the condition of such grain; and furthermore, the proprietors or managers of such warehouse shall be prohibited from buying grain at any non-competing points.

Whenever application shall be made by the proprietors or managers of any warehouse to have the same declared a regular warehouse for the storage of grain and flaxseed under the provisions of this Rule (except in cases of renewal on the first day of July in each year, as hereinbefore provided) any grain or flaxseed that may be contained in said warehouse at the time of such application, shall be required to be removed from said warehouse, when after it shall have been graded and inspected according to its quality and condition then existing by the duly constituted authorities, such grain or flaxseed may then again be received into said warehouse and receipts issued therefor shall be registered and dated upon the day when such grain or flaxseed is again actually received into said warehouse.

The chief inspector of grain of the State of Illinois may, upon request of the Board of Directors of the Board of Trade, appoint a

[RULE XXL.,

supervising inspector who shall so supervise the storage and distribution of grain and of flax seed in such warehouse that no discrimination or selection can be made in the quality or grade of grain or flax seed in the delivery of such grain or flax seed.

receipts.

warehouse.

Warehouse receipts issued by warehouses so declared regular by Warehouse the Board of Directors shall be regular for delivery on contracts under the Rules of the Board of Trade so long as the said warehouse shall continue to be a regular warehouse, but the term for which any Term of regular warehouse is declared a regular warehouse to issue such receipts shall be limited to and expire on the first day of July in each year. No receipts issued on grain received in any warehouse shall be regular for delivery under the Rules of the Board of Trade after that date unless the warehouse upon which it has been issued has again been declared a regular warehouse by the Board of Directors; provrded, however, that receipts issued before the first day of July by Life of warewarehouses which have been regular warehouses during the preced- house receipts. ing year, but which have not been declared regular for the succeeding year, shall be regular for delivery upon such contracts for six months after the first day of July; but nothing contained herein shall prevent the Board of Directors from declaring any warehouse, or the receipts thereof, irregular at any time for violation or noncompliance with the laws of the State of Illinois or any of the Rules of the Board of Trade or of the Regulations and Requirements of the Board of Directors.

clause.

Provided, that the Board of Directors shall have power, when in Emergency their judgment an emergency exists requiring more storage room than can be supplied by the regular elevator warehouses, to declare any storehouses, vessels, or places suitable for the storage of grain or flax seed within the city limits-wherein the cost of delivery to vessels or railroad cars shall not be greater than such as is made by the regular elevators for the same service-to be regular places for the storage of grain deliverable under the Rules of the Board of Trade.

aggregate capacity of

emergency.

And provided further, that in case it shall happen that at any Limitation of time there shall be no warehouses which shall be regular warehouses for the storage of grain and flax seed, then the Board of Directors warehouses made regular under may declare any warehouses suitable for the storage of grain or flaxseed, whose aggregate capacity shall not exceed twenty-five million (25,000,000) bushels, regular warehouses for the storage of grain or flax seed, upon such terms and for such period as the Board of Directors in its discretion may deem necessary or proper, and the warehouse receipts issued by warehouses so declared regular under this proviso, shall be regular for delivery on contracts under the Rules of the Board of Trade, in the same manner as if issued by warehouses declared regular under the foregoing provisions of this section in regard to declaring warehouses regular for the term ending on the first day of July in each year.