such records, and permit such warehouse visitation as the Secretary of Agriculture may prescribe. Such books and records shall be required to be kept for a period of three years from the date thereof, or for a longer period if the Secretary of Agriculture shall so direct, and such books, records, and warehouses shall be opened at all times to inspection by any representative of the United States Department of Agriculture or United States Department of Justice.

"SEC. 5b. The failure or refusal of any board of trade to comply with any of the provisions of this act, or any of the rules and regulations of the Secretary of Agriculture thereunder, shall be cause for suspending for a period not to exceed six months or revoking the designation of such board of trade as a 'contract market' in accordance with the procedure prescribed in paragraph (a) of section 6 of this act."

SEC. 8. Section 6 of the Grain Futures Act (U. S. C., title 7, secs. 8, 9, 10, and 15) is amended by

(a) striking out the first sentence of paragraph (b) and inserting in lieu thereof the following: "If the Secretary of Agriculture has reason to believe that any person has violated any of the provisions of this act, or any of the rules and regulations made pursuant to its requirements, or has manipulated or is attempting to manipulate the market price of any commodity, in interstate commerce, or for future delivery on or subject to the rules of any board of trade, he may serve upon such person a complaint stating his charges 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 Secretary of Agriculture refuse all trading privileges to such persons, and/or to show cause why the license of such person, if licensed as futures commission merchant or as floor broker hereunder, should not be suspended or revoked.";

(b) striking out the words "said commission" after the words "before the " in the second sentence of paragraph (b) and inserting in lieu thereof "Secretary of Agriculture";

(c) striking out the word "who" in the second sentence of paragraph (b) and inserting in lieu thereof "which referee ";

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(d) striking out the words as chairman of the said commission" in the second sentence of paragraph (b) after the words to the Secretary of Agriculture";

(e) striking out the words and numerals "of section 12" after the word "penalties," in the third sentence of paragraph (b);

(f) inserting, after the word “amended" in the third sentence of paragraph (b) the following: "and supplemented (U. S. C., title 49, secs. 12, 46, 47, and 48)";

(g) striking out the word "or" after the word "commission," in the third sentence of paragraph (b) and inserting in lieu thereof the word "and";

(h) striking out the fourth sentence of paragraph (b) and inserting in lieu thereof the following: "Upon evidence received, the Secretary of Agriculture may require all contract markets to refuse such person all trading privileges thereon for such period as may be specified in the order, and, if such person has been licensed as futures commission merchant or as floor broker hereunder, may suspend, for a period not to exceed six months, or revoke, the license of such person.";

(i) Striking out the word "commission" wherever it appears in the sixth, seventh, and eighth sentences of paragraph (b) and inserting in lieu thereof the words "Secretary of Agriculture";

(j) striking out the words "its chairman or to any member thereof" after the word "to" in the seventh sentence of paragraph (b) and inserting in lieu thereof the word "him"; and

(k) striking out the word "Code" at the end of paragraph (b) and inserting the following: Code, as amended ".

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SEC. 9. The Grain Futures Act is amended by adding after section 6 (U. S. C., title 7, secs. 8, 9, 10, and 15) the following new sections:

"SEC. 6a. No board of trade which has been designated as a 'contract market' shall exclude from membership in, and all privileges on, such board of trade, any association or corporation engaged in cash commodity business having adequate financial responsibility which is organized under the cooperative laws of any State, or which has been recognized as a cooperative association

of producers by the United States Government or by any agency thereof, if such association or corporation complies and agrees to comply with such terms and conditions as are or may be imposed lawfully upon other members of such board, and as are or may be imposed lawfully upon a cooperative association of producers engaged in cash commodity business, unless such board of trade is authorized by the commission to exclude such association or corporation from membership and privileges after hearing held upon at least three days' notice subsequent to the filing of complaint by the board of trade. Such commission may prescribe that such association or corporation shall have and retain membership and privileges, with or without imposing conditions, or it may permit such board of trade immediately to bar such association or corporation from membership and privileges. Any order of said commission entered hereunder shall be reviewable by the circuit court of appeals for the circuit in which such association or corporation, or such board of trade, has its principal place of business, on written petition either of such association or corporation, or of such board of trade, under the procedure provided in paragraph (a) of section 6 of this act, but such order shall not be stayed by the court pending review.

"SEC. 6h. If any board of trade, or any director. officer, agent, or employee of any board of trade shall violate any of the provisions of this act or any of the rules or regulations of the Secretary of Agriculture thereunder, or any order issued by the commission pursuant to any provision of this act, the commission, in lieu of revoking the designation of such board of trade as a 'contract market' may, upon notice and hearing and subject to appeal as in other cases provided for in paragraph (a) of section 6 of this act, make and enter an order directing that such board of trade, director, officer, agent, or employee shall cease and desist from continuing such violation or violations, and if such board of trade, director, officer, agent, or employee, thereafter and after the lapse of the period allowed for appeal of such order, shall fail or refuse to obey or comply with such order, such board of trade, director, officer, agent, or employee shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not less than $500 nor more than $10,000 or imprisoned for not less than six months nor more than one year, or both. Each day during which such failure or refusal to obey such order continues shall be deemed a separate offense."

SEC. 10. The Grain Futures Act is amended by adding after section 8 (U. S. C., title 7, sec. 12) the following new section:

66 SEC. 8a. The Secretary of Agriculture is authorized—

"(1) to issue to futures commission merchants and floor brokers upon application in accordance with rules and regulations and in form and manner to be prescribed by the Secretary of Agriculture; and

"(2) to refuse to issue a license to any person if such person has violated any of the provisions of this act or any of the rules or regulations promulgated by the Secretary of Agriculture hereunder for which the license of such person has been revoked; and

"(3) to suspend or revoke the license of any futures commission merchant who shall accept any order for the purchase or sale of any commodity for future delivery on or subject to the rules of any contract market from any person if such person has been denied trading privileges on any contract market by order of the Secretary of Agriculture under the provisions of paragraph (b) of section 6 of this act and the period of denial specified in such order shall not have expired; and

"(4) to fix and establish from time to time fees and charges for the issuance of licenses and renewals thereof and for copies, not to exceed $10 for each such license, renewal, or copy; and

"(5) to make and promulgate such rules and regulations as, in the judgment of the Secretary of Agriculture, are reasonably necessary to effectuate any of the provisions or to accomplish any of the purposes of this act; and

"(6) to communicate to the proper committee or officer of any contract market and to publish, notwithstanding the provisions of section 8 of this act, the full facts concerning any transaction or market operation, including the names of parties thereto, which in the judgment of the Secretary of Agriculture disrupts or tends to disrupt any market or is otherwise harmful or against the best interests of producers and consumers."

SEC. 11. Section 9 of the Grain Futures Act (U. S. C., title 7, sec. 13) is amended by:

(a) striking out the word "section" and the numeral "4" and inserting in lieu thereof the following: "section 4, section 4a, section 4b, section 4c, section 4d, section 4e, section 4h, section 4i, or section 4j";

(b) inserting after the comma following the word "act" the following: "or who shall manipulate or attempt to manipulate the price of any commodity in interstate commerce, or for future delivery on or subject to the rules of any board of trade, or who shall corner or attempt to corner any such commodity," (c) striking out the words "said section" after the words "mentioned in " and inserting in lieu thereof the words "section 4 of this act"; and

(d) inserting after the word "deliver" the words "or cause to be delivered ".

SEC. 12. If any provision of any section of the Grain Futures Act shall be held invalid by reason of any amendment thereof by this act, then and in that event such section, in its original form without amendment, shall continue in force and effect. No proceeding shall be abated by reason of any such amendment, but shall be disposed of pursuant thereto.

SEC. 13. This act shall take effect ninety days after the date of its enactment. The CHAIRMAN. I will state for the benefit of those who may be interested that in past years we have had rather full hearings on the various propositions involved in this bill. We had a rather full hearing again last spring on most of the features in the bill, and the committee feels that those hearings, which are available in printed form, cover substantially all of the proposed features in the bill before us except the one feature which has not been covered, that of control or licensing of floor brokers, and we have had no specific hearings for floor brokers who would be directly affected. That was commented on from time to time, and we decided to devote one morning's session to that particular subject.

A number of witnesses have requested permission to be heard. I made the request the other day that they choose two or three, or agree on those who would represent them in a full discussion, which would permit more time. Nevertheless, we have several here, and if we are to hear the entire group it will be necessary to limit them to about 10 minutes each.

We will hear Mr. Wickham, chairman of the grain committee on national affairs.

STATEMENT OF THOMAS Y. WICKHAM, CHAIRMAN OF THE GRAIN COMMITTEE OF THE NATIONAL ASSOCIATION, CHICAGO, ILL.

Mr. WICKHAM. Mr. Chairman, so far as we are concerned we will stay within the time allotted.

The CHAIRMAN. Very well.

Mr. WICKHAM. Mr. Chairman and members of the committee, my name is Thomas Y. Wickham. I am appearing as chairman of the grain committee on national affairs. That is the National Association of Grain Exchanges, connected with the Grain Association of San Francisco and the National Grain and Feed Dealers' Association. The latter, as the name implies, is a national association of the local grain and feed dealers of the Nation.

As I understand it, the hearing this morning is to be confined to the question of licensing floor brokers. The time allotted us will be directed entirely to that point. However, if the committee is willing, I should like to reserve just a moment at the end of the hearing to urge upon you the necessity of a full hearing, covering every phase of a matter as important as this.

The first witness we have to offer is Mr. Robert P. Boylan, president of the Chicago Board of Trade.

The CHAIRMAN. Mr. Boylan.

STATEMENT OF ROBERT P. BOYLAN, PRESIDENT OF THE CHICAGO BOARD OF TRADE, CHICAGO, ILL.

Mr. BOYLAN. Mr. Chairman and members of the committee, for the purpose of the record my name is Robert P. Boylan. I am president of the Chicago Board of Trade.

I am going to be very brief in what I have to say and will finish in a few minutes, unless there are some questions. But I do desire, if it is acceptable to the committee, to give as much of my time as I can to Mr. Caldwell, who will follow me.

Mr. Chairman and members of the committee, in making my appearance before you and presenting to you our objections to the provision of House bill 3009 requiring the licensing of floor brokers, I would be remiss in my obligations as a citizen if I did not also remind you that there are other provisions of that bill which should be discussed here. I know that hearings were held last year. I was here before you then. But there are six new members of the present committee who were not here and who have had no opportunity to hear both sides on the bill.

Time has elapsed—and a year changes many things-often men's ideas and judgments.

No matter what the philosophy behind the bill, if the bill prescribes unworkable and impracticable mechanical difficulties, the onus will rest upon this committee. A bureau following an Act of Congress is not to be censured in enforcing a bill which will certainly appear ill-advised in its ordinary mechanical provisions. That responsibility will be upon Congress, and especially upon this committee unless full consideration is given before the bill comes out on the floor.

Particularly is this true in that laws are difficult to amend and mistakes in laws are not easily corrected. Acts of Congress are rigid and do not conform of themselves to the quick changes required of all of us to adapt ourselves to the rapid changes and improvements in economic affairs sought and accomplished by the New Deal.

We request opportunity, therefore, to discuss these matters, perhaps with a small subcommittee of this committee, if you please, before you are committed to what I can assure you are its unworkable provisions.

Mr. Chairman, it is fair to assume that this committee and the Congress desire a bill that will work, and I just want to go on record as stating that the present bill, in its present form, will not work. That is why we desire, Mr. Chairman, to have a fuller hearing. Mr. BOILEAU. May I ask a question?

The CHAIRMAN. Mr. Boileau.

Mr. BOILEAU. If the committee should decide further hearings, do I understand that you would feel obligated to try to help perfect the bill or that you would like to oppose the entire bill?

Mr. BOYLAN. It would be our desire to point out to the committee wherein the bill does not work. We believe the obligation is upon

us to show to the members of the committee wherein this particular bill, in its present form, will not work.

Mr. ANDRESEN. Would it be possible for you, Mr. Boylan, in the brief time allotted to you to point out wherein the provisions of the bill will be detrimental to the producers and the trade of the country? Mr. BOYLAN. That is my desire if the hearing is broadened, but in the time we have we can only cover the specific point mentioned by the chairman; but if this hearing is broadened we will bring before you witnesses, men who are familiar with all phases of this particularly contemplated legislation, and will try to discuss all those points. If it is the desire to give me more time, to broaden the hearing, I shall be glad to do so now.

Mr. ANDRESEN. Can you state that briefly?

Mr. BOYLAN. I cannot state it briefly, because the bill covers many things; it limits lines; there is the licensing feature; the question of changes in delivery dates; changes of delivery to the 15th of the month; there are many provisions in the bill, Mr. Chairman, that should be given consideration, and many things have happened during the last year which we could bring up that we did not know a year ago.

Mr. ANDRESEN. As I understand it, H. R. 3009, this form of the bill, is a copy of a similar bill of last year.

Mr. BOYLAN. In all respects, as I understand, except that the licensing of floor brokers is provided in this bill.

Mr. ANDRESEN. Would the testimony that would be given by witnesses who are interested on your side be the same as the testimony given before the committee at the last hearings?

Mr. BOYLAN. I think not. We have had time to study this bill, and I think that there is a great deal we could show to the committee in the testimony of witnesses who could be brought here which, in my opinion, would be enlightening to the committee.

Mr. ANDRESEN. Do you feel that some of the evils contemplated to be reached by the bill have been remedied by the operation of the Code Authority?

Mr. BOYLAN. Yes. When we were here a year ago the code was not in operation, since that time the code has been put in operation. Mr. ANDRESEN. With the exception of the margin requirement, what has the code accomplished?"

Mr. BOYLAN. I should like you to ask that question, Mr. Andresen, of the chairman of the Code Authority who is here and will testify. Mr. ANDRESEN. Very well.

Mr. BEAM. Mr. Chairman

The CHAIRMAN. Mr. Beam.

Mr. BEAM. Could you suggest to the committee, give us a tentative outline of the testimony that would be presented?

Mr. BOYLAN. If the hearing is broadened and you allow us a few days' time we will bring to the committee witnesses who will testify on those matters, which we are on record as stating to the committee, that show the bill will not work in its present form.

Mr. BEAM. You feel you could do that in more detail than you can in the time allotted to you?

Mr. BOYLAN. Yes. We have had a year to study this bill, Mr. Chairman, and I think the testimony, while it is true, a good deal of