TO AMEND THE GRAIN FUTURES ACT HEARINGS BEFORE THE COMMITTEE ON AGRICULTURE AND FORESTRY UNITED STATES SENATE SEVENTY-FOURTH CONGRESS SECOND SESSION ON H. R. 6772 AN ACT TO AMEND THE GRAIN FUTURES ACT TO PREVENT PURPOSES APRIL 21, 22, AND 23, 1936 Printed for the use of the Committee on Agriculture and Forestry COMMITTEE ON AGRICULTURE AND FORESTRY ELLISON D. SMITH, South Carolina, Chairman BURTON K. WHEELER, Montana HATTIE W. CARAWAY, Arkansas CARL A. HATCH, New Mexico LEWIS B. SCHWELLENBACH, Washington GEORGE W. NORRIS, Nebraska ARTHUR CAPPER, Kansas HENRIK SHIPSTEAD, Minnesota CHARLES A. LAWTON, Clerk II TO AMEND THE GRAIN FUTURES ACT TUESDAY, APRIL 21, 1936 UNITED STATES SENATE, COMMITTEE ON AGRICULTURE AND FORESTRY, Washington, D. C'. The committee met, pursuant to call, in the committee room, 324 Senate Office Building, at 10:30 a. m., Senator Louis Murphy presiding. The committee had under consideration H. R. 6772, reading as follows: [H. R. 6772, Report No. 1431, 74th Cong., 1st sess.] [Omit the part in black brackets and insert the part printed in italic] AN ACT To amend the Grain Futures Act to prevent and remove obstructions and burdens upon interstate commerce in grains and other commodities by regulating transactions therein on commodity futures exchanges, to limit or abolish short selling, to curb manipulation, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 1 of the Grain Futures Act (U. S. C., title 7, sec. 1) is amended to read as follows: "This Act may be cited as the 'Commodity Exchange Act.'' SEC. 2. The Grain Futures Act (U. S. C., title 7, secs. 1 to 17, inclusive) is amended by striking out the word "grain" wherever it appears in such Act and inserting in lieu thereof "commodity”, “any commodity", or "commodities", as the case may require, and by striking out the phrase "cash grain" wherever such phrase appears and inserting in lieu thereof "any cash commodity". SEC. 3. Section 2 of the Grain Futures Act (U. S. C., title 7, sec. 2) is amended by (a) striking out the third sentence of paragraph (a) and inserting in lieu thereof the following: "The word 'commodity' shall mean wheat, [cotton,] rice, corn, oats, barley, rye, flaxseed, grain sorghums, mill feeds, butter, and eggs.”; and (b) adding at the end of paragraph (a) the following sentences: "The words 'cooperative association of producers' shall mean any cooperative association, corporate or otherwise, not less than 50 per centum owned or controlled, directly or indirectly, by producers of agricultural products and otherwise complying with an Act of Congress of February 18, 1922 (U. S. C., title 7, secs. 291 and 292), as now or hereafter amended, including any organization acting for a group of such associations and owned or controlled by such associations, provided that business done for the United States of America, or any agency thereof, shall not be considered either member or nonmember business in determining the compliance of any such association with said Act of Congress of February 18, 1922. The words 'member of a contract market' shall mean and include individuals, associations, partnerships, corporations, and trusts owning or holding membership in, or admitted to membership representation on, a contract market or given members' trading privileges thereon. The words 'futures commission merchant' shall mean and include individuals, associations, partnerships, corporations, and trusts engaged in soliciting or in accepting orders for the purchase or sales of any commodity for future delivery on or subject to the rules of any contract market and that, in or in connection with such solicitation or acceptance of orders, accepts any 1 |