TAXING CONTRACTS FOR THE SALE OF GRAIN FOR Printed for the use of the Committee on Agriculture and Forestry WASHINGTON GOVERNMENT PRINTING OFFICE 1921 FUTURE TRADING IN GRAIN. FRIDAY, MAY 27, 1921. UNITED STATES SENATE, COMMITTEE ON AGRICULTURE AND FORESTRY, Washington, D. C. The committee met, pursuant to call, at 10.30 o'clock a. m., in room 112, Senate Office Building, Senator George W. Norris presiding. Present: Senators Norris (chairman), Kenyon, McNary, Capper, Gooding, Keyes, Ladd, Norbeck, Ransdell, Kendrick, Harrison, and Caraway. The CHAIRMAN. The committee will come to order. The committee has met, according to previous arrangement, for hearings on House bill 5676, a bill taxing contracts for the sale of grain for future delivery, and options for such contracts, and providing for the regulation of boards of trade, and for other purposes. (The bill is here printed in full, as follows:) [H. R. 5676, Sixty-seventh Congress, first session.] AN ACT Taxing contracts for the sale of grain for future delivery, and options for such contracts, and providing for the regulation of boards of trade, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this act shall be known by the short title of "The Future Trading Act." SEC. 2. That for the purposes of this act "contract of sale" shall be held to include sales, agreements of sale, and agreements to sell. That the word person " shall be construed to import the plural or singular and shall include individuals associations, partnerships, corporations, and trusts. That the word "grain" shall be construed to mean wheat, corn, oats, barley, rye, flax, and sorghum. The words "board of trade" shall be held to include and mean any exchange or association, whether incorporated or unincorporated, of persons who shall be engaged in the business of buying or selling grain or receiving the same for sale on consignment. The act, omission, or failure of any official, agent, or other person acting for any individual, association, partnership, corporation, or trust within the scope of his employment or office shall be deemed the act, omission, or failure of such individual, association, partnership, corporation, or trust, as well as of such official, agent, or other person. SEC. 3. That in addition to the taxes now imposed by law there is hereby levied a tax amounting to 20 cents per bushel on each bushel involved therein, whether the actual commodity is intended to be delivered or only nominally referred to, upon each and every privilege or option for a contract either of purchase or sale of grain, intending hereby to tax only the transactions known to the trade as “privileges, "bids," offers," "puts and calls," "indemnities," or "ups and downs. 66 SEC. 4. That in addition to the taxes now imposed by law there is hereby levied a tax of 20 cents a bushel on every bushel involved therein, upon each contract of sale of grain for future delivery made at, on, or in an exchange, board of trade, or similar institution or place of business, except (a) Where the seller is at the time of the making of such contract the owner of the actual physical property covered thereby, or is the grower thereof, or in case either party to the contract is the owner or renter of land on which the same is to be grown, or is an association of such owners, or growers of grain, or of such owners or renters of land; or 5 |