Show CAPPER ACT IS constitutional supreme court decision declares trading in futures influences prices the farmers were right agriculture has scored another great victory the united states supreme court in ID a decision handed down recently with ith only two votes justices sutherland and 11 cReynolds dissenting upheld the constitutionality of the new cat cap per kincner act regulating grain exchanges and admitting operative cooperative co marketing associations to seats on boards of trade the opinion of the supreme court as handed down by chief justice willain 11 II taft completely overrules the attack made on the constitutionality of the capper ait act by the chicago cag go hoard board of trade and fully upholds the contentions of the department of agriculture the farm bloc and the farm bureau in this decision the entire system of grain marketing Is made subject to re regulation galation gu lation by the secretary ot of agriculture as interstate commerce and it Is made mandatory on the grain ex change to provide a seat scat to any farmers operative cooperative co grain marketing association which applies the decision as redd read by chief justice taft Is quoted as follows it Is clear from the citations in the statement of the case of evidence before committees of Ii investigation vesti atlon as to manipulation of the futures market and their effects that we would be tn unwarranted warranted in rejecting the findings of congress as unreasonable and that in our inquiry as to the validity of the legislation we must accept the view that such manipulation does work to the detriment of producers consumers shippers and legitimate dealers in interstate ter state commerce in grain and that it Is a real abuse but it Is contended that it la Is too remote in its effects on interstate commerce and it that bat it la Is not like the direct addition to the cost to the producer of marketing cattle by exorbitant charges and discrimination of commission men and dealers this Is hardly bardl Y consistent with the affidavits tile the plaintiffs presented from the leading economists who say that dealing in futures stabilizes cash prices more allore than this prices of grain futures are those upon which an owner and anten intending ding seller of cash grala grain Is influenced to sell or not to sell as they offer a good opportunity to him to hedde comfortably against future fluctuations manipulations an I 1 of grain futures for S speculative tive profit though not carried to te the extent of a corner or complete monopoly exert a vicious influence and produce abnormal at and dIsturb disturbing ln 9 temporary fluctuations of prices that are not responsible to actual supply and demand and discourage not only this justifiable bed hedging ing but disturb the normal flow of actual consignments consign ments A futures market lends itself to such manipulation much more readily than q cash market chief justice tatt taft saad that the previous decision constituted an argument in favor of the validity of tile the new act since congress had met the objections which the supreme court had bad pointed out in its decision against tile the legality of the first act the court I 1 declared that the grain exchange ge merely was a gateway through which grain flowed from the west to east and to europe it I 1 t Is impossible to distinguish ting between transactions in cash grain and in grain to arrive from stock shipments the latter transact transactions ions constituted interstate commerce the court upheld the governments contention that futures trading affects the cash price of grain the relation between cash grain and autu future re dealings is evidenced by the tact fact th that it t the be cor corners ners in grain have resulted from dealings in futures last fall the american F carmi arm bureau re au federation petitioned federal judge carpenter in chicago to be permitted to intervene in the case as codefendant with the government this petition was waa dented denied on november IT 17 1022 12 nevertheless AttoA ieya newton jenkins and donald kirkpatrick had outlined the farm bureaus case very completely in their petition every C contention of which Is now sustained by the highest tribunal president 0 E bradfute of the american farm bureau says gays the supreme court has sustained the valid i ity fly of the capper grain futures law in its entirety the decision seems to go to unusual length in recognizing the national public pub I 1 ae interest invoiced the farmers of america arneitta will ree recognize in this decision the establishment for all time of their fundament tal right to follow their own products as tar far to market as they like the president of the united states rind the federal congress have already repeatedly peat pent edly voiced their interest in and their support of operative cooperative co marketing now comes the third branch of 0 the national government the united states supreme court and upholds the leg legality nitty of operative cooperative co marketing it Is a decision of far reaching im and will sustain the growers of farm crops everywhere in their belief that our operative cooperative co g program Is right |