Notes of Decisions 1. Law as taking property without due process (cl. e)-Sales on the exchange of the Chicago Board of Trade are indispensable to the continuity of the flow of grain in interstate commerce. And Congress having reasonably found that sales of grain for future delivery (most of which transactions do not result in actual delivery but are settled by off-setting with like contracts) are susceptible to speculation, manipulation and control, affecting cash prices and consignments of grain in such wise as to cause a direct burden on and interference with interstate commerce therein, rendering regulation imperative for the protection of such commerce and the national public interest therein,—had power to provide for placing grain boards of trade under federal supervision and regulation as "contract markets," as a condition to dealing by their members in contracts for future delivery. The provision requiring each board, so designated, to adopt a rule permitting the admission, as members, of authorized representatives of co-operative associations of producers engaged in the cash grain business, who comply, and agree to comply, with the rules of the board applicable to other members, and forbidding any rule to prevent the return of the commissions earned by such a representative, less expenses, for division among the members of his association on a pro rata patronage basis, does not take the property of the members of the Chicago Board of Trade without due process of law. Chicago Board of Trade v. Olsen (Ill. 1923) 262 U. S. 1, 43 S. Ct. 470, 67 L. Ed. 839. 2. Jurisdiction of Federal Trade Commission.-Federal Trade Commission held without jurisdiction to forbid Chamber of Commerce conducting grain market to deny membership to co-operative associations paying patronage dividends to other than their own members, in view of Grain Futures Act. Chamber of Commerce of Minneapolis v. Federal Trade Commission (C. C. A. 1926) 13 F. (2d) 673. It was further held in this case that the Federal Trade Commission was without jurisdiction of controversy relative to membership in Chamber of Commerce conducting grain market as a contract market under the Grain Futures Act. Id. 3. When state law valid.-Laws (Kan.) 1925, c. 6, prohibiting board of trade from refusing membership to co-operative associations, and providing against rules forbidding such associations to distribute profits to bona fide members on patronage basis, held not invalid for uncertainty and ambiguity when restricted to boards of trade within state not designated as "contract markets," under provisions of this chapter, by Secretary of Agriculture. Farmers' Co-op. Commission Co. v. Wichita Board of Trade (1926) 246 P. 513, 1120, 121 Kan. 348. § 8. Application for designation as "contract market"; suspension or revocation of designation; composition of commission; review by circuit court of appeals. Any board of trade desiring to be designated a "contract market" shall make application to the Secretary of Agriculture for such designation and accompany the same with a showing that it complies with the above conditions, and with a sufficient assurance that it will continue to comply with the above requirements. A commission composed of the Secretary of Agriculture, the Secretary of Commerce, and the Attorney General is authorized to suspend for a period not to exceed six months or to revoke the designation of any board of trade as a "contract market” upon a showing that such board of trade has failed or is failing to comply with any of the above requirements or is not enforcing its rules of government made a condition of its designation as set forth in section 7 of this chapter. Such sus pension or revocation shall only be after a notice to the officers of the board of trade affected and upon a hearing: Provided, That such suspension or revocation shall be final and conclusive unless within fifteen days after such suspension or revocation by the said commission such board of trade appeals to the circuit court of appeals for the circuit in which it has its principal place of business by filing with the clerk of such court a written petition praying that the order of the said commission be set aside or modified in the manner stated in the petition, together with a bond in such sum as the court may determine, conditioned that such board of trade will pay the costs of the proceedings if the court so directs. The clerk of the court in which such a petition is filed shall immediately cause a copy thereof to be delivered to the Secretary of Agriculture, chairman of said commission, or any member thereof, and the said commission shall forthwith prepare, certify, and file in the court a full and accurate transcript of the record in such proceedings, including the notice to the board of trade, a copy of the charges, the evidence, and the report and order. The testimony and evidence taken or submitted before the said commission duly certified and filed as aforesaid as a part of the record shall be considered by the court as the evidence in the case. The proceedings in such cases in the circuit court of appeals shall be made a preferred cause and shall be expedited in every way. Such a court may affirm or set aside the order of the said commission or may direct it to modify its order. No. such order of the said commission shall be modified or set aside by the circuit court of appeals unless it is shown by the board of trade that the order is unsupported by the weight of the evidence or was issued without due notice and a reasonable opportunity having been afforded to such board of trade for a hearing, or infringes the Constitution of the United States, or is beyond the jurisdiction of said commission: Provided further, That if the Secretary of Agriculture shall refuse to designate as a contract market any board of trade that has made application therefor, then such board of trade may appeal from such refusal to the commission described therein, consisting of the Secretary of Agriculture, the Secretary of Commerce, and the Attorney General of the United States, with the right to appeal as provided for in other cases in this section, the decision on such appeal to be final and binding on all parties interested. (Sept. 21, 1922, c. 369, § 6, 42 Stat. 1001.) Historical Note See historical note to section 1, ante, of this title. § 9. Exclusion of persons from privilege of "contract markets"; procedure for exclusion; review by circuit court of appeals. If the Secretary of Agriculture has reason to believe that any person is violating any of the provisions of this chapter, or is attempting to manipulate the market price of any grain in violation of the provisions of section 7 of this chapter, or of any of the rules or regulations made pursuant to its requirements, he may serve upon such person a complaint stating his charge 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 said commission refuse all trading privileges thereon to such person. Said hearing may be held in Washington, District of Columbia, or elsewhere, before the said commission, or before a referee. designated by the Secretary of Agriculture, who shall cause all evidence to be reduced to writing and forthwith transmit the same to the Secretary of Agriculture as chairman of the said commission. Upon evidence received the said commission may require all contract markets to refuse such person all trading privileges thereon for such period as may be specified in said order. Notice of such order shall be sent forthwith by registered mail or delivered to the offending person and to the governing boards of said contract markets. After the issuance of the order by the commission, as aforesaid, the person against whom it is issued may obtain a review of such order or such other equitable relief as to the court may seem just by filing in the United States circuit court of appeals of the circuit in which the petitioner is doing business a written petition praying that the order of the commission be set aside. A copy of such petition shall be forthwith served upon the commission by delivering such copy to its chairman or to any member thereof, and thereupon the commission shall forthwith certify and file in the court a transcript of the record theretofore made, including evidence received. Upon the filing of the transcript the court shall have jurisdiction to affirm, to set aside, or modify the order of the commission, and the findings of the commission as to the facts, if supported by the weight of evidence, shall in like manner be conclusive. (Sept. 21, 1922, c. 369, § 6, 42 Stat. 1001.) Historical Note See historical note to sections 1 and 7, ante, of this title. Notes of Decisions 1. Constitutionality.-In Chicago Board of Trade v. Olsen (Ill. 1923) 262 U. S. 3, 43 S. Ct. 470, 67 L. Ed. 839, the Supreme Court refused to pass on the constitutionality of this section giving the commission power to exclude from "contract markets" persons violating the act or attempting to manipulate the price of grain, in violation of § 7 of this title, or of any rule or regulation made in pursuance of its requirements. The court said: "Paragraph (b) of § 6 [see historical note to section 7, ante, of this title], which gives to the commission the power, on complaint, after investigation by the Secretary of Agriculture, and after a hearing, to exclude from all contract markets any person violating any of the provisions of the act, or attempting to manipulate the market price of any grain, in violation of the provisions of § 5 of the act [see § 7, ante, of this title], or of any of the rules or regulations made in pursuance to its requirements, is attacked as invalid because a jury trial is not afforded. The plaintiffs do not aver that they are committing acts which will subject them to such exclusion, or that charges have been made and proceedings have been begun or are about to be begun against them by the Secretary of Agriculture. Until they are thus in danger of suffering prejudice from the operation of the paragraph, they cannot invoke our decision as to its validity." § 10. Review by Supreme Court on certiorari. In proceedings under sections 8 and 9 of this chapter the judgment and decree of the court shall be final, except that the same shall be subject to review by the Supreme Court upon certiorari, as provided in section 347 of Title 28, Judicial Code and Judiciary. (Sept. 21, 1922, c. 369, § 6, 42 Stat. 1001.) Historical Note See historical note to sections 1 and 7, ante, of this title. Section 347 of Title 28, Judicial Code and Judiciary, referred to in this section, is section 240 of the Judicial Code, as amended. § 11. Vacation on request of designation as "contract market”; redesignation. Any board of trade that has been designated a contract market in the manner provided in this chapter may have such designation vacated and set aside by giving notice in writing to the Secretary of Agriculture requesting that its designation as a contract market be vacated, which notice shall be served at least ninety days prior to the date named therein as the date when the vacation of designation shall take effect. Upon receipt of such notice the Secretary of Agriculture shall forthwith order the vacation of the designation of such board of trade as a contract market, effective upon the day named in the notice, and shall forthwith send a copy of the notice and his order to all other contract markets. From and after the date upon which the vacation became effective the said board of trade can thereafter be designated again a contract market by making application to the Secretary of Agriculture in the manner in this chapter provided for an original application. (Sept. 21, 1922, c. 369, § 7, 42 Stat. 1002.) Historical Note See historical note to section 1, ante, of this title. § 12. Investigations and reports by Secretary, generally. For the efficient execution of the provisions of this chapter, and in order to provide information for the use of Congress, the Secretary of Agriculture may make such investigations as he may deem necessary to ascertain the facts regarding the operations of boards of trade, whether prior or subsequent to the enactment of this chapter, and may publish from time to time, in his discretion, the result of such investigation and such statistical information gathered therefrom as he may deem of interest to the public, except data and information which would separately disclose the business transactions of any person and trade secrets or names of customers: Provided, That nothing in this section shall be construed to prohibit the Secretary of Agriculture from making or issuing such reports as he may deem necessary relative to the conduct of any board of trade or of the transactions of any person found guilty of violating the provisions of this chapter under the proceedings prescribed in section 9 of this chapter: Provided further, That the Secretary of Agriculture in any report may include the facts as to any actual transaction. The Secretary of Agriculture, upon his own initiative or in cooperation with existing governmental agencies, shall investigate marketing conditions of grain and grain products and by-products, including supply and demand for these commodities, cost to the consumer, and handling and transportation charges. He shall likewise compile and furnish to producers, consumers, and distributors, by means of regular or special reports, or by such methods as he may deem most effective, information respecting the grain markets, together with information on supply, demand, prices and other conditions in this and other countries that affect the markets. (Sept. 21, 1922, c. 369, § 8, 42 Stat. 1003.) Historical Note See historical note to sections 1 and 7, ante, of this title. § 13. Violations generally; false reports; punishment. Any person who shall violate the provisions of section 6 of this chapter, or who shall fail to evidence any contract mentioned in said section by a record in writing as therein required, or who shall knowingly or carelessly deliver for transmission through the mails or in interstate commerce by telegraph, telephone, wireless, or other means of communication false or misleading or knowingly inaccurate re |