Business: Grain Trading

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Because the Chicago Board of Trade, if its officials had been conscientiously alert, might have prevented the Armour Grain Co. frauds (TIME, April 25 et ante), the Board has been the butt of severe criticism. Last week the situation was:

¶Illinois state senate had passed the Kessinger bill, which will require that all Board of Trade transactions be reported openly. There can be no privacy, no secrecy. The Board had a battalion of hushers lobbying the state house of representatives to prevent passage of the Kessinger bill through that body. If the bill becomes law, grain traders can get an injunction to prevent its going into effect.

¶ The Board, as a threat, last week forbade trading in "futures" dated after Sept. 30. "Futures" are contracts for grain to be delivered at some later, specified date. "Futures" are at the same time the playthings of speculators and the instrument of legitimate trading.

¶ The state legislature is to consider a bill making grain elevators public utilities. All Illinois grain warehouses would be under joint control of the state and the Board of Trade.