CHAPTER NO. 94.

HOUSE BILL No. 759.

(By Mr. Bond of Haywood County.)

A BILL to be entitled an Act to amend Section 1 of an Act of the Legislature of Tennessee passed April 23rd, 1909, and being Chapter 277 of the Acts of said year, entitled An Act to prohibit the maintenance of a bucket shop, office, store or other place wherein is conducted or permitted the pretended buying or selling of the shares of stock or bonds of any corporation, or petroleum, cotton, grain, provisions, or other produce, either on margin or otherwise, without any intention of receiving or paying for the property so bought or of delivering of the property so sold, and defining a bucket shop; to declare the maintenance of such offices or agencies a misdemeanor; to define what shall constitute prima facie evidence of guilt; to give grand juries inquisitorial powers thereof, and to fix the punishment therefor and to define what shall be a lawful and enforceable contract for the purchase and sale of stocks, bonds, grain, cotton, provisions, or other products, for immediate or future delivery, and to define the rights of such brokers, or agents or merchants, as may be employed in connection with such contracts or transactions, and to repeal all laws or parts of laws in conflict with the provisions of this Act.

Be it enacted by the General Assembly of the State of Tennessee, That Section 1 of Chapter 277 of the Acts of 1909 of the Legislature of Tennessee be, and the same is now hereby amended so as to read as follows:

defined.

That a bucket shop within the meaning of this Act is defined to be an office, store, or other place wherein the proprietor or keeper thereof, or other "Bucket shop.' person or agent either in his or its behalf, or as an agent or correspondent of any other person, corporation, association, or co-partnership within or without the State, conducts the business of making or offering to make contracts, agreements, trades or transactions respecting the purchase or sale or purchase and sale of any stocks, grains, provisions or other commodity or personal property wherein both parties thereto, or said proprietor or keeper contemplated or intended that the contracts, agree

liveries.

ments, trades or transactions shall be or may be
closed, adjusted, or settled according to or on the
basis of the market quotations or price made on
any Board of Trade or Exchange upon which the
commodities or securities referred to in such con-
tracts, agreements, trades or transactions are dealt
in and without a bona fide transaction on such Board
of Trade or Exchange, and the maintenance of any
such office, store or other place of business, and the
making of such contracts or agreements shall be
and the same are declared illegal and unlawful. The
said crime shall be complete against any proprie-
tor, person, agent or keeper thus offering to make
any such contracts, trades or transactions, whether
such offer is accepted or not. It is the intention of
this Act to prevent, punish and prohibit within this
State, the business now engaged in and conducted
in places commonly known and designated
"bucket shops," and also to include the practice now
commonly known as "bucket shopping" by any per-
son or persons, agents, corporation, association or
co-partnership who or which ostensibly carry on
the business or occupation of commission merchants
or brokers in grain, provisions, cotton, coffee, pe-
troleum, stocks, bonds or other commodities what-

soever.

as

Provided, however, that nothing herein shall be construed to forbid or to declare unlawful the business of receiving and executing orders to buy or Immediate de- sell for immediate or future delivery any of the property or commodities set out in the preamble of this Act, where the individual, firm or corporation receiving such order shall act solely and exclusively as an agent, broker, or commission merchant, for the individual, firm, or corporation giving such order, and where the agent, broker or commission merchant receiving such order shall either in person or through another agent execute the same upon, and in accordance with the rules and regulations of any legitimate produce, stock or cotton exchange or Board of Trade or other similar body, located either within or without this State,

where bona fide trading in these commodities or property is actually carried on, where the rules or regulations thereof forbid the practice or mode of trading hereinbefore declared to be unlawful, and where said rules or regulations require both the buyer to accept and the seller to make delivery upon all transactions entered into upon said exchange, or Board of Trade, and all such transactions are hereby declared to be lawful and enforceable, and provided further, that no such contract for the purchase or sale as aforesaid, executed as aforesaid upon any legitimate Exchange or Board of Trade, shall be deemed unlawful as lacking the essential elements of an actual delivery thereon, for the reason that said contract has been subsequently offset or settled between the members of such Exchange or Board of Trade with or through whom any such contract or contracts were made or executed, where the only effect of said offset or settlement has been to substitute other parties, either as buyers or sellers, for those with or through whom the transaction was originally made, and, provided further, Orders executthat any such order to buy or sell the property or change or commodities as aforesaid, when executed by an agent, broker or commission merchant, either in person or through another agent, broker or commission merchant, upon such legitimate Exchange or Board of Trade as aforesaid shall be deemed the contract of the principal who originally gave such order, whether the contract made on such Exchange or Board of Trade in executing said order, be in the name of the principal or of said agent, broker or commission merchant receiving said order, or in the name of said agent, broker or commission merchant executing the same, and said agent, broker, or commission merchant shall not be liable for any moneys lost by said principal on any such contract to buy or sell as aforesaid made as aforesaid by such agent, broker or commission merchant for the account of such principal in any suit, either at law or equity. The plain intent of this Section as amended is while declaring unlawful all the transactions

ed on Ex

Board of

Trade.

conducted in and through a bucket shop as described and defined herein, to make lawful and enforceable and to withdraw from the provisions of the gaining and wagering statutes of this State, all transactions executed upon and in accordance with the rules of a legitimate produce, stock or cotton exchange or Board of Trade, and this Act shall be liberally construed at all times so as to effectuate this object, and to that end all laws and parts of laws in conflict with the provisions of this Act are repealed.

This Act shall take effect from and after its passage, the public welfare requiring it.

(By Messrs. Louthan, Gwinn and Houk.)

AN ACT to confer upon manufacturing companies created and incorporated under the laws of this State, the right and power to manufacture and generate electrical energy for lighting, heating and power purposes, to deal in and vend the same to other persons, firms or corporations, and to purchase, own and hold lands, water rights and water power therefor.

SECTION 1. Be it enacted by the General Assembly of the State of Tennessee, That all manufacturing companies now or hereafter created and organized under the laws of this State, whether operated by steam or water power, shall have and exercise the right and power to manufacture and generate electrical energy, for lighting, heating and power purposes, and to deal in and vend such electrical energy to other persons, firms or corporations, and

to purchase, own and hold lands, water rights and water power for such purposes, in as full and the same manner as though the specific rights were incorporated in their several charters.

Provided, however, when such manufacturers engage in the business aforesaid, of furnishing to the public electrical energy for lighting, heating and power purposes, they shall be subject in so doing to the powers vested by law in the Railroad and Public Utilities Commission of the State of Tennessee and to all rules and regulations that may be prescribed by said Commission under such power.

SEC. 2. Be it further enacted, That this Act take effect from and after its passage, the public welfare requiring it.

(By Mr. Turner, Gibson County.)

AN ACT to provide for a State Police to be known as "The Tennessee State Police," to be appointed by the Governor and to define the powers and duties of such police, and prescribing penalties.

SECTION 1. Be it enacted by the General Assembly of the State of Tennessee, That there be, and is hereby created a State Police Force, to be designated "Tennessee State Police," consisting of not more than 600 regular officers, of the following numbers. and grades: Ten District officers, one of whom shall be assigned by the Governor to each of the con