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days in each house be suspended, and that this Act take effect from and after its passage, and it is so enacted.
[NOTE.—The enrolled bill shows that the foregoing act passed the House of Representatives by a two-thirds vote, yeas 103, nays 0; and passed the Senate by a two-thirds vote, yeas 24, nays 0.]
Approved April 6, 1907.
BUCKET SHOPS-DEFINING AND PROHIBITING SAME.
S. B. No. 50.]
An Act to prohibit bucket shops, to define "Bucket Shops"; to define "futures,"
"dealing in futures" and "future contracts;" to prohibit the making of future contracts, except as herein provided; to prohibit renting property to be used for carrying on bucket shops, or knowingly permitting the same to be so used; to prohibit any one from acting as the agent or broker of any other person in making any future contract; to prohibit any person from making any future contract for himself; to prohibit telegraph or telephone companies from allowing their wires or instruments to be used by or remain in any bucket shop; to prescribe penalties for the violation of this act; to provide for procedure in the trial of causes arising under this act, and to exempt from prosecution per
sons testifying as to violations of this act. Be it enacted by the Legislature of the State of Texas :
SECTION 1. A bucket shop, within the meaning of this Act, is any place wherein dealing in futures is carried on contrary to any of the provisions of this Act.
SEC. 2. By each of the expressions, “futures," "dealing in futures," and "future contracts," as these terms are used in this Act, is meant: 1st. A sale or purchase, or contract to sell or any offer to sell or purchase any cotton, grain, meat, lard or any stocks or bonds of any corporation to be delivered in the future when it was not the bona fide intention of the party being prosecuted under this Act, at the time that such sale, contract, purchase, or offer to sell or purchase, was made that the thing mentioned in such transaction should be delivered and paid for as specified in such transaction. 2nd. Any such sale, purchase, offer, or contract where it was the intention of the party being prosecuted hereunder at the time of making such contract or offer that the same should, or, at the option of either party might be settled by paying or receiving a margin or profit on such contract. 3rd. Any purchase, sale or offer of sale or purchase, or contract for future delivery of any of the things mentioned in this section of this act on, by or through any exchange or board of trade, the rules, bylaws, customs or regulations of which permit such contract or transaction to be settled or closed by delivery or tender of any grade or grades of the thing mentioned in such contract or transaction, other than the grade upon which the price is based in said transaction, at any price other than the actual price for spot delivery of such other grade or grades at the time and place of delivery or tender.
SEC. 3. If any person shall, either directly or indirectly, carry on or conduct, or be in any wise interested in carrying on or conducting, any bucket shop, he shall be punished by two years confinement in the penitentiary
SEC. 4. If any owner or person in the management or control of any property shall knowingly rent or lease the same to be used as a bucket shop, or shall knowingly permit the same to be used, he shall be fined not less than One Hundred, nor more than Two Thousand Dollars, and may in addition thereto, be confined in the county jail not less than one nor more than six months.
SEC. 5. If any person shall act or offer to act as the agent or broker of any other person in making or offering to make any future contract, he shall be fined not less than One Hundred nor more than Two Thousand Dollars, and shall be confined in the county jail not less than one nor more than six months.
SEC. 6. If any person shall make or offer to make for himself any future contract, he shall be fined not less than One Hundred nor more than Five Hundred Dollars and may be confined in the county jail not less than ten nor more than thirty days; provided, it may be shown in defense of any prosecution under this section of this act that the transaction out of which such prosecution arose was a "hedging" contract between parties in this State and a party or parties without this State and if such contract was made in whole or in part by any message sent by telegraph or telephone, that such message was delivered to the telegraph or telephone company sending the same by the defendant himself, and not through or by any broker or agent, and that such company rendering such service was a common carrier, exclusively so engaged, with no direct or indirect connection with or interest in such transaction other than the transmission of such message and receiving the charges therefor which are not in excess of the usual rate for commission messages between the points of transmission and receipt of such message.
SEC. 7. If any telegraph or telephone company, or any agent thereof shall knowingly permit any telegraph or telephone wire, or instrument to remain in any bucket shop or shall knowingly permit any of the wires, instruments or equipments of such telegraph or telephone company, to be used by any person engaged in any business rendered unlawful by this Act, whether or not the same be leased by the person or persons so illegally using the same, such company or agent shall be fined not less than One Hundred nor more than One Thousand Dollars and each day that this section of this Act is violated, shall constitute a separate offense.
SEC. 8. In any prosecution under this Act in which it shall be a material issue as to whether or not in the offer to or contract to sell or purchase for future delivery anything mentioned in this Act, it was the intention of the defendant that such thing should be delivered and paid for in accordance with the terms of such offer or contract, proof by the State that such contract was for the future delivery of such thing, shall constitute a prima facie case for the State on this issue, and the burden shall be upon the defendant to prove that the thing so contracted for, or offered to be contracted for, was in fact delivered in accordance with the terms of such contract, or that it was the bona fide intention of the defendant at the time of making such contract, that such thing should be so delivered, and the Court trying the case shall so charge the jury.
SEC. 9. If in any prosecution under this Act, it shall be a material issue as to whether or not the rules, regulations, by-laws or customs of any exchange or board of trade on, by or through which any contract or offer for future delivery was made, permitted such contract or transaction to be settled or closed by the delivery or tender of any grade or grades of the thing mentioned in such contract or transaction, other than the grade upon which the price was based in said transaction, at any price other than the actual price for spot delivery of such other grade or grades at the time and place of such delivery or tender, proof that the same was made or offered or pretended to be made by, through or upon any exchange or board of trade shall constitute a prima facie case for the State.
SEC. 10. No person shall be exempt from testifying as to any violation of the provisions of this Act by reason of being himself guilty of such violation, but no person called by the State or a grand jury to testify shall be prosecuted for any violation of any of the provisions of this Act, testified to by such person.
SEC. 11. The habitual use, actual, threatened or contemplated of any premises, place or building or telegraph or telephone wires or instruments in violation of any of the prohibitions of this Act, shall be enjoined at the suit of either the State or any citizen thereof.
SEC. 12. The Attorney General or the several district and county attorneys shall prosecute all suits, deemed by them necessary to enjoin such use; provided, that nothing herein shall prevent such injunction from issuing at the suit of any citizen of this State who may sue in his own name, and such citizen shall not be required to show that he is personally injured by the acts complained of.
Sec. 13. The procedure in all cases brought under the two preceding sections of this Act, shall be the same as in other suits for injunction as near as may be, provided, that when such suit is brought by any district or county attorney or by the Attorney General, the petition for injunction need not be verified.
SEC. 14. The fact that there is now no adequate law to prevent dealing in futures and the further fact that the prices of agricultural and farm products are greatly depressed by such gambling transactions and that such transactions are against good morals and contrary to public policy, and the fact of the near approach of the final adjournment of the present session of the Legislature, creates an imperative public necessity that the Constitutional rule requiring bills to be read on three several days be and the same is hereby suspended and that this bill take effect from and after its passage, and it is so enacted.
Approved April 10, 1907.
CORPORATIONS_RELATING TO FINES, PENALTIES AND
FORFEITURES DUE THE STATE OF TEXAS.
S. B. No. 164.]
CHAPTER LXXXVII. An Act relating to fines, penalties and forfeitures due or to become due to the
State of Texas by foreign or domestic corporations; to provide for the securing and enforcement of payment thereof; to fix liens upon the property of such corporation to secure payment thereof; to provide for the survival of actions and causes of action in case of the dissolution or forfeiture of charter or cancellation of permits of such corporation; to provide for the appointment of receivers; fixing venue; providing that this act shall be cumulative of all other
laws in force in this State, and declaring an emergency. Be it enacted by the Legislature of the State of Texas :
SECTION 1. Whenever any corporation created under ihe laws of this State, or any foreign corporation authorized to do business in this State, shall violate any law of this State, including any law against trusts, monopolies and conspiracies, or combinations or contracts in restraint of trade, for the violation of which fines or penalties or forfeitures are provided, all property of such corporation within this State at the time of such violation, or which may thereafter come within this State, shall, by reason of such violation, become liable for such fines or penalties and for all costs of suit and of collection, and the State of Texas shall have a lien on all such property from the date that suit shall be instituted by the Attorney General or District or County Attorney acting under his direction in any court of competent jurisdiction within this State for the purpose of forfeiting the charter or cancelling the permit of such corporation, or for such fines or penalties. The institution of such suit for such fine, penalties or forfeiture shall constitute notice of such lien. Where any such law has heretofore been violated, or shall be violated before the taking effect of this act, and a cause of action exists for such fine, penalties or forfeiture, or shall come into existence before the taking effect of this act, and suit shall be filed in such case, the State shall have a lien to secure the payment of such fine, penalties and costs from the time this act shall take effect on all property of such corporation within this State or which shall thereafter become or be brought within the State.
SEC. 2. Any action or cause of action for any fine, forfeiture or penalty that the State of Texas has or may have against any corporation chartered under the laws of this or any other State, Territory or Nation, shall not abate or become abated by reason of the dissolution of such corporation, whether voluntary or otherwise, or by the forfeiture of its charter. Whenever a corporation against which the State has heretofore instituted suit, or shall hereafter institute suit, for forfeiture of its charter, or cancellation of its permit, or for fines or penalties under any law of this State, shall dissolve in this or any other State, or shall have a judgment rendered against it in this or any other State, for the forfeiture of its charter, the court in this State in which such suit is pending shall appoint a receiver for the property and business of such corporation within this State or that may come or be brought within this State during such receivership, or the court may, in any case wherein the State is suing any such corporation for the forfeiture of its charter, or of its permit to do business in this State, or for fines or penalties, appoint a receiver for such corporation, whenever the interest of the State may seem to require such action. If such dissolution shall take place or judgment of forfeiture be rendered against such corporation before this act takes effect, the court shall, upon the taking effect of this act, appoint a receiver for the property and business of such corporation in this State; and the State shall have the right to the writs of attachment, garnishment, sequestration or injunction, without bond, to aid in the enforcement, of its rights created by this act; and all property that may come into the possession of any receiver appointed under the provisions of this act, not otherwise exempt by law, shall be subject to the lien herein created, and for the payment of any such fine or penalty.
SEC. 3. The Attorney General, or any District or County Attorney acting under his direction, may bring suit in the name of the State of Texas for the foreclosure of such lien in the District Court of any County in the State of Texas, and in case the suit for foreclosure should be brought against any corporation which has dissolved or had a judgment for the forfeiture of its charter or the cancellation of its permit rendered against it, pending any suit by the State of Texas against such corporation for the forfeiture of its charter or cancellation of its permit or for penalties or fines, service may be had upon any person within this State who acted and was acting as agent of any such corporation in this State at the time of such dissolution or. forfeiture of charter or cancellation of permit.
SEC. 4. The rights and remedies given by this act shall be construed as cumulative of all other laws in force in this State, and shall not affect, change or repeal any other remedies or rights now existing in this State for the enforcement, payment or collection of fines, penalties and forfeitures.
SEC. 5. In case any suit should heretofore be brought in any of the courts of this State for the recovery of penalties mentioned in this act, the same shall not be settled or compromised without trial upon the merits thereof without the consent and approval of the Attorney General of the State.
SEC. 6. The fact that there is no law that prevents the abatement of actions or causes of action for fines and penalties when corporations becoming liable for same shall dissolve or be dissolved by the forfeiture of their charters, or cancellation of their permits, and the fact that there is no adequate remedy for the collection and enforcement of such fines and penalties, creates an emergency and an imperative public ncessity demanding that the Constitutional rule requiring bills to be read on three several days in each house be suspended, and it is so suspended, and that this act shall take effect and be in force from and after its passage, and it is so enacted.
[NOTE.—The enrolled bill shows that the foregoing act passed the Senate with the following vote, yeas 27, nays 0); and passed the House of Representatives with the following vote, yeas 93, nays 0.]
Approved April 11, 1907.