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Commodity Futures Trading Commission 

CEA CASES 

NAME: SECRETARY OF AGRICULTURE V. H. H. HEARD 

DOCKET NUMBER: 9 

DATE: OCTOBER 10, 1938 

DOCUMENT TYPE: DECISION AND ORDER 

DEPARTMENT OF AGRICULTURE 

WASHINGTON 

UNITED STATES OF AMERICA 

BEFORE THE SECRETARY OF AGRICULTURE 

C. E. A. DOCKET NO. 9 

Secretary of Agriculture, Complainant, v. H. H. Heard, Respondent. 

Proceedings, Findings of Fact, Conclusions, and Order. 

Proceedings 

On August 31, 1938, complaint was issued by the Acting Secretary of 

Agriculture, pursuant to the provisions of the Commodity Exchange Act (7 U. S. 

C. and Supp. III, Secs. 1-17a), against H. H. Heard, respondent. In the 

complaint it was alleged that respondent is an individual registered with the 

Secretary of Agriculture as futures commission merchant under the act for the 

period ending December 31, 1938, that from January 1, 1938, to June 23, 1938, he 

engaged as futures commission merchant without segregating the funds of 

customers as required by the act, and that his failure to segregate resulted in 

shortages of various amounts in segregated funds on various dates. Respondent 

was notified to appear at a hearing in Washington on September 10, 1338, before 

a referee, to show cause why an order should not be made revoking his 

registration and directing all contract markets to refuse him trading 

privileges. 

The complaint was served upon respondent by registered mail. There after, 

the hearing was postponed to September 22, 1938, and respondent was notified of 

the postponement. Before that date, respondent in writing admitted the facts 

alleged, waived formal hearing stated that he had closed out his business to the 

entire satisfaction of all customers stated that the violations were 

unintentional and due to unfamiliarity with requirement and asked that the 

notice to contract markets be withheld. By asking that notice be withheld, 

respondent probably intended to request that contract markets not be required to 

refuse respondent all trading privileges thereon. 

In view of respondent's waiver, no formal hearing was held. 

Findings of Fact 

The Secretary of Agriculture finds. 

1. H. H. Heard, respondent, an individual whose address is Florence. South 

Carolina, registered with Secretary as future commission merchant 

for the period ending December 31, 1938, and such registration has not 

herebefore been suspended or revoked. 

2. Continuously from January 1, 1938, to June 23, 1938, respondent engaged as 

futures commission merchant in soliciting and accepting orders for the purchase 
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and sale of commodities named in the Commodity Exchange Act for future delivery 

on and subject to the rules of contract markets, accepting money in connection 

with such solicitation and acceptance of orders, without segregating the funds 

of customers as required by the act. 

3. Respondent's failure to segregate resulted in shortages in customers' 

segregated funds of $ 2,150.21 on February 28, 1938, $ 2,010.23 on March 31, 

1938, $ 146, 29 on April 30, 1938, $ 177.72 on May 31, 1938, and various other 

amounts on other dates during the period concerned. 

Conclusions

The record shows that respondent violated the act. It is deemed necessary, 

therefore, to revoke his registration, but as it is indicated that commodity 

customers have been paid in full and that respondent has discontinued his 

commodity futures business, it is not deemed necessary to deny him trading 

privileges on contract markets. 

Order

IT IS HEREBY ORDERED that the registration of H. H. Heard as futures 

commission merchant for the period ending December 31, 1938, be, and it is 

hereby, revoked. 

IT IS FURTHER ORDERED that a copy hereof be sent by registered mail to the 

respondent, and a copy to each contract market. 

(SEAL) 

IN WITNESS WHEREOF, the Secretary of Agriculture has hereunto set his hand 

and caused the official seal of the Department of Agriculture to be affixed 

hereto in the city of Washington, District of Columbia, this 10th day of October 

1938. 

H. A. WALLACE 

Secretary of Agriculture. 

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