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Commodity Futures Trading Commission 

CEA CASES 

NAME: RALPH W. MOORE 

DOCKET NUMBER: 47 

DATE: MAY 27, 1948 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re Ralph W. Moore, Respondent 

CE-A Docket No. 47 

Complaint and notice of hearing under the Commodity Exchange Act 

The Secretary of Agriculture has reason to believe that the respondent, Ralph 

W. Moore, has violated the provisions of the Commodity Exchange Act (7 U.S.C., 

Chapter 1), and the rules and regulations made pursuant to its requirements, and 

has attempted to manipulate the market price of a commodity in interstate 

commerce or for future delivery on or subject to the rules of a board of trade. 

In accordance with the provisions of Section 6(b) of the Commodity Exchange Act 

(7 U.S.C. 9), this complaint is issued alleging as follows: 

1. 

The respondent, Ralph W. Moore, is an individual whose business address is 

1707 N Street, N. W., Washington, D. C. 

2. 

The Board of Trade of the City of Chicago, hereinafter called the Chicago 

Board of Trade, and the New York Cotton Exchange were, prior to the time of the 

transactions described in this complaint, duly designated as contract markets 

under the provisions of the Commodity Exchange Act and have been contract 

markets continuously since that time. 

3. 

Merrill Lynch, Pierce, Fenner & Beane (hereinafter referred to as Merrill 

Lynch), Daniel F. Rice & Company, Gerstenberg & Company, Harriss & Vose, Bache 

and Company, and Laidlaw & Company, were at all times mentioned in this 

complaint registered futures commission merchants under the provisions of the 

Commodity Exchange Act, 

4. 

During the period from January 2, 1946 to October 31, 1947, the respondent 

traded actively in commodity futures on and subject to the rules of boards of 

trade by means of accounts in his own name or under coded numbers to indicate 

his ownership, carried with Harriss & Vose, Daniel F. Rice & Company, 

Gerstenberg & Company, and Merrill Lynch. During the said period, extensive 

purchases and sales of commodities for future delivery, including approximately 

28,000 bales of cotton, 1,000,000 bushels of wheat, 3,900,000 bushels of oats, 

and 3,800,000 pounds of lard, were executed for the said accounts of the 

respondent with a resulting net profit in excess of $ 360,000. 

5. 

During the period from January 2, 1946 to October 31, 1947, the respondent 

also traded actively in commodity futures on and subject to the rules of boards 
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of trade by means of other accounts which he owned, in whole or part, or in 

which he controlled or directed trading, 

carried in the names of various persons and organizations, including Martin H. 

Heflin, Elizabeth H. Anderson, Marvin H. Colbert, Mrs. Alva Howell, Bertha 

Davis, Nina W. Laing, James E. McDonald, Carolyn McIntosh, Lois A. Moore, Lelia 

Moore, Ruth B. Aspinwall, Glenn Blackshear, William J. Goodwin, Harold B. 

McDonald, Carl Wilkens, and Farm Products Company. These accounts were carried 

by Daniel F. Rice & Company, Bache & Company, Laidlaw & Company, Harriss & Vose, 

and Merrill Lynch. During the said period, extensive purchases and sales of 

commodities for future delivery, including approximately 3,900 bales of cotton, 

135,000 bushels of wheat, 1,250,000 bushels of oats, and 3,500,000 pounds of 

lard were executed for the said accounts, with a resulting net profit of 

approximately $ 95,000. 

6. 

The respondent operated the accounts described in paragraphs 4 and 5, above, 

for the purpose and with the intent of evading the reporting requirements of the 

Commodity Exchange Act and the rules and regulations thereunder, in that, on the 

dates hereinafter set forth, accounts carried in the respondent's own name or 

under coded numbers designating his ownership, as described in paragraph 4 

above, either alone or in combination with accounts carried in the names of 

other persons or organizations, as described in paragraph 5 above, reached open 

contract positions which were required to be reported but which the respondent, 

with knowledge of the reporting requirements of the Commodity Exchange Act and 

in furtherance of the aforesaid purpose of evading such requirements, failed or 

refused to report. 

7. 

On October 1, 1947, the respondent was the owner of a commodity futures 

account carried in his own name on the books of Merrill Lynch. At the same time 

the respondent owned or had an interest in, or controlled or directed trading 

in, other commodity futures accounts carried by Laidlaw & Company and Merrill 

Lynch in the names of Ruth B. Aspinwall, Nina W. Laing, Elizabeth Anderson, 

Jerry Lesikar, James E. McDonald, Carolyn Mcintosh, and Carl Wilkens, and 

influenced or advised trading in other commodity futures accounts carried by 

Merrill Lynch in the names of E. Arline Hilyard and Edward L. Traylor. On or 

about October 1, 1947, when the net long position in lard futures contracts in 

the respondent's own account was 670,000 pounds, and when the aggregate net long 

position in lard futures contracts in all of the aforesaid accounts was 

1,900,000 pounds, the respondent prepared and circulated, or caused to be 

prepared and circulated, among representatives of the press, commodity brokerage 

firms, and other persons, a document purporting to be a memorandum to the press 

emanating from, or issued under the sponsorship or endorsement of, or from 

information furnished by, responsible officials of the Government of the United 

States, stating that the Government of the United States was about to undertake 

a heavy lard export program and that, as a consequence thereof, large purchases 

of lard by the United States Department of Agriculture were imminent, whereas, 

in truth and in fact, no such export program or purchases were planned or 

intended. The said document was not authorized, 

sponsored, or endorsed by any officer or employee of the United States 

Government nor based upon any information furnished to the respondent by any 

such officer or employee, out was false, misleading, and deceptive, and was 

issued by the respondent for the purpose and with the intent of causing an 

advance in the market price of lard, for the profit and enrichment of the 

respondent. By reason of such acts, the respondent attempted to manipulate the 

market price of lard in interstate commerce or for future delivery on or subject 
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to the rules of a board of trade, and knowingly caused to be delivered for 

transmission in interstate commerce false, misleading, and knowingly inaccurate 

reports concerning market information or conditions that tended to affect the 

price of lard in interstate commerce, all in violation of Sections 6(b) and 9 of 

the Commodity Exchange Act (7 U.S.C. 9, 13). 

8. 

On October 3, 1947, as the result of a purchase of November lard futures 

contracts executed on the Chicago Board of Trade by Merrill Lynch for the 

respondent's account, his net long position in November lard futures contracts 

on the Chicago Board of Trade reached 250,000 pounds, and remained at 250,000 

pounds continuously until October 14, 1947. On October 4, 6, 8, and 9, 1947. on 

which dates the respondent was in reporting status by reason of his position in 

November lard, purchases and sales of March and December lard futures contracts 

were executed on the Chicago Board of Trade by Merrill Lynch for the 

respondent's account. On October 14, 1947, as the result of a sale 

of November lard futures contracts executed on the Chicago Board of Trade by 

Merrill Lynch for the respondent's account, his net long position in November 

lard futures contracts on the Chicago Board of Trade was reduced to 200,000 

pounds. The respondent, although called upon to do so by representatives of the 

Commodity Exchange Authority, failed and refused to report to the Commodity 

Exchange Authority with respect to such purchases and sales and the open 

contracts held by him on the said dates, in violation of Section 4i of the 

Commodity Exchange Act and Sections 9.10, 9.11, and 9.21 of the rules and 

regulations. 

9. 

On August 21, 1947, as the result of a purchase of December wheat futures 

contracts executed on the Chicago Board of Trade by Gerstenberg & Company for 

the respondent's account, his net long position in December wheat futures 

contracts on the Chicago Board of Trade, as reflected on the books of Daniel F. 

Rice & Company and Gerstenberg & Company, reached 210,000 bushels and remained 

at 210,000 bushels continuously until September 2, 1947. On August 23, 26, 27, 

and 29, 1947, on which dates the respondent was in reporting status by reason of 

his position in December wheat, purchases and sales of September and May wheat 

futures contracts were executed on the Chicago Board of Trade by Daniel F. Rice 

& Company for the respondent's account. On September 2, 1947, as the result of 

a 

sale of December wheat futures contracts executed on the Chicago Board of Trade 

by Gerstenberg & Company for the respondent's account, his net long position in 

December wheat futures contracts on the Chicago Board of Trade was reduced to 

185,000 bushels. The respondent failed to report to the Commodity Exchange 

Authority with respect to such purchases and sales and the open contracts held 

by him on the said dates, in violation of Section 4i of the Commodity Exchange 

Act and Sections 2.10, 2.11 and 2.21 of the rules and regulations. 

10. 

On February 9, 1948, as the result of a sale of September wheat futures 

contracts executed on the Chicago Board of Trade by Gerstenberg & Company for 

the respondent's account, his not short position in September wheat futures 

contracts on the Chicago Board of Trade, as reflected on the books of Daniel F. 

Rice & Company and Gerstenberg & Company, reached 210,000 bushels and remained 

at 210,000 bushels continuously through February 11, 1948. On February 10, and 

11, 1948, on which dates the respondent was in reporting status by reason of his 

position in September wheat, purchases and sales of May and July wheat futures 

contracts were executed on the Chicago Board of Trade by Daniel F. Rice & 

Company and Gerstenberg & Company for the respondent's account. The respondent 
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failed to report to the Commodity Exchange Authority with respect to such 

purchases and sales and the open contracts held by him on the said dates, in 

violation of Section 4i of the Commodity Exchange Act and Sections 2.10, 2.11 

and 2.21 of the rules and regulations. 

11. 

On August 22, 1947. as the result of a purchase of December oats futures 

contracts executed on the Chicago Board of Trade by Daniel F. Rice & Company for 

the respondent's account, his net long position in December oats futures 

contracts on the Chicago Board of Trade, as reflected on the books of Daniel F. 

Rice & Company. Gerstenberg & Company, and Merrill Lynch, reached 200,000 

bushels and remained at 200,000 bushels until August 23, 1947. On August 23, 

1947, on which date the respondent was in reporting status by reason of his 

position in December oats, purchases and sales of May, September, and December 

oats futures contracts were executed on the Chicago Board of Trade by 

Gerstenberg & Company and Merrill Lynch for the respondent's account, and his 

net long position in December oats futures contracts on the Chicago Board of 

Trade was reduced to 190,000 bushels. The respondent failed to report to the 

Commodity Exchange Authority with respect to such purchases and sales and the 

open contracts held by him on the said dates, in violation of Section 4i of the 

Commodity Exchange Act and Sections 2.10, 2.11, and 2.21 of the rules and 

regulations. 

12. 

From July 31, 1947, to August 22, 1947, the respondent was the owner of 

commodity futures accounts carried in his own name on the books of Daniel F. 

Rice & Company, Gerstenberg & Company, and Merrill Lynch, and owned or had an 

interest in, or controlled or directed 

trading in, the commodity futures account of Elizabeth Anderson, carried on the 

books of Merrill Lynch. On July 31, 1947, as the result of a purchase of 

September oats futures contracts executed on the Chicago Board of Trade by 

Gerstenberg & Company for the respondent's account, the aggregate net long 

position in September oats futures contracts on the Chicago Board of Trade in 

the accounts of the respondent and the said Elizabeth Anderson reached 200,000 

bushels and remained at 200,000 bushels continuously until August 4, 1947. On 

August 1, August 2, and August 4, 1947, on which dates the respondent was in 

reporting status by reason of his position in September oats, purchases and 

sales of September and December oats futures contracts were executed on the 

Chicago Board of Trade by Daniel F. Rice & Company and Merrill Lynch for the 

accounts of the respondent and of the said Elizabeth Anderson, and on August 4, 

1947, the aggregate net long position in September oats futures contracts on the 

Chicago Board of Trade in such accounts was reduced to 170,000 bushels. On 

August 20, 1947, as the result of a purchase of December oats futures contracts 

executed on the Chicago Board of Trade by Daniel F. Rice & Company for the 

respondent's account, the aggregate net long position in December oats futures 

contracts on the Chicago Board of Trade in the accounts of the respondent and 

the said Elizabeth Anderson reached 205,000 bushels. The respondent failed to 

report to the Commodity Exchange Authority with respect to such purchases and 

sales and the open contracts held or controlled 

by him on the said dates, in violation of Section 4i of the Commodity Exchange 

Act and Sections 2.10, 2.11, and 2.21 of the rules and regulations. 

13. 

From July 11, 1947, through October 18, 1947, the respondent was the owner of 

a commodity futures account carried in his own name on the books of Merrill 

Lynch, and owned or had an interest in, or controlled or directed trading in, 
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the Commodity futures accounts of Lois Moore, Elizabeth Anderson, William J. 

Goodwin, James E. McDonald, Ruth B. Aspinwall, and Glenn Blackshear, carried on 

the books of Laidlaw & Company and Merrill Lynch. 

(a) On July 11, July 26, August 8, and September 2, 1947, respectively, as 

the result of purchases of lard for future delivery executed on the Chicago 

Board of Trade for the respondent's account or for the account of one or more of 

the persons above named, or both, the aggregate net long position in lard 

futures contracts on the Chicago Board of Trade in such accounts was increased 

from a quantity less than 250,000 pounds in a particular future to a quantity 

equal to or in excess thereof. On July 24, August 1, August 29, and October 18, 

1947, respectively, as the result of purchases and sales of lard for future 

delivery executed on the Chicago Board of Trade for the respondent's account or 

for the account of one or more of the persons above named, or both, the 

aggregate net long or net short position in lard futures contracts on the 

Chicago Board of Trade 

 

in such accounts was reduced from a quantity equal to or in excess of 250,000 

pounds in a particular future to a lesser quantity. The respondent failed to 

report to the Commodity Exchange Authority with respect to such purchases and 

sales and the open contracts held or controlled by him on the said dates, in 

violation of Section 4i of the Commodity Exchange Act and Sections 9.10, 9.11, 

and 9.21 of the rules and regulations. 

(b) By reason of the aforesaid purchases and sales and the resulting 

increases or decreases in position, the respondent was in reporting status from 

July 11 through July 24, 1947, from July 26 through August 1, 1947, from August 

8 through August 29, 1947, and from September 2 through October 18, 1947. On 

July 31, August 14, 23, 25, 26, 27, 28, September 4, 6, 8, 9, 10, 12, 

1[ILLEGIBLE TEXT], 19, 20, 22, 23, 25, 29, 30, and October 1, 2, 17, & 18, 1947, 

on each of which dates the respondent was in reporting status as above 

described, additional purchases and sales of lard for future delivery were 

executed on the Chicago Board of Trade for the respondent's account or for the 

account of one or more of the persons above named, or both. The respondent 

failed to report to the Commodity Exchange Authority with respect to such 

purchases and sales and the open contracts held or controlled by him on the said 

dates, in violation of Section 4i of the Commodity Exchange Act and Sections 

9.10, 9.11, and 9.21 of the rules and regulations. 

14. 

On December 18, 1947, the respondent had a commodity futures account in his 

own name, owned or had an interest in, or controlled or directed trading in, the 

Commodity futures account of Lois Moore, his wife, and also owned an interest in 

the commodity futures account of the Farm products Company, all of which 

accounts were carried by Harriss & Vose. On the said date, as the result of 

sales of December cotton futures contracts executed on the New York Cotton 

Exchange by Harriss & Vose for the respondent's account and for the account of 

the said Lois Moore, the aggregate net short position in December cotton futures 

contracts on the New York Cotton Exchange in the accounts of the respondent and 

the said Lois Moore reached 7400 bales, by reason of which the respondent became 

subject to the requirement that he report to the Commodity Exchange Authority 

with respect to the open contracts in all cotton futures in his own account, in 

the account of the said Lois Moore, and in the account of the said Farm Products 

Company, to the extent of his interest in or control of such accounts, as 

required by Section 4i of the Commodity Exchange Act and Sections 3.10, 3.11, 

and 3.21 of the rules and regulations. The respondent failed to make such 

report to the Commodity Exchange Authority, in violation of the aforesaid 

sections of the Commodity Exchange Act and of the rules and regulations. 
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Therefore, the said respondent, Ralph W. Moore, is hereby notified to be and 

appear at a hearing to be held at 10 o'clock, a.m., e.d.s.t., on the 7th day of 

July, 1948, in Room 144-[ILLEGIBLE TEXT], Administration Building, United States 

Department of Agriculture, before a referee designated to conduct such hearing 

and then and there show cause, if any there be, why an order should not be made 

directing that all contract markets refuse all trading privileges to the said 

respondent until further notice by the Secretary of Agriculture. 

The respondent will have 20 days after the receipt of this notice of hearing 

in which to file with the Secretary of Agriculture, in triplicate, an answer 

fully and completely stating the nature of the defense and admitting or denying 

specifically and in detail each material and relevant allegation of this 

complaint. Allegations that are not answered will be deemed admitted for the 

purpose of this proceeding. 

It is ordered that this complaint and notice of hearing be served on the 

respondent by delivery of a true copy thereof by an employee of the Department 

of Agriculture, or by registered mail, at least 20 days prior to the date set 

for hearing. 

Done at Washington, Do C., this 27th day of May 1948. 

/s/ N. E. Dodd 

Acting Secretary of Agriculture 

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