Page 1 

Commodity Futures Trading Commission 

CEA CASES 

NAME: WAR FOOD ADMINISTRATOR V. MAURICE J. LEGARDEUR 

DOCKET NUMBER: 33 

DATE: FEBRUARY 10, 1944 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES OF AMERICA 

BEFORE THE WAR FOOD ADMINISTRATOR 

CE-A Docket No. 33 

War Food Administrator, Complainant v. Maurice J. LeGardeur, Respondent 

Complaint and Notice of Hearing under the Commodity Exchange Act 

The complainant, acting pursuant to the authority vested in him by Executive 

Order 9280, Executive Order 9322, Executive Order 9334, Executive Order 9392, 

and the Commodity Exchange Act (7 U.S.C. 1934 ed. Supp. V, § 1-17a), and having 

reason to believe that the respondent has violated certain provisions of the 

Commodity Exchange Act, issues this complaint against the respondent and alleges 

that: 

1. Respondent is, and was, at all times hereinafter mentioned, a member of 

the New Orleans Cotton Exchange, and duly registered as a floor broker under the 

provisions of the Commodity Exchange Act. 

2. The New Orleans Cotton Exchange, hereinafter referred to as the Exchange, 

is a Board of Trade under the provisions of the Commodity Exchange Act, and was, 

at all times hereinafter mentioned, duly designated as a contract market under 

the provisions of said Act. 

3. Beer & Company was, at all times hereinafter mentioned, a member of the 

Exchange and duly registered as a futures commission merchant under the 

provisions of the Commodity Exchange Act. 

4. Cotton is a commodity as defined in the Commodity Exchange Act. The May 

cotton futures contract with respect to which respondent became the seller, and 

the May cotton futures contract with respect to which the respondent became the 

buyer, as hereinafter alleged, were both contracts for the sale of a commodity 

for future delivery made on, and subject to the rules of, a contract market for 

and on behalf of another person, and such contracts were or might be used for 

(1) hedging a transaction in interstate commerce in cotton or the products or 

by-products of cotton, or (2) determining the price basis of a transaction in 

interstate commerce in cotton. 

5. On November 1, 1943, respondent received, for execution by him as a floor 

broker, an open order from Beer & Company to buy one May cotton futures contract 

on the Exchange at 19.44 cents per pound. The order was given by Beer & Company 

for its customer Otho Morris, of Tyler, Texas, who had placed the order with the 

Tyler, Texas office of Beer & Company. After the order was placed with the 

respondent, as aforesaid, the price of the May cotton future on the Exchange 

remained above 19.44 cents per pound until November 3, 1943. On that day, said 

future was traded on the Exchange at and below 19.44 cents per pound, and 

respondent filled said order by becoming the seller with respect thereto at a 

price of 19.44 cents per pound and reported the execution of the order at that 

price to Beer & Company. 
Page 2 

6. The respondent, with respect to the order alleged in paragraph 5 hereof, 

did willfully and knowingly and without the prior consent of the person for whom 

the order was to be executed, become the seller with respect to such buying 

order 

7. On November 3, 1943, respondent had, for execution by him as a floor 

broker, an order from Beer & Company to buy two July cotton future contracts and 

to sell two May cotton future contracts on the Exchange at the market. This 

order was given by Beer & Company for its customer R. C. Leftwich, of New 

Orleans, Louisiana, who had placed the order with Beer & Company at its New 

Orleans office. Respondent filled said order on November 3, 1943 by the 

purchase of two July cotton future contracts from Kohlmeyer, Newburger & 

Company, at 19.16 cents per pound, and the sale of one May cotton futures 

contract to Meric, Parduo & Company, at 19.34 cents per pound, and the sale of 

one May cotton futures contract to himself, as buyer, at 19.34 cents per pound. 

8. Respondent, with respect to the order alleged in paragraph 7 hereof, did 

willfully and knowingly and without the prior consent of the person for whom the 

order was to be executed, become the buyer with respect to said selling order to 

the extent of one May cotton futures contract. 

9. Respondent did, by the acts heretofore alleged, violate the provisions of 

section 4b(D) of the Commodity Exchange Act. 

WHEREFORE respondent is hereby notified to be, and appear before the Referee 

to be appointed by the War Food Administrator, at a hearing to be 

held at 10:00 a.m., on March 15, 1944 at Room 2867, South Building United States 

Department of Agriculture, Washington, D. C., or at such other times and places 

as may be determined by the Referee, and then and there show cause, if any there 

be, why an order shall not be made revoking or suspending the registration of 

respondent as a floor broker and requiring all contract markets to refuse 

respondent all trading privileges thereon for such period as may be specified in 

the order. 

IT IS ORDERED that this complaint and notice of hearing be served on the 

named respondent by delivery of a true copy hereof to him by an employee of the 

United States Department of Agriculture, or by registered mail, at least three 

days prior to the date herein set for hearing. 

(SEAL) 

Done at Washington, D. C., this 10th day of Feb., 1944. 

/s/ Ashley Sellers 

Assistant War Food Administrator 

LOAD-DATE: June 11, 2008 
Page 3