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Commodity Futures Trading Commission 

CEA CASES 

NAME: SECRETARY OF AGRICULTURE V. PARIS G. HUGHER 

DOCKET NUMBER: 13 

DATE: JULY 13, 1939 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES OF AMERICA 

BEFORE THE SECRETARY OF AGRICULTURE 

C. E. A. DOCKET NO. 13 

Secretary of Agriculture, Complainant, v. Paris G. Hughes, Respondent. 

Complaint and Notice of Hearing Under the Commodity Exchange Act. 

There being reason to believe that the respondent hereinafter named has 

violated and is violating the Commodity Exchange Act (7 U. S. C., 1934 ed., and 

Supp. IV, § 1-17a), and the rules and regulations promulgated pursuant thereto, 

this complaint is issued allaging the following: 

1. 

Paris G. Hughes is an individual trading and doing business under the firm 

name and style of Hughes and Company at Great Falls, Montana, and has been 

continously registered with the Secretary of Agriculture as a futures commission 

merchant since June 1, 1938. 

2. 

From June 1, 1938, to April 30, 1939, the respondent acting by and through 

the means of Hughes and Company, a sole proprietorship owned by the respondent, 

has engaged as a futures commission merchant in 

soliciting orders for the purchase and sale of commodities for future delivery 

involving contracts of sale of such commodities for future delivery, on or 

subject to the rules of the Board of Trade of the City of Chicago, a contract 

market designated by the Secretary of Agriculture pursuant to the provisions of 

the Commodity Exchange Act, and while so engaged failed to keep proper records 

of commodity futures transactions as required by Section 4g of the Commodity 

Exchange Act and Sections 32, 33 and 34 of the Rules and Regulations promulgated 

pursuant thereto. 

3. 

The respondent was a correspondent of Louis N. Ritten and Company, 

Minneapolis, Minnesota; Winthrop, Mitchell and Company, Chicago, Illinois; and 

Moore, McLean and McDermott, Chicago, Illinois, member firms of contract 

markets, from June 1, 1938, to April 30, 1939, and during that period, in 

connection with orders to make and the making of futures contracts for the 

commodities named in the Commodities Exchange Act on contract markets, which 

contracts may be used for hedging or determining the price basis of transactions 

in interstate commerce in the commodities involved, attempted to and did cheat 

and defraud persons for whom such contracts were made, wilfully made and caused 

to be made misleading and false reports and statements concerning such contracts 

to such persons, and wilfully attempted 
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to and did deceive such persons in regard to such contracts and acts of agency 

performed with respect to such contracts by reporting to such persons the 

execution of such contracts by or though a clearing member of the Board of Trade 

of the City of Chicago, when, in fact, such contracts were not so executed, and 

falsely reporting the prices at which orders were executed, and falsely 

reporting the prices at which orders were executed, all in violation of the 

Commodity Exchange Act and the Rules and Regulations promulgated pursuant 

thereto. 

4. 

The respondent, while a correspondent of member firms of contract markets, in 

connection with orders to make and the making of futures contracts for 

commodities named in the Commodity Exchange Act on contract market, which 

contracts may be used for hedging or determining the price basis of transactions 

in interstate commerce in commodities involved, between June 1, 1938, anf April 

30, 1939, and on various dates, including June 14, 15, 21, 22, and 24, 1938; 

August 1, 23, 24, 25, and 26, 1938; September 15, 1938; December 6, 7, 9, and 

29, 1938; January 3, 9, 14, 21, and 25, 1939, bucketed such orders by confirming 

the execution thereof to various customers, including Deardorff and Lewis, 

Brady, Montana; Henry Kampsnider, Great Falls, Montana; T. A. Warren and/or 

Helen Warren, Great Falls, Montana; R. Winger, Carter, Montana, when, in fact, 

the orders were not executed on a contract market but were held by the 

respondent for his own 

account, in violation of Section 4b, subsection D of the Commodity Exchange Act. 

5. 

The respondent, from June 1, 1938, to April 30, 1939, conducted an office or 

place of business at Great Falls, Montana, for the purpose of soliciting or 

accepting orders for the purchase or sale of commodities for future delivery, 

and conducting dealings in commodities for future delivery that could be used 

for hedging or determining the price basis for such transaction in interstate 

commerce, and executed or consummated such orders, contracts, or dealings 

otherwise than by or through a member of a contract market, in violation of 

Section 4h, subsection (1) of the Commodity Exchange Act. 

6. 

The respondent, during the times hereinbefore mentioned, delivered for 

transmission through the mails or in interstate commerce by other means of 

communication, confirmations of the execution of and reports of the price of 

contracts of sale of commodities for future delivery on or subject to the rules 

of the Board of Trade of the City of Chicago when such contracts were not made 

by or through a member of a board of trade which had been designated by the 

Secretary of Agriculture as a contract market, all in violation of Section 4 of 

the Commodity Exchange Act. 

THEREFORE, the respondent is hereby notified to be and appear before a 

referee to be appointed by the Secretary of Agriculture at a hearing to be held 

at 10:00 a.m. on July 26, 1939, in Room 1831, South Building, 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 the registration of the respondent as a 

futures comission merchant, and directing that all contract markets, until 

further notice of the Secretary of Agriculture, refuse all trading privileges to 

the respondent. 

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 

Department of Agriculture or by registered mail, at least three days prior to 

the date herein set for hearing. 
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Done at Washington, D. C., this 13th day of July, 1939. Witness my hand and 

the seal of the Department of Agriculture. 

[SEE SIGNATURE IN ORIGINAL] 

Acting Secretary of Agriculture. 

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