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Commodity Futures Trading Commission 

CEA CASES 

NAME: MORRIS F. SHIPPER 

DOCKET NUMBER: STIPULATION 3 

DATE: JULY 27, 1945 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

UNITED STATES OF AMERICA 

BEFORE THE SECRETARY OF AGRICULTURE 

In re Morris F. Shipper 321 South Seminary Street Florence, Alabama 

Stipulation of Compliance Under the Commodity Exchange Act No. 3 

WHEREAS, the Secretary of Agriculture has reason to believe that Morris F. 

Shipper has violated the Commodity Exchange Act, as amended, and the rules and 

regulations of the Secretary of Agriculture promulgated thereunder; and WHEREAS, 

no complaint has been filed with respect to said violation and said Morris F. 

Shipper desires to enter into a stipulation pursuant to the provisions of 

Section 0.4 (a) of the rules of practice under the Commodity Exchange Act: Now, 

therefore, the said Morris F. Shipper admits that the following facts are true: 

(1) That, at all times hereinafter mentioned, Morris F. Shipper was operating 

under the trade name of Shipper Cotton Company, a sole proprietorship, and doing 

business as a spot cotton merchant and soliciting and accepting orders for the 

execution of cotton futures contracts on duly designated contract markets; 

(2) That, at all times hereinafter mentioned, Morris F. Shipper was a member 

of the New York Cotton Exchange, a duly designated contract market under the 

provisions of the 

Commodity Exchange Act, as amended, and was registered as futures commission 

merchant under the provisions of the Commodity Exchange Act, as amended; 

(3) That, on various dates including the period between May 13, 1942, and 

August 13, 1942, and the period between September 28, 1944, and January 29, 

1945, Morris F. Shipper accepted orders from the customers listed below for the 

execution of contracts for the sale of cotton for future delivery made on or 

subject to the rules of a contract market, which futures contracts were or might 

have been used for (1) hedging any transaction in interstate commerce in cotton 

or the products or byproducts of cotton, or (2) determining the price basis of 

any transaction in interstate commerce in cotton: 

Name Address 

Anderson Gin Company Anderson, Alabama 

Augustine Gin Company Lawrenceburg, Tennessee 

Bonnenton Gin Company Bonnenton, Tennessee 

Alfred Buffler Florence, Alabama 

Ed Buffler Florence, Alabama 

G. A. Duggar Lawrenceburg, Tennessee 

J. T. Flagg Florence, Alabama 

Roy Hardiman Lawrenceburg, Tennessee 

T. S. Hassel and Company Clifton, Tennessee 

Polytinsky and Hovater Brick, Alabama 

(4) That the transactions and resulting open contracts in cotton futures of 

the customers named in (3) above were not separately accounted for on the books 

of Morris F. Shipper 
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but were commingled with transactions and open contracts of Morris F. Shipper on 

the records of the correspondent firms executing said transactions on the New 

York Cotton Exchange and the Now Orleans Cotton Exchange; 

(5) That daily computations were not made and permanent records were not kept 

of the amount of money, securities, and property required to be segregated for 

the accounts of the customers named in (3) above; 

(6) That no monthly computation or "point balance" record was kept accruing 

to the official closing price on the last day of each calendar month the open 

trades or contracts in the accounts of the customers named in (3) above; 

(7) That, on or about January 30, 1945, at the suggestion of a representative 

of the United States Department of Agriculture, Morris F. Shipper communicated 

with his correspondent brokers on the New York Cotton Exchange and the New 

Orleans Cotton Exchange and instructed such brokers to open separate accounts on 

their books for the various customers then having open contracts through Morris 

F. Shipper and to carry such customers' accounts separately and on a disclosed 

basis in the future; 

(8) That, on December 4, 1942, and various dates thereafter, and from January 

11, 1945, to January 29, 1945, Morris F. 

Shipper held futures contracts in cotton of a size required to be reported under 

the Commodity Exchange Act and the rules and regulations promulgated thereunder, 

and that during the aforesaid periods Morris F. Shipper failed to file the 

required reports; and 

(9) That, upon having his attention called to the failure to report, set out 

in (6) above, Morris F. Shipper did, with the assistance of a representative of 

the United States Department of Agriculture, prepare and file the required 

reports, 

In addition to admitting the foregoing facts, Morris F. Shipper agrees to 

discontinue all acts and practices which are in violation of Sections 4g and 4i 

of the Commodity Exchange Act, as amended, and the rules and regulations 

promulgated thereunder, and further agrees that this stipulation shall be 

admissible as evidence of acts and practices in violation of Sections 4g and 4i 

of the Commodity Exchange Act, as amended, and the rules and regulations 

promulgated thereunder, in any subsequent proceeding brought against him in the 

enforcement of the provisions of the said act and regulations. 

Done at Florence, Alabama, this 27th day of July 1945. 

/s/ Morris F. Shipper 

Morris F. Shipper 

doing business as 

Shipper Cotton Company 

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