Page 1 

Commodity Futures Trading Commission 

CEA CASES 

NAME: SECRETARY OF AGRICULTURE V. FORREST L. RALSTON 

DOCKET NUMBER: 22 

DATE: FEBRUARY 20, 1941 

DOCUMENT TYPE: DECISION AND ORDER 

UNITED STATES OF AMERICA 

BEFORE THE SECRETARY OF AGRICULTURE 

CE-A Docket No. 22. 

Secretary of Agriculture, Complainant, v. Forrest L. Ralston, Respondent. 

Proceedings, Findings of Fact, Conclusions, and Order. 

PROCEEDINGS 

On October 1, 1940, complaint was issued by the Assistant Secretary of 

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

and Supp. V, §§ 1-17a), against Forrest L. Ralston, the respondent. It was 

alleged that Ralston had acted as a futures commission merchant in Sheridan, 

Wyoming, from August 2, 1937, to July 20, 1940, without registering with the 

Secretary of Agriculture and without segregating his customers' funds; that, as 

a correspondent of a member of a contract market, he had, during that period, 

reported to customers prices different from the actual prices at which their 

trades were executed; and 

that he later registered with the Secretary as a futures commission merchant. 

He was directed to show why his registration should not be revoked and his 

trading privileges on contract markets denied, at a hearing in Washington, D. 

C., on October 28, 1940. 

The complaint was served on the respondent by registered mail on October 5, 

1940, with a letter from the Assistant Solicitor, in which it was stated that if 

he preferred a hearing at a place other than Washington, he should file a 

request therefor. On October 21, the respondent filed an instrument in which he 

waived hearing and consented to the entry of an order, on the alleged facts, 

revoking his registration and denying him trading privileges on contract 

markets. 

On February 10, 1941, a memorandum from the Division of Investigations of the 

Commodity Exchange Administration was filed, According to it, the respondent was 

apparently not familiar with the requirements of the act, and as soon as they 

were called to his attention, he made an effort to comply with them, immediately 

applying for registration and segregating the entire funds of his commodity 

customers. 

FINDINGS OF FACT 

1. Forrest L. Ralston, trading as F. L. Ralston Brokerage Company, engaged as 

a futures commission merchant in Sheridan, Wyoming, from August 2, 1937, to July 

20, 1940, without registering 
Page 2 

with the Secretary of Agriculture and without segregating the funds of his 

customers in connection with futures trades in commodities named in the 

Commodity Exchange Act. 

2. As soon as Forrest L. Ralston was told of the requirements of the 

Commodity Exchange Act, he applied for registration as a futures commission 

merchant, and segregated $ 2,775, the full amount of his commodity customers' 

funds at that time. 

3. Forrest L. Ralston registered as a futures commission merchant with the 

Secretary of Agriculture for the year 1940. 

CONCLUSIONS 

The facts show that the respondent violated the act, and his ignorance of the 

law would not prevent the entry of an order against him. His complying with 

requirements as soon as they were called to his attention, however, indicates 

that his violations were not intentional, and it is not deemed necessary to deny 

him trading privileges on contract markets. As his registration as a futures 

commission merchant has expired, it need not be suspended or revoked. It is 

concluded, therefore, that this proceeding should be dismissed. 

ORDER 

IT IS ORDERED that this proceeding be, and it is hereby dismissed. 

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

Forrest L. Ralston, the respondent, and that this order shall become effective 

10 days after its date. 

(SEAL) 

Done at Washington, D. C., this 20th day of February 1941. Witness my hand 

and the seal of the Department of Agriculture. 

/s/ Grover B. Hill 

Assistant Secretary of Agriculture. 

LOAD-DATE: June 11, 2008 
Page 3