Page 1 

Commodity Futures Trading Commission 

CEA CASES 

NAME: SECRETARY OF AGRICULTURE V. MOSES EISEMANN 

DOCKET NUMBER: 23 

DATE: NOVEMBER 7, 1940 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES OF AMERICA 

BEFORE THE SECRETARY OF AGRICULTURE 

CE-A Docket No. 23 

Secretary of Agriculture, Complainant, v. Moses Eisemann, Respondent. 

Complaint and Notice of Hearing Under Section 6(b) of the Commodity Exchange 

Act. 

There being reason to believe that the respondent has violated the Commodity 

Exchange Act (7 U.S.C. 1954 ed., and Supp. v, §§ 1-17a), and the rules and 

regulations promulgated pursuant thereto, this complaint is issued alleging the 

following: 

1. 

Moses Eisemann is an individual trading and doing business at Chicago, 

Illinois. 

2. 

The respondent, at the times mentioned in the complaint, was a member 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. 

3. 

The respondent made purchases of grain futures contracts on the Chicago Board 

of Trade for his own account on the records of various members of the Chicago 

Board of Trade as set out in detail below: 

Clearing Member 

Carrying 

Item Date Quantity Future & Grain Price the Account 

1940 (Thousands Cents per 

Jan. of bushels) 1940 bushel 1 2 10 July Wheat 102 I. P. Skolly 

2 30 " " " W. D. Hegerty & Co. 

3 3 10 " Rye 75 1/2 I. P. Skolly 

4 4 25 May Wheat 104 3/4 W. D. Hegerty & Co. 

5 25 July " 103 1/4 I. P. Skolly 

6 5 30 " Corn 60 3/8 Continental Grain Co. 

7 5 5 May Wheat 105 1/8 I. P. Skolly 

8 3 " " 103 7/8 W. D. Hegerty & Co. 

9 15 " Corn 59 3/4 I. P. Skolly 

10 5 July " 60 1/4 " " " 

11 5 May " 59 3/4 Faroll Bros. 

12 5 July " 60 1/4 " " 

13 15 " Rye 73 3/8 I. P. Skolly 

14 6 5 May Wheat 104 Faroll Bros. 

15 5 " " 104 W. D. Hegerty & Co. 

16 10 July Corn 59 7/8 E. D. Norton 
Page 2 

 Clearing Member 

 Carrying 

Item Date Quantity Future & Grain Price the Account 

 1940 (Thousands Cents per 

 Jan. of bushels) 1940 bushel 

17 8 20 " " 59 1/2 I. P. Skolly 

18 10 20 Sept. Wheat 97 5/8 W. D. Hegerty & Co. 

19 10 " " 97 3/4 " " " 

20 40 " " 99 I. P. Skolly 

21 11 5 May " 101 1/2 " " " 

22 25 Sept. " 96 3/4 W. D. Hegerty & Co. 

23 12 10 " " 96 I. P. Skolly 

24 10 July " 97 1/8 W. D. Hegerty & Co. 

25 13 10 May Corn 57 3/8 I. P. Skolly 

26 10 July " 57 7/8 W. D. Hegerty & Co. 

27 16 3 May Wheat 100 1/2 Faroll Bros. 

28 15 Sept. " 96 3/8 W. D. Hegerty & Co. 

29 4 May Corn 58 3/4 I. P. Skolly 

30 17 20 July Rye 69 E. D. Norton 

31 10 " " " Continental Grain Co. 

32 10 " " 58 3/4 " " " 

33 18 20 " " 70 " " " 

34 10 " " " I. P. Skolly 

35 10 " " 72 " " " 

36 3 May Wheat 101 Faroll Bros. 

37 10 July " 98 1/2 Continental Grain Co. 

38 20 10 " " 98 3/8 I. P. Skolly 

 

See original document-page 2 

Clearing Member 

Carrying 

Item Date Quantity Future & Grain Price the Account 

1940 (Thousands Cents per 

Jan. of bushels) 1940 bushel 39 20 10 Sept. Wheat 98 I. P. Skolly 

40 5 May Rye 70 5/8 W. D. Hagerty & Co. 

41 5 July " 70 1/2 " " " 

42 22 10 May " 70 " " " 

43 5 " " 70 7/8 E. D. Norton 

44 23 20 " Wheat 100 W. D. Hagerty & Co. 

45 24 15 " " 100 1/8 I. P. Skolly 

46 25 25 " " 99 1/2 W. D. Hagerty & Co. 

47 25 " " 98 1/2 W. D. Hagerty & Co. 

48 6 May Corn 57 3/4 I. P. Skolly 

49 26 15 " Wheat 98 3/4 " " " 

50 5 " " 98 7/8 " " " 

51 10 " " 98 1/2 " " " 

52 5 July " 96 1/2 " " " 

53 27 20 " Rye 70 1/4 E. D. Norton 

54 20 " " 69 7/8 W. D. Hagerty & Co. 

55 3 May Wheat 99 3/8 E. D. Norton 

56 3 " " 98 W. D. Hagerty & Co. 

57 20 July " 95 5/8 " " " 

58 25 " " 96 3/4 E. D. Norton 

59 10 " " 96 W. D. Hagerty & Co. 

60 5 " " 96 1/2 " " " 

61 5 " " 96 5/8 " " " 

62 29 15 May " 96 3/4 " " " 

63 15 " " 98 5/8 Faroll Bros. 

64 6 July " 95 7/8 " " 

65 5 Sept. " 95 3/8 " " 

66 10 July Rye 69 1/2 " " 

67 30 10 " " 66 1/2 W. D. Hagerty & Co. 
Page 3 

 Clearing Member 

 Carrying 

Item Date Quantity Future & Grain Price the Account 

 1940 (Thousands Cents per 

 Jan. of bushels) 1940 bushel 

68 10 May " 67 7/8 I. P. Skolly 

69 5 " Wheat 96 1/8 W. D. Hagerty & Co. 

70 25 " " 97 1/4 I. P. Skolly 

71 25 " " 96 7/8 Continental Grain Co. 

72 31 15 July " 94 7/8 Faroll Bros. 

73 15 " " 93 7/8 W. D. Hagerty & Co. 

74 10 " " 93 5/8 " " " 

75 Feb. 1 25 May " 96 3/8 E. D. Norton 

76 40 July " 93 1/4 I. P. Skolly 

77 25 " " 93 1/4 " " " 

78 2 30 " " 94 5/8 Faroll Bros. 

79 5 May Corn 54 3/4 I. P. Skolly 

80 1 5 " " 55 1/2 Faroll Bros. 

 

See original document-page 3 

Clearing Member 

Carrying 

Item Date Quantity Future & Grain Price the Account 

1940 (Thousands Cents per 

Feb. of bushels) 1940 bushel 81 2 6 May Corn 54 3/4 I. P. Skolly 

82 1 5 July " 55 5/8 Faroll Bros. 

83 2 25 May Wheat 96 5/8 E. D. Norton 

84 10 July " 93 1/2 Faroll Bros. 

85 10 " " 93 5/8 " " 

86 5 May Corn 54 5/4 W. D. Hagerty & Co. 

87 10 July Rye 63 1/2 " " " 

88 35 Sept. " 65 I. P. Skolly 

89 10 Sept. Corn 55 1/4 W. D. Hagerty & Co. 

90 3 15 " " 55 1/4 E. D. Norton 

91 5 May " 54 3/4 W. D. Hagerty & Co. 

92 5 July " 54 5/8 " " " 

93 2 May " 55 E. D. Norton 

94 5 " Rye 65 1/4 Faroll Bros. 

95 5 July " 63 3/4 W. D. Hagerty & Co. 

96 20 May Wheat 97 I. P. Skolly 

97 15 " " 96 1/8 W. D. Hagerty & Co. 

98 10 July " 93 3/8 " " " 

99 10 " " 93 1/2 E. D. Norton 

100 10 Sept. " 92 3/4 " " " 

101 5 30 May " 97 1/8 Continental Grain Co. 

102 10 " " 97 3/4 Faroll Bros. 

103 5 " " " I. P. Skolly 

104 5 " " 97 5/8 " " " 

105 5 " " 96 3/8 W. D. Hagerty & Co. 

106 4 " " 96 3/8 " " " 

107 5 July " 94 3/4 Faroll Bros. 

108 10 " " 94 " " 

109 4 " " 93 5/8 W. D. Hagerty & Co. 

110 5 Sept. " 93 " " " 

111 5 July Corn 54 3/4 " " " 

112 5 May Rye 64 1/4 " " " 

113 5 " " 64 1/4 " " " 

114 5 July " 65 1/4 I. P. Skolly 

115 5 " " 65 1/4 Faroll Bros. 

116 10 Sept. " 65 5/8 " " 

117 5 " " 65 5/8 I. P. Skolly 

118 6 10 " Wheat 94 W. D. Hagerty & Co. 
Page 4 

 Clearing Member 

 Carrying 

Item Date Quantity Future & Grain Price the Account 

 1940 (Thousands Cents per 

 Feb. of bushels) 1940 bushel 

119 15 " " 95 I. P. Skolly 

120 15 May Corn 56 1/2 " " " 

 

See original document-page 4 

Clearing Member 

Carrying 

Item Date Quantity Future & Grain Price the Account 

1940 (Thousands Cents per Feb. of bushels) 1940 bushel 

121 6 25 May Wheat 97 1/4 Continental Grain Co. 

122 40 " " " Gerstenberg & Co. 

123 15 " " " Continental Grain Co. 

124 20 " " 97 7/8 I. P. Skolly 

125 65 " " 98 5/8 Faroll Bros. 

126 5 " " 97 1/2 W. D. Hagerty & Co. 

127 7 30 " " 99 1/8 E. D. Norton 

128 30 " " " Continental Grain Co. 

129 20 July " 95 3/8 Faroll Bros. 

130 30 " " " Gerstenberg & Co. 

131 10 " " " W. D. Hagerty & Co. 

132 50 " " " Gerstenberg & Co. 

133 40 " " " " " " 

134 20 " " 96 3/8 Continental Grain Co. 

135 20 " " 96 1/2 E. D. Norton 

136 10 Sept. " 95 3/4 " " " 

137 10 " " " Continental Grain Co. 

138 20 " " " Faroll Bros. 

139 15 July Rye 65 7/8 E. D. Norton 

140 15 Sept. " 65 3/8 W. D. Hagerty & Co. 

141 8 15 May Wheat 99 Gerstenberg & Co. 

142 10 " " 99 " " " 

143 10 " " 98 3/4 " " " 

144 60 July " 97 1/4 E. D. Norton 

145 9 40 May " 99 5/8 Gerstenberg & Co. 

146 10 " " 100 1/2 Continental Grain Co. 

147 40 " " 100 3/4 " " " 

148 50 " " " E. D. Norton 

149 9 " " 99 5/8 W. D. Hagerty & Co. 

150 20 July " 97 3/4 Faroll Bros. 

151 10 " " 97 3/4 I. P. Skolly 

152 20 " " 97 Gerstenberg & Co. 

153 30 " " 96 3/4 Faroll Bros. 

154 10 Sept. " 97 E. D. Norton 

155 30 " " 95 7/8 W. D. Hagerty & Co. 

156 15 May Corn 56 1/4 " " " 

157 10 20 " Wheat 99 Faroll Bros. 

158 20 " " " Gerstenberg & Co. 

159 10 " " 99 7/8 E. D. Norton 

160 20 Sept. " 95 3/4 W. D. Hagerty & Co. 

161 15 " " 95 3/4 Faroll Bros. 

See original document-page 5 

Clearing Member 

Carrying 

Item Date Quantity Future & Grain Price the Account 

1940 (Thousands Cents per 

Feb. of bushels) 1940 bushel 
Page 5 

 Clearing Member 

 Carrying 

Item Date Quantity Future & Grain Price the Account 

 1940 (Thousands Cents per 

 Feb. of bushels) 1940 bushel 

162 10 10 July Wheat 97 3/8 Continental Grain Co. 

163 25 " " " E. D. Norton 

164 10 " " " " " " 

165 20 " " " I. P. Skolly 

166 10 " " " Continental Grain Co. 

167 30 " " 97 1/2 " " " 

168 30 " " " Faroll Bros. 

169 10 " " 97 1/4 Continental Grain Co. 

170 55 " " 96 1/2 Gerstenberg & Co. 

171 10 " Rye 66 1/4 I. P. Skolly 

172 15 Sept. " 66 3/4 " " " 

173 13 15 May Wheat 98 3/4 E. D. Norton 

174 10 " " 99 3/4 " " " 

175 10 July " 97 5/8 " " " 

176 20 Sept. " 96 Gerstenberg & Co. 

177 20 " " 97 E. D. Norton 

178 14 20 May " 99 3/8 Gerstenberg & Co. 

179 20 July " 97 3/8 Faroll Bros. 

180 30 Sept. " 95 7/8 W. D. Hagerty & Co. 

181 15 10 May " 99 3/4 " " " 

182 15 " " 99 " " " 

183 9 " " 99 3/8 E. D. Norton 

184 10 July " 97 3/4 W. D. Hagerty & Co. 

185 25 " " 97 Faroll Bros. 

186 3 " " 97 " " 

187 15 Sept. " 96 1/2 " " 

188 15 " " 97 1/4 I. P. Skolly 

189 13 " " 97 1/4 E. D. Norton 

190 15 May Rye 66 7/8 W. D. Hagerty & Co. 

191 5 July " 66 1/2 E. D. Norton 

192 16 10 Sept. Wheat 100 1/4 Faroll Bros. 

193 17 5 May " 103 3/4 " " 

194 5 July " 101 1/2 " " 

195 19 10 May " 103 1/8 " " 

196 5 " " 102 5/8 " " 

197 10 Sept. " 100 W. D. Hagerty & Co. 

198 20 10 " " 102 5/8 Faroll Bros. 

199 21 10 " " 104 1/2 " " 

200 10 " " 103 W. D. Hagerty & Co. 

201 3 " " 103 " " " 

 

See original document-page 6 

Clearing Member 

Carrying 

Item Date Quantity Future & Grain Price the Account 

1940 (Thousands Cents per Feb. of bushels) 1940 bushel 202 23 5 July Wheat 105 3/8 Faroll Bros. 

203 5 Sept. " 103 7/8 W. D. Hagerty & Co. 

204 27 5 " " 99 5/8 " " " 

205 5 " " 99 " " " 

206 5 May Rye 68 Faroll Bros. 

207 28 15 July " 67 3/4 " " 

208 5 " " 67 3/4 " " 

209 15 " " 57 1/4 W. D. Hagerty & Co. 

210 2 May Corn 57 1/8 Faroll Bros. 

211 Mar. 1 5 July Rye 66 1/4 E. D. Norton 

212 15 " " 66 1/2 " " " 
Page 6 

 Clearing Member 

 Carrying 

Item Date Quantity Future & Grain Price the Account 

 1940 (Thousands Cents per 

 Feb. of bushels) 1940 bushel 

213 5 " Wheat 99 3/4 W. D. Hagerty & Co. 

214 10 " " 98 3/4 " " " 

215 2 5 " " 98 1/4 " " " 

216 20 May " 100 1/4 Faroll Bros. 

217 4 5 " " 100 1/2 W. D. Hagerty & Co. 

218 5 10 July " 100 1/4 Faroll Bros. 

219 10 " " 100 5/8 " " 

220 1 " " 99 3/4 W. D. Hagerty & Co. 

221 1 " " 99 7/8 " " " 

222 1 " " 100 " " " 

223 1 " " 100 1/8 " " " 

224 1 " " 100 1/4 " " " 

225 1 " " 100 3/8 " " " 

226 1 " " 100 1/2 " " " 

227 1 " " 100 5/8 " " " 

228 1 " " 100 3/4 " " " 

229 5 Sept. " 100 " " " 

230 2 May Corn 57 " " " 

231 2 July " 57 Faroll Bros. 

232 13 10 May Wheat 102 3/4 " " 

233 25 3 July " 103 1/2 D. F. Rice & Co. 

234 1 " " 105 Faroll Bros. 

235 1 " " 105 " " 

236 1 " " 105 1/4 " " 

237 26 2 " " 104 3/4 Max Nierman 

238 2 May 105 7/8 Faroll Bros. 

239 27 3 " " 106 W. D. Hagerty & Co. 

240 3 " " 105 Faroll Bros. 

241 1 " " 104 3/4 W. D. Hagerty & Co. 

242 1 " " 104 7/8 " " " 

See original document-page 7 

Clearing Member 

Carrying 

Item Date Quantity Future & Grain Price the Account 

1940 (Thousands Cents per 

Mar. of bushels) 1940 bushel 243 27 5 May Wheat 106 Faroll Bros. 

244 28 5 " " 104 7/8 D. F. Rice & Co. 

245 5 " " 105 7/8 Faroll Bros. 

246 4 July " 104 3/8 Max Nierman 

247 2 May " 105 1/2 " " 

248 2 " " 105 3/8 " " 

249 2 " " 105 Faroll Bros. 

250 2 " " 104 7/8 " " 

251 29 2 " " 104 3/8 " " 

252 30 2 " " 104 5/8 " " 

253 2 " " 104 1/2 Max Nierman 

254 Apr. 1 5 " " 105 5/8 Faroll Bros. 

255 5 " " 105 D. F. Rice & Co. 

256 5 July " 103 3/4 W. D. Hagerty & Co. 

257 2 5 May " 104 3/8 D. F. Rice & Co. 

258 5 " " 105 1/8 Faroll Bros. 

259 3 1 " " 104 3/4 Max Nierman 

260 2 " " 104 1/4 Faroll Bros. 

261 4 " " 103 3/4 " " 

262 10 July " 103 3/4 " " 

263 1 " " 103 3/4 Max Nierman 
Page 7 

Clearing Member 

Carrying 

Item Date Quantity Future & Grain Price the Account 

1940 (Thousands Cents per Mar. of bushels) 1940 bushel 264 5 Sept. " 102 3/4 D. F. Rice & Co. 

265 5 " " 102 1/2 " " " 

266 4 2 " " 104 1/8 Max Nierman 

267 1 May " 105 7/8 Faroll Bros. 

268 2 " " 105 3/4 " " 

269 3 July " 104 D. F. Rice & Co. 

270 2 " " 104 3/4 E. D. Norton 

271 1 " " 104 7/8 " " " TOTAL 3,264

 

The respondent made sales of grain futures contract's on the Chicago Board of 

Trade for his own account on the records of various members of the Chicago Board 

of Trade as set out in detail below: 

Clearing Member 

Carrying 

Item Date Quantity Future & Grain Price the Account 

1940 (Thousands Cents per 

Jan. of bushels) 1940 bushel 1 2 10 July Wheat 102 W. D. Hagerty & Co. 

2 30 " " " I. P. Skolly 

3 3 10 " Rye 75 1/2 W. D. Hagerty & Co. 

4 4 25 May Wheat 104 3/4 I. P. Skolly 

5 25 July " 103 1/4 W. D. Hagerty & Co. 

6 5 30 " Corn 60 3/8 I. P. Skolly 

7 5 5 May Wheat 105 1/8 W. D. Hagerty & Co. 

8 3 " " 103 7/8 I. P. Skolly 

9 15 " Corn 59 3/4 Continental Grain Co. 

10 5 July " 60 1/4 W. D. Hagerty & Co. 

11 5 May " 59 3/4 Continental Grain Co. 

12 5 July " 60 1/4 " " " 

13 15 " Rye 73 3/8 E. D. Norton 

14 6 5 May Wheat 104 I. P. Skolly 

15 5 " " 104 " " " 

16 10 July Corn 59 7/8 W. D. Hagerty & Co. 

17 8 20 " " 59 1/2 E. D. Norton 

18 10 20 Sept. Wheat 97 5/8 Continental Grain Co. 

19 10 " " 97 3/4 " " " 

20 40 " " 99 W. D. Hagerty & Co. 

21 11 5 May " 101 1/2 Faroll Bros. 

22 25 Sept. " 96 3/4 I. P. Skolly 

23 12 10 " " 96 W. D. Hagerty & Co. 

24 10 July " 97 1/8 E. D. Norton 

25 13 10 May Corn 57 3/8 W. D. Hagerty & Co. 

26 10 July " 57 7/8 I. P. Skolly 

27 16 3 May Wheat 100 1/2 E. D. Norton 

28 15 Sept. " 96 3/8 I. P. Skolly 

29 4 May Corn 58 3/4 E. D. Norton 

30 17 20 July Rye 69 Continental Grain Co. 

31 10 " " " I. P. Skolly 

32 10 " " 68 3/4 " " " 

33 18 20 " " 70 E. D. Norton 

34 10 " " " Continental Grain Co. 

35 10 " " 72 " " " 

36 3 May Wheat 101 I. P. Skolly 

37 10 July " 98 1/2 " " " 

38 20 10 " " 98 3/8 W. D. Hagerty & Co. 
Page 8 

 

See original document-page 9 

Clearing Member 

Carrying 

Item Date Quantity Future & Grain Price the Account 

1940 (Thousands Cents per 

Jan. of bushels) 1940 bushel 39 20 10 Sept. Wheat 98 W. D. Hagerty & Co. 

40 5 May Rye 70 5/8 I. P. Skolly 

41 5 July " 70 1/2 I. P. Skolly 

42 22 10 May " 70 " " " 

43 5 " " 70 7/8 W. D. Hagerty & Co. 

44 23 20 " Wheat 100 I. P. Skolly 

45 24 15 " " 100 1/8 W. D. Hagerty & Co. 

46 25 25 " " 99 1/2 I. P. Skolly 

47 25 " " 98 1/2 " " " 

48 6 May Corn 57 3/4 E. D. Norton 

49 26 15 " Wheat 98 3/4 W. D. Hagerty & Co. 

50 5 " " 98 7/8 " " " 

51 10 " " 98 1/2 " " " 

52 5 July " 96 1/2 " " " 

53 27 20 " Rye 7 1/4 " " " 

54 20 " " 69 7/8 I. P. Skolly 

55 3 May Wheat 99 3/8 W. D. Hagerty & Co. 

56 3 " " 98 Faroll Bros. 

57 20 July " 95 5/8 " " 

58 25 " " 96 3/4 W. D. Hagerty & Co. 

59 10 " " 96 I. P. Skolly 

60 5 " " 96 1/2 " " " 

61 5 " " 96 5/8 " " " 

62 29 15 May " 96 3/4 " " " 

63 15 " " 98 5/8 E. D. Norton 

64 6 July " 95 7/8 " " " 

65 5 Sept. " 95 3/8 " " " 

66 10 July Rye 69 1/2 " " " 

67 30 10 " " 66 1/2 Faroll Bros. 

68 10 May " 67 7/8 W. D. Hagerty & Co. 

69 5 " Wheat 96 1/8 Faroll Bros. 

70 25 " " 97 1/4 W. D. Hagerty & Co. 

71 25 " " 96 7/8 E. D. Norton 

72 31 15 July " 94 7/8 W. D. Hagerty & Co. 

73 15 " " 93 7/8 I. P. Skolly 

74 10 " " 93 5/8 I. P. Skolly 

75 Feb. 1 25 May " 93 3/8 W. D. Hagerty & Co. 

76 40 July " 93 1/4 Faroll Bros. 

77 25 " " 93 1/4 E. D. Norton 

78 2 30 " " 94 5/8 W. D. Hagerty & Co. 

79 2 5 May Corn 54 3/4 Faroll Bros. 

80 1 5 " " 55 1/2 W. D. Hagerty & Co. 

Clearing Member 

Carrying 

Item Date Quantity Future & Grain Price the Account 

1940 (Thousands Cents per 

Feb. of bushels) 1940 bushel 81 2 6 May Corn 54 3/4 Faroll Bros. 

82 1 5 July " 55 5/8 W. D. Hagerty & Co. 

83 2 25 May Wheat 96 5/8 I. P. Skolly 

84 10 July " 93 1/2 " " " 

85 10 " " 92 5/8 " " " 

86 5 May Corn 54 3/4 E. D. Norton 
Page 9 

 Clearing Member 

 Carrying 

Item Date Quantity Future & Grain Price the Account 

 1940 (Thousands Cents per 

 Feb. of bushels) 1940 bushel 

87 10 July Rye 63 1/2 " " " 

88 35 Sept. " 65 W. D. Hagerty & Co. 

89 10 Sept. Corn 55 E. D. Norton 

90 3 15 " " 55 1/4 I. P. Skolly 

91 5 May " 55 3/4 Faroll Bros. 

92 5 July " 54 5/8 I. P. Skolly 

93 2 May " 55 " " " 

94 5 " Rye 65 1/4 W. D. Hagerty & Co. 

95 5 July " 63 3/4 Faroll Bros. 

96 20 May Wheat 97 W. D. Hagerty & Co. 

97 15 " " 96 1/8 E. D. Norton 

98 10 July " 93 3/8 Faroll Bros. 

99 10 " 93 1/2 I. P. Skolly 

100 10 Sept. " 92 3/4 " " " 

101 5 30 May " 97 1/8 " " " 

102 10 " 97 3/4 W. D. Hagerty & Co. 

103 5 " " Faroll Bros. 

104 5 " 97 5/8 " " " 

105 5 " 96 3/8 " " " 

106 4 " 96 3/8 " " " 

107 5 July " 94 3/4 I. P. Skolly 

108 6 10 " 94 " " " 

109 4 " 93 5/8 Faroll Bros. 

110 5 Sept. " 93 " " 

111 5 July Corn 54 3/4 " " 

112 5 May Rye 64 1/4 " " 

113 5 64 1/4 I. P. Skolly 

114 5 July 65 1/4 W. D. Hagerty & Co. 

115 5 65 1/4 " " " 

116 10 Sept. 65 5/8 " " " 

117 5 65 5/8 " " " 

118 10 Wheat 94 Faroll Bros. 

119 15 95 W. D. Hagerty & Co. 

120 15 May Corn 56 1/2 " " " 

 

Clearing Member 

Carrying 

Item Date Quantity Future & Grain Price the Account 

1940 (Thousands Cents per 

Feb. of bushels) 1940 bushel 121 6 25 May Wheat 97 1/4 I.P. Skolly 

122 40 " " " Continental Grain Co. 

123 15 " " " E. D. Norton 

124 20 " " 97 7/8 Faroll Bros. 

125 65 " " 98 5/8 Gerstenberg & Co. 

126 5 " " 97 1/2 Faroll Bros. 

127 7 30 " " 99 1/8 Continental Grain Co. 

128 30 " " " Gerstenberg & Co. 

129 20 July 95 3/8 I. P. Skolly 

130 30 " " " " " " 

131 10 " " " " " " 

132 50 " " " Faroll Bros. 

133 40 " " " E. D. Norton 

134 20 " " 96 3/8 Gerstenberg & Co. 

135 20 " " 96 1/2 Continental Grain Co. 

136 10 Sept. " 95 3/4 " " 

137 10 " " " Gerstenberg & Co. 
Page 10 

 Clearing Member 

 Carrying 

Item Date Quantity Future & Grain Price the Account 

 1940 (Thousands Cents per 

 Feb. of bushels) 1940 bushel 

138 20 " " " W. D. Hagerty & Co. 

139 15 July Rye 65 7/8 " " " 

140 15 Sept. " 65 3/8 I. P. Skolly 

141 8 15 May Wheat 99 I. P. Skolly 

142 10 " " 99 W. D. Hagerty & Co. 

143 10 " " 98 3/4 Faroll Bros. 

144 60 July " 97 1/4 Gerstenberg & Co. 

145 9 40 May " 99 5/8 Faroll Bros. 

146 10 " " 100 1/2 Gerstenberg & Co. 

147 40 " " 100 3/4 " " " 

148 50 " " " Continental Grain Co. 

149 9 " " 99 5/8 E. D. Norton 

150 20 July " 97 3/4 W. D. Hagerty & Co. 

151 10 " " 97 3/4 " " " 

152 20 " " 97 " " " 

153 30 " " 96 3/4 E. D. Norton 

154 10 Sept. " 97 Gerstenberg & Co. 

155 30 " " 95 7/8 E. D. Norton 

156 15 May Corn 56 1/4 " " " 

157 10 20 " Wheat 99 I. P. Skolly 

158 20 " " " Faroll Bros. 

159 10 " " 99 7/8 W. D. Hagerty & Co. 

160 20 Sept. " 95 3/4 E. D. Norton 

161 15 " " 95 3/4 I. P. Skolly 

Clearing Member 

Carrying 

Item Date Quantity Future & Grain Price the Account 

1940 (Thousands Cents per 

Feb. of bushels) 1940 bushel 162 10 10 July Wheat 97 3/4 Gerstenberg & Co. 

163 25 " " " " 

164 10 " " " Continental Grain Co. 

165 20 " " " " 

166 10 " " " W. D. Hagerty & Co. 

167 30 " " 97 1/2 Gerstenberg & Co. 

168 30 " " " Continental Grain Co. 

169 10 " " 97 1/4 Gerstenberg & Co. 

170 55 " " 96 1/2 Faroll Bros. 

171 10 " Rye 66 1/4 E. D. Norton 

172 15 Sept. " 66 3/4 " " " 

173 13 15 May Wheat 99 3/4 Faroll Bros. 

174 10 " " 99 3/4 Gerstenberg & Co. 

175 10 July " 97 5/8 " " " 

176 20 Sept. " 96 Faroll Bros. 

177 20 " " 97 W. D. Hagerty & Co. 

178 14 20 May " 99 3/8 " " 

179 20 July " 97 3/8 E. D. Norton 

180 30 Sept. " 95 7/8 Faroll Bros. 

181 15 10 May " 99 3/4 " " 

182 15 " " 99 E. D. Norton 

183 9 " " 99 3/8 Faroll Bros. 

184 10 July " 97 3/4 " " 

185 25 " " 97 E. D. Norton 

186 3 " " 97 " " " 

187 15 Sept. " 96 1/2 W. D. Hagerty & Co. 

188 15 " " 97 1/4 " " " 
Page 11 

 Clearing Member 

 Carrying 

Item Date Quantity Future & Grain Price the Account 

 1940 (Thousands Cents per 

 Feb. of bushels) 1940 bushel 

189 13 " " 97 1/4 " " " 

190 15 May Rye 66 7/8 E. D. Norton 

191 5 July " 66 1/2 W. D. Hagerty & Co. 

192 16 10 Sept. Wheat 100 1/4 " " " 

193 17 5 May " 103 3/4 " " " 

194 5 July " 101 1/2 " " " 

195 19 10 May " 103 1/8 " " " 

196 5 " " 102 5/8 " " " 

197 10 Sept. " 100 Faroll Bros. 

198 20 10 " " 102 5/8 W. D. Hagerty & Co. 

199 21 10 " " 104 1/2 " " " 

200 10 " " 103 Faroll Bros. 

201 3 " " 103 " " 

 

Clearing Member 

Carrying 

Item Date Quantity Future & Grain Price the Account 

1940 (Thousands Cents per 

Feb. of bushels) 1940 bushel 202 23 5 July Wheat 105 3/8 W. D. Hagerty & Co. 

203 5 Sept. " 103 7/8 Faroll Bros. 

204 27 5 " " 99 5/8 " " 

205 5 " " 99 " " 

206 5 May Rye 68 W. D. Hagerty & Co. 

207 28 15 July " 67 3/4 " " " 

208 5 " " 67 3/4 E. D. Norton 

209 15 " " 67 1/4 " " " 

210 2 May Corn 57 1/8 W. D. Hagerty & Co. 

211 Mar. 1 5 July Rye 66 1/4 Faroll Bros. 

212 15 " " 66 1/2 " " 

213 5 " Wheat 99 3/4 " " 

214 10 " " 98 3/4 " " 

215 2 5 " " 98 1/4 " " 

216 20 May " 100 1/4 E. D. Norton 

217 4 5 " " 100 1/2 Faroll Bros. 

218 5 10 July " 100 1/4 W. D. Hagerty & Co. 

219 10 " " 100 5/8 W. D. Hagerty & Co. 

220 1 " " 99 3/4 Faroll Bros. 

221 1 " " 99 7/8 " " 

222 1 " " 100 " " 

223 1 " " 100 1/8 " " 

224 1 " " 100 1/4 " " 

225 1 " " 100 3/8 " " 

226 1 " " 100 1/2 " " 

227 1 " " 100 5/8 " " 

228 1 " " 100 3/4 " " 

229 5 Sept. " 100 " " 

230 2 May Corn 57 " " 

231 2 July " 57 W. D. Hagerty & Co. 

232 13 10 May Wheat 102 3/4 D. F. Rice & Co. 

233 25 3 July " 103 1/2 Faroll Bros. 

234 1 " " 105 Max Nierman 

235 1 " " 105 D. F. Rice & Co. 

236 1 " " 105 1/4 " " " 

237 26 2 " " 104 3/4 Faroll Bros. 

238 2 May " 105 7/8 Max Nierman 

239 27 3 " " 106 Faroll Bros. 
Page 12 

 Clearing Member 

 Carrying 

Item Date Quantity Future & Grain Price the Account 

 1940 (Thousands Cents per 

 Feb. of bushels) 1940 bushel 

240 3 " " 105 Max Nierman 

241 1 " " 104 3/4 Faroll Bros. 

242 1 " " 104 7/8 " " 

Clearing Member 

Carrying 

Item Date Quantity Future & Grain Price the Account 

1940 (Thousands Cents per Mar. of bushels) 1940 bushel 

243 27 5 May Wheat 106 W. D. Hagerty & Co. 

244 28 5 " " 104 7/8 Faroll Bros. 

245 5 " " 105 7/8 D. F. Rice & Co. 

246 4 July " 104 3/8 Faroll Bros. 

247 2 May " 105 1/2 " " 

248 2 " " 105 3/8 " " 

249 2 " " 105 Max Nierman 

250 2 " " 104 7/8 " " 

251 29 2 " " 104 3/8 " " 

252 30 2 " " 104 5/8 " " 

253 2 " " 104 1/2 Faroll Bros. 

254 Apr. 1 5 " " 105 5/8 D. F. Rice & Co. 

255 5 " " 105 W. D. Hagerty & Co. 

256 5 July " 103 3/4 Faroll Bros. 

257 2 5 May " 104 3/8 " " 

258 5 " " 105 1/8 D. F. Rice & Co. 

259 3 1 " " 104 3/4 Faroll Bros. 

260 2 " " 104 1/4 Max Nierman 

261 4 " " 103 3/4 " " 

262 10 July " 103 3/4 D. F. Rice & Co. 

263 1 " " 103 3/4 Faroll Bros. 

264 5 Sept. " 102 3/4 " " 

265 5 " " 102 1/2 " " 

266 4 2 " " 104 1/8 " " 

267 1 May " 105 7/8 E. D. Norton 

268 2 " " 105 3/4 " " " 

269 3 July " 104 Faroll Bros. 

270 2 " " 104 3/4 D. F. Rice & Co. 

271 1 " " 104 7/8 " " " 

 

TOTAL 3,264 

5. 

The sales appearing in paragraph 4 represent the opposite end of the 

purchases bearing corresponding item numbers which appear in paragraph 3; for 

example, the purchase of 10,000 bushels of July wheat futures, shown as item 

number 1 in paragraph 3, and the sale of 10,000 bushels of July wheat futures, 

shown as item number 1 in paragraph 4, represent opposite ends of the same 

transaction, the respondent appearing as purchaser on the records of I. P. 

Skolly and as seller on the records of W. D. Hagerty & Co. 

6. 

The respondent, between January 2, 1940, and April 4, 1940, entered into the 

transactions aggregating 3,264,000 bushels described in paragraphs 3, 4, and 5, 
Page 13 

which transactions involved wheat, rye and corn, and could have been used for 

hedging any transactions, in interstate commerce, in these commodities, or the 

product or by-products thereof, or in determining the price basis of any such 

transactions, in interstate commerce, in these commodities, or delivering these 

commodities sold, shipped, or received in interstate commerce for the 

fulfillment thereof. These transactions were of the character of and commonly 

known as wash sales and were fictitious sales in that they involved no change in 

ownership, and the respondent, by entering into these transactions, was guilty 

of violating Section 4c (A) of the Commodity Exchange Act. 

7. 

The respondent prepared trading cards using the name of I. P. Skolly as 

broker and caused entries to be made in the account of W. A. Anderson on the 

records of the Continental Grain Company showing transactions in grain futures 

contracts on the Chicago Board of Trade as set out in detail below: 

Quantity Item Date Bought Sold Future Price 

 (Thousand of Cents per 

1940 bushels) 1940 bushel 

1 Jan. 2 10 May Wheat 107

2 3 10 July " 104

3 10 " " 103 1/2

4 15 May " 107

5 25 " " 106 1/4

6 4 10 Sept. " 102 1/2

7 5 May " 105

8 8 5 July " 100

9 15 May " 102 3/8

10 9 10 July " 98 5/8

11 10 May " 103 7/8

12 10 " " 101 1/2

13 [ILLEGIBLE TEXT] 5 " " 101 1/2

14 10 5 July " 97 5/8

15 11 15 " " 98 7/8

16 5 " " 97 1/4

17 12 5 May " 98 3/4

18 13 10 July " 95 7/8

19 10 " " 97 3/8

20 10 " " 96 1/2

21 15 10 May Rye 69 3/4

22 16 5 July Wheat 96 5/8

23 5 " " 97 1/4

24 10 May Rye 69

25 10 " " 69 1/2

26 20 May Wheat 100

27 10 " " 100 1/2

28 25 " " 99 3/8

29 17 5 " " 99 1/2

30 10 May Rye 69

31 5 May Wheat 99 1/4

32 5 " " 99 3/4

33 10 " " 101 1/4

34 18 5 May Rye 69 1/2

35 19 10 July Wheat 98 1/2

 

Quantity Item Date Bought Sold Future Price 

(Thousand of Cents per 

1940 bushels) 1940 bushel 
Page 14 

Quantity 

Item Date Bought Sold Future Price 

 (Thousand of Cents per 

 1940 bushels) 1940 bushel 

36 Jan. 20 5 May Rye 71

37 15 July Wheat 98 1/8

38 22 10 May Rye 70 7/8

39 23 20 May Wheat 100 5/8

40 24 5 " " 100 1/8

41 5 " " 99 1/2

42 15 " " 99 3/4

43 25 50 " " 99 1/2

44 [ILLEGIBLE TEXT] 10 Sept. Rye 69 5/8

45 10 " " 70 1/4

46 26 10 May Wheat 98

47 10 " " 98 1/4

48 10 " " 98 3/8

49 29 10 July " 95 3/4

50 25 May " 96 3/4

51 45 " " 98 5/8

52 5 July " 95 7/8

53 10 July Rye 70 1/4

54 30 10 July Wheat 94 1/2

55 25 May " 96 1/8

56 10 May Rye 66 5/8

57 31 20 May Wheat 96 1/4

58 20 " " 97 5/8

59 10 July " 94 7/8

60 Feb. 1 30 " " 92 3/4

61 10 May " 95 1/2

62 10 July Rye 65 3/4

63 10 May " 63 3/4

64 2 10 " Wheat 96

65 5 20 " " 97 3/4

66 20 " " 96 3/8

67 10 July Rye 64

68 9 10 May Wheat 100 7/8

69 27 15 May Rye 67 3/8

70 5 Sept. " 68 5/8

71 5 " " 68 3/4

72 Mar. 2 5 July Wheat 98 3/4

73 5 " " 98 1/8 TOTAL 450 430 

The respondent made purchases and sales of grain futures contracts on the 

Chicago Board of Trade for his own account on the records of various members of 

the Chicago Board of Trade as set out in detail below: 

An error occurred in the processing of a table at this point in the document. 

Please refer to the table in the online document. 

 

An error occurred in the processing of a table at this point in the document. 

Please refer to the table in the online document. 

 

9. 
Page 15 

The items appearing in paragraphs 7 and 8 bearing corresponding numbers 

represent opposite ends of the same transactions; for example, the sale of 

10,000 bushels of May wheat futures, shown as item number 1 in paragraph 7, and 

the purchase of 10,000 bushels of May wheat futures, shown as item number 1 in 

paragraph 8, represent opposite ends of the same transactions, the respondent 

becoming purchaser of the contract which he sold for the account of W. A. 

Anderson. 

10. 

The respondent became the seller, in connection with purchases executed for 

W. A. Anderson, or the purchaser in connection with sales executed for W. A. 

Anderson in all the transactions appearing in paragraphs 7 and 8, in violation 

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

11. 

The respondent caused transactions to be entered on trading cards prepared in 

the name of Wm. J. Springer as floor broker showing purchases and sales of grain 

futures contracts on the Chicago Board of Trade which were cleared through 

Faroll Bros. for the account of Dr. George Perl, as set out in detail below: 

Quantity (Thousands of bushels) 

Item Date Bought Sold Future & Grain Price 

1940 1940 Cents per bu. 

1 Jan. 3 10 July Corn 59 3/4

2 " 5 " " 60 1/8

3 4 3 May Wheat 106 5/8

4 " 5 July Corn 60 3/8

5 10 5 " " 59 1/2

6 11 3 May Wheat 102 3/8

7 " 5 July Corn 58 3/4

8 12 5 " " 57 1/2

9 17 3 May Wheat 101

10 19 2 " " 100 3/8

11 " 5 " " 100 3/8

12 22 2 " " 100 3/4

13 23 2 " " 100 3/8

14 24 5 " " 99 1/2

15 29 10 " " 97

16 31 5 May Corn 56 3/8

17 " 5 May Wheat 96 3/4

18 " 5 May Cats 39

19 " 5 July " 34

20 Feb. 1 5 May Corn 55 1/2

21 27 10 Sept. Wheat 99 1/2

22 Apr. 3 10 " " 102 1/2

 TOTAL 55 60 

 

12. 

The respondent made purchases and sales of grain futures contracts on the 

Chicago Board of Trade for his own account on the records of various members of 

the Chicago Board of Trade as set out in detail below: 

Quantity Clearing Member 

Carrying 

Item Date Bought Sold Future & Grain Price the Account 

1940 (Thousands of Cents per Jan. bushels) 1940 bushels 
Page 16 

 Quantity Clearing Member 

 Carrying 

Item Date Bought Sold Future & Grain Price the Account 

 1940 (Thousands of Cents per 

 Jan. bushels) 1940 bushels 

1 3 10 July Corn 59 3/4 I. P. Skolly 

2 " 5 " " 60 1/8 " " " 

3 4 3 May Wheat 106 5/8 W. D. Hagerty & Co. 

4 " 5 July Corn 60 3/8 " " " 

5 10 5 " " 59 1/2 I. P. Skolly 

6 11 3 May Wheat 102 3/8 " " " 

7 " 5 July Corn 58 3/4 " " " 

8 12 5 " " 57 1/2 " " " 

9 17 3 May Wheat 101 " " " 

10 19 2 " " 101 3/8 " " " 

11 " 5 " " 101 3/8 " " " 

12 22 2 " " 100 3/4 " " " 

13 23 2 " " 100 3/8 " " " 

14 24 5 " " 99 1/2 " " " 

15 29 10 " " 97 " " " 

16 31 5 May Corn 56 3/8 " " " 

17 " 5 " Wheat 96 3/4 " " " 

18 " 5 " Oats 39 " " " 

19 " 5 July " 34 " " " 

20 Feb. 1 5 May Corn 55 1/2 " " " 

21 27 10 Sept. Wheat 99 1/2 W. D. Hagerty & Co. 

22 Apr. 3 10 " " 102 1/2 D. F. Rice & Co. 

 

TOTAL 60 55 

13. 

All the transactions shown in paragraph 11 were either executed by Springer, 

under orders from Eisemann, or were entered on trading cards in Springer's name 

by Springer, Eisemann, or others acting under instructions from Eisemann. 

14. 

All the transactions appearing in paragraphs 11 and 12 bearing corresponding 

item numbers represent opposite ends of the same transactions; for example, the 

sale of 10,000 bushels of July corn, shown as item number 1 in paragraph 11, and 

the purchase of 10,000 bushels of July corn, shown as item number 1 in paragraph 

12, represent opposite ends of the same transactions, the respondent becoming 

purchaser of the contract which he caused to be sold for the account of Dr. 

George Porle. 

15. 

The respondent became seller in connection with purchases executed for Br. 

George Porle, or became purchaser in connection with sales executed for Dr. 

George Porle, in respect to all the transactions appearing in paragraphs 11 and 

12, in violation of Section 4b(D) of the Commodity Exchange Act. 

16. 

The respondent caused transactions to be entered on trading cards prepared in 

the names of Wm. J. Springer and W. B. Webbe as floor brokers showing purchases 

and sales of grain futures contracts on the Chicago Board of Trade which were 

cleared through Faroll Bros. for the account of L. M. Stein, as set out in 

detail below: 

Quantity 

(Thousands of 
Page 17 

bushels) 

Item Date Broker Bought Sold Future & Grain Price 

1940 1940 Cents per bu.

1 Jan. 3 Wm. J. Springer 10 July Rye 74 3/4

2 " " " " 5 May Corn 59 3/8

3 6 " " " 20 July Wheat 101 1/4

4 10 " " " 10 Sept. " 98 1/2

5 11 " " " 10 " " 96 3/4

6 15 " " " 50 May " 100 1/4

7 " " " " 50 Sept. " 97 1/2

8 Feb. 2 " " " 20 July " 93 7/8

9 " " " " 5 May " 96 3/4

10 " " " " 35 Sept. Rye 64 1/4

11 " " " " 25 Sept. Wheat 93 1/4

12 6 " " " 20 July " 94 3/4

13 17 " " " 10 Sept. " 100 1/3

14 Mar. 18 W. E. Webbe 10 May Rye 64

15 " W. E. Webbe 10 Sept. Rye 65 3/4 TOTAL 120 170 

17. 

The respondent made purchases and sales of grain futures contracts on the 

Chicago Board of Trade for his own account on the records of various members of 

the Chicago Board of Trade as sot out in detail below: 

Quantity 

(Thousands of bushels) Clearing Member 

Carrying 

Item Date Bought Sold Future & Grain Price the Account 

1940 1940 Cents per 

bushel 

1 Jan. 3 10 July Rye 74 3/4 W. D. Hagerty & Co. 

2 " 5 May Corn 59 3/8 I. P. Skolly 

3 6 20 July Wheat 101 1/4 " " " 

4 10 10 Sept. Wheat 98 1/2 W. D. Hagerty & Co. 

5 11 10 " " 96 3/4 W. D. Hagerty & Co. 

6 15 50 May " 100 1/4 I. P. Skolly 

7 " 50 Sept. " 97 1/2 " " " 

8 Feb. 2 20 July " 93 7/8 " " " 

9 " 5 May " 96 3/4 " " " 

10 " 35 Sept. Rye 64 1/4 W. D. Hagerty & Co. 

11 " 25 Sept. Wheat 93 1/4 I. P. Skolly 

12 6 20 July " 94 3/4 W. D. Hagerty & Co. 

13 17 10 Sept. " 100 1/8 W. D. Hagerty & Co. 

14 Mar. 18 10 May Rye 64 E. D. Morton 

15 " 10 Sept. Rye 65 3/4 " " " 

 TOTAL 170 140 

 

18. 

All the transactions shown in paragraph 16 were either executed by Eisemann 

or entered on trading cards under Eisemann's instructions. 

19. 

All the transactions appearing in paragraphs 16 and 17 bearing corresponding 

item numbers represent opposite ends of the same transactions; for example, the 
Page 18 

sale of 10,000 bushels of July rye futures, shown as item number 1 in paragraph 

16, and the purchase of 10,000 bushels of July rye futures, shown as item number 

1 in paragraph 17, represent opposite ends of the same transaction, the 

respondent becoming purchaser of contracts which he caused to be sold for the 

account of L. M. Stein. 

20. 

The respondent became seller in connection with purchases executed for L. M. 

Stein, or became the purchaser in connection with sales executed for L. M. 

Stein, in all the transactions appearing in paragraphs 16 and 17, in violation 

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

21. 

The respondent acted as floor broker in the purchase and sale of grain 

futures contracts on the Chicago Board of Trade which were cleared through 

Sincere & Company for L. M. Stein "spreading account" as set out in detail 

below: 

Quantity 

(Thousands of 

bushels) Item Date Bought Sold Future & Grain Price 

1940 1940 Cents per

bushel 

1 Feb. 20 10 Sept. Wheat 103

2 " 5 " " 100 5/8

3 " 5 " " 100 1/2

4 " 15 May " 103 1/2

5 21 15 Sept. Rye 70 3/8

6 " 5 July Rye 69 3/4

7 29 5 " " 67 5/8

8 " 10 " " 67 5/8

9 Mar. 1 20 " " 66 1/2

10 " 10 " " 66 1/2

11 " 10 May Wheat 101 5/8

12 2 10 " " 99 7/8

13 2 10 " " 100

14 " 10 " " 100 1/8

15 " 10 " " 100 1/4

16 4 5 Sept. " 98 3/4

17 5 5 May " 102 1/4

18 7 5 May Rye 68 

TOTAL 65 100 

22. 

The respondent made purchases and sales of grain futures contracts on the 

Chicago Board of Trade for his own account on the records of various members of 

the Chicago Board of Trade, as set out in detail below: 

Quantity 

(Thousands of bushels) Clearing Member 

Item Date Bought Sold Future & Grain Price Carrying the Account

1940 1940 Cents per bu. 

1 Feb. 20 10 Sept. Wheat 103 Faroll Bros. 

2 " 5 " " 100 5/8 " " 

3 " 5 " " 100 1/2 " " 

4 " 15 May " 103 1/2 W. D. Hagerty & Co. 

5 21 15 Sept. Rye 70 3/8 " " " 
Page 19 

Quantity 

 (Thousands of bushels) Clearing Member 

Item Date Bought Sold Future & Grain Price Carrying the Account

 1940 1940 Cents per bu. 6 " 5 July Rye 69 3/4 " " " 

7 29 5 " " 67 5/8 E. D. Norton 

8 " 10 " " 67 5/8 Faroll Bros. 

9 Mar. 1 20 " " 66 1/2 E. D. Norton 

10 " 10 " " 66 1/2 Faroll Bros. 

11 " 10 May Wheat 101 5/8 M. D. Hagerty & Co. 

12 2 10 " " 99 7/8 Faroll Bros. 

13 " 10 " " 100 " " 

14 " 10 " " 100 1/8 E. D. Norton 

15 " 10 " " 100 1/4 " " " 

16 4 5 Sept. " 98 3/4 W. D. Hagerty & Co. 

17 5 5 May " 102 1/4 Faroll Bros. 

18 7 5 May Rye 68 " " 

 

TOTAL 100 65 

23. 

All the items appearing in paragraphs 21 and 22 bearing corresponding item 

numbers represent opposite ends of the same transactions; for example, the 

purchase of 10,000 bushels of September wheat futures, shown as item number 1 in 

paragraph 21, and the sale of 10,000 bushels of September wheat futures, shown 

as item number 1 in paragraph 22, represent opposite ends of the same 

transactions, the respondent becoming seller of the contracts which he purchased 

for the account of L. M. Stein. 

24. 

The respondent became seller in connection with purchases executed for L. M. 

Stein, or became purchaser in connection with sales executed for L. M. Stein, in 

all the transactions appearing in paragraphs 21 and 22, in violation of Section 

4b (D) of the Commodity Exchange Act. 

25. 

The respondent caused transactions to be entered on trading cards prepared in 

the names of various floor brokers on the Chicago Board of Trade showing 

purchases and sales of grain futures contracts on the Chicago Board of Trade 

which were cleared through Continental Grain Company for the account of W. A. 

Anderson, as set out in detail below. 

Quantity (Thousands of 

bushels) Item Date Broker Bought Sold Future & Grain Price 

1940 1940 Cents per bu.

1 Jan. 5 F. Springer 5 May Wheat 104 7/8

2 6 Wm. J. Springer 35 July " 101 7/8

3 " " " " 5 May " 103 1/8

4 Feb. 13 L. C. Isbister 20 " " 99 1/2

5 Mar. 18 Wm. J. Springer 10 July Rye 65 1/8

26. 

The respondent made purchases and sales of grain futures contracts on the 

Chicago Board of Trade for his own account on the records of various members of 

the Chicago Board of Trade as set out in detail below. 

Quantity 
Page 20 

(Thousands of 

bushels) Clearing Member 

Item Date Bought Sold Future & Grain Price Carrying the Account

1940 1940 Cents per bu. 

1 Jan. 5 5 May Wheat 104 7/8 W. D. Hagerty & Co. 

2 6 35 July " 101 7/8 I. P. Skolly 

3 " 5 May " 103 1/8 " " " 

4 Feb. 13 20 " " 99 1/2 Faroll Pros. 

5 Mar. 18 10 July Rye 65 1/8 " " 

 

27. 

All the transactions appearing in paragraphs 25 and 26 bearing corresponding 

item numbers represent opposite ends of the same transactions, for example, the 

purchase of 5,000 bushels of May wheat futures, shown as item number 1 in 

paragraph 25, and the sale of 5,000 bushels of May wheat futures, shown as item 

number 1 in paragraph 25, represent opposite ends of the same transaction, the 

respondent becoming seller of the contract which he caused to be purchased for 

the account of W. A. Anderson. 

28. 

The respondent became seller in respect to purchases and the buyer in respect 

to sales made for W. A. Anderson, in the transactions appearing in paragraphs 25 

and 26, in violation of Section 4b (D) of the Commodity Exchange Act. 

29. 

The respondent caused transactions to be entered on trading cards prepared in 

the name of Wm. J. Springer as floor broker showing the sales of grain futures 

contracts on the Chicago Board of Trade which were cleared through Faroll Bros. 

for the account of W. A. Anderson, as set out in detail below: 

Quantity (Thousands of bushels) 

Item Date Sold Future & Grain Price 

1940 1940 Cents per bu.

1 Feb. 6 25 May Wheat 97 1/8

2 16 10 " " 100 3/8

3 " 10 " " 100 1/2 Total 45 

30. 

The respondent made purchasers of grain futures contracts on the Chicago 

Board of Trade for his own account on the records of various members of the 

Chicago Board of Trade as set out in detail below: 

Quantity 

(Thousands of bushels) Clearing Member 

Item Date Bought Sold Future & Grain Price Carrying the Account

1940 1940 Cents per bu. 1 Feb. 6 25 May Wheat 97 1/8 Gerstenberg & Co. 

2 16 10 " " 100 3/8 W. D. Hagert $ Co. 

3 " 10 " " 100 1/2 " " " 

Total 45 0

 
Page 21 

31. 

All the transactions appearing in paragraphs 29 and 30, bearing corresponding 

item numbers, represent opposite ends of the same transactions, in all of which 

the respondent became purchaser in connection with sales executed for W. A. 

Anderson, in violation of Section 4b (D) of the Commodity Exchange Act. 

32. 

The respondent caused transactions to be entered on trading cards prepared in 

the name of Wm. J. Springer as floor broker showing sales of grain futures 

contracts on the Chicago Board of Trade which were cleared through Sincere & 

Company for the account of L. M. Stein "spreading", as set out in detail below: 

Quantity (Thousands of 

bushels) Item Date Sold Future & Grain Price 

1940 1940 Cents per

bushel 

1 Feb. 21 10 Sept. Wheat 104

2 28 20 July Rye 67 1/4

 TOTAL 30 

33. 

The respondent made purchases in grain futures contracts on the Chicago Board 

of Trade for his own account on the records of Farrell Bros. and E. D. Norton, 

members of the Chicago Board of Trade, as set out in detail below: 

Quantity (Thousands of bushels) Clearing Member 

Item Date Bought Sold Future & Grain Price Carrying the Account

1940 1940 Cents per bushel 

1 Feb. 21 10 Sept. Wheat 104 Faroll Bros. 

2 28 20 July Rye 67 1/4 E. D. Norton 

TOTAL 30 

34. 

The sale of 10,000 bushels of September wheat futures, shown as item number 1 

in paragraph 32, and the purchase of 10,000 bushels of September wheat futures, 

shown as item number 1 in paragraph 33, represent opposite ends of the same 

transaction, similarly, the sale of 20,000 bushels of July rye futures, shown as 

item number 2 in paragraph 32, and the purchase of 20,000 bushels of July rye 

futures, shown as item number 2 in paragraph 33, represent opposite ends of the 

same transaction, the respondent becoming purchaser of the contracts which he 

caused to be sold for the account of L. M. Stein "spreading account", all in 

violation of Section 4b (D) of the Commodity Exchange Act. 

35. 

The respondent during the period from December 22, 1939, to and including 

February 1, 1940, offered to enter into and entered into transactions involving 

grains, which were or could be used for hedging any transaction, in interstate 

commerce, in such commodity or the products or by-products thereof, 

 

or determining the price basis of any such transactions, in interstate commerce, 

in such commodity, or delivering these commodities sold, shipped, or received in 

interstate commerce for the fulfillment thereof, which transactions were of the 
Page 22 

character of and commonly known as "privileges" or "bids" or "offers". Such 

transactions were executed for the account of the respondent and under his 

instructions by North Star Grain Company of Winnipeg, Manitoba, Canada, all in 

violation of Section 4c(B) of the Commodity Exchange Act. 

36. 

In the execution of the transactions set forth in paragraphs 7, 11, 16, 21, 

25, 29 and 32, the respondent acted as floor broker without being registered as 

such with the Secretary of Agriculture, in violation of Section 4c 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 o'clock a.m., on December 9, 1940, in Room 1026, at 332 South LaSalle 

Street, Chicago, Illinois, or at such other tines 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 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 and correct copy hereof to the 

respondent, by an employee of the Department of Agriculture or by registered 

mail, at least twenty days prior to the date herein set for the hearing. 

IT IS FURTHER ORDERED that the respondent shall file with the hearing clerk, 

Office of the Solicitor, Department of Agriculture at Washington, D. C., within 

fifteen days after the receipt of the complaint, an answer signed by the 

respondent fully and completely stating the nature of any affirmative defense 

and admitting or denying specifically, in detail, each material and relevant 

allegation of the complaint. The failure to file such answer within said 

fifteen day period may be deemed an admission of the truth of the allegations of 

the complaint for the purpose of this proceeding. 

(SEAL) 

Done at Washington, D. C., this 7th day of November, 1940. Witness my hand 

and the seal of the Department of Agriculture. 

/s/ PAUL H. APPLEBY 

Under Secretary of Agriculture 

LOAD-DATE: June 11, 2008 
Page 23