Page 1 

Commodity Futures Trading Commission 

CEA CASES 

NAME: SECRETARY OF AGRICULTURE V. CLYDE B. VEDDER 

DOCKET NUMBER: 10 

DATE: FEBRUARY 11, 1939 

DOCUMENT TYPE: DECISION AND ORDER 

DEPARTMENT OF AGRICULTURE 

WASHINGTON 

UNITED STATES OF AMERICA 

BEFORE THE SECRETARY OF AGRICULTURE 

C. E. A. DOCKET NO. 10. 

Secretary of Agriculture, Complainant, v. Clyde B. Vedder, Respondent. 

Proceedings, Findings of Fact, Conclusions, and Order 

Proceedings 

On October 26, 1938, complaint was issued by the Secretary of Agriculture, 

pursuant to the provisions of the Commodity Exchange Act (7 U.S.C., 1934 ed., 

and Supp. III, Secs. 1-17a), against Clyde B. Vedder, respondent. In the 

complaint it was alleged that respondent is an individual, doing business as 

Clyde Vedder and Company, registered with the Secretary of Agriculture as 

futures commission merchant under the act for the period ending December 31, 

1938, that during 1937 and the first three months of 1938 he engaged as futures 

commission merchant without segregating the funds of customers as required by 

the act, and that his failure to segregate resulted in shortages of various 

amounts in segregated funds on various dates. Respondent was notified to appear 

at a hearing in Washington on November 16, 1938, before a referee, to show cause 

why an order should not be made revoking his registration and directing all 

contract markets to refuse him trading privileges. 

The complaint was served upon respondent by registered mail. The referee 

notified respondent that he might avoid the hearing by admitting the facts 

alleged, and suggested that, if he did not wish to admit the facts and did not 

wish to come to Washington, he should by letter ask adjournment to a time and 

place convenient to him. To allow further time for respondent to reply, the 

hearing was postponed to November 25, 1938, and respondent was notified. Before 

that date, respondent by telegram asked that his registration be revoked and 

stated that a letter followed. The letter had not been received on November 25, 

1938, and the hearing was again postponed. The letter was received later. On 

January 5, 1939, the referee wrote to respondent, advising him that, as his 

registration expired December 31, 1938, it would not be revoked, but that the 

hearing would be held on January 25, 1939, at which time evidence would be 

received, upon which action might be taken with respect to denying him trading 

privileges. Respondent did not reply. 

The hearing was held at the time and place of which respondent had been 

advised, before Jack W. Bain, the referee. Respondent did not appear. 

Charles W. Bucy, Office of the Solicitor, Department of Agriculture, appeared 

for the Government. All communications between the referee and respondent were 

put in evidence. Douglas B. Bagnell and John J. Bachmann, officials of the 

Commodity Exchange Administration, identified the report of R. F. Shortell, 

Principal Accountant, Commodity Exchange Administration, an official record 
Page 2 

prepared under the direction and supervision of Mr. Bachmann, and their 

testimony, together with the report, supported the allegations of the complaint. 

Mr. Bachmann testified that respondent had not registered as futures commission 

merchant for the period subsequent to December 31, 1938, when his last 

registration expired. 

Findings of Fact 

1. Clyde B. Vedder, an individual doing business as Clyde Vedder and Company, 

whose address is 6253 Hollywood Boulevard, Hollywood, California, registered 

with the Secretary of Agriculture as futures commission merchant for the period 

ending December 31, 1938 but did not register for the period subsequent thereto. 

2. During 1937 and January, February, and March 1938, respondent engaged, in 

Hollywood, California, as futures commission merchant, in soliciting and 

accepting orders for the purchase and sale of commodities named in the Commodity 

Exchange Act for future delivery on and subject to the rules of contract 

markets, accepting money in connection with such solicitation and acceptance of 

orders, without segregating the funds of customers as required by the act. 

3. Respondent's failure to segregate resulted in shortages in customers' 

segregated funds of $ 18,800.79 on June 30, 1937, of $ 4,670.78 on November 30, 

1937, and of various other amount on other dates during the period concerned. 

Conclusions 

The record shows that respondent violated the act in failing to treat and 

deal with the funds of his customers as the act requires. It is concluded, 

therefore, that his trading privileges on contract markets should be denied, but 

as the period for which he registered as futures commission merchant has 

expired, his registration need not be revoked. 

Order 

IT IS HEREBY ORDERED that all contract markets, until further notice by the 

Secretary of Agriculture, refuse all trading privileges to Clyde B. Vedder. 

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

respondent, and a copy to each contract market. 

SEAL 

IN WITNESS WHEREOF, the Secretary of Agriculture has hereunto set his hand 

and caused the official seal of the Department of Agriculture to be affixed 

hereto in the City of Washington, District of Columbia, on this 11th day of 

February, 1939. 

(Signed) M. L. Wilson 

Acting Secretary of Agriculture. 

LOAD-DATE: June 11, 2008 
Page 3