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Commodity Futures Trading Commission 

CEA CASES 

NAME: SECRETARY OF AGRICULTURE V. HENRY J. NOVOTNY 

DOCKET NUMBER: 2 

DATE: JUNE 10, 1937 

DOCUMENT TYPE: DECISION AND ORDER (Order Revoking Registration) 

UNITED STATES OF AMERICA 

BEFORE THE SECRETARY OF AGRICULTURE 

Docket No. 2 C.E.A. 

Secretary of Agriculture, Complainant, v. Henry J. Novotny, Respondent. 

Order Revoking Registrations as Futures Commission Merchant, and as Floor 

Broker, under the Commodity Exchange Act 

PROCEEDINGS 

This is a proceeding under the Commodity Exchange Act which was instituted by 

the Secretary of Agriculture by a complaint on May 13, 1937. 

In the complaint it was alleged that Henry J. Novotny, herein-after called 

the registrant, filed with the Department of Agriculture on August 26, 1936, an 

application on Form 1-R for registration as futures commission merchant, and an 

application on Form 2-R for registration as floor broker, pursuant to said act 

and the rules and regulations of the Secretary of Agriculture; that the said 

registrations were issued by the Secretary of Agriculture on September 2, 1936, 

and September 4, 1936, respectively; that the registrant was expelled from 

membership in a commodity exchange, namely, the Chicago Open Board of Trade, 

pursuant to the action of the board of directors of that exchange on March 16, 

1937; and that the registrant violated said act and section 305 of the rules and 

regulations governing registration, as amended, made and promulgated by the 

Secretary of Agriculture pursuant to said act in that said registrant failed to 

report on Form 3-R the fact of the expulsion referred to above within ten days 

after the date thereof. Said registrant was notified to appear at a hearing at 

10 a.m. on June 7, 1937, at Washington, D. C., before a referee to be designated 

by the Secretary of Agriculture and show cause, if any there be, why the 

registrations of said registrant should not be suspended or revoked. 

The complaint was duly served upon the registrant, and on May 26, 1937, said 

registrant waived a hearing in this proceeding and the right to submit evidence 

therein, consenting and agreeing that his registration as futures commission 

merchant and registration as floor broker be revoked by the Secretary of 

Agriculture. 

FINDINGS OF FACT 

The Secretary finds (1) that Henry J. Novotny filed an application on August 

26, 1936, on Form 1-R for registration as futures commission merchant, and an 

application on Form 2-R for registration as floor broker, pursuant to said act 

and the rules and regulations of the Secretary; (2) that the said registrations 

were issued by the Secretary of Agriculture on September 2, 1936, and September 

4, 1936, respectively; (3) that said registrant was expelled from membership in 

a commodity exchange, namely, the Chicago Open Board of Trade, pursuant to 

action of the board of directors of that exchange on March 16, 1937; (4) that 

said registrant has violated said and section 305 of the rules and regulations 

governing registration, as amended, made and promulgated by the Secretary of 

Agriculture pursuant to said act in that said registrant failed to report the 
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fact of such expulsion within ten days after the date thereof as required by 

said rules and regulations; and (5) that said 

 

 

registrant, on May 26, 1937, waived a hearing and the right to submit evidence 

and consented that his registration as futures commission merchant and 

registration as floor broker under said act be revoked by the Secretary of 

Agriculture. 

ORDER 

IT IS THEREFORE ORDERED, pursuant to provisions of said act, that the 

registrations of Henry J. Novotny be, and the same are hereby revoked. 

IT IS FURTHER ORDERED that a copy of this order be served upon the respondent 

by registered mail and that this order shall become effective immediately. 

(SEAL) 

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

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

the city of Washington, this 10th day of June 1937. 

(Signed) H. A. WALLACE 

Secretary of Agriculture 

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