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Commodity Futures Trading Commission 

CEA CASES 

NAME: SECRETARY OF AGRICULTURE V. GEORGE P. HARBISON 

DOCKET NUMBER: 30 

DATE: JUNE 18, 1941 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES OF AMERICA 

BEFORE THE SECRETARY OF AGRICULTURE 

C. E. A. Docket No. 30 

Secretary of Agriculture, Complainant, v. George P. Harbison, 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. and Supp. V, secs. 1-17a), and the rules and 

regulations promulgated pursuant thereto, this complaint is issued alleging the 

following: 

1. 

George P. Harbison is an individual trading and doing business at Duluth, 

Minnesota. 

2. 

Harbison Grain Company is a sole proprietorship owned and operated by George 

P. Harbison at Duluth, Minnesota. 

3. 

George P. Harbison is registered as a floor broker under his own name and as 

a futures commission merchant under the name of Harbison Grain Company, with the 

Secretary of Agriculture under 

the Commodity Exchange Act and has been so registered for the past two years. 

4. 

The respondent is and was at all times mentioned in this complaint a clearing 

member of the Duluth Board of Trade, a contract market designated by the 

Secretary of Agriculture under the Commodity Exchange Act. 

5. 

The respondent, during the month of March 1941, while acting as a floor 

broker, executed for the account of Farmers Union Grain Terminal Association 

orders for the purchase and sale of durum wheat for future delivery on and 

subject to the rules of the Duluth Board of Trade, involving contracts for 

222,000 bushels of durum wheat. 

6. 

The respondent, with respect to the executions referred to in paragraph 5, 

became the seller with respect to buying orders, and the buyer with respect to 

selling orders, of his customer, without the consent of his customer, as to 21 

purchase orders involving 51,000 bushels and 17 sales orders involving 34,000 

bushels. (For example, on March 1, the respondent purchased for the account of 
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his customer 1,000 bushels of May durum wheat for future delivery at 79-1/4 

cents which he sold for his own account and cleared on the records of Harbison 

Grain Company.) These transactions are set forth in detail on a tabulation 

marked "Exhibit 'A'" attached 

hereto and made a part hereof. 

7. 

The contracts for the future delivery of durum wheat referred to in 

paragraphs 5 and 6 were, or could have been, used for hedging any transaction in 

interstate commerce in such commodity, or determining the price basis of such 

transaction. 

8. 

The respondent, by reason of the facts alleged in paragraphs 4 to 7, 

inclusive, hereof, violated section 4b(D) of the Commodity Exchange Act (7 U. S. 

C., Supp. V, section 6b(D)). 

THEREFORE, the respondent is hereby notified, unless a hearing is waived, to 

be and appear before a referee appointed by the Secretary of Agriculture at a 

hearing to be held at 10 a. m. on July 10, 1941, in the United States Post 

Office Building, Duluth, Minnesota, or at such other times and places as may be 

determined by the referee, and then and there show cause, if any there be, why 

an order should not be made directing that all contract markets, until further 

notice of the Secretary of Agriculture, refuse all trading privileges to the 

respondent, and suspending or revoking the floor broker and futures commission 

merchant registrations of the respondent. 

IT IS ORDERED that the respondent shall, within fifteen days after receipt of 

this complaint, file an answer with the hearing clerk, Office of the Solicitor, 

United States Department of Agriculture, Washington, D. C., as follows: 

(a) If the respondent desires to contest the proceeding, the answer shall 

contain a statement of the facts which constitute the ground of defense and 

shall admit, deny, or explain each of the facts alleged in the complaint, unless 

the respondent is without knowledge as to any alleged fact, in which case the 

answer shall so state. 

(b) If the respondent desires to waive hearing on the charges set forth in 

the complaint and not to contest the proceeding, the answer may consist of a 

statement that the respondent admits all the material allegations of the 

complaint to be true, and such answer shall be deemed to waive a hearing thereon 

and to authorize the Secretary of Agriculture, without hearing and without 

further evidence or other intervening procedure, to issue an order directing 

that all contract markets refuse all trading privileges to the respondent for 

such time as may be fixed by the order and suspending or revoking the 

respondent's registrations as a floor broker and futures comission merchant.(c) 

If the respondent desires to waive hearing on the charges set forth in the 

complaint, but desires to contest the proceeding on the ground that the facts 

alleged do not constitute a violation of the Commodity 

Exchange Act, or do not warrant disciplinary action by the Secretary of 

Agriculture, the answer may consist of a statement that the respondent admits 

all the material allegations of the complaint to be true and that he waives 

hearing, but desires to be given an opportunity to submit argument in support of 

his contention. In such case, the respondent shall be served with a tentative 

order containing findings of fact, conclusion, and order, to which he shall be 

given an opportunity to file exceptions and briefs in support thereof, and, upon 

request, to make oral argument. 
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Failure of the respondent to file an answer within the time above provided, 

and failure to appear at the time and place fixed for hearing, shall be deemed 

to authorize, without further hearing, notice to the respondent or other formal 

procedure, the admission and consideration, as part of the record, of reports of 

employees of the Department of Agriculture and other documents upon which the 

complaint is based, and the issuance of an order based on such record. 

IT IS FURTHER 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 

EXHIBIT "A" 

TRANSACTIONS IN DURUM WHEAT FUTURES ON THE DULUTH BOARD OF TRADE IN 

CONNECTION WITH WHICH GEORGE P. HARBISON BECAME BUYER IN RESPECT TO SELLING 

ORDERS AND SELLER IN RESPECT TO BUYING ORDERS EXECUTED BY HIM ACTING AS FLOOR 

BROKER FOR FARMERS UNION GRAIN TERMINAL ASSOCIATION. 

Quantity 

(in thousand 1941 of bushels) Price 

Date Bought Sold Future (cents)

March 1 1 May 79 1/4

3 1 78 3/4

" 3 79 1/8 " 1 79 3/8

" 1 79

4 1 79 3/8 " 1 79 1/2

6 6 79 1/2 " 1 79 3/8 " 1 79 3/8

" 1 79 " 3 79 1/2 " 1 79 3/8

7 5 79 1/4

" 2 78 7/8 " 2 78 3/4

8 3 80 " 9 83 " 3 78 7/8 " 2 80

11 2 81 3/8

12 1 81 5/8 " 4 81 3/4

13 3 82

14 3 81 " 2 81

18 2 83 3/8 " 1 83 3/8

24 2 82 1/2

" 1 82 5/8 " 3 83 1/8 " 1 82 1/2

" 2 85

26 4 July 83 3/4

27 1 May 85 1/4

" 1 85 3/8 " 1 85 1/2

28 3 

 Total 51 34 
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Department of Agriculture or by registered mail. 

(SEAL) 

Done at Washington, D. C., this 18th day of June 1941. Witness my hand and 

the seal of the Department of Agriculture. 

/s/ Paul H. Appleby 

Under Secretary of Agriculture 

LOAD-DATE: June 11, 2008 
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