Citation:  154 F.2d 6 (1946)

Summary:  Appellants filed an appeal claiming that commission had not followed the directions of the Supreme Court.

Facts:  Appellants filed an appeal on the order of the commission which did not allow the corporation's officers and directors from buying or selling the securities. They alleged that the commission by ordering so, did not follow the orders of Supreme Court which had directed the commission not to follow such a standard.

Issue:  Whether the commission was correct in outlawing the petitioners for purchasing the stocks which was permissible exercise of administrative discretion?

Holding:  No, the commission was not correct in outlawing the petitioners for purchasing the stocks which was permissible exercise of administrative discretion.

Procedure:  Judgment of the commission was reversed by the Appellate Court.

Rule:  The rule forbids the officers and directors of a corporation in the process of reorganization from buying and selling securities of the corporation during the pendency of the proceedings before the commission.

Rationale:  The commission had applied a standard which was not promulgated by the commission or legislative act and hence the decision was not correct.