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Commodity Futures Trading Commission 

CEA CASES 

NAME: A. E. ALBERT, AND A. E. ALBERT AND SONS, INC. 

DOCKET NUMBER: 64 

DATE: NOVEMBER 12, 1954 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: A. E. Albert, and A. E. Albert and Sons, Inc., Respondents 

CEA Docket No. 64 

Complaint and Notice of Hearing Under the Commodity Exchange Act 

The Assistant Secretary of Agriculture has reason to believe that the 

respondents, A. E. Albert and A. E. Albert and Sons, Inc., have violated the 

provisions of the Commodity Exchange Act (7 U.S.C., Chapter 1) and the rules and 

regulations made pursuant to its requirements (17 CFR, Chapter 1). In 

accordance with the provisions of section 6(b) of the Commodity Exchange Act (7 

U.S.C. 9), this complaint and notice of hearing is issued alleging as follows: 

I 

Respondent A. E. Albert and Sons, Inc. is a corporation organized under the 

laws of the State of Massachusetts. The address of the said corporation is P. 

O. Box 107, Worthington, Massachusetts. On September 24, 1954, the said 

corporation was registered as a futures commission merchant under the Commodity 

Exchange Act and is presently so registered. Respondent A. E. Albert, an 

individual 

whose address is Chesterfield Avenue, Worthington, Massachusetts, is the 

president and principal shareholder of the respondent corporation, and manages 

and controls its business. At all times material to this complaint, the said A. 

E. Albert was a member of the New York Mercantile Exchange, and by reason 

thereof the respondent corporation exercised membership trading privileges on 

the said exchange. 

II 

The New York Mercantile Exchange is a duly designated contract market under 

the Commodity Exchange Act. 

III 

The acts and transactions hereinafter described were initiated and carried 

out under the supervision and direction of respondent A. E. Albert in his 

capacity as president and managing officer of the respondent corporation. 

IV 

On each day during the periods from September 10, 1953 to November 17, 1953, 

from December 17, 1953 to March 23, 1954, from May 13, 1954 to May 16, 1954, and 

from July 22, 1954 to October 18, 1954, the net long or net short open contract 

position of respondent A. E. Albert 
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and Sons, Inc. in potato futures on the New York Mercantile Exchange ranged from 

25 carlots to 174 carlots in a single future. By reason of the fact that such 

quantities were equal to or in excess of 25 carlots in one potato future, the 

said corporation was in reporting status and was required to report to the 

Commodity Exchange Authority with respect to all transactions executed and all 

open contract positions held for its account in all potato futures on all boards 

of trade (exchanges) during the said periods, as provided in section 4i of the 

Commodity Exchange Act and sections 6.10, 6.11, 6.12, and 6.21 of the rules and 

regulations thereunder (17 CFR 6.10, 6.11, 6.12, 6.21). 

V 

On approximately 30 business days within the periods specified in paragraph 

IV, and while the respondent corporation was in reporting status as therein 

described, transactions in potato futures on the New York Mercantile Exchange 

were executed for the account of the said corporation, but the respondents 

failed or refused to report to the Commodity Exchange Authority with respect to 

such transactions, as required by the aforesaid sections of the Commodity 

Exchange Act and the rules and regulations. On approximately 46 other business 

days within the periods specified in paragraph IV, and while the respondent 

corporation was in reporting status as therein described, 

transactions in potato futures on the New York Mercantile Exchange were executed 

for the account of the said corporation, but the respondents submitted 

incomplete and inaccurate reports with respect to such transactions, contrary to 

the requirements of the aforesaid sections of the Commodity Exchange Act and the 

rules and regulations. 

VI 

Between July 17, 1952 and January 12, 1954, the Commodity Exchange Authority 

found it necessary to communicate with the respondents nine times because of 

their failure to submit reports and because of the submission of incomplete and 

inaccurate reports. On January 12, 1954, the Administrator of the Commodity 

Exchange Authority addressed a letter to respondent A. E. Albert, calling 

attention to the delinquency of the respondents in submitting reports, informing 

them that such delinquency was a continuing violation of the Commodity Exchange 

Act, and warning them that continued failure in this regard might result in the 

institution of administrative proceedings directed toward the denial of trading 

privileges on contract markets. The respondents were therefore aware of their 

obligations under the act and the rules and regulations with respect to the 

filing of reports, and the failure of the respondents to submit reports and 

their submission of incomplete and inaccurate reports, as above described, 

constituted knowing and wilful violations of section 4i of the Commodity 

Exchange Act (7 U.S.C. 6i) 

and sections 6.10, 6.11, 6.12, and 6.21 of the rules and regulations (17 CFR 

6.10, 6.11, 6.12, 6.21). 

Therefore, the said respondents, A. E. Albert and A. E. Albert and Sons, Inc. 

are hereby notified to be and appear at a hearing to be held at 10:00 A.M. 

eastern standard time, on the seventh (7th) day of December, 1954, at 44 Beaver 

Street, New York 4, New York, in Room 202, before a referee designated to 

conduct such hearing, and then and there show cause, if any there be, why an 

order should not be made revoking or suspending the registration of respondent 

A. E. Albert and Sons, Inc. as a futures commission merchant, and directing that 

all contract markets refuse all trading privileges to the respondents for such 

period of time as may be determined. 

The respondents will have twenty (20) days after the receipt of this notice 

of hearing in which to file with the Hearing Clerk, United States Department of 

Agriculture, Washington 25, D. C., in quadruplicate, an answer fully and 
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completely stating the nature of the defense and admitting or denying 

specifically and in detail each material and relevant allegation of this 

complaint. Allegations that are not answered will be deemed admitted for the 

purpose of this proceeding. 

It is ordered that this complaint and notice of hearing be served on the 

respondents by delivery of a true copy thereof by an employee 

of the Department of Agriculture, or by registered mail, at least twenty (20) 

days prior to the date set for hearing. 

Done at Washington, D. C., this 

12th day of November, 1954 

/s/ Earl L. Butz 

Earl L. Butz 

Assistant Secretary 

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