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Commodity Futures Trading Commission 

CEA CASES 

NAME: HENRY C. JONES 

DOCKET NUMBER: 138 

DATE: JUNE 13, 1966 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Henry C. Jones, Respondent 

CEA Docket No. 138 

Complaint and Notice of Hearing Under Section 6(b) of the Commodity Exchange 

Act 

There is reason to believe that the respondent, Henry C. Jones, has violated 

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

and regulations made pursuant to its requirements (17 CFR, Part 1), and in 

accordance with the provisions of section 6(b) of the said act (7 U.S.C. 9), 

this complaint and notice of hearing is issued stating the charges in that 

respect as follows: 

I 

The respondent is an individual whose address is Route 1, Eden, Idaho. 

II 

The New York Mercantile Exchange is now, and was at all times material to 

this complaint, a duly designated contract market under the Commodity Exchange 

Act. 

III 

On each day during the period February 17, 1966, through March 3, 1966, the 

respondent held a net long position in the 

May 1966 potato future on the New York Mercantile Exchange, which position 

exceeded 25 carlots. The respondent was, therefore, in reporting status during 

such period and was required to report to the Commodity Exchange Authority with 

respect to all transactions executed and all open contract positions held or 

controlled by him, in all potato futures on all contract markets during the said 

period, and with respect to all transactions by reason of which the respondent's 

position was reduced below reporting levels, as provided in section 4i of the 

Commodity Exchange Act (7 U.S.C. 6i) and sections 15.01, 15.02, 15.03, 18.00, 

18.01 and 18.03 of the rules and regulations thereunder (17 CFR 15.01, 15.02, 

15.03, 18.00, 18.01, 18.03). 

IV 

On February 17 and 23, 1966, while the respondent was in reporting status as 

described in paragraph III above, and on March 4, 1966, when the respondent's 

position was reduced below 25 carlots in the May 1966 potato future on the New 

York Mercantile Exchange, transactions in potato futures on that exchange were 

executed on his behalf, but the respondent failed and refused to report to the 

Commodity Exchange Authority with respect to such transactions, as required 
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under the aforesaid provisions of the Commodity Exchange Act and the rules and 

regulations. 

V 

On March 9, 1966, the Administrator of the Commodity Exchange Authority 

notified the respondent by mail of the reporting requirements with respect to 

potato futures under the Commodity Exchange Act and the rules and regulations, 

and requested submission of reports which were then due from the respondent, as 

described in paragraphs III and IV above. Notwithstanding such letter, no 

reports were filed. In the circumstances, the respondent was aware of his 

obligations under the Commodity Exchange Act and the rules and regulations with 

respect to the filing of reports, and the failure and refusal to submit such 

reports constitutes a knowing and wilful violation of section 4i of the 

Commodity Exchange Act and sections 15.01, 15.02, 15.03, 18.00, 18.01 and 18.03 

of the rules and regulations thereunder. 

WHEREFORE, it is hereby ordered that this complaint and notice of hearing be 

served upon the said respondent. The respondent will have twenty (20) days 

after the receipt of this complaint in which to file with the Hearing Clerk, 

United States Department of Agriculture, Washington, D. C. 20250, an answer with 

an original and three copies, fully and completely stating the nature of the 

defense and admitting or denying, specifically and in detail, each allegation of 

this complaint. Allegations not answered will be deemed admitted for the 

purpose of this proceeding. Failure to file an answer will constitute an 

admission of all the allegations of this complaint and a waiver of hearing. The 

filing of an answer 

in which all of the material allegations of fact contained in the complaint are 

admitted likewise shall constitute a waiver of hearing unless a hearing is 

requested. The respondent is hereby notified that unless hearing is waived, a 

hearing will be held at 10:00 a.m., local time, on July 20, 1966, in Twin Falls, 

Idaho, at a place therein to be specified later, before a referee designated to 

conduct such hearing. At such hearing the respondent will have the right to 

appear and show cause, if any there be, why an order should not be made 

directing that all contract markets refuse all trading privileges to the 

respondent for such period of time as may be determined. 

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

respondent at least twenty (20) days prior to the date set for hearing. 

Done at Washington, D. C., on 

June 13, 1966. 

[SEE SIGNATURE IN ORIGINAL] 

Assistant Secretary 

George L. Mehren 

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