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Commodity Futures Trading Commission 

CEA CASES 

NAME: WILLIAM E. HENNER 

DOCKET NUMBER: STIPULATION 38 

DATE: MAY 23, 1958 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: William E. Henner 

Stipulation of Compliance under the Commodity Exchange Act No. 38 

WHEREAS, the Secretary of Agriculture has reason to believe that William E. 

Henner has violated the provisions of the Commodity Exchange Act (17 CFR, 

Chapter 1) and the rules and regulations of the Secretary of Agriculture 

promulgated thereunder by virtue of certain transactions involving the purchase 

and sale of soybean futures, and 

WHEREAS, no complaint with respect to such violations has been issued, and 

WHEREAS, section 0.4(a) of the rules of practice under the Commodity Exchange 

Act (17 CFR 0.4(a)) provides that at any time prior to the issuance of a 

complaint in any proceeding, the Secretary of Agriculture nay, in his 

discretion, enter into a stipulation with a prospective respondent whereby the 

latter admits the material facts and agrees to discontinue the acts or practices 

which are intended to be set up as violative of the Act, and 

WHEREAS, the said William E. Henner is desirous of disposing of this matter 

by entering into such a stipulation, 

NOW, THEREFORE, the said William E. Henner hereby stipulates and represents 

that the following facts are true: 

1. William E. Henner is a member of the Chicago Board of Trade and is 

registered as a floor broker under the Commodity Exchange Act. 

2. Section 1.38 of the rules and regulations under the Commodity Exchange Act 

(17 CFR, 1954 Supp., 1.38) provides as follows: 

All purchases and sales of any commodity for future delivery on or subject to 

the rules of a contract market shall be executed openly and competitively as to 

price by open outcry or posting of bids and offers or by other equally open and 

competitive methods, in the trading pit or ring or similar place provided by the 

contract market, during the regular hours prescribed by the contract market for 

trading in such commodity: Provided, however, That this requirement shall not 

apply to such transactions as are executed in accordance with written rules of 

the contract market which have been submitted to and not disapproved by the 

Secretary of Agriculture, specifically providing for the noncompetitive 

execution of such transactions. 

3. On March 5, 1958, William E. Henner, acting for his own account, entered 

on his trading card the following transactions in soybean futures traded on the 

Chicago Board of Trade after having instructed James E. Baggot, Jr., a member of 

the Chicago Board of Trade, to enter the opposite side of the same transactions 

on Baggot's trading card for the account of Daniel R. Jesser, a customer of the 

firm of Baggot and Morrison: 

Opposite 

Bot Sold Future Price Clearing Member Opposite Broker Clearing Member 
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 Opposite 

Bot Sold Future Price Clearing Member Opposite Broker Clearing Member 

100 July 2.27 Baggot & Morrison J. E. Baggot, Jr. Baggot & Morrison 

 1/4 

100 May 2.26 " " " " " 

 1/4 

These transactions were not cleared through the Chicago Board of Trade 

Clearing Corporation until March 14, 1958. 

The above transactions were made by negotiation with James E. Baggot, Jr. and 

were not made openly and competitively, and were not within the exceptions 

specified in section 1.38 of the rules and regulations under the Commodity 

Exchange Act (17 CFR, 1954 Supp., 1.38). 

In addition to admitting the foregoing facts, the said William E. Henner 

hereby agrees to discontinue all such acts and practices and to refrain from all 

other acts and practices which are in violation of the Commodity Exchange Act or 

the rules and regulations thereunder, and further understands that this 

stipulation shall be admissible as evidence of acts and practices in violation 

of the rules and regulations under the Commodity Exchange Act in any proceeding 

based upon transactions in addition to those referred to in paragraph 3 hereof 

which may hereafter be brought by the Secretary of Agriculture against the said 

William E. Henner under the provisions of the said Act. 

Done at Chicago, Illinois, this 

23 day of May, 1958. 

/s/ W. E. Henner 

Witnessed by: 

/s/ Samuel F. Gordon 

/s/ G. E. Piala 

LOAD-DATE: June 16, 2008 
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