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Commodity Futures Trading Commission 

CEA CASES 

NAME: UNITED STATES OF AMERICA V. CARGILL, INCORPORATED, AND CARGILL GRAIN 

COMPANY, LIMITED 

DOCKET NUMBER: 58 

DATE: MAY 4, 1954 

DOCUMENT TYPE: FINAL JUDGEMENT 

COPY 

UNITED STATES DISTRICT COURT 

DISTRICT OF MINNESOTA 

FOURTH DIVISION 

No. 4849 Civil 

UNITED STATES OF AMERICA, Plaintiff, vs. CARGILL, INCORPORATED, and CARGILL 

GRAIN COMPANY, LIMITED, Defendants. 

FINAL JUDGMENT 

Plaintiff, the United States of America, having filed its complaint hereon on 

May 3, 1594: and the defendants having appeared and filed their answer to said 

complaint denying the substantive allegations therein and denying any violation 

of or intent to violate the law or any rules, regulations or orders issued 

thereunder; and the plaintiff and defendants, by their respective attorneys, 

having severally stipulated and consented to the entry of this final judgement 

without trial or adjudication of any issue of fact or law herein, and without 

admission by any party with respect to any such issue, and upon condition that 

neither such stipulation and consent nor this judgment shall be or be considered 

as evidence, admission or adjudication that the defendants or either of them 

have violated any law or any rule, regulation or order issued thereunder: and 

the Court having considered the matter and being duly advised: 

NOR, THEREFORE, before the taking of any testimony and without trial or 

adjudication of any issue of fact or law herein and solely upon consent, as 

aforesaid, of all the parties hereto, and upon motion of the plaintiff. 

IT IS HEREBY ORDERED, ADJUDGED AND DECREED, as follows: 

I 

This Court has jurisdiction of the subject matter hereof and of all parties 

hereto. The complaint states a civil action against the 

defendants under Title 28, U. S. Code, Section 1345, and the Act of Congress of 

September 21, 1922, entitled "An Act for the prevention and removal of 

obstructions and burdens upon interstate commerce in grain, by regulating 

transactions on grain future exchanges, and for other purposes," as amended, 

commonly known as the Commodity Exchange Act (7 U.S.C., Chapter 1). 

II 

Defendant Cargill, incorporated is hereby enjoined and restrained from using 

contracts or agreements with, or commitments to, defendant Cargill, Grain 

Company, Limited and from using contracts or agreements with, or commitments to, 

any other person, as defined by the Commodity Exchange Act, "owned wholly or in 

substantial part or otherwise directly or indirectly controlled by, or otherwise 
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directly or indirectly controlled by, or under common control with," defendant 

Cargill, Incorporated, as a basis for classifying transactions or positions in 

commodity futures as hedging in its reports to the Commodity Exchange Authority. 

III 

Defendants Cargill, Incorporated and Cargill Grain Company, Limited are 

hereby ordered and directed to treat all commodity transactions and positions of 

defendant Cargill Grain Company, Limited and all commodity transactions and 

positions of any other person, as defined by the Commodity Exchange Act, owned 

wholly or in substantial part or otherwise directly or indirectly controlled by, 

or under common control with, defendant Cargill, Incorporated, as the 

transactions and positions of defendant Cargill, Incorporated in submitting 

reports to the Commodity Exchange Authority and in complying with the orders 

issued by the Commodity Exchange Commission under Section 4a or the Commodity 

Exchange Act. 

IV 

Defendant Cargill, Incorporated and Cargill Grain Company, Limited, and each 

and every other person, as defined by the Commodity Exchange Act, owned wholly 

or in substantial part or otherwise directly or indirectly controlled by, or 

under common control with, defendant Cargill, Incorporated are hereby enjoined 

and restrained from exceeding the limits on the amount of trading under 

contracts of sale of oats for future delivery on or subject to the rules of any 

contract market as may be fixed from time to time by the Commodity Exchange 

Commission under authority of 7 U.S.C. § 6a, or any similar statute. 

V 

Defendants Cargill, Incorporated and Cargill Grain Company, Limited are 

hereby jointly and severally on joined from exercising trading privileges in 

oats futures on contract markets as defined by the Commodity Exchange Act for 

the period commencing May 14, 1654, and terminating December 31, 1954: Provided, 

that such refusal of trading privileges in oats futures on contract markets 

shall apply to trading done and positions held by either of the defendants 

directly and also to trading done and positions held indirectly by or through 

any person, as defined in the Commodity Exchange Act, owned wholly or in 

substantial part or otherwise directly or indirectly controlled by, or under 

common control with, either of the defendants, or by any other means; and 

Provided, that any position in May 1954 oats futures any contract market held by 

Cargill, Incorporated on the effective date of this judgment may be liquidated 

by means of futures transactions or deliveries at any time prior to the 

expiration of trading in such May 1954 oats futures; and Provided, that the 

injunction and prohibition contained in this paragraph of this judgment shall 

not be construed to prohibit the execution of bona fide orders received by 

Cargill, Incorporated or by any person, as defined in the Commodity Exchange 

Act, owned wholly or in substantial part or otherwise directly or indirectly 

controlled by, or under common control with, Cargill, Incorporated from its or 

their customers in its or their capacities as registered futures commission 

merchants under the Commodity Exchange Act. 

VI 

Jurisdiction is retained solely for the purpose of enabling any of the 

parties to this final judgment to apply to this Court at any time for such 

further orders or directions as may be necessary or appropriate for the 

construction or carrying out of this final judgment, for the modification of any 

of the provisions hereof, or for the enforcement of compliance herewith. 

Dated, May 4, 1954. 

Gunnar H. Hordbye /s/ 
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UNITED STATES DISTRICT JUDGE 

Re consent to the entry of the foregoing Final Judgment. 

FOR THE PLAINTIFF: 

George E. Mackinnon /s/ 

GEORGE E. MacKINNON 

United States Attorney 

221 Federal Courts Building 

St. Paul 2, Minnesota 

FOR THE DEFENDANTS, 

DORSEY, COLMAN, BARKER, SCOTT & BARBER 

By James E. Dorsey /s/ 

1300 First National-Soo Line Building 

Minneapolis 2, Minnesota 

Attorneys for Defendants Cargill, 

Incorporated and Cargill Grain 

Company, Limited 

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