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Commodity Futures Trading Commission 

CEA CASES 

NAME: WILLIAM LUDWIG 

CITATION: 14 Agric. Dec. 348 

DOCKET NUMBER: 66 

DATE: MAY 11, 1955 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 4257) 

In re WILLIAM LUDWIG. CEA Docket No. 66. Decided May 11, 1955. 

Denial of Trading Privileges -- Stipulation by Respondent -- Jurisdiction of 

Secretary -- Consent Order

Upon respondent's admission of jurisdictional facts, waiver of oral hearing, 

consent to entry of order herein, and stipulation, trading privileges of all 

contract markets are denied respondent for a period of 30 days, such refusal to 

apply to all trading done and positions held by respondent directly and 

indirectly with the exception of trading in cash butter. 

Mr. Benjamin M. Holstein for Commodity Exchange Authority. Messrs. Mc-Donough 

and Durkin, of Bronx, New York, for respondent. 

Decision by Thomas J. Flavin, Judicial Officer

PRELIMINARY STATEMENT

This is a quasi-judicial proceeding under the Commodity Exchange Act (7 

U.S.C., Chapter 1), instituted by a complaint and notice of hearing issued under 

Section 6(b) of the Commodity Exchange Act (7 U.S.C. 9) by the Assistant 

Secretary of Agriculture on March 22, 1955. 

The complaint alleged that on various occasions during the five-month period 

between October 5, 1954, and March 4, 1955, the respondent traded in egg futures 

on the Chicago Mercantile Exchange in excess of maximum permissible quantities, 

in wilful violation of Section 4a(2) of the Commodity Exchange Act and the order 

of the Commodity Exchange Commission establishing limits on positions and daily 

trading in eggs for future delivery (7 U.S.C. 6a(2); 17 CFR, 1953 Supp., 150.5). 

The complaint also alleged that the respondent submitted reports to the 

Commodity Exchange Authority which did not correctly reflect his trading and 

positions in egg futures during this period, in wilful violation of Section 4i 

of the Commodity Exchange Act and Sections 5.10, 5.11, and 5.21 of the rules and 

regulations thereunder (7 U.S.C. 6i; 17 CFR 5.10, 5.11, 5.21). 

No hearing has been held. On April 21, 1955, prior to the date set for the 

filing of an answer, the respondent submitted a stipulation under Section 0.4(b) 

of the rules of practice (17 CFR 0.4(b)), in which he admitted the facts 

contained herein under "Findings of Fact" and consented to the entry of the 

order hereinafter set forth. 

FINDINGS OF FACT

1. At all times material to this decision and order, respondent William 

Ludwig was a member of the Chicago Mercantile Exchange and was engaged in the 

business of merchandising butter and eggs at 180 Duane Street, New York 13, New 

York. 
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2. During the period from October 5, 1954 to March 4, 1955, both inclusive, 

respondent William Ludwig caused the execution of transactions and held open 

contract positions in eggs for future delivery on the Chicago Mercantile 

Exchange. 

3. At all times material to this decision and order, the Chicago Mercantile 

Exchange was a duly designated contract market under the Commodity Exchange Act. 

CONCLUSIONS

Section 0.4(b) of the rules of practice under the Commodity Exchange Act (17 

CFR 0.4 (b)) provides as follows: 

(b) Consent order. At any time after the issuance of the complaint and prior 

to the hearing in any proceeding, the Secretary, in his discretion, may allow 

the respondent to consent to an order. In so consenting, the respondent must 

submit, for filing in the record, a stipulation or statement in which he admits 

at least those facts necessary to the Secretary's jurisdiction and agrees that 

an order may be entered against him. Upon a record composed of the complaint 

and the stipulation or agreement consenting to the order, the Secretary may 

enter the order consented to by the respondent, which shall have the same force 

and effect as an order made after oral hearings. 

The facts admitted by the respondent and set forth in the Findings of Fact 

are sufficient to subject him to the jurisdiction of the Secretary of 

Agriculture. The complainant recommends that the waiver of hearing submitted by 

the respondent be accepted and that the order to which he has consented be 

issued. It is so concluded. 

ORDER

Effective July 1, 1955, all contract markets shall refuse all trading 

privileges to William Ludwig for a period of thirty (30) days, such refusal to 

apply to all trading done and positions held 

by the said William Ludwig directly and also to all trading done and positions 

held indirectly through persons owned or controlled by him, or otherwise, 

provided, however, that such refusal shall not be construed to apply to trading 

in cash butter. 

A copy of this decision and order shall be served upon the respondent by 

registered mail or in person, and upon each contract market. 

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