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Commodity Futures Trading Commission 

CEA CASES 

NAME: GENERAL COMMERCE CORPORATION 

DOCKET NUMBER: 76 

DATE: MARCH 13, 1957 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: General Commerce Corporation, Respondent 

CEA Docket No. 76 

Complaint and Notice of Hearing under section 6(b) of the Commodity Exchange 

Act 

There is reason to believe that the respondent, General Commerce Corporation, 

has violated the provisions of the Commodity Exchange Act (7 U.S.C. 1952 ed., 

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

pursuant thereto (17 CFR, Part 1). In accordance with the provisions of section 

6(b) of the Commodity Exchange Act (7 U.S.C. 1952 ed., § 9), this complaint and 

notice of hearing is issued alleging as follows: 

I 

Respondent General Commerce Corporation was at all times material to this 

complaint, and is now, a corporation with an office and place of business at 571 

Central Avenue, Newark, New Jersey. 

II 

The Board of Trade of the City of Chicago, hereinafter called the Chicago 

Board of Trade, has been at all times material to this complaint, and is now, a 

duly designated contract market under the Commodity Exchange Act. 

III 

On each day during the periods from October 25 through December 11, 1956, 

from December 17 through December 19, 1956, and from January 17 through January 

21, 1957, the net long or net short open contract position of the respondent 

corporation in lard futures on the Chicago Board of Trade ranged from 1,040,000 

pounds to 1,640,000 pounds in a single future. By reason of the fact that such 

quantities were equal to or in excess of the quantities set forth for reporting 

purposes in section 9.21 of the rules and regulations under the Commodity 

Exchange Act (17 CFR, 9.21), 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 lard futures on all boards of trade (exchanges) during the said periods, and 

with respect to all such transactions by reason of which the said respondent's 

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

Commodity Exchange Act (7 U.S.C. 1952 ed., § 6i) and sections 9.10, 9.11, 9.12, 

and 9.21 of the rules and regulations thereunder (17 CFR, 9.10, 9.11, 9.12, and 

9.21). 

IV 

On seven (7) business days within the periods specified in paragraph III, 

while the respondent corporation was in reporting status as therein described, 

and on three (3) additional business days immediately 
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thereafter when its position was reduced below reporting levels, transactions in 

lard futures on the Chicago Board of Trade were executed for its account, but 

the said respondent failed and refused to report to the Commodity Exchange 

Authority with respect to such transactions, as required under the aforesaid 

provisions of the Commodity Exchange Act and the rules and regulations. 

V 

Between September 14, 1956, and December 11, 1956, the Commodity Exchange 

Authority found it necessary to communicate with the respondent corporation nine 

times because of its failure to transmit reports. On December 11, 1956, the 

Administrator of the Commodity Exchange Authority addressed a letter to the 

respondent corporation calling attention to its delinquencies in submitting 

reports, informing it that such delinquencies were a continuing violation of the 

law, and warning it that continuing failure in this regard could result in the 

institution of administrative proceedings directed toward the denial of trading 

privileges on contract markets. The respondent was, therefore, aware of its 

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

filing of reports, and that failure to submit reports, as required, constituted 

a knowing and wilful violation of section 4i of the Commodity Exchange Act and 

sections 9.10, 9.11, 9.12, and 9.21 of the rules and regulations thereunder. 

Therefore, the said respondent, General Commerce Corporation, is hereby 

notified to be and appear at a hearing to be held at 10:00 a.m. local time, on 

the 30th day of April 1957, in Room 202, 44 Beaver Street, 

New York, New York, 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 

directing all contract markets to refuse all trading privileges to the 

respondent for such period of time as may be determined. The respondent 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., an answer, with an original and five copies, fully and 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 

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

Done at Washington, D. C., this 

13th day of March 1957. 

/s/ Earl L. Butz 

Earl L. Butz 

Assistant Secretary 

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