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Commodity Futures Trading Commission 

CEA CASES 

NAME: VOLKART BROTHERS, INC., VOLKART BROTHERS COMPANY, ALFRED BOEDTKER, AND 

KURT MULLER 

DOCKET NUMBER: 82 

DATE: APRIL 24, 1958 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Volkart Brothers, Inc., Volkart Brothers Company, Alfred Boedtker, and 

Kurt Muller, Respondents 

CEA Docket No. 82 

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

Act 

There is reason to believe that the respondents, Volkart Brothers, Inc., 

Volkart Brothers Company, Alfred Boedtker, and Kurt Muller, attempted to 

manipulate and did manipulate the price of a commodity in interstate commerce 

and for future delivery on or subject to the rules of a board of trade, in 

violation of the Commodity Exchange Act (7 U.S.C. 1952 ed., §§ 9, 13), and in 

accordance with the provisions of section 6(b) of the said act (7 U.S.C. 1952 

ed., § 9) this complaint and notice of hearing is issued stating the charges in 

that respect as follows: 

I 

Respondent Volkart Brothers, Inc., a New York corporation with offices and a 

place of business at 1539 Jackson Avenue, New Orleans 13, Louisiana, is now and 

was at all times material to this complaint 

engaged in the cotton merchandising business. At all such times the said 

corporation enjoyed membership trading privileges on the New York Cotton 

Exchange and the New Orleans Cotton Exchange. 

II 

Respondent Volkart Brothers Company, a partnership with offices and a place 

of business at 120 Wall Street, New York 5, New York, is now and was at all 

times material to this complaint a registered futures commission merchant under 

the Commodity Exchange Act and a clearing member of the New York Cotton 

Exchange. At all such times the said partnership enjoyed membership trading 

privileges on the New Orleans Cotton Exchange. 

III 

Respondent Alfred Boedtker, an individual whose address is 139 East 39th 

Street, New York, New York, is now and was at all times material to this 

complaint president of Volkart Brothers, Inc., a partner in Volkart Brothers 

Company, a member of the New York Cotton Exchange, a member of the New Orleans 

Cotton Exchange, and a registered floor broker under the Commodity Exchange Act. 

IV 
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Respondent Kurt Muller, an individual whose address is 5231 St. Charles 

Avenue, New Orleans, Louisiana, is now and was at all times material to this 

complaint a vice president of Volkart Brothers, Inc., a partner in Volkart 

Brothers Company, and a member of the New Orleans Cotton Exchange. 

V 

The transactions hereinafter described were carried out under the direction 

and supervision and by means of the acts of respondents Alfred Boedtker and Kurt 

Muller in their capacities as officers or partners of the respondent firms. 

VI 

The New York Cotton Exchange and the New Orleans Cotton Exchange are now and 

were at all times material to this complaint duly designated contract markets 

under the Commodity Exchange Act. 

VII 

October 15, 1957, was the last day for trading in the October 1957 cotton 

future on the New York Cotton Exchange and the New Orleans Cotton Exchange, and 

also the last day on which notice could be given 

of intention to deliver cotton in satisfaction of such future. At the close of 

business on October 14, 1957, respondent Volkart Brothers, Inc., held a long 

position in the October 1957 cotton future in the amount of 10,400 bales (104 

contracts) on the New York Cotton Exchange through respondent Volkart Brothers 

Company, and a long position in such future in the amount of 1,700 bales (17 

contracts) on the New Orleans Cotton Exchange through a clearing member of that 

exchange, representing approximately 89 percent and 97 percent of the total open 

interest in such future on the respective exchanges. The October 1957 cotton 

future on the said exchanges required the delivery of certificated cotton, and 

at the close of business on October 14, 1957, there were in existence 

approximately 5,000 bales of certificated cotton owned and held by persons other 

than the respondents. 

VIII 

On October 15, 1957, prior to the opening of the trading session on the New 

York Cotton Exchange, respondent Volkart Brothers Company ordered its agent and 

broker to sell 2,000 bales of October 1957 cotton futures at 35.17 cents per 

pound on the said exchange for the account of respondent Volkart Brothers, Inc., 

and to sell the balance of the said respondent's long position in such future, 

less any delivery notices which might be received, at 35.27 cents per pound. 

Pursuant to such orders, the said agent and broker sold 2,000 bales of such 

future at 35.17 cents per pound and 3,400 bales at 35.27 cents per pound, and 

during the day respondent Volkart Brothers, Inc., received notices of delivery 

of approximately 5,000 bales. 

IX 

On October 15, 1957, prior to the opening of the trading session on the New 

Orleans Cotton Exchange, respondent Volkart Brothers, Inc., ordered a registered 

floor broker on the said exchange to liquidate its long position of 1,700 bales 

in the October future by sales at not less than 35.38 cents per pound, and to 

take delivery of any part of the said position which could not be sold at this 

price or better. Pursuant to such order, the said floor broker sold 1,600 bales 

of such future at prices ranging from 35.40 to 35.48 cents per pound, and during 

the day respondent Volkart Brothers, Inc., received notice of delivery of 

approximately 100 bales. 

X 
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On October 22, 1957, respondent Volkart Brothers, Inc., received 

approximately 5,000 bales of certificated cotton pursuant to the delivery 

notices of October 15, 1957, described above, and on December 19, 1957, the said 

respondent redelivered approximately 3,700 bales of the said cotton on December 

futures contracts which it held on the New Orleans Cotton Exchange. 

XI 

The respondents initiated and carried out the transactions described above 

for the purpose and with the intent of causing increases in the prices of 

October 1957 cotton futures on the New York and New Orleans Cotton Exchanges, 

and enabling respondent Volkart Brothers, Inc., to liquidate its positions in 

the future at such increased prices. In furtherance of such purpose and intent, 

and with knowledge of the fact that there was an insufficient supply of 

certificated cotton in existence to satisfy the long contracts which they held, 

the respondents demanded and received fixed and arbitrary prices which were in 

excess of the true market value of October 1957 cotton futures or of spot 

cotton, thereby causing increases in the prices of such future which were not 

justified by supply and demand. By reason thereof, the respondents, Volkart 

Brothers, Inc., Volkart Brothers Company, Alfred Boedtker, and Kurt Muller, 

attempted to manipulate and did in fact manipulate the price of a commodity for 

future delivery on or subject to the rules of a board of trade, in willful 

violation of sections 6(b) and 9 of the Commodity Exchange Act (7 U.S.C. 1952 

ed., §§ 9, 13). 

Therefore, the said respondents are hereby notified to be and appear at a 

hearing to be held at 10:00 a.m., local time, on the 9th day of July 1958, in 

Room 308, New Orleans Cotton Exchange Building, New Orleans, Louisiana, 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 that all contract markets refuse all trading privileges to the 

respondents for such period of time as may be determined, and suspending or 

revoking the registration of respondent Alfred Boedtker as a floor broker and 

the registration of respondent Volkart Brothers Company as a futures commission 

merchant. The respondents 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 

seven 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 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 

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

Done at Washington, D. C., this 24th day of April, 1958. 

/s/ Don Paarlberg 

Don Paarlberg 

Assistant Secretary 

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