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Commodity Futures Trading Commission 

CEA CASES 

NAME: CORN PRODUCTS REFINING COMPANY 

DOCKET NUMBER: 55 

DATE: JULY 22, 1952 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Corn Products Refining Company, Respondent 

CE-A Docket No. 55 

Complaint and notice of hearing under the Commodity Exchange Act 

The Secretary of Agriculture has reason to believe that the respondent 

corporation, Corn Products Refining Company, has violated the provisions of the 

Commodity Exchange Act (7 U.S.C., Chapter 1), and the rules and regulations made 

pursuant to its requirements. In accordance with the provisions of section 6(b) 

of the Commodity Exchange Act (7 U.S.C. 9), this complaint is issued alleging as 

follows: 

1. 

The Corn Products Refining Company is a corporation organized and existing 

under the laws of the State of New Jersey, with its office and principal place 

of business at 17 Battery Place, New York, New York. The said corporation is 

engaged in the business of manufacturing and selling corn products. 

2. 

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

Board of Trade, was at all times hereinafter mentioned and is now a duly 

designated contract market under the provisions of the Commodity Exchange Act. 

3. 

On December 22, 1938, the Commodity Exchange Commission, pursuant to 

authority vested in it by section 4a of the Commodity Exchange Act (7 U.S.C. 

6a), issued an order (17 CFR 150.1) reading, in part, as follows: 

UNITED STATES OF AMERICA 

Before the Commodity Exchange Commission 

(Hearing Docket C. E. A. No. 3) 

FINDINGS OF FACT, CONCLUSIONS, AND ORDER 

IN THE MATTER OF LIMITS ON POSITION AND DAILY TRADING IN WHEAT, CORN, OATS, 

BARLEY, AND FLAXSEED, FOR FUTURE DELIVERY 

As used herein, the word "grain" includes wheat, corn, oats, barley, and 

flaxseed, and the word "parson" includes individuals, associations, 

partnerships, corporations, and trusts. 

* * * * 

Order 

IT IS HEREBY ORDERED That the following limits on the amount of trading under 

contracts of sale of grain for future delivery on or subject to the rules of 
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contract markets which may be done by any person be, and they are hereby, 

proclaimed and fixed, to be in full force and effect on and after December 31, 

1938. 

POSITION LIMITS 

1. The limit on the maximum net long or net short position which any one 

person may hold or control in any one grain on any one contract market, except 

as specifically authorized by paragraph 2 hereof, is, 2,000,000 bushels in any 

one future or in all futures combined. 

2. To the extent that the net position held or controlled by any one person 

in all futures combined in any one grain on any one contract market is shown to 

represent spreading in the same grain between markets, the limit on net position 

in all futures combined set forth in paragraph 1 hereof may be exceeded on such 

contract market, but in no case shall the excess result in a net position of 

more than 3,000,000 bushels in all futures combined nor more than 2,000,000 

bushels in any one future. 

* * * * 

The foregoing limits upon position and upon daily trading shall not be 

construed to apply to bona fide hedging transactions as defined in paragraph (3) 

of section 4a of the Commodity Exchange Act. 

The said order of the Commodity Exchange Commission has been in full force 

and effect continuously since December 31, 1938. 

4. 

On April 11, 1952, as the result of transactions theretofore executed on the 

Chicago Board of Trade for the account of the respondent corporation, its net 

long position in May, July, and December corn futures contracts on the Chicago 

Board of Trade reached a point in excess of 2,000,000 bushels -- to wit, 

approximately 3,650,000 bushels. No part of such position represented spreading 

in the same grain between markets. Approximately 207,000 bushels of such 

position represented bona fide hedging transactions as defined in the Commodity 

Exchange Act. The balance of such position, approximately 3,443,000 bushels, 

represented speculative trading. 

5. 

On various days between April 11, 1952, and June 9, 1952, as the result of 

transactions executed on the Chicago Board of Trade for the 

account of the respondent corporation, its net long position in May, July, and 

December corn futures contracts on the Chicago Board of Trade exceeded 2,000,000 

bushels, exclusive of spreading in the same grain between markets and bona fide 

hedging transactions as defined in the Commodity Exchange Act. 

6. 

By reason of the facts described in paragraphs 4 and 5, the respondent, Corn 

Products Refining Company, has violated section 4a of the Commodity Exchange Act 

and the aforesaid order of the Commodity Exchange Commission. 

Therefore, the said respondent, Corn Products Refining Company, is hereby 

notified to be and appear at a hearing to be held at 10:00 o'clock A.M., eastern 

standard time, on the 7th day of October, 1952, in Room 602, 60 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 

that all contract markets refuse all trading privileges to the said respondent 

for such period of time as may be determined by the Secretary of Agriculture. 

The respondent will have 20 days after the receipt of this notice of hearing 

in which to file with the Secretary of Agriculture, in 
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triplicate, an answer 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 he served on the 

respondent by delivery of a true copy thereof by an employee of the Department 

of Agriculture, or by registered mail, at least 20 days prior to the date set 

for hearing. 

Done at Washington, D. C., 

this 22 day of July, 1952. 

/s/ K. T. Hutchinson 

Acting Secretary of Agriculture 

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