Page 1 

Commodity Futures Trading Commission 

CEA CASES 

NAME: LONGSTREET-ABBOTT AND COMPANY, ROY W. LONGSTREET, LESTER M. ABBOTT, CRAIG 

M. SMITH, AND F. MARTIN HILBY 

DOCKET NUMBER: STIPULATION 17 

DATE: JANUARY 7, 1953 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Longstreet-Abbott and Company, Roy W. Longstreet, Lester M. Abbott, Craig 

M. Smith, and F. Martin Hilby 

Stipulation of Compliance under the Commodity Exchange Act No. 17 

WHEREAS, the Secretary of Agriculture has reason to believe that Roy W. 

Longstreet, Lester M. Abbott, Craig M. Smith, and F. Martin Hilby, doing 

business as Longstreet-Abbott and Company, have violated the Commodity Exchange 

Act (7 U.S.C. 1-17a) and the orders of the Commodity Exchange Commission (17 CFR 

Part 150), by virtue of certain transactions involving the purchase and sale of 

commodities for future delivery on contract markets and the maintenance of open 

contract positions in such commodities, and 

WHEREAS, no complaint with respect to such violations has been issued, and 

WHEREAS, the said Longstreet-Abbott and Company, Roy W. Longstreet, Lester M. 

Abbott, Craig M. Smith, and F. Martin Hilby desire to enter into a stipulation 

pursuant to the provisions of section 0.4(a) of the Rules of Practice under the 

Commodity Exchange Act (17 CFR 0.4(a)). 

NOW, THEREFORE, the said Longstreet-Abbott and Company, Roy W. Longstreet, 

Lester M. Abbott, Craig M. Smith, and F. Martin Hilby, 

hereby stipulate and agree that the following facts are true, 

1. Longstreet-Abbott and Company is a partnership composed of Roy W. 

Longstreet, Lester M. Abbott, Craig M. Smith, and F. Martin Hilby, and has 

offices located at 7 North Brentwood Boulevard, Clayton 5. Missouri. The said 

partnership was at all times hereinafter mentioned and is now registered with 

the Commodity Exchange Authority as a futures commission merchant engaged in the 

business of trading in commodity futures on contract markets, including the 

Board of Trade of the City of Chicago (hereinafter called the Chicago Board of 

Trade) and the Kansas City Board of Trade, duly designated contract markets 

under the Commodity Exchange Act. The said partnership during the times 

hereinafter mentioned also operated an advisory service in commodity futures and 

in connection therewith controlled the trading in the accounts of certain of the 

subscribers to this advisory service. The transactions and positions in 

commodity futures hereinafter mentioned include the transactions and positions 

of the partnership, carried in its own [ILLEGIBLE TEXT] and also transactions 

and positions in subscribers' or clients' accounts controlled by the 

partnership. 

2. On January 19, 1950, the partnership sold 225,000 buchels of September 

1950 rye futures on the Chicago Board of Trade, resulting in a net short 

speculative position in such future of $ 20,000 bushels. Additional sales were 

made on January 24, 25, and 26, resulting in a net short speculative position on 

January 28 of 615,000 bushels. 
Page 2 

Covering purchased were made on January 27, 28, and 30 so that at the close of 

business on January 30, 1960, the short speculative position had been reduced to 

440,000 bushels. 

3. On August 9, 1951, the partnership bought a total of 550,000 bushels and 

sold a total of 65,000 bushels of oats futures on the Chicago Board of Trade. 

As a result of these transactions, the partnership had a long position of 

2,670,000 bushels and a short position of 615,000 bushels in all oats futures 

combined on the Chicago Board of Trade. The net long speculative position in 

all oats futures combined, after elimination of the 615,000-bushel spread 

position, was in excess of 2,000,000 bushels, to wit -- 2,055,000 bushels. 

4. On August 14, 1951, the partnership bought 380,000 bushels and sold 60,000 

bushels of December 1951 oats futures on the Chicago Board of Trade. As a 

result of these transactions, the partnership's net long speculative position in 

such future was in excess of 2,000,000 bushels, to wit -- 2,035,000 bushels. 

5. On August 15, 1951, the partnership bought 25,000 bushels of December 1961 

wheat futures on the Kansas City Board of Trade. As a result of such purchases, 

the partnership's net long speculative position in such future on the Kansas 

City Board of Trade was in excess of 2,000,000 bushels, to wit -- 2,005,000 

bushels. 

6. Prior to October 1, 1951, and continuously until October 3, 1951, the not 

long speculative position of the partnership in May 1952 

soybean futures on the Chicago Board of Trade was in excess of 1,000,000 

bushels. The partnership subsequently increased the aforesaid position by 

purchasing May 1952 soybean futures on the Chicago Board of Trade in the amounts 

of 15,000 bushels on October 4, 35,000 bushels on October 5. and 30,000 bushels 

on October 6. These purchases increased the long speculative position of the 

partnership by 80,000 bushels and this increased long position was held until 

October 8. The 1,000,000-bushel limit on speculative positions in soybean 

futures which became effective October 1, 1951, did not require the reduction of 

positions acquired prior to October 1, 1951, but did prohibit the increase of 

any such positions in excess of 1,000,000 bushels on or after the effective date 

of the order. 

7. On December 7, 1951, the partnership bought 290,000 bushels of May 1952 

soybean futures on the Chicago Board of Trade and sold 60,000 bushels, making a 

not addition to its long position of 290,000 bushels and resulting in a long 

speculative position of 1,225,000 bushels. Further purchases were made on 

December 8, 10, and 11 so that at this a close of business on December 11 the 

partnership was long 1,325,000 bushels of May 1950 soybean futures. Liquidating 

sales on December 12 and 13 reduced the position to 905,000 bushels as of the 

close of business on December 13. 

8. On December 14, 1951, the partnership sold 70,000 bushels of March 1952 

soybean futures on the Chicago Board of Trade. As a result of such sales, the 

partnership's net short speculative position in 

March 1952 soybean futures on the Chicago Board of Trade was in excess of 

1,000,000 bushels, to wit -- 1,010,000 bushels. 

9. On September 17, 1952, the partnership sold 95,000 bushels of May 1953 rye 

futures on the Chicago Board of Trade. As a result of such sales, the 

partnership's not short speculative position in such future on the Chicago Board 

of Trade was in excess of 500,000 bushels, to wit -- 585,000 bushels. 
Page 3 

10. No part of any of the trades or positions set forth above involved bona 

fide hedging transactions as described in section 4a of the Commodity Exchange 

Act (7 U.S.C. 6a). 

11. On January 26, 1950, February 1, 1950, August 13, 1951, October 5, 1961, 

December 11, 1951, and December 19, 1951, officials of the Commodity Exchange 

Authority notified the partnership in writing that the respective trades and 

positions described above were in excess of the amounts permitted by law. 

12. By reason of the facts act forth above, Longstreet-Abbott and Company, 

Roy W. Longstreet, Lester M. Abbott, Craig M. Smith, and F. Martin Hilby have 

violated section 4a of the Commodity Exchange Act (7 U.S.C. 6a) and the orders 

of the Commodity Exchange Commission establishing limits on position and daily 

trading in wheat and oats for future delivery (17 CFR 150.1). rye for future 

delivery (17 CFR 150.3), and soybeans for future delivery (17 CFR. 1951 Supp. 

150.4). 

In addition to admitting the foregoing facts, the said Longstreet-Abbott and 

Company, Roy W. Longstreet, Lester M. Abbott, Craig M. Smith, 

and F. Martin Hilby, hereby agree to discontinue all such acts and practices and 

all other acts and practices which are in violation of the Commodity Exchange 

Act, the Rules and Regulations under the Commodity Exchange Act, or the orders 

of the Commodity Exchange Commission, and do further specifically agree that 

this stipulation shall be admissible as evidence of acts and practices in 

violation of section 4a of the Commodity Exchange Act (7 U.S.C. 6a) in any 

subsequent proceeding brought against the said Longstreet-Abbott and Company, 

Roy W. Longstreet, Lester M. Abbott, Craig M. Smith, or F. Martin Hilby, under 

the provisions of the said act. 

Done at Clayton, Missouri, this 7th day of January, 1953. 

/s/ Longstreet-Abbott & Co. 

Longstreet-Abbott and Company 

By /s/ Lester M. Abbott 

General Partner 

/s/ Roy W. Longstreet 

Roy W. Longstreet 

/s/ Lester M. Abbott 

Lester M. Abbott 

/s/ Craig M. Smith 

Craig M. Smith 

/s/ F. Martin Hilby 

F. Martin Hilby 

Witnessed by: 

/s/ Helen Kruger 

/s/ Catherine Stark 

LOAD-DATE: June 16, 2008 
Page 4