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Commodity Futures Trading Commission 

CEA CASES 

NAME: BARAD-SHAFF SALES CO., INC., AND ALEXANDER BARAD 

DOCKET NUMBER: STIPULATION 18 

DATE: MAY 6, 1953 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Barad-Shaff Sales Co., Inc., and Alexander Barad 

Stipulation of Compliance under the Commodity Exchange Act No.18 

WHEREAS, the Secretary of Agriculture has reason to believe that the BaradShaff Sales Company, Inc., and Alexander Barad have violated the Commodity 

Exchange Act (7 U.S.C. 1-17a) and the rules and regulations thereunder (17 CFR, 

Part 5) by virtue of certain transactions involving the purchase and sale of 

commodities for future delivery on contract markets, and 

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

WHEREAS, the said Barad-Shaff Sales Company, Inc., and Alexander Barad 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 Barad-Shaff Sales Company, Inc., and Alexander Barad 

hereby stipulate and agree that the following facts are true: 

1. Barad-Shaff Sales Company, Inc. is a corporation organized under the laws 

of the State of New York, and has an office and place; of business at 90 West 

Broadway, New York 7, New York. 

2. Alexander Barad is president of the Barad-Shaff Sales Company, Inc. At 

all times material to this stipulation, the said Alexander Barad was a member of 

the Chicago Mercantile Exchange, such membership being registered for the 

benefit of the said Barad-Shaff Sales Company, Inc. The said Alexander Barad, 

in his capacity as an of floor of the said corporation, controlled and was 

responsible for execution of the futures transactions hereinafter described. 

3. At all times material to this stipulation, the Chicago Mercantile Exchange 

was a board of trade which was duly designated as a contract market under the 

Commodity Exchange Act. 

4. During the period from December 4, 1952 to December 8, 1952, both 

inclusive, the short open contract position of the said Barad-Shaff Sales 

Company, Inc. in December 1952 egg futures on the Chicago Mercantile Exchange 

ranged between 26 and 28 car lots. During the period from January 23, 1953 to 

February 13, 1953, both inclusive, the short open contract position of the said 

corporation in October 1963 egg futures on the Chicago Mercantile Exchange 

ranged between 26 end 29 oar lots. By reason of the fact that such positions 

were equal to or in excess of 26 car lots, 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 hold for 

its account during such periods, in all egg futures on all boards of trade, as 

provided in section 41 of the Commodity Exchange Act (7 U.S.C. 6i) and sections 

5.10, 5.11, 5.18, 
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and 5.21 of the rules and regulations thereunder (17 CFR 5.10, 5.11, 5.12, and 

5.21). During the said periods, the following purchases and sales of egg 

futures were executed on the Chicago Mercantile Exchange for the account of the 

said corporation: 

Bought Sold 

Date Future Car Lots Car Lots

Dec. 4, 1952 December 1952 5 

Dec. 5, 1952 December 1952 2 Dec. 8, 1952 December 1952 2 

Jan. 23, 1953 October 1953 3 

Jan. 26, 1953 October 1953 2 

Jan. 29, 1953 October 1953 2 

The said Barad-Shaff Sales Company, Inc. failed to report to the Commodity 

Exchange Authority with respect to such purchases and sales and the resulting 

open contract positions, and with respect to transactions and open contracts in 

other egg futures during the above periods, as required by the aforementioned 

sections of the Commodity Exchange Act and regulations. 

5. The short open contract position of the said corporation in December 1952 

egg futures described in paragraph 4 was distributed among three accounts, each 

in the name of the Barad-Shaff Sales Company, Inc., carried on the books of 

Bache and Company, Fahnestock and Company, and Great Western Food Distributors, 

Inc., registered futures commission merchants. The open contract position of 

the said corporation in October 1953 egg futures described in paragraph 4 was 

distributed between the accounts carried by Bache and Company and Fahnestock and 

Company. In each account, 

the open contract position in each future was less than 25 car lots, but when 

the three accounts were combined and the total open contract position in each 

future was calculated, such calculation showed that the said corporation had 

open contract positions in the December 1952 and October 1953 egg futures a 

equal to or in excess of 25 car lots during the respective periods set forth 

above. 

6. By letter dated September 29, 1948, the Commodity Exchange Authority 

informed the Barad-Shaff Sales Company, Inc., of the reporting requirements 

under the Commodity Exchange Act and regulations. On August 23, 1950 and 

November 1, 1951, officials of the Commodity Exchange Authority found it 

necessary to communicate with the said Alexander Barad because of his failure to 

submit reports concerning reportable transactions and positions in egg futures 

on contract markets. By letter dated November 30, 1951, the said Alexander 

Barad was notified by the Commodity Exchange Authority that continued failure or 

refusal to comply with the reporting requirements would lead to the institution 

of formal proceedings which might result in the denial of trading privileged on 

contract markets. The said Barad-Shaff Sales Company, Inc., and Alexander Barad 

were therefore fully informed of their obligations under the act and the 

regulations to file reports whenever their trades or positions in the futures 

market placed them in reporting statue and the failure to file reports with 

respect to the transactions 

described above constituted willful violations of section 4i of the Commodity 

Exchange Act and sections 5.10, 5.11, 5.12 and 5.21 of the rules and regulations 

thereunder. 

In addition to admitting the foregoing facts, the said Barad-Shaff Sales 

Company, Inc. and Alexander Barad hereby agree to discontinue all such acts and 

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

Commodity Exchange Act or the rules and regulations thereunder, and do further 

specifically agree that this stipulation shall be admissible as evidence of acts 

and practices in violation of section 4i of the Commodity Exchange Act (7 U.S.C. 
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6i) in any subsequent proceeding brought against the Barad-Shaff Sales Company, 

Inc., or Alexander Barad under the provisions of the said act. 

Done at New York, New York 

this 6th day of May, 1953. 

/s/ BARAD SHAFF SALES COMPANY 

Barad-Shaff Sales Company, Inc. 

By /s/ Alexander Barad, President 

/s/ Alexander Barad 

Alexander Barad 

Witnessed by: 

/s/ Alfred Halper 

LOAD-DATE: June 16, 2008 
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