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Commodity Futures Trading Commission 

CEA CASES 

NAME: WILLARD E. PLATT, GEORGE F. FREY, JR., OLIVER M. HIBBERD, PATRICK M. SHEA, 

HENRY C. GATLIN, F & G COMMODITIES, AND RALPH N. PETERS & CO. 

CITATION: 24 Agric. Dec. 102 

DOCKET NUMBER: 112 

DATE: FEBRUARY 9, 1965 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 9610) 

In re WILLARD E. PLATT, GEORGE F. FREY, JR., OLIVER M. HIBBERD, PATRICK M. SHEA, 

HENRY C. GATLIN, F & G COMMODITIES, AND RALPH N. PETERS & CO. CEA Docket No. 

112. Decided February 9, 1965. 

Fictitious or wash sales -- Suspension of registration -- Denial of trading 

privileges -- Consent -- Henry C. Gatlin

The registration of Henry C. Gatlin as a floor broker is suspended for a 

period of 20 days and his trading privileges on the contract markets are denied 

for a like period for engaging in fictitious or wash sales in violation of the 

act. 

Mr. Earl L. Saunders for Commodity Exchange Authority. Respondent Henry C. 

Gatlin pro se. 

Decision by Thomas J. Flavin, Judicial Officer

PRELIMINARY STATEMENT

This is an administrative proceeding under the Commodity Exchange Act (7 

U.S.C. 1 et seq.), instituted by a complaint and notice of hearing issued under 

section 6(b) of the act by the Assistant Secretary of Agriculture. 

Respondent Henry C. Gatlin is one of seven respondents in this proceeding. 

The complaint charges that the said respondent offered to enter into and entered 

into transactions which were of the character of and which constituted wash 

sales and fictitious sales, in wilful violation of section 4c of the act (7 

U.S.C. 6c). 

No hearing has been held with respect to any of the respondents. On January 

25, 1965, respondent Henry C. Gatlin submitted for filing in the record, under 

section 0.4(b) of the Rules of Practice (17 CFR 0.4(b)), a stipulation in which 

he admits the facts hereinafter set forth, waives hearing on the charges in the 

complaint, and consents to the entry of the order contained herein. 

FINDINGS OF FACT

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

Board of Trade, is now and was at all times material herein a duly designated 

contract market under the Commodity Exchange Act. 

2. Respondent Henry C. Gatlin, an individual whose address is Room 301, 6 

Harrison Street, New York 13, New York, is now and was at all times material 

herein a registered floor broker under the Commodity Exchange Act and a member 

of a duly designated contract market under the act. 

3. The transactions referred to herein relate to contracts for the purchase 

or sale of May 1963 soybean oil or May 1963 soybean meal futures on the Chicago 

Board of Trade. Such contracts could have been used for (a) hedging 
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transactions in interstate commerce in soybean oil or soybean meal or the 

products or by products thereof, or (b) determining the price basis of 

transactions in interstate commerce in soybean oil or soybean meal, or (c) 

delivering soybean oil or soybean meal sold, shipped, or received in interstate 

commerce for the fulfullment of such futures contracts. 

4. On December 18, 1962, respondent Henry C. Gatlin placed an order or orders 

with respondent F & G Commodities, in its capacity as futures commission 

merchant, to purchase and to sell for Gatlin's account 19 tank cars of the May 

1963 soybean oil future on the Chicago Board of Trade, which constituted an 

order for a "wash sale." 

5. The order or orders referred to in paragraph 4 above were executed on 

December 18, 1962, by respondent F & G Commodities purchasing for respondent 

Gatlin's account 17 tank cars of the May 1963 soybean oil future at 8.94 cents 

per pound, one tank car at 8.95 cents per pound, and one tank car at 8.96 cents 

per pound, and by respondent F & G Commodities selling for respondent 

Gatlin's account 17 tank cars of the May 1963 soybean oil futures at 8.94 cents 

per pound, one tank car at 8.95 cents per pound, and one tank car at 8.96 cents 

per pound. 

6. On December 19, 1962, respondent Henry C. Gatlin placed an order or orders 

with respondent F & G Commodities, in its capacity as futures commission 

merchant, to purchase and to sell for Gatlin's account 24 contracts (2,400 tons) 

of the May 1963 soybean meal future on the Chicago Board of Trade, which 

constituted an order for a "wash sale." 

7. The order or orders referred to in paragraph 6 above were executed on 

December 19, 1962, by respondent F & G Commodities purchasing for respondent 

Gatlin's account 23 contracts of the May 1963 soybean meal future at $ 65.00 per 

ton and one contract of such future at $ 65.10 per ton and by respondent F & G 

Commodities selling 23 contracts of the May 1963 soybean meal future at $ 65.00 

per ton and one contract of such future at $ 65.10 per ton. 

CONCLUSIONS

Section 4c of the Commodity Exchange Act (7 U.S.C. 6c) makes it unlawful for 

any person to offer to enter into, or enter into, any transaction "(A) if such 

transaction is, is of the character of, or is commonly known to the trade as, a 

'wash sale' . . . or is a fictitious sale." The facts admitted in Findings of 

Fact 4 through 7 hereof show that on each of the dates in question respondent 

Gatlin placed an order or orders with a futures commission merchant for the 

making of a wash sale for the said respondent's account, and that pursuant to 

such orders wash sales were made for his account. It is concluded, therefore, 

that respondent Gatlin violated section 4c of the act as alleged in the 

complaint. 

The complainant states that the administrative officials of the Commodity 

Exchange Authority have carefully considered the proposed stipulation and order, 

and that they believe that the proposed sanctions are adequate and that the 

prompt entry of such an order would constitute a satisfactory disposition of 

this case as against respondent Gatlin, serve the public interest, and 

effectuate the purposes of the Commodity Exchange Act. The complainant 

recommends, therefore, that the stipulation and waiver be accepted and that the 

proposed order be issued. It is so concluded. 

ORDER

The registration of respondent Henry C. Gatlin as a floor broker is hereby 

suspended for a period of twenty (20) days, effective on the thirtieth day after 

the date of entry of this order, and all contract markets shall refuse all 

trading privileges to the said Henry C. Gatlin for the said period of twenty 
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days, such refusal to apply to all trading done and positions held by him 

directly or indirectly. 

A copy of this Decision and Order shall be served on each of the respondents 

and on each contract market. 

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