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Commodity Futures Trading Commission 

CEA CASES 

NAME: ARTHUR P. GUMZ, DOROTHY GUMZ, FREDERICK D. GUMZ, AND PAUL A. GUMZ 

CITATION: 26 Agric. Dec. 13 

DOCKET NUMBER: 135 

DATE: JANUARY 5, 1967 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 10,980) 

In re ARTHUR P. GUMZ, DOROTHY GUMZ, FREDERICK D. GUMZ, AND PAUL A. GUMZ. CEA 

Docket No. 135. Decided January 5, 1967. 

Position limit -- Denial of trading privileges -- Stipulation

Respondents consented to the issuance of an order directing all contract 

markets to refuse all trading privileges to them for a period of 30 days for 

violations of the act in exceeding the maximum speculative trading position 

limits in potato futures on the New York Mercantile Exchange. 

Mr. Earl L. Saunders for Commodity Exchange Authority. 

Max and Herman Chill, of Chicago, Ill., for respondents. 

Mr. Benj. M. Holstein, Referee. 

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.), in which the respondents are charged with exceeding the 

maximum speculative trading and position limits in potato futures in wilful 

violation of section 4a of the act (7 U.S.C. 6a) and the order of the Commodity 

Exchange Commission (17 CFR 150.10). 

No hearing has been held with respect to this proceeding. On January 4, 

1967, the respondents submitted a stipulation under section 0.4(b) of the rules 

of practice (17 CFR 0.4(b)), in which they withdrew their answer previously 

filed, admit the facts hereinafter set forth, waive hearing on the charges, and 

consent to the entry of the order contained herein. 

FINDINGS OF FACT

1. Each of the respondents is an individual whose address is 201 Wilson 

Street, North Judson, Indiana. 

2. The New York Mercantile Exchange is now and was at all times material 

herein a duly designated contract market under the Commodity Exchange Act. 

3. From June 30, 1965, through February 28, 1966, the respondents, acting 

pursuant to an expressed or implied agreement or understanding, made trades and 

held speculative open positions in potato futures on the New York Mercantile 

Exchange. During the periods set forth below, the range of the aggregate 

speculative net long open positions in each single potato future and in all 

potato futures combined so held by the respondents was as follows: 

Range of 

Positions 

Future Period Held (carlots) 

March 1966 July 20, 1965, though February 2, 1966 160 to 260 
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 Range of 

 Positions 

Future Period Held (carlots) 

April 1966 September 28, 1965, through February 28, 1966 165 to 270 

May 1966 June 30, 1965, through February 28, 1966 184 to 522 

All Futures July 12, 1965, through February 28, 1966 370 to 1047 

 Combined 

4. From September 28, 1965, through February 24, 1966, respondent Arthur P. 

Gumz held speculative net long open positions in all potato futures combined on 

the New York Mercantile Exchange which ranged between 362 carlots and 495 

carlots. From October 8, 1965, through February 14, 1966, respondent Arthur P. 

Gumz held speculative net long open positions in the April 1966 potato future on 

the New York Mercantile Exchange which ranged between 167 carlots and 180 

carlots. From October 8, 1965, through December 7, 1965, the said respondent 

held speculative net long open positions in the May 1966 potato future on the 

New York Mercantile Exchange which ranged between 155 carlots and 170 carlots, 

and from January 17, 1966, through February 14, 1966, the said respondent held a 

speculative net long open position of 155 carlots in such future. 

CONCLUSIONS

The facts admitted by the respondents in their stipulation have been adopted 

as the findings herein. By reason of these findings, it is concluded that the 

respondents wilfully violated section 4a of the Commodity Exchange Act (7 U.S.C. 

6a), and the order of the Commodity Exchange Commission (17 CFR 150.10), as 

charged in the complaint. 

Complainant states that the administrative officials of the Commodity 

Exchange Authority have carefully considered the proposed stipulation and order, 

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

entry, without further proceedings, of the order to which the respondents have 

consented will constitute a satisfactory disposition of this case, serve the 

public interest, and effectuate the purposes of the Commodity Exchange Act. 

Complainant recommends, therefore, that the stipulation and waiver submitted by 

the respondents be accepted and that the proposed order be issued. It is so 

concluded. 

ORDER

Effective on the thirtieth day after the date of entry of this order, all 

contract markets shall refuse all trading privileges to the respondents, Arthur 

P. Gumz, Dorothy Gumz, Frederick" D. Gumz and Paul A. Gumz, for a period of 30 

days, such refusal to apply to all trading done and positions held by them 

directly or indirectly. 

A copy of this decision and order shall be served on each of the parties and 

on each contract market. 

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