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Commodity Futures Trading Commission 

CEA CASES 

NAME: FELDSTEIN PRODUCE COMPANY, FULTON PRODUCTS CORPORATION, ALBERT FELDSTEIN, 

MEYER GETZ OR MICHAEL GETZ, ARANESS CORPORATION, BECKER BROKERAGE COMPANY, AND 

WOODSTOCK, INC. 

CITATION: 17 Agric. Dec. 713 

DOCKET NUMBER: 83 

DATE: AUGUST 25, 1958 

DOCUMENT TYPE: DECISION AND ORDER 

AGRICULTURE DECISIONS

BEFORE THE SECRETARY OF AGRICULTURE

UNITED STATES DEPARTMENT OF AGRICULTURE

(No. 5569) 

In re FELDSTEIN PRODUCE COMPANY, FULTON PRODUCTS CORPORATION, ALBERT FELDSTEIN, 

MEYER GETZ OR MICHAEL GETZ, ARANESS CORPORATION, BECKER BROKERAGE COMPANY, AND 

WOODSTOCK, INC. CEA Docket No. 83. Decided August 25, 1958. 

Incorrect Records -- Suspension of Registration -- Denial of Trading 

Privileges -- Consent Order

Respondent Araness Corporation carried futures trades and positions on its 

books and records and entered into commodity futures transactions in the name of 

respondent Meyer Getz when it knew that such transactions and positions were 

owned and controlled by respondent Albert Feldstein. Respondent Araness 

Corporation consented to the entry of an order suspending its registration as a 

commission merchant and denying it trading privileges on all contract markets 

for a specified period. 

Mr. Benj. M. Holstein, for Commodity Exchange Authority. Mr. C. B. Hankel, Jr.,

of Chicago, Illinois, for respondent Araness Corporation. 

Decision by Thomas J. Flavin, Judicial Officer

PRELIMINARY STATEMENT

This is a disciplinary proceeding under the Commodity Exchange Act (7 U.S.C. 

1952 ed., Chapter 1), instituted by a complaint and notice of hearing issued 

under section 6(b) of 

the act (7 U.S.C. 1952 ed., § 9) by the Assistant Secretary of Agriculture on 

May 9, 1958. 

Respondent Araness Corporation is a registered futures commission merchant 

under the Commodity Exchange Act. It is one of seven respondents in this 

proceeding. The complaint alleges that during the period October 19, 1956, 

through June 11, 1957, the said respondent carried egg futures trades and 

positions on its books and records in the name of Meyer Getz, also a respondent 

herein, whereas in truth and in fact and as respondent Araness Corporation knew, 

such trades and positions were owned and controlled by one Albert Feldstein, who 

is also a respondent. Based upon these allegations, the complaint charges that 

respondent Araness Corporation knowingly failed to evidence the said 

transactions and positions by a record in writing showing the true parties 

thereto, in wilful violation of section 4 of the act and section 1.37 of the 
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regulations, and knowingly failed to keep books and records pertaining to such 

transactions in the form and manner required by the Secretary of Agriculture, in 

wilful violation of section 4(g) of the act and section 1.35 of the regulations. 

No hearing has been held with respect to any of the respondents. On July 2, 

1958, a consent order was issued against respondent Becker Brokerage Company, 

concluding the proceeding as against that respondent. On July 22, respondent 

Araness Corporation withdrew the answer which it had previously filed and 

submitted a stipulation under section 0.4(b) of the rules of practice, in which 

it admits the allegations in the complaint, asserts that it was unaware that its 

handling of the account in question was contrary to the act and the regulations, 

waives hearing, and consents to the entry of the order hereinafter set forth. 

FINDINGS OF FACT

1. Respondent Araness Corporation, a corporation with offices and a place of 

business at 313 North Carpenter Street, Chicago, Illinois, is now and was at all 

times material herein a registered futures commission merchant under the 

Commodity Exchange Act and a clearing member of the Chicago Mercantile Exchange, 

a duly designated contract market under the Commodity Exchange Act. 

2. During the period October 19, 1956, through June 11, 1957, respondent 

Araness Corporation carried commodity 

futures trades and positions on its book and records and entered into commodity 

futures transactions on the Chicago Mercantile Exchange, in the name of 

respondent Meyer Getz, with knowledge of the fact that such transactions and 

positions were owned and controlled by respondent Albert Feldstein. 

CONCLUSIONS

Section 0.4(b) of the rules of practice under the Commodity Exchange Act (17 

CFR 0.4(b)) provides as follows: 

"(b) Consent order. At any time after the issuance of the complaint and 

prior to the hearing in any proceeding, the Secretary, in his discretion, may 

allow the respondent to consent to an order. In so consenting, the respondent 

must submit, for filing in the record, a stipulation or statement in which he 

admits at least those facts necessary to the Secretary's jurisdiction and agrees 

that an order may be entered against him. Upon a record composed of the 

complaint and the stipulation or agreement consenting to the order, the 

Secretary may enter the order consented to by the respondent, which shall have 

the same force and effect, as an order made after oral hearing." 

Respondent Araness Corporation has admitted the facts alleged against it in 

the complaint and they have been adopted as the findings of fact in this 

proceeding. Such facts establish the Secretary's jurisdiction. 

Under section 4 of the Commodity Exchange Act (7 U.S.C., 1952 ed., § 6), a 

futures commission merchant is required to maintain a written record showing the 

true parties to any futures contract which he executes or confirms on a 

customer's behalf. In re Irving Weis and Company, et al., 7 Agric. Dec. 180 (7 

A.D. 180), affirmed, Irving Weis and Company v. Brannan, 171 F. 2d 232 (2d Cir. 

1948). 

Section 1.37 of the regulations under the act (17 CFR 1.37) spells out this 

requirement with particularity. It provides, in part: 

"§ 1.37 Customer's name, address, and occupation recorded; record of 

guarantor or controller of account. Each futures commission merchant and each 

member of a contract market shall keep a record in permanent form which shall 

show for each commodity futures account carried by 
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him the true name and address of the person for whon such account is carried * * 

*". 

Section 1.35 of the regulations, as amended (17 CFR, 195' Supp., 1.35), 

provides, in part, as follows: 

"§ 1.35 Records of cash commodity and futures transactions -- (a) Futures 

commission merchants and members of contract markets. Each futures commission 

merchant and each member of a contract market shall keep full complete, and 

systematic records of all commodity futures transactions and cash commodity 

transactions, made by or through him, on or subject to the rules of a board of 

trade. * * *". 

Section 4(g) of the act (7 U.S.C. 1952 ed., § 6(g)) subjects the registration 

of a futures commission merchant to suspension or revocation for failure to keep 

the books and records pertaining to the transactions of customers in "the form 

and manner required by the Secretary of Agriculture." 

When respondent Araness Corporation carried an account and entered into 

futures transactions in the name of Meyer Getz with knowledge of the fact that 

such account and such transactions belonged to and were controlled by Albert 

Feldstein, it clearly violated the above sections of the act and the 

regulations. The respondent claims that it was unaware of the illegality of its 

procedure. This is not a valid defense. The necessary requirements are fully 

set forth in the act and the regulations, and it was incumbent upon the 

respondent, as a futures commission merchant authorized to handle transactions 

for customers, to acquaint itself with these requirements and to observe them. 

Failure to do so compels the conclusion that these violations were wilful. 

The complainant has filed a recommendation which recites that it has 

carefully considered the stipulation and the terms of the order to which the 

said respondent proposes to consent. It is the opinion of the complainant that 

the sanction contained in the proposed order would be adequate, and that the 

entry of such an order without further proceedings would constitute a 

satisfactory disposition of this case as against the said respondent, serve the 

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

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

and that the proposed order be issued. It is so concluded. 

ORDER

The registration of respondent Araness Corporation as a futures commission 

merchant is hereby suspended for a period of 30 days, effective September 15, 

1958, and all contract markets are hereby directed to refuse all trading 

privileges to the said Araness Corporation for said period of 30 days, PROVIDED, 

HOWEVER, that only the first ten (10) days of the said period of suspension of 

registration and refusal of trading privileges shall become effective as of the 

said effective date, and that the final twenty (20) days of said period of 

suspension of registration and refusal of trading privileges shall not become 

effective unless, after complaint, notice, and hearing in accordance with 

established procedure, respondent Araness Corporation should be found to have 

violated the Commodity Exchange Act within one year from the date of entry of 

this order, in which event the Secretary of Agriculture may, without further 

notice to respondent Araness Corporation, issue a supplemental order making 

effective forthwith the twenty (20) day remainder of the said period of 

suspension of registration and refusal of trading privileges. 

A copy of this decision and order shall be served upon the said respondent 

and upon each contract market. 

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