Page 1 

Commodity Futures Trading Commission 

CEA CASES 

NAME: CONTINENTAL GRAIN COMPANY 

DOCKET NUMBER: 214 

DATE: JUNE 27, 1973 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Continental Grain Company, Respondent 

CEA Docket No. 214 

Complaint and Notice of Hearing Under the Commodity Exchange Act 

There is reason to believe that the respondent has violated the Commodity 

Exchange Act (7 U.S.C. Chapter 1), and the regulations made pursuant thereto, 

and this complaint and notice of hearing is issued alleging the following: 

I 

The respondent, Continental Grain Company, a Delaware corporation, with its 

principal office and place of business at 2 Broadway, New York, New York, is 

now, and was at all times material herein, a registered futures commission 

merchant under the Commodity Exchange Act. 

II 

The Chicago Board of Trade is now, and was at all times material herein, a 

duly designated contract market under the Commodity Exchange Act. 

III 

During the period from July 24, 1972 through November 3, 1972, the respondent 

corporation was a trader who held or controlled a 

reportable position in wheat, corn, oats, soybeans, soybean oil, and soybean 

meal futures. Respondent was therefore required to file the appropriate series 

03 report with the Commodity Exchange Authority showing all transactions 

executed and all open contract positions held for its account in all such 

futures on all boards of trades (exchanges) pursuant to section 4i of the 

Commodity Exchange Act (7 U.S.C. 6i) and sections 15.01, 15.02, 18.00 and 18.03 

of the regulations thereunder (17 CFR 15.01, 15.02, 18.00, 18.03). 

While the respondent corporation was in said reporting position, transactions 

in wheat, corn, oats, soybeans, soybean oil, and soybean meal futures were 

executed on the Chicago Board of Trade for the account of respondent, but 

respondent submitted incomplete and inaccurate series 03 reports with respect to 

such transactions as shown in the attached Appendix A. 

IV 

During the period from June 2, 1972 through September 29, 1972, the 

respondent corporation was engaged in merchandising, processing, or dealing in 

wheat, corn,oats, soybeans and the products or byproducts thereof and held or 

controlled a reportable position in wheat, corn, oats and soybean futures. 

Respondent was therefore required to file the appropriate series 04 report with 

the Commodity Exchange Authority showing inter alia the 
Page 2 

makeup of its fixed-price cash grain position including the stocks of such 

commodities and their products or byproducts owned, the quantity of fixed-price 

purchase commitments open in such commodities and their products and byproducts, 

and the quantity of fixed-price sales commitments open in such commodities and 

their products or byproducts, pursuant to section 4i of the Commodity Exchange 

Act (7 U.S.C. 6i) and sections 15.01, 15.02, 19.00,19.01, 19.10 of the 

regulations thereunder (17 CFR 15.01, 15.02, 19.00, 19.01, 19.10). 

While the respondent corporation was in said reporting status, respondent 

submitted incomplete and inaccurate series 04 reports with respect to its fixedprice cash position as shown in the attached Appendix B. 

V 

By reason of the facts alleged in this complaint, the respondent, Continental 

Grain Company, willfully violated sections 4g, 4i and 6(b) of the Commodity 

Exchange Act (7 U.S.C. 6g, 6i, 9) and sections 1.35, 15.01, 15.02, 18.00, 18.03, 

19.00, 19.01, 19.10 of the regulations thereunder (17 CFR 1.35, 15.01, 15.02, 

18.00, 18.03, 19.00, 19.01, 19.10). 

WHEREFORE, it is hereby ordered that this complaint and notice of hearing be 

served upon the respondent and this proceeding shall be governed by sections 

0.1, 0.2, 0.14(b), 0.5 through 0.22 and 

0.28 of the rules of practice under the Commodity Exchange Act (17 CFR 0.1, 0.2, 

0.4(b), 0.5 through 0.22, 0.28). The respondent will have twenty (20) days 

after the receipt of this complaint in which to file with the Hearing Clerk, 

United States Department of Agriculture, Washington, D.C. 20250, an answer with 

an original and three copies, fully and completely stating the nature of the 

defense and admitting or denying, specifically and in detail, each allegation of 

this complaint. Allegations not answered will be deemed admitted for the 

purposes of this proceeding. Failure to file an answer will constitute an 

admission of all the allegations of this complaint and a waiver of hearing. The 

filing of an answer in which all of the material allegations of fact contained 

in the complaint are admitted likewise shall constitute a waiver of hearing 

unless a hearing is requested. The respondent is hereby notified that unless 

hearing is waived, a hearing will be held in New York, New York, at a place 

therein and date to be specified later, before a referee designated to conduct 

such hearing. At such hearing, the respondent will have the right to appear and 

show cause, if any there be, why an appropriate order should not be issued in 

accordance with the Commodity Exchange Act, (1) suspending or revoking the 

registration of the respondent as futures commission merchant, (2) prohibiting 

the respondent from trading on 

or subject to the rules of any contract market, and directing that all contract 

markets refuse all trading privileges to the respondent for such period of time 

as may be determined and (3) directing that the respondent shall cease and 

desist from violating the Act and regulations in the manner alleged herein. 

Done at Washington, D.C. 

JUN 27 1973 

CLAYTON YEUTTER 

Assistant Secretary 

APPENDIX A 

Number of Required Range of 

Reports Filed Errors on Incorrect Reports 
Page 3 

Total Correct Incorrect Overstating Understating 

Commodity Reports Reports Reports Position Position 

1,635,000 bushels 505,000 bushels

to to 

Wheat 74 1 73 15,000 bushels 10,000 bushels 7,540,000 bushels 955,000 bushels

to to 

Corn 74 0 74 30,000 bushels 5,000 bushels

 

50,000 bushels 35,000 bushels

to to 

Oats 73 46 27 5,000 bushels 5,000 bushels 1,405,000 bushels 1,970,000 bushels

to to 

Soybeans 74 0 74 10,000 bushels 5,000 bushels 

1,964 tank cars 1,253 tank cars

to to 

Soybean Oil 74 0 74 12 tank cars 8 tank cars

 84,600 tons 24,500 tons

to to 

Soybean Meal 74 0 74 100 tons 500 tons

 

See original document-page 6 

Number of Required Range of 

Reports Filed Errors on Incorrect Reports 

Total Correct Incorrect Overstating Understating 

Commodity Reports Reports Reports Position Position 

2,799,000 bushels 177,551,000 bushel

to to 

Wheat 18 0 18 34,000 bushels 21,000 bushel 59,447,000 bushels 168,928,000 bushel

to to 

Corn 18 0 18 19,000 bushels 6,000 bushel

 909,000 bushels 158,000 bushels

to to 

Oats 18 6 12 1,000 bushels 2,000 bushels

 9,272,000 bushels n1 11,219,000 bushels

to to 

Soybeans 18 0 18 5,000 bushels 3,000 bushels

n1 Including bushel equivalents. 

LOAD-DATE: June 12, 2008 
Page 4