Page 1 

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. 721 

DOCKET NUMBER: 83 

DATE: AUGUST 29, 1958 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 5571) 

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 29, 1958. 

Incorrect Records and Reports -- Suspension of Registration -- Denial of 

Trading Privileges -- Consent Order

Respondent Woodstock, Inc., carried futures trades and positions on its books 

and records and entered into commodity futures transactions in the names of 

respondents Meyer Getz and Fulton Products Corporation when respondent 

Woodstock, Inc., knew that such transactions and positions were owned and 

controlled by respondent Albert Feldstein. Respondent Woodstock, Inc., 

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. Lee A. Freeman, of 

Chicago, Illinois, for respondent Woodstock, Inc. 

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 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 Woodstock, Inc., a 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 from October 12, 

1956, through June 21, 1957, the said respondent carried egg futures trades and 

positions on its books and records in the names of Meyer Getz and Fulton 

Products Corporation, also respondents herein, and that on specified occasions 

within this period respondent Woodstock, Inc., reported or caused such trades 

and positions to be reported to the Commodity Exchange Authority as owned and 

controlled by the said Meyer Getz or Fulton Products Corporation, whereas in 

truth and in fact and as respondent Woodstock, Inc., 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 

Woodstock, Inc., 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 regulations, and 

knowingly failed to keep books and records pertaining to such transactions in 

the form and manner required by the Secretary of Agriculture, and knowingly 

submitted false reports to the Commodity Exchange Authority, in wilful violation 
Page 2 

of section 4g of the act and sections 1.35, 5.04, 5.05, 5.06, 5.07 and 5.08 of 

the regulations (Complaint, paragraph XVI). 

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

Consent orders against all respondents except Woodstock, Inc., have heretofore 

been entered, concluding the proceeding as against such respondents. 

On August 22, 1958, respondent Woodstock, Inc., 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 accounts in question was contrary 

to the act and regulations or that the reports which it submitted to the 

Commodity Exchange Authority were false, 

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

FINDINGS OF FACT

1. Respondent Woodstock, Inc., a corporation with offices and a place of 

business at 1139 West Fulton Market, 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 that act. 

2. During the period from October 12, 1956, through June 21, 1957, respondent 

Woodstock, Inc., carried egg futures positions on its books and records in the 

names of respondent Meyer Getz and Fulton Products Corporation, and entered into 

egg futures transactions on the Chicago Mercantile Exchange in the names of the 

said Meyer Getz and Fulton Products Corporation, whereas, as respondent 

Woodstock, Inc., knew, such trades and positions were owned and controlled by 

respondent Albert Feldstein. 

3. On sixty-nine (69) business days during the period from March 11, 1957, 

through June 19, 1957, respondent Woodstock, Inc., reported the above-described 

trades and positions to the Commodity Exchange Authority as belonging to 

respondents Meyer Getz and Fulton Products Corporation. 

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 hearings. 

Respondent Woodstock, Inc., 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 & Co., et al, 7 Agric. Dec. 180 (7 A.D. 

180), affirmed, Irving Weis & Co. v. Brannan, 171 F. 2d 232 (C.A. 2, 1948). 
Page 3 

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 him the true name and address of the person 

for whom such account is carried * * *. 

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

a futures commission merchant to suspension or revocation for failure on the 

part of such futures commission merchant "to make any report required by the 

Secretary of Agriculture regarding the . . . transactions of the customers" of 

such futures commission merchant, or 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 . . ." 

Section 1.35 of the regulations, as amended (17 CFR, 1957 Supp., 1.35), 

supplements the above requirement. It 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 * * *. 

Sections 5.04, 5.05, 5.06, 5.07 and 5.08 of the regulations (17 CFR 5.04, 

5.05, 5.06, 5.07, 5.08) describe the contents of 

reports which a registered futures commission merchant is required to transmit 

to the Commodity Exchange Authority whenever the account of a customer reaches 

reporting status. Section 5.08 specifies that the futures commission merchant 

must furnish "the names and addresses of all . . . persons" who have control 

over or are known to have a participating financial interest in any customer's 

account. 

When respondent Woodstock, Inc., carried accounts and entered into futures 

transactions in the names of Meyer Getz and Fulton Products Corporation, with 

knowledge of the fact that such accounts and such transactions belonged to and 

were controlled by respondent Albert Feldstein, and when with such knowledge, 

respondent Woodstock, Inc., reported to the Commodity Exchange Authority that 

such trades and positions were those of respondents Meyer Getz and Fulton 

Products Corporation, 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 regulations, as above indicated, 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 the 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 

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. 

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

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

ORDER
Page 4 

The registration of respondent Woodstock, Inc., as a futures commission 

merchant is hereby suspended for a period of sixty (60) days, effective October 

15, 1958, and all contract markets are hereby directed to refuse all trading 

privileges to the said Woodstock, Inc., for said period of sixty (60) days, 

Provided, 

that only the first fifteen (15) 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 forty-five (45) days of the 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 Woodstock, Inc., 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 Woodstock, Inc., issue a supplemental order making 

effective forthwith the forty-five (45) 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. 

LOAD-DATE: June 8, 2008 
Page 5