Page 1 

Commodity Futures Trading Commission 

CEA CASES 

NAME: COTTON PRODUCTS CO., INC., J. P. BARNETT, SR., A. F. SPENCER, J. P. 

DOHERTY, L. T. POULET, AND J. P. BARNETT, JR. 

DOCKET NUMBER: 53 

DATE: JANUARY 20, 1950 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re Cotton Products Co., Inc., J. P. Barnett, Sr., A. F. Spencer, J. P. 

Doherty, L. T. Poulet, and J. P. Barnett, Jr. 

CE-A Docket No. 63 

Complaint and Notice of Hearing under the Commodity Exchange Act 

The Secretary of Agriculture has reason to believe that the respondents, 

Cotton products Co., Inc., J. P. Barnett, Sr., A. F. Spencer, J. P. Doherty, L. 

T. Poulet, and J. P. Barnett, Jr. have violated the provisions of the Commodity 

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

to its re-quirements. In accordance with the provisions of section 6(b) of the 

Commodity Exchange Act (7 U.S.C. 9), this complaint is issued alleging as 

follows; 

1. 

Respondent, Cotton Products Co., Inc., is a corporation organized under the 

laws of the State of Louisiana and has its principal place of business at 909 

Railroad Avenue, Opelousas, Louisiana. The individual respondents are officers 

of respondent Cotton Products Co., Inc., as follows; J. P. Barnett, Sr. is 

president and general manager; A. P. Spencer is vice president; J. P. Doherty is 

vice president; L. T. Poulet is secretary and treasurer; and J. P. Barnett, Jr. 

is assistant secretary and treasurer. 

2. 

Respondent Cotton Products Co., Inc., does business some times in its own 

name and some times in the name of one or more of the following firms; Opelousas 

Oil Mill, Opelousas Cotton Oil Mill. Opelousas Moss Company, and Opelousas Oil 

Refinery. 

3. 

At all times material to this complaint, respondents J. P. Barnett, Sr., A. 

F. Spencer, J. P. Doherty, L. T. Poulet, and J. P. Barnett, Jr., as officers of 

the corporate respondent, exercised management and control over the business of 

the said corporate respondent, and the transactions hereinafter described were 

carried out under the direction and supervision and by means of the acts of the 

said individual respondents in their capacity as such officers. At all times 

material to this complaint, the said individual respondents were aware of the 

provisions of section 4i of the Commodity Exchange Act and of the rules and 

regulations of the Secretary of Agriculture promulgated thereunder. 

4. 

At all times material to this complaint, the New York Produce Exchange was a 

duly designated contract market under the Commodity Exchange Act. 
Page 2 

5. 

At the opening of business on December 2, 1949, as the result of transactions 

in March 1950 and May 1950 cottonseed oil futures contracts theretofore executed 

on the New York Produce Exchange for the account of the corporate respondent, 

its net short open contract position on the New York Produce Exchange in each of 

such futures was in excess of 900,000 pounds and remained in excess of 900,000 

pounds through December 13, 1949. By reason of such position, the said 

respondent was in reporting status under section 4i of the Commodity Exchange 

Act and sections 10. 10, 10.11, 10.12 and 10.21 of the rules and regulations 

thereunder, and was required to submit daily reports to the Commodity Exchange 

Authority, while in such status, with respect to transactions and changes in 

open contracts in all cottonseed oil futures. On December 2, December 3, 

December 6, December 12, and December 13, 1949, on each of which dates the 

corporate respondent was in reporting status as above described, purchases and 

sales of March 1950, and sales of May 1950 and July 1950 cottonseed oil futures 

contracts were executed on the New York Produce Exchange for the corporate 

respondent's account. The said respondent was aware of the above described 

provisions of the act and regulations, but wilfully failed to submit reports 

with respect to such transactions until January 4, 1950, in violation of section 

4i of the Commodity Exchange Act and sections 10.10, 10.11, 10.12 and 10.21 of 

the rules and regulations thereunder. 

6. 

On the following dates and in the amounts indicated, purchases and sales of 

cottonseed oil for future delivery were executed on the New York Produce 

Exchange for the corporate respondent's account: 

Date Quantity Bought Quantity Sold 

Dec. 14, 1949 60,000 lbs. July 

Dec. 20, 1949 180,000 lbs. March Dec. 28, 1949 60,000 lbs. May Dec. 29, 1949 120,000 lbs. May 

Jan. 5, 1950 300,000 lbs. March Jan. 5, 1950 60,000 lbs. September 

At the opening of business on each of the above dates, as the result of 

transactions in cottonseed oil for future delivery theretofore executed on the 

New York Produce Exchange for the account of the corporate respondent, its net 

short open contract position on the New York produce Exchange in one or more 

cottonseed oil futures was equal to or in excess of 900,000 lbs. By reason of 

such position, the said respondent was in reporting status under section 4i of 

the Commodity Exchange Act and sections 10.10, 10.11, 10.12 and 10.21 of the 

rules and regulations thereunder, and was required to submit daily reports to 

the Commodity Exchange Authority with respect to the above transactions and the 

resulting changes in open contracts. The said respondent was aware of the 

aforesaid provisions of the act and regulations but has wilfully failed to 

submit the required reports, in violation 

of section 4i of the Commodity Exchange Act and sections 10.10, 10.11, 10.12 and 

10.21 of the rules and regulations thereunder. 

Therefore, the said respondents, Cotton Products Co., Inc., J. P. Barnett, 

Sr., A. F. Spencer, J. p. Doherty, L. T. Poulet, and J. P. Barnett, Jr., are 

hereby notified to be and appear at a hearing to be held at 10 o'clock a.m., 

central standard time, on the 9th day of March 1950, in Room 306, New Orleans 

Cotton Exchange Building, New Orleans, Louisiana, before a referee designated to 

conduct such hearing, and then and there show cause, if any there be, why an 

order should not be made directing that all contract markets refuse all trading 

privileges to the respondents for such period of time as may be determined by 

the Secretary of Agriculture. 
Page 3 

The respondents will have 20 days after the receipt of this notice of hearing 

to file in triplicate with the Hearing Clerk, United States Department of 

Agriculture, Washington 2b, D. C., an answer fully and completely stating the 

nature of the defense and admitting or denying specifically and in detail each 

material and relevant allegation of the complaint. Allegations that are not 

answered will be deemed admitted for the purpose of this proceeding. 

It is ordered that this complaint and notice of hearing be served on the 

respondents by delivery of a true copy thereof by an employee of the Department 

of Agriculture, or by registered mail, at least 20 days prior to the date set 

for hearing. 

Done at Washington, D. C. this 20 day of January, 1950 

/s/ A. J. Loveland 

Acting Secretary of Agriculture 

LOAD-DATE: June 11, 2008 
Page 4