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Commodity Futures Trading Commission 

CEA CASES 

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

DOCKET NUMBER: 135 

DATE: MARCH 30, 1966 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Arthur P. Gumz, Dorothy Gumz, Frederick D. Gumz, and Paul A. Gumz, 

Respondents 

CEA Docket No. 135 

Complaint and Notice of Hearing Under Section 6(b) of the Commodity Exchange 

Act 

There is reason to believe that the respondents, Arthur P. Gumz, Dorothy 

Gumz, Frederick D. Gumz, and Paul A. Gumz, have violated the provisions of the 

Commodity Exchange Act (7 U.S.C. 1 et seq.), and the rules and regulations 

issued thereunder (17 CFR, Part I), and in accordance with the provisions of 

section 6(b) of the said act (7 U.S.C. 9), this complaint and notice of hearing 

is issued stating the charges in that respect as follows: 

I 

Each of the respondents is an individual whose address is 201 Wilson Street, 

North Judson, Indiana. 

II 

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

a duly designated contract market under the Commodity Exchange Act. 

III 

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, through February 2, 1966 160 to 260

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 

By reason of the facts described above, the respondents traded in potatoes 

for future delivery on a contract market in amounts which resulted in positions 

in excess of the maximum permissible quantity of 350 carlots in all potato 

futures combined, and in excess of the maximum permissible quantity of 150 

carlots in each of the March, April and May potato futures, in willful violation 

of section 4a of the Commodity Exchange Act (7 U.S.C. 6a), and the order of the 
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Commodity Exchange Commission establishing limits on positions and trading in 

potatoes for future delivery (17 CFR 150.10). 

IV 

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. By reason of such facts, respondent Arthur P. Gumz traded in potatoes 

for future delivery on a contract market in amounts which resulted in positions 

in excess of the maximum permissible quantity of 350 carlots in all potato 

futures combined, and in excess of the maximum permissible quantity of 150 

carlots in each of the April and May potato futures, in willful violation of 

section 4a of the Commodity Exchange Act (7 U.S.C. 6a), and the order of the 

Commodity Exchange Commission establishing limits on positions and trading in 

potatoes for future delivery (17 CFR 150.10). 

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

served upon the said respondents. The respondents 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. G. 20250, an answer with an original and five copies, fully and 

completely stating the nature of the defense and admitting or denying, 

specifically and in detail, each material and relevant allegation of this 

complaint. Allegations not answered will be deemed admitted for the purpose of 

this proceeding. Failure to file an answer will, constitute an admission of all 

the material allegations of this complaint and a waiver of hearing. The 

respondents are hereby notified that unless hearing is waived, either expressly 

or by failure to file an answer and request a hearing, a hearing will be held at 

10:00 a.m., local time, on May 11, 1966, in Chicago, Illinois, at a place 

therein to be specified later, before a referee designated to conduct such 

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

show cause, if any there be, why an order should not be made directing that all 

contract markets refuse all trading privileges to each of the respondents for 

such period of time as may be determined. 

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

respondents at least twenty (20) days prior to the date set for hearing. 

Done at Washington, D. C. 

MAR 30 1966 

[SEE SIGNATURE IN ORIGINAL] 

Assistant Secretary 

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