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Commodity Futures Trading Commission 

CEA CASES 

NAME: PHILIP M. SMITH, WILLIAM HODGSON, AND WILLIAM SCHMITZ 

DOCKET NUMBER: STIPULATION 110 

DATE: NOVEMBER 24, 1970 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

UNITED STATED DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Philip M. Smith William Hodgson William Schmitz 

Stipulation of Compliance Under the Commodity Exchange Act No. 110 

The Secretary of Agriculture has reason to believe that Philip M. Smith, 

William Hodgson and William Schmitz violated the provisions of the Commodity 

Exchange Act (7 U.S. C., Chapter 1) and the regulations of the Secretary of 

Agriculture promulgated thereunder (17 CFR, Chapter 1). 

No complaint with respect to such violations has been issued and the said 

Philip M. Smith, William Hodgson and William Schmitz are desirous of disposing 

of the matter by entering into a stipulation of compliance as authorized by 

Section 0.4(a) of the Rules of Practice under the Commodity Exchange Act (17 

CFR, Part O). Therefore, the said Philip M. Smith, William Hodgson, and William 

Schmitz for the purposes of this stipulation of compliance and administrative 

proceedings under the Commodity Exchange Act and for such purposes only, 

stipulate the following facts are true: 

(1) Philip M. Smith, William Hodgson and William Schmitz, individuals whose 

address is 2 Coenties Slip, New York, New York 10004, were at all times material 

hereto employees of Evans & Co., Inc., a registered futures commission merchant 

under the Commodity Exchange Act with Membership privileges on the New York 

Mercantile Exchange, a duly designated contract market under the Act. At 

all such times, the operations of the firm's commodity future department were 

under the direction and control of the said Philip M. Smith, William Hodgson and 

William Schmitz. 

(2) At all times material hereto the said Philip M. Smith, William Hodgson 

and William Schmitz had a financial Interest in an account carried by Evans & 

Co., Inc. entitled "Evans & Co., Inc. Error A/C". 

(3) During March, April and May 1969, transactions in Maine May potato 

futures carried in the account entitled "Evans & Co., Inc. Error A/C" and the 

financial results thereof were commingled with transactions and equities 

belonging to commodity customers, although as the said Philip M. Smith, William 

Hodgson and William Schmitz well knew, some of these transactions were 

speculative transactions. 

(4) On May 9, 1969, after the expiration of trading in the Maine May potato 

future on the New York Mercantile Exchange, the said Philip M. Smith, William 

Hodgson and William Schmitz allocated to certain accounts carried by Evans & 

Co., Inc. transactions in the Maine May potato future which had not been 

executed pursuant to orders received for such accounts. 

(5) On Nay 9, 1969, the said Philip M. Smith, William Hodgson and William 

Schmitz failed to keep full, complete and systematic records pertaining to 

orders received from customers of Evans & Co., Inc. calling for the execution of 
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transactions in Maine May 1969. potato futures on the New York Mercantile 

Exchange. 

The Commodity Exchange Authority has advised the said Philip M. Smith, 

William Hodgson and William Schmitz that their actions as described in paragraph 

(3) above were in violation of section 4d of the Act and sections 1.20, 1.22 and 

1.23 of the regulations thereunder; that their actions described in paragraph 

(4) above were in violation of section 1.38 of the regulations under the Act; 

and that their actions as described in paragraph (5) above were in violation of 

section 4g of the Act and section 1.35 of the regulations thereunder. 

The said Philip M. Smith, William Hodgson and William Schmitz agree to desist 

from such acts in the future. They further understand and agree that this 

stipulation is admissible as evidence of such acts and practices in any future 

proceeding based upon acts or practices in addition to those referred to herein 

which may be brought by the Secretary of Agriculture against any of them under 

the provision of the said Act. Philip M. Smith, William Hodgson and William 

Schmitz also understand that it is the practice of the Commodity Exchange 

Authority to issue press releases on stipulations of compliance and to make then 

a matter of public record. 

Done at [ILLEGIBLE TEXT] this24 day of [ILLEGIBLE TEXT] 1970. 

Witnessed by: 

[SEE SIGNATURE IN ORIGINAL] 

[SEE SIGNATURE IN ORIGINAL] 

[SEE SIGNATURE IN ORIGINAL] 

[SEE SIGNATURE IN ORIGINAL] 

[SEE SIGNATURE IN ORIGINAL] 

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