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Commodity Futures Trading Commission 

CEA CASES 

NAME: LANDON V. BUTLER 

DOCKET NUMBER: STIPULATION 16 

DATE: DECEMBER 29, 1952 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Landon V. Butler 

Stipulation of Compliance under the Commodity Exchange Act No. 16 

WHEREAS, the Secretary of Agriculture has reason to believe that Landon V. 

Butler has violated the provisions of the Commodity Exchange Act (7 U.S.C. 1-

17a) and the orders of the Commodity Exchange Commission (17 CFR, Part 150), by 

virtue of certain transactions involving the purchase of commodities for future 

delivery on contract markets and the maintenance of open contract positions in 

such commodities, and 

WHEREAS, no complaint with respect to such violations has been issued, and 

WHEREAS, the said Landon V. Butler desires to enter into a stipulation 

pursuant to the provisions of section 0.4(a) of the Rules of Practice under the 

Commodity, Exchange Act (17 CFR 0.4(a)), 

NOW, THEREFORE, the said Landon V. Butler hereby stipulates and agrees that 

the following facts are true: 

1. Landon V. Butler is an individual whose business address is 60 South Front 

Street, Memphis, Tennessee. The said Landon V. Butler was at all times 

hereinafter mentioned a member of the Board of Trade of the City of Chicago 

(hereinafter called the Chicago Board of Trade) 

and the New York Cotton Exchange, duly designated contract markets under the 

Commodity Exchange Act, and engaged in trading in commodity futures on such 

markets. 

2. On July 2, 1952, the said Landon V. Butler bought 350,000 bushels of 

September 1952 soybean futures on the Chicago Board of Trade, and as a result of 

such purchases his net long position in July 1952 and September 1952 soybean 

futures combined on the Chicago Board of Trade exceeded 1,000,000 bushels, to 

wit -- 1,205,000 bushels. No part of such trades or positions represented bona 

fide hedging transactions as described in section 4a(3) of the Commodity 

Exchange Act (7 U.S.C. 6a(3)). On July 3, 1952, officials of the Commodity 

Exchange Authority notified the said Landon V. Butler in writing that his 

position in the soybean futures market exceeded the amount permitted by law, but 

the said Landon V. Butler maintained such position at approximately 1,205,000 

bushels until July 23, 1952, when he reduced such position to an amount less 

than 1,000,000 bushels. 

3. On August 8, 1952, the said Landon V. Butler purchased 2,000 bales of May 

1953 cotton futures on the New York Cotton Exchange, and as a result of such 

purchases his net long position in October 1952 and May 1953 cotton futures 

combined on the New York Cotton Exchange exceeded 30,000 Sales, to wit -- 31,800 

Sales. No part of such trades or positions represented bona fide hedging 
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transactions as defined in section 4a(3) of the Commodity Exchange Act (7 U.S.C. 

6a(3)), or 

straddles between cotton futures or markets. On August 19, 1952, an official of 

the Commodity Exchange Authority notified the said Landon V. Butler that his 

position in the cotton futures market exceeded the amount permitted by law, but 

the said Landon V. Butler maintained such position at approximately 31,800 Sales 

until August 21, 1952, when he reduced such position to an amount less than 

30,000 Sales. 

4. On September 16, 1952, the said Landon V. Butler purchased 1,000 Sales of 

July, 1953 cotton futures on the New York Cotton Exchange, and as a result of 

such purchase his net long position in October, 1952, May 1953 and July, 1953 

cotton futures combined on the New York Cotton Exchange exceeded 30,000 Sales, 

to wit -- 31,000 sales. No part of such trades or positions represented bona 

fide hedging transactions as defined in Section 4a(3) of the Commodity Exchange 

Act (7 U.S.C. 6a(3)), or straddles between cotton futures or markets. The said 

Landon V. Butler maintained such position at 31,000 Sales until September 23, 

1952, when he reduced such position to 30,000 Sales. 

5. On October 30, 1952 the said Landon V. Butler purchased 6,400 bales of 

July, 1953 cotton futures on the New York cotton exchange, and as a result of 

such purchase his net long position in May 1953 and July 1953 cotton futures 

combined on the New York Cotton 

Exchange exceeded 30,000 Sales, to wit -- 30,300. No part of such trades or 

positions represented bona fide hedging transactions as defined in Section 4a(3) 

of the Commodity Exchange Act (7 U.S.C. 6a(3)), or straddles between cotton 

futures or markets. The said Landon V. Butler maintained such position at 

approximately 30,300 Sales until October 31, 1953 when he reduced such position 

to an amount less than 30,000 Sales. 

6. By reason of the foregoing facts, the said Landon V. Butler violated 

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

Commodity Exchange Commission establishing limits on position and daily trading 

in soybeans for future delivery (17 CFR, 1951 Supp., 150.4), and the order of 

the Commodity Exchange Commission establishing limits on position and daily 

trading in cotton for future delivery (17 CFR 150.2). 

In addition to admitting the foregoing facts, the said Landon V. Butler 

hereby agrees to discontinue all such acts and practices and all other acts and 

practices which are in violation of the Commodity Exchange Act, or the orders of 

the Commodity Exchange Commission, and does further specifically agree that this 

stipulation shall be admissible as evidence of acts and practices in violation 

of section 4a of 

the Commodity Exchange Act (7 U.S.C. 6a) in any subsequent proceeding brought 

against the said Landon V. Butler under the provisions of the said Act. 

Done at Memphis, Tennessee, this 29th day of December 1952. 

/s/ Landon V. Butler 

Landon V. Butler 

Witnessed by: 

/s/ W. E. Marchman (?) 

/s/ Robert J. Jontz 
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