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Commodity Futures Trading Commission 

CEA CASES 

NAME: ALEXANDER K. RUXTON 

DOCKET NUMBER: 85 

DATE: JULY 11, 1958 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Alexander K. Ruxton, Respondent 

CEA Docket No. 85 

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

Act 

There is reason to believe that the respondent, Alexander K. Ruxton, has 

violated the provisions of the Commodity Exchange Act (7 U.S.C. 1952 ed., 

Chapter 1), and the rules and regulations of the Secretary of Agriculture made 

pursuant thereto (17 CFR, Part 1). In accordance with the provisions of section 

6(b) of the Commodity Exchange Act (7 U.S.C. 1952 ed., § 9), this complaint and 

notice of hearing is issued alleging as follows: 

I 

Respondent Alexander K. Ruxton, an individual whose address is Room 1480, 

Board of Trade Building, 141 West Jackson Boulevard, Chicago 4, Illinois, is now 

and was at all times material to this complaint a member of the Board of Trade 

of the City of Chicago and a registered floor broker under the Commodity 

Exchange Act. 

II 

The Board of Trade of the City of Chicago, hereinafter called the Chicago 

Board of Trade, is now and was at all times material to this 

complaint a duly designated contract market under the Commodity Exchange Act. 

III 

The respondent, while acting as floor broker on orders received from Merrill 

Lynch, Pierce, Fenner & Beane and from Gerstenberg & Co., registered futures 

commission merchants under the Commodity Exchange Act, made the following trades 

in wheat futures on the Chicago Board of Trade:>100> >101> 

Trades Made by Alexander K. 

Item Date Future Ruxton for Merrill 

Lynch and Gerstenberg 

No. 1957 Quantity Clearing 

(Thousands Price Member 

of bushels) (Cents 

April Bought Sold per bu.) 

1 22 New July 5 211 1/2 Merrill 

Lynch 

2 22 " " 5 211 5/8 " 

3 22 " " 5 212 " 

4 24 " " 10 210 3/8 Gerstenberg

5 25 Old " 5 212 Merrill 

Lynch 
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 Trades Made by Alexander K. 

Item Date Future Ruxton for Merrill Lynch and Gerstenberg 

No. 1957 Quantity Clearing 

 (Thousands Price Member 

 of bushels) (Cents 

 April Bought Sold per bu.) 

Item Date Future Opposite Side of the Trade 

No. 1957 Executing Clearing 

Broker Member Account 

April 1 22 New July Alexander Riffel Alexander

K. Ruxton K. Ruxton

2 22 " " " " " 

3 22 " " " " " 

4 24 " " " " " 

5 25 Old " " " " 

In the transactions set forth above the respondent willfully and knowingly 

and without the prior consent of his principals became the buyer in respect to 

selling orders of such principals and became the seller in respect to buying 

orders of such principals in violation of section 4b(D) of the Commodity 

Exchange Act (7 U.S.C. 1952 ed. § 6b(D)). 

IV 

The respondent, while acting as floor broker on orders received from Merrill 

Lynch, Pierce, Fenner & Beane, and while acting for his own account through A.J. 

Riffel & Co. and Uhlmann Grain Co., made the following trades in wheat futures 

on the Chicago Board of Trade:>100> >101> 

Trades Made by Alexander K. 

Ruxton for Merrill Lynch and 

Item Date Future for His Own Account at 

Riffel and at Uhlmann 

No. 1957 Quantity Clearing

(Thousands Price Member 

of bushels) (Cents April Bought Sold per bu.) 1 23 Old July 10 210 3/8 Merrill 

Lynch 

1a 23 " " 10 210 3/8 Riffel 

2 23 " " 10 210 3/8 Merrill 

Lynch 

2a 23 " " 10 210 3/8 Riffel 

3 23 " " 5 210 1/2 Merrill 

Lynch 

3a 23 " " 5 210 1/2 Uhlmann 

4 24 " " 10 209 1/8 Merrill 

Lynch 

4a 24 " " 10 209 1/8 Uhlmann 

5 25 " " 5 210 7/8 Merrill 

Lynch 

5a 25 " " 5 210 7/8 Uhlmann 

6 25 " " 10 211 3/8 Merrill 

Lynch 

6a 25 " " 10 211 3/8 Uhlmann 

Item Date Future Opposite Side of the Trade 

No. 1957 Executing Clearing Broker Member Account 

April 1 23 Old July Sherwood Hagerty Sherwood 

J. Jackson J. Jackson 

1a 23 " " " " " 
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 Trades Made by Alexander K. 

 Ruxton for Merrill Lynch and 

Item Date Future for His Own Account at 

 Riffel and at Uhlmann 

No. 1957 Quantity Clearing

 (Thousands Price Member 

 of bushels) (Cents 

 April Bought Sold per bu.) 2 23 " " Donald W. Baggot & Donald W. 

Morrison Morrison Morrison 

2a 23 " " " " " 

3 23 " " Hugh W. Thomas P. Hugh W. 

McGarrity McQuire McGarrity 

3a 23 " " " " " 

4 24 " " Sherwood Hagerty Sherwood 

J. Jackson J. Jackson 

4a 24 " " " " " 

5 25 " " " " " 

 5a 25 " " " " " 

6 25 " " William J. Lawrence William J. 

Mailers J. Ryan Mailers 

& Co. 6a 25 " " " " " 

In the transactions set forth above the respondent by means of intermediate 

cross-trades in violation of section 4c(A) of the Commodity Exchange Act (7 

U.S.C. 1952 ed § 6c(A) willfully and knowingly and without the prior 

consent of his principal became the buyer in respect to selling orders of such 

principal and became the seller in respect to buying orders of such principal in 

violation of section 4b(D) of the Commodity Exchange Act (7 U.S.C. 1952 ed. § 

6b(D)). 

V 

The respondent, while acting as floor broker on orders received from Merrill 

Lynch, Pierce, Fenner & Beane, made the following trades in wheat futures on the 

Chicago Board of Trade: 

An error occurred in the processing of a table at this point in the document. 

Please refer to the table in the online document. 

The transactions set forth above were of the character of and are commonly 

known to the trade as "cross-trades" and were executed by the respondent by 

means of "accommodation trades" with other brokers, all in violation of section 

4c(A) of the Commodity Exchange Act (7 U.S.C. 1952 ed § 6c(A)). 

VI 

On April 26, 1957, the respondent, while acting as floor broker on orders 

received from Merrill Lynch, Pierce, Fenner & Beane and from Paine, Webber, 

Jackson & Curtis, a registered futures commission merchant under the Commodity 

Exchange Act, made the following trade in the Old July wheat future on the 

Chicago Board of Trade: 

Quantity Price Bought Sold 

(Thousands (Cents Clearing Executing Executing Clearing 

of bushels) per bu.) Member Broker Broker Member 

30 210 7/8 Merrill Alexander Alexander Paine, 

Lynch K. Ruxton K. Ruxton Webber 

In the transaction set forth above the respondent filled an order by offset 

against the order of another person in violation of section 4b(D) of the 

Commodity Exchange Act (7 U.S.C. 1952 ed. § 6b(D)). 
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VII 

The transactions in wheat futures described in paragraph III through 

paragraph VI were capable of being used for hedging transactions in interstate 

commerce in wheat or the products or by-products thereof, or determining the 

price basis of transactions in interstate commerce in wheat, or delivering wheat 

sold, shipped or received in interstate commerce. 

VIII 

By reason of the acts and transactions described in said paragraphs III 

through VI, the respondent failed to execute futures trades openly and 

competitively by open outcry in the trading pit of the Chicago Board of Trade, 

in willful violation of section 1.38 of the rules and regulations under the 

Commodity Exchange Act (17 CFR 1.38). 

Therefore, the said respondent, Alexander K. Ruxton, is hereby notified to 

appear and be at a hearing to be held at 10:00 a.m., local time, on the 19th day 

of August, 1958, in Room 1200, Board of Trade Building, 141 West Jackson 

Boulevard, Chicago, Illinois, 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 suspending or revoking the registration of respondent Alexander K. 

Ruxton as a floor broker and directing that all contract markets refuse all 

trading privileges to the said respondent for such period of time as may be 

determined. The respondent will have twenty (20) days after the receipt of this 

notice of hearing in which to file with the Hearing Clerk, United States 

Department of Agriculture, Washington 25, D. C., 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 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 

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

Done at Washington, D. C., this 

11th day of July, 1958. 

/s/ Don Paarlberg 

Don Paarlberg 

Assistant Secretary 

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