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Commodity Futures Trading Commission 

CEA CASES 

NAME: JAMES E. BAGGOT, JR. 

DOCKET NUMBER: STIPULATION 37 

DATE: April 24, 1958 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: James E. Baggot, Jr. 

Stipulation of Compliance under the Commodity Exchange Act No. 37 

WHEREAS, the Secretary of Agriculture has reason to believe that James E. 

Baggot, Jr. has violated the provisions of the Commodity Exchange Act (17 CFR, 

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

promulgated thereunder by virtue of certain transactions involving the purchase 

and sale of wheat and soybean futures, and 

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

WHEREAS, section 0.4(a) of the rules of practice under the Commodity Exchange 

Act (17 CFR 0.4(a)) provides that at any time prior to the issuance of a 

complaint in any proceeding, the Secretary of Agriculture may, in his 

discretion, enter into a stipulation with a prospective respondent whereby the 

latter admits the material facts and agrees to discontinue the acts or practices 

which are intended to be set up as violative of the Act, and 

WHEREAS, the said James E. Baggot, Jr. is desirous of disposing of this 

matter by entering into such a stipulation, 

NOW, THEREFORE, the said James E. Baggot, Jr. hereby stipulates and 

represents that the following facts are true: 

1. James E. Baggot, Jr. is a member of the Chicago Board of Trade and partner 

in the firm of Baggot and Morrison. The firm of Baggot and Morrison is a 

clearing member of the Chicago Board of Trade and is registered as a futures 

commission merchant under the Commodity Exchange Act. 

2. Section 1.38 of the rules and regulations under the Commodity Exchange Act 

(17 CFR, 1954 Supp., 1.38) provides as follows: 

All purchases and sales of any commodity for future delivery on or subject to 

the rules of a contract market shall be executed openly and competitively as to 

price by open outcry or posting of bids and offers or by other equally open and 

competitive methods, in the trading pit or ring or similar place provided by the 

contract market, during the regular hours prescribed by the contract market for 

trading in such commodity: Provided, however, That this requirement shall not 

apply to such transactions as are executed in accordance with written rules of 

the contract market which have been submitted to and not disapproved by the 

Secretary of Agriculture, specifically providing for the noncompetitive 

execution of such transactions. 

3. On March 5, 1958, James E. Baggot, Jr., acting for his own account, 

entered on his trading card the following transactions in wheat futures on the 

Chicago Board of Trade: 

Opposite 

Bot Sold Future Price Clearing Member Opposite Broker Clearing Member 

400 Sept. 1.99 1/4 Baggot & Morrison D. W. Morrison Baggot & Morrison 
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 Opposite 

Bot Sold Future Price Clearing Member Opposite Broker Clearing Member 

400 July 1.96 " " " " " 

These transactions were cleared through the Chicago Board of Trade Clearing 

Corporation on March 6, 1958. 

The above transactions were made in the pit by negotiation with Donald W. 

Morrison and were not made openly and competitively, and were not within any of 

the exceptions specified in section 1.38 of the rules and regulations under the 

Commodity Exchange Act (17 CFR, 1954 Supp., 1.38). 

4. On March 5, 1958, James E. Baggot, Jr., acting upon instructions received 

from William E. Henner, a member of the Chicago Board of Trade, entered on his 

trading card, for the account of Daniel R. Jesser, a customer of the firm of 

Baggot & Morrison, the following transactions in soybean futures traded on the 

Chicago Board of Trade: 

Opposite 

Bot Sold Future Price Clearing Member Opposite Broker Clearing Member 

100 May 2.26 1/4 Baggot & Morrison W. E. Henner Baggot & Morrison 

100 July 2.27 1/4 " " " " " 

These transactions were not cleared through the Chicago Board of Trade 

Clearing Corporation until March 14, 1958. 

The above transactions were made in the pit by negotiation with William E. 

Henner and were not made openly and competitively, and were not within the 

exceptions specified in section 1.38 of the rules and regulations under the 

Commodity Exchange Act (17 CFR, 1954 Supp., 1.38). 

In addition to admitting the foregoing facts, the said James E. Baggot, Jr. 

hereby agrees to discontinue all such acts and practices 

and to refrain from all other acts and practices which are in violation of the 

Commodity Exchange Act or the rules and regulations thereunder, and further 

understands that this stipulation shall be admissible as evidence of acts and 

practices in violation of the rules and regulations under the Commodity Exchange 

Act in any proceeding based upon transactions in addition to those referred to 

in paragraphs 3 and 4 hereof which may hereafter be brought by the Secretary of 

Agriculture against the said James E. Baggot, Jr. under the provisions of the 

said Act. 

Done at Chicago, Illinois, this 

day of April 24, 1958. 

/s/ J. E. Baggot 

Witnessed by: 

/s/ Charles E. Robinson 

/s/ Samuel F. Gordon 

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