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Commodity Futures Trading Commission 

CEA CASES 

NAME: INTERNATIO (WOOL) INC., AND ALBERT T. ALADJEM 

CITATION: 22 Agric. Dec. 1325 

DOCKET NUMBER: 109 

DATE: DECEMBER 5, 1963 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 8816) 

In re INTERNATIO (WOOL) INC., AND ALBERT T. ALADJEM. CEA Docket No. 109. 

Decided December 5, 1963. 

Consent Order -- Denial of Trading Privileges

Consent denial of trading privileges in proceeding dealing with trading in 

May 1962 wool futures on the Wool Associates of the New York Cotton Exchange, 

Inc. 

Mr. Earl L. Saunders, for Commodity Exchange Authority. 

Mr. Marcien Jenckes, of Boston, Massachusetts, for respondents. 

Decision by Thomas J. Flavin, Judicial Officer

PRELIMINARY STATEMENT

This is an administrative proceeding under the Commodity Exchange Act. (7 

U.S.C. § 1 et seq.), instituted by a complaint and notice of hearing issued 

under § 6(b) of the Act (7 U.S.C. § 9) on November 9, 1962, by the Assistant 

Secretary of Agriculture. The complaint was amended on July 12, 1963. The 

complaint, as amended, charges that the respondents attempted and did in fact 

manipulate the prices of wool futures on the Wool Associates of 

the New York Cotton Exchange, Inc., in violation of §§ 6(b) and 9 of the Act (7 

U.S.C. §§ 9 and 13). 

No hearing has been held with respect to this proceeding. On November 6, 

1963, the respondents filed a stipulation under § 0.4(b) of the rules of 

practice (17 CFR § 0.4(b)) in which they admit the facts hereinafter set forth, 

waive hearing on the charges, and consent to the entry of the order contained 

herein. 

FINDINGS OF FACT

1. The respondent Internatio (Wool), Inc., hereinafter sometimes referred to 

as the respondent corporation, is a Massachusetts corporation, with offices and 

a place of business at 263 Summer Street, Boston, Massachusetts. The respondent 

corporation is now and was at all times material to the complaint engaged in the 

wool merchandising business. At all such times the respondent corporation 

enjoyed membership trading privileges on the Wool Associates of the New York 

Cotton Exchange, Inc., by virtue of the membership on the exchange of the 

respondent Albert T. Aladjem. 

2. The respondent Albert T. Aladjem, an individual, whose office address is 

the same as that of the respondent corporation, is now and was at all times 

material to the complaint President and Treasurer of the respondent corporation, 

and a member of the Wool Associates of the New York Cotton Exchange, Inc. 
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3. The Wool Associates of the New York Cotton Exchange, Inc., hereinafter 

sometimes referred to as the exchange, is now and was at all times material to 

the complaint a board of trade duly designated as a contract market under the 

Commodity Exchange Act. 

4. The transactions hereinafter described were carried out under the 

direction and supervision and by means of the acts of the respondent Albert T. 

Aladjem in his capacity as an officer of the respondent corporation. 

5. The futures transactions referred to in the complaint relate to the May 

1962 wool future on the Wool Associates of the New York Cotton Exchange, Inc. A 

wool futures contract on the exchange is a contract for the grease equivalent of 

6,000 pounds (clean weight) of wool. The last day for trading in the May 1962 

wool future on the exchange was May 23, 1962, and that was also the last day on 

which notice could be given of intention to deliver 

wool in satisfaction of positions in such future. In order to give notice of 

intention to deliver wool in satisfaction of such futures positions, the person 

making delivery was required to have the amount of wool referred to in the 

delivery notice, and such wool must have been inspected and certificated in 

accordance with the rules of the exchange and be located in a warehouse (in the 

Greater Boston, Massachusetts area) approved by the exchange for delivery. 

6. The respondent corporation increased its net long position in the May 1962 

wool future from 3 contracts on March 23, 1962, to 118 on May 2, 1962, which 

constituted 20.4 percent of the total open interest on that date. By the close 

of business on May 22, 1962, the day prior to the last day for trading in the 

May 1962 wool future on the exchange, the respondent corporation had reduced its 

net long position in the May 1962 wool future but still held 77 contracts 

(including 11 contracts against which notices of delivery had been stopped and 

were outstanding), an amount representing 59.2 percent of the total long open 

interest of 130 contracts in such future on the exchange. 

7. On May 22, 1962, as published an that day, the total stocks of wool 

certificated as of that time were sufficient to liquidate 203 futures contracts 

by delivery. The respondent corporation owned or controlled an amount of this 

wool equivalent to 186 1/2 contracts, leaving an amount of such wool not owned 

or controlled by the respondent corporation sufficient to liquidate 16 futures 

contracts by delivery. However, of this amount of certificated wool not owned 

or controlled by the respondent corporation, an amount sufficient to liquidate 

11 contracts had been allocated to fulfill outstanding notices of delivery which 

had been received by the respondent corporation, giving the respondent 

corporation control of such wool and resulting in the respondent corporation's 

ownership or control of certificated wool equivalent to 197 1/2 contracts. Of 

the amount of the certificated wool equivalent to 186 1/2 contracts owned or 

controlled by the respondent corporation at the close of business on May 22, 

1962, ownership or control of an amount equivalent to 130 contracts was acquired 

by the respondent corporation on or about April 9, 1962, by means of a spot 

transaction. 

8. On May 22, 1962, the price of the May 1962 wool future on the exchange 

ranged from 127.5 cents per pound to 128.9 cents per pound, and closed at 128.6 

cents per pound. On May 23, 1962, 

the last day for trading in the May 1962 wool future, the price of the future 

ranged from 129.8 cents per pound to 133.0 cents per pound, and closed at 133.0 

cents per pound. 

9. On May 23, 1962, the respondent corporation sold 66 contracts on the 

exchange at prices ranging from 131.0 cents per pound to 133.0 cents per pound, 

including 8 contracts at the latter price, with an average for all 66 contracts 

of 132.2 cents per pound. 
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CONCLUSIONS

Section 0.4(b) of the rules of practice under the Commodity Exchange Act (17 

CFR 0.4(b)) provides as follows: 

(b) Consent Order. At any time after the issuance of the complaint and prior 

to the hearing in any proceeding, the Secretary, in his discretion, may allow 

the respondent to consent to an order. In so consenting, the respondent must 

submit, for filing in the record, a stipulation or statement in which he admits 

at least those facts necessary to the Secretary's jurisdiction and agrees that 

an order may be entered against him. Upon a record composed of the complaint 

and the stipulation or agreement consenting to the order the Secretary may enter 

the order consented to by the respondent, which shall have the same force and 

effect as an order made after oral hearings. 

The facts admitted by the respondents and set forth in the findings of fact 

are sufficient to subject each of them to the jurisdiction of the Secretary of 

Agriculture under the provisions of the above section. 

The complainant has filed a recommendation which recites that it has 

carefully considered the stipulation and the terms of the proposed order. It is 

the view of the complainant that the proposed sanctions would be adequate, and 

that the prompt entry of such an order without further proceedings would 

constitute a satisfactory disposition of this case, serve the public interest, 

and effectuate the purposes of the Commodity Exchange Act. The complainant 

therefore recommends that the stipulation and waiver be acepted and that the 

proposed order be issued, terminating this proceeding. It is so concluded. 

ORDER

Effective January 13, 1964, all contract markets are hereby directed to 

refuse all trading privileges to Internatio (Wool), Inc., and Albert T. Aladjem 

for a period of 20 days, such refusal to apply to all trading done and positions 

held by the said Inter-natio (Wool), Inc., and Albert T. Aladjem directly or 

indirectly. 

A copy of this decision and order shall be served upon each of the 

respondents and upon each contract market. 

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