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Commodity Futures Trading Commission 

CEA CASES 

NAME: HYMAN I. HENNER 

DOCKET NUMBER: STIPULATION 7 

DATE: JANUARY 14, 1947 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

UNITED STATES OF AMERICA 

BEFORE THE SECRETARY OF AGRICULTURE 

In re Hyman I. Henner 

Stipulation of Compliance Under the Commodity Exchange Act No. 7 

WHEREAS, the Secretary of Agriculture has reason to believe that Hyman I. 

Henner, registered as a floor broker under the Commodity Exchange Act, as 

amended, (hereinafter called the Act), has violated Sections 4b(D), 4c(A), and 

6(b) of the Act by virtue of a certain transaction or transactions involving 70 

carlots of November 1946 egg futures purchased on the Chicago Mercantile 

Exchange on July 5, 1946, by one Jacob Friedman pursuant to an agreement or 

understanding between the said Hyman I. Henner and the said Jacob Friedman, and 

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

WHEREAS, the said Hyman I. Henner desires to enter into a stipulation of 

compliance pursuant to the provisions of Section 0.4 (a) of the Rules of 

Practice under the Act. 

NOW, THEREFORE, the said Hyman I. Henner admits that the following facts are 

true: 

1. The Chicago Mercantile Exchange was at the times hereinafter mentioned and 

is now duly designated as a contract market under the provisions of the Act. 

2. Hyman I. Henner was at the times hereinafter mentioned and is now a member 

of the Chicago Mercantile Exchange and a registered floor broker under the 

provisions of the Act. 

3. Jacob Friedman was, at the times hereinafter mentioned, a registered floor 

broker normally trading for Becker, Stone and Company, as shown by the records 

of the Chicago Mercantile Exchange. 

4. The November 1946 egg futures contracts with respect to which Jacob 

Friedman became the buyer, as hereinafter set forth, were contracts for the sale 

of a commodity for future delivery made on and subject to the rules of the 

Chicago Mercantile Exchange, and such contracts were or could have been used for 

(a) hedging a transaction in interstate commerce in eggs or the products or 

byproducts thereof, or (b) determining the price basis of a transaction in 

interstate commerce in eggs. 

5. On July 5, 1945, the said Hyman I. Henner, acting as floor broker for 

Uhlmann Grain Company, Harris, Upham and Company and Bache and Company, had in 

his possession orders to buy November egg futures in the amount of at least 70 

carlots, including 30 carlots at prices ranging from 42.00 cents per dozen up to 

43.50 cents per dozen, and including 26 carlots at prices ranging from 41.60 

cents per dozen up to 41.75 cents 
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per dozen. At the same time, the said Hyman I. Henner, acting as floor broker 

for Uhlmann Grain Company, Harris, Upham and Company, Bache and Company, and 

Swift and Company had in his possession orders to sell November egg futures in 

the amount of at least 70 carlots, included in which were stop loss orders at 

42.75, 42.50, 42.10, 41.75, 41.50, and 41.00 cents per dozen, respectively. 

6. On July 5, 1946, prior to the opening of trading on the Chicago Mercantile 

Exchange, the said Hyman I. Kenner, having in his possession the orders 

described in paragraph 5 above, instructed the said Jacob Friedman to purchase 

for the account of the said Hyman I. Henner up to 70 carlots of November egg 

futures at the price of 41.00 cents per dozen. No written buying orders 

covering such purchase or purchases were delivered to Jacob Friedman by Hyman I. 

Henner, but were retained in the possession of the said Hyman I. Henner. 

7. Pursuant to the instructions described in paragraph 6 above the said Jacob 

Friedman, on July 5, 1946, bid 41.00 for November eggs but found no takers until 

the said Hyman I. Henner accepted the bid and sold 70 carlots to the said Jacob 

Friedman at the price of 41.00 cents per dozen, such transaction being the only 

one made during that day at the price of 41.00 cents per dozen. 

8. On July 3, 1946, the price of November eggs closed at 43.00 cents per 

dozen and, under the regulations of the Chicago Mercantile Exchange then in 

effect, the lowest price at which November eggs could be traded on July 5, 1946, 

was 2 cents below the previous day's close, namely, 41.00 cents per dozen. 

9. On July 5, 1946, prior to the purchase and sale between the said Jacob 

Friedman and the said Hyman I. Henner as described in paragraph 7 above, there 

were sales of November egg futures at 41.75 cents, 41.50 cents, and 41.25 cents 

made on the floor of the Chicago Mercantile Exchange. 

10. On July 5, 1946, for a period of five minutes immediately following the 

purchase and sale between the said Jacob Friedman and the said Hyman I. Henner 

as described in paragraph 7 above, there were sales of November egg futures at 

prices from 41.10 to 41.50 cents per dozen made on the floor of the Chicago 

Mercantile Exchange. The closing price of November egg futures on that day was 

42.25. 

11. The said transaction of 70 carlots of November egg futures was 

subsequently distributed by the said Hyman I. Henner among the purchase and sale 

orders held by him and described 

in paragraph 5 above, in the following manner: 

Sold 

a/c Bache and Company 12 carlots by Hyman I. Henner

a/c Harris, Upham and Company 4 carlots by Hyman I. Henner

a/c swift and Company 23 carlots by Hyman I. Henner

a/c Uhlmann Grain Company 31 carlots by Hyman I. Henner

Bought 

a/c Bache and Company 15 carlots by Jacob Friedman

 for Hyman I. Henner

a/c Harris, Upham and Company 5 carlots by Jacob Friedman

 for Hyman I. Henner

a/c Uhlman Grain Company 50 carlots by Jacob Friedman

 for Hyman I. Henner

12. The transaction described in paragraph 6 and 7 above, whereby the said 

Jacob Friedman purchased 70 carlots of November eggs from the said Hyman I. 

Henner, such purchase being made for the account of the said Hyman I. Henner, 

constituted a sale by the said Hyman I. Henner to himself and was a fictitious 

sale. 

13. The said transaction and the distribution thereof among the purchase and 

sale orders hold by the said Hyman I. Henner, as described in paragraph 11, 

constituted the filling of orders by offset against the orders of other persons. 
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14. The instructions given by the said Hyman I. Henner to Jacob Friedman to 

purchase November egg futures at 41.00 cents per dozen, and the consequent 

execution of the transaction 

in accordance with such instructions as above described, was a manipulation of 

the price of a commodity for future delivery on or subject to the rules of a 

board of trade. 

In addition to admitting the foregoing facts, the said Hyman I. Henner does 

hereby agree to discontinue all such acts and practices, and all other acts and 

practices which are in violation of the Commodity Exchange Act, as amended, and 

does further specifically agree that this stipulation shall be admissible as 

evidence of acts and practices in violation of sections 4b(D), 4c(A) and 6(b) of 

the Commodity Exchange Act, as amended, in any subsequent proceeding brought 

against the said Hyman I. Henner under the provisions of the said Act. 

Done at Chicago, Illinois, this 14th day of January 1947. 

/s/ Hyman I. Henner 

Hyman I. Henner 

Witnessed by /s/ O. W. Olson 

/s/ E. P. Dowey 

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