Page 1 

Commodity Futures Trading Commission 

CEA CASES 

NAME: DECATUR COTTON OIL CO. 

DOCKET NUMBER: 123 

DATE: JANUARY 18, 1965 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Decatur Cotton Oil Co., Respondent 

CEA Docket No. 123 

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

Act 

There is reason to believe that the respondent, Decatur Cotton Oil Co., has 

violated the provisions of the Commodity Exchange Act (7 U.S.C. 1 et seq.), and 

the rules and regulations made pursuant thereto (17 CFR, Part 1), and in 

accordance with the provisions of section 6(b) of said act (7 U.S.C. 9), this 

complaint and notice of hearing is issued stating the charges in that respect as 

follows: 

I 

Respondent, Decatur Cotton Oil Co,, is now, and was at all times material to 

this complaint, a corporation with an office and place of business at Decatur, 

Alabama. 

II 

The New York Produce Exchange, is now, and was at all times material to this 

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

III 

On each business day during the period September 15 through September 30, 

1964, the net short open contract position of the respondent corporation in the 

October 1964 cottonseed oil future 

on the New York Produce Exchange was within the range of 1,500,000 pounds to 

3,420,000 pounds. By reason of the fact that such quantities were equal to or 

in excess of 1,500,000 pounds, the said corporation was in reporting status and 

was required to report to the Commodity Exchange Authority with respect to all 

transactions entered into and all open contract positions held or controlled by 

it, in all cottonseed oil futures on all contract markets during said period and 

with respect to all transactions by reason of which the said corporation's 

position was reduced below reporting levels, as provided in section 4i of the 

Commodity Exchange Act (7 U.S.C. 6i) and sections 15.01, 15.02, 15.03, 18.00, 

18.01 and 18.03 of the regulations thereunder (17 CFR 15.01, 15.02, 15.03, 

18.00, 18.01, 18.03). 

IV 

On September 15, 17, 18, 22, 28 and 29, 1964, while the respondent 

corporation was in reporting status as described in paragraph III above, and on 

October 1, 1964, when its position was reduced below reporting levels, 

transactions in the October 1964 cottonseed oil future on the New York Produce 
Page 2 

Exchange were made in its behalf, but the said respondent failed and refused to 

report to the Commodity Exchange Authority with respect to such transactions, as 

required under the aforesaid provisions of the Commodity Exchange Act and 

regulations. 

V 

On March 24, 1961, the Administrator of the Commodity Exchange Authority 

addressed a letter to the respondent corporation directing attention to its 

failure to file reports required to show reportable transactions and positions 

in cottonseed oil futures, and warning that failure in the future to submit 

required reports could result in the institution of formal proceedings against 

it under the Commodity Exchange Act. On October 5, 1964, the Director of the 

Trading Division of the Commodity Exchange Authority notified the respondent 

corporation by mail of the reporting requirements with respect to cottonseed oil 

futures under the Commodity Exchange Act and regulations, and requested 

submission of reports which were then due from the respondent corporation, as 

described in paragraphs III and IV above. Notwithstanding such letter, no 

reports were filed. In the circumstances, the respondent was aware of its 

obligations under the Commodity Exchange Act and regulations with respect to the 

submission of required reports, and the failure to submit such reports 

constituted a knowing and willful violation of section 4i of the Commodity 

Exchange Act and sections 15.01, 15.02, 15.03, 18.00, 18.01 and 18.03 of the 

regulations thereunder. 

WHEREFORE, it is hereby ordered that this complaint and notice of hearing be 

served upon the said respondent. The respondent will have twenty (20) days 

after the receipt of this complaint in which to file with the Hearing Clerk, 

United States Department of Agriculture, Washington, D. C. 20250, an answer with 

an original and three 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 not answered will be deemed 

admitted for the purpose of this proceeding. Failure to file an answer will 

constitute an admission of all the material allegations of this complaint and 

waiver of hearing. The respondent is hereby notified that unless hearing is 

waived, either expressly or by failure to file an answer and request a hearing, 

a hearing will be held at 10:00 a.m., local time, on February 10, 1965, in 

Decatur, Alabama, at a place therein to be specified later, before a referee 

designated to conduct such hearing. At such hearing the respondent will have 

the right to appear and show cause, if any there be, why an order should not be 

made directing that all contract markets refuse all trading privileges to the 

respondent for such period of time as may be determined. 

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. 

January 18 1965 

[SEE SIGNATURE IN ORIGINAL] 

George L. Mehren 

Assistant Secretary 

LOAD-DATE: June 12, 2008 
Page 3