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Commodity Futures Trading Commission 

CEA CASES 

NAME: CLAUD WILKES 

DOCKET NUMBER: 52 

DATE: DECEMBER 19, 1949 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re Claud Wilkes, Respondent 

CEA Docket No. 52 

Complaint and Notice of Hearing under the Commodity Exchange Act 

The Secretary of Agriculture has reason to believe that the respondent, Claud 

Wilkes, has violated the provisions of the Commodity Exchange Act (7 U.S.C., 

Chapter 1) and the rules and regulations made pursuant to its requirements. In 

accordance with the provisions of section 6(b) of the Commodity Exchange Act (7 

U.S.C. 9), this complaint is issued alleging as follows: 

1. 

The respondent, Claud Wilkes, is an individual residing in Durant, 

Mississippi, and doing business at some times in his own name and at other times 

in the name of The Wilkes Company. 

2. 

The New York Cotton Exchange was, at all times material to this complaint, a 

duly designated contract market under the Commodity Exchange Act. 

3. 

On November 6, 1949, as the result of purchases of 2000 bales of July 1950 

cotton futures contracts, executed on the New York Cotton Exchange for the 

accounts of the respondent by Merrill Lynch, Pierce, Fenner and Beane, 

registered futures commission merchants, the 

respondent's net long position in July 1950 cotton futures contracts on the New 

York Cotton Exchange, as reflected on the books of Merrill Lynch, Pierce, Fenner 

and Beane, reached 6000 bales. The respondent thereupon became subject to the 

requirement contained in section 4i of the Commodity Exchange Act and sections 

3.10, 3.11, 3.12, and 3.21 of the rules and regulations that he report to the 

commodity Exchange Authority with respect to such transactions and with respect 

to the open contracts in all cotton futures then held or controlled by him on 

all exchanges. The respondent was aware of the provisions of the aforesaid 

sections of the Act and regulations, but has wilfully failed to make the 

required report, in violation of section 4i of the Commodity Exchange Act and 

sections 3.10, 3.11, 3.12 and 3.21 of the rules and regulations. 

4. 

On November 8, 1949, on which date the respondent was in reporting status by 

reason of his position in July 1950 cotton futures contracts as described in 

paragraph 3 above, purchases of December 1949 cotton futures contracts and March 

1950 cotton futures contracts were executed on the New York Cotton Exchange for 

the respondent's account by Merrill Lynch, Pierce, Fenner and Beane. The 
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respondent was aware of the aforesaid requirements of the Act and the 

regulations that such purchases be reported to the Commodity Exchange Authority 

out has wilfully failed to make such report, in violation of section 4i 

of the Commodity Exchange Act and sections 3.10, 3.11, 3.12 and 3.21 of the 

rules and regulations. 

Therefore, the said respondent, Claud Wilkes, is hereby notified to be and 

appear at a hearing to be held at 10 o'clock A.M., a.s.t., on the 25th day of 

January, 1950, in Room 141 W, Administration Building, United States Department 

of Agriculture, Washington, D. C., 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 directing that all contract markets refuse all trading privileges to the 

said respondent for such period of time as may be determined by the Secretary of 

Agriculture. If the respondent prefers that this hearing be held at some place 

more convenient to the respondent's place of business than Washington, D. C., he 

may make such a request prior to the expiration of the date set for filing of 

the answer. 

The respondent will have 20 days after the receipt of this notice of hearing 

in which to file in triplicate with the Hearing Clerk, United States Department 

of Agriculture, Washington 25, D. C., an answer fully and completely stating the 

nature of the defense and admitting or denying specifically and in detail each 

material and relevant allegation of the complaint. Allegations that are not 

answered will be deeded admitted for the purposes of this proceeding. 

It is ordered that this complaint and notice of hearing be served on the 

respondent by delivery of a true copy thereof by an employee of the Department 

of Agriculture, or by registered mail, at least 20 days prior to the date set 

for hearing. 

Done at Washington, D. C. this 19 day of December, 1949 

/s/ Charles F. Brannan 

Secretary of Agriculture 

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