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Commodity Futures Trading Commission 

CEA CASES 

NAME: GARNAC GRAIN COMPANY, INC. 

DOCKET NUMBER: STIPULATION 144 

DATE: JULY 26, 1973 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Garnac Grain Company, Inc. 

Stipulation of Compliance Under the Commodity Exchange Act No. 144 

The Secretary of Agrigulture has reason to believe that Garnac Grain Company, 

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

Chapter 1), and the regulations thereunder. 

No complaint with respect to such violations has been issued and the said 

Garnac Grain Company, Inc., is desirous of disposing of the matter by entering 

into a stipulation of compliance as authorized by Section 0.4(a) of the rules of 

practice under the Commodity Exchange Act (17 CFR, Part 0); 

(1) Garnac Grain Company, Inc., is now, and was at all times material 

[ILLEGIBLE TEXT], a registered futures commission merchant and grain 

merchandiser with its principal office and place of business at 1 Whitehall 

Street, New York, New York 10004. 

(2) At all times material herein the firm held reportable positions in 

regulated commodity futures and was required to file CEA Form 204 reports 

showing cash grain inventories, purchase commitments, and sales commitments as 

required under Section 41 of the Commodity Exchange Act and Sections 19.01 and 

19.10 of the regulations under the Commodity Exchange Act. 

(3) From July 7, 1972, through November 17, 1972, Inclusive, Garnac Grain 

Company, Inc., held or controlled reportable positions in wheat futures 

contracts on the Board of Trade of the City of Chicago, a designated [ILLEGIBLE 

TEXT] market under the Commodity Exchange Act. On 20 weekly dates during 

the above-specified period, the firm filed CEA Form 204 reports covering its 

cash positions in wheat which were incorrect in amounts ranging up to in excess 

of 37 million bushels as set forth in the attached schedule. 

The Commodity Exchange Authority by its draft Stipulation served by it on or 

about July 17, 1973, advises Garnac Grain Co., Inc., that the cash grain 

positions in wheat reported to the Commodity Exchange Authority during the 

period July 7, 1972, through November 17, 1972, were grossly incorrect. 

Garnac Grain Co., Inc.,insists that the errors contained in the Reports 

covering the period July 7, 1972,through November 17, 1972, were inadvertent and 

unintentional. 

The said Garnac Grain Co., Inc.,agrees to desist from such acts and practices 

in the future. It further understands and agrees that this stipulation is 

admissible as evidence of such acts and practices in any future proceeding based 

upon acts or practices in addition to those referre to here which may be brought 

by the Secretary of Agriculture against it under the provisions of the said Act. 

It also understands that it is the practice of the Commodity Exchange Authority 
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to issue press releases on stipulations of compliance and to make them a matter 

of public record. 

Done at Kansas City, Missouri 

this 26th day of July, 1973 

Witnessed by: 

[SEE SIGNATURE IN ORIGINAL] 

[SEE SIGNATURE IN ORIGINAL] 

Garnac Grain Co., Inc. 

By: [SEE SIGNATURE IN ORIGINAL] 

H. R. Schmid 

Executive Vice President 

Comparison of information shown on original 204 reports submitted for the 

period of July 7, 1972 through November 17, 1972 with information shown on 

corrected reports submitted on December 4, 1972 

Wheat 

(In bushels 000) 

Per corrected 

Date Per original 204 reports Difference 

as of 204 reports submitted (amount of 

December 4, error) 

1972 Long Short Long Short Long Short 

(1) (2) (3) (4) (5) (6) (7) 

1972 

July 7 13,923 15,067 7,803 9,729 + 6,120 + 5,338

14 13,640 12,205 7,936 9,669 + 5,704 + 2,536

21 16,837 23,831 8,193 16,838 + 8,644 + 6,993

28 16,268 22,812 7,400 15,460 + 8,868 + 7,352

Aug. 4 13,546 22,164 10,349 28,760 + 3,197 - 6,596

11 29,648 35,635 23,455 27,729 + 6,193 + 7,906

18 53,434 41,973 32,692 51,880 + 20,742 - 9,907

25 56,365 42,731 36,423 72,022 + 19,942 - 29,291

Sept. 1 68,789 85,078 46,158 74,912 + 22,631 + 10,166

8 87,503 102,929 57,825 83,269 + 29,678 + 19,660

15 89,201 103,553 67,310 85,149 + 21,891 + 18,404

22 93,083 107,954 72,210 85,602 + 20,873 + 22,352

29 110,827 113,646 72,505 85,343 + 38,322 + 28,303

Oct. 6 110,048 113,586 72,649 84,769 + 37,399 + 28,817

13 109,686 107,362 72,375 84,053 + 37,311 + 23,309

20 108,433 109,021 71,462 81,091 + 36,971 + 27,930

27 103,104 105,440 70,145 80,885 + 32,959 + 24,555

Nov. 3 103,021 112,090 73,315 84,033 + 29,706 + 28,057

10 110,568 117,751 73,063 83,078 + 37,505 + 34,673

17 118,084 117,697 80,788 82,696 + 37,296 + 35,003 

LOAD-DATE: June 16, 2008 
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