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Commodity Futures Trading Commission 

CEA CASES 

NAME: NATIONAL FELT WORKS, INC., N. N. GOLDMAN, AND G. J. GOLDMAN 

DOCKET NUMBER: STIPULATION 19 

DATE: APRIL 29, 1953 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: National Felt Works, Inc., N. N. Goldman, and G. J. Goldman 

Stipulation of Compliance under the Commodity Exchange Act No. 19 

WHEREAS, the Secretary of Agriculture has reason to believe that the National 

Felt Works, Inc., N. N. Goldman, and G. J. Goldman have violated the Commodity 

Exchange Act (7 U.S.C. 1-17a) and the rules and regulations thereunder (17 CFR, 

Part 6) by virtue of certain transactions involving the purchase and sale of 

commodities for future delivery on contract markets, and 

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

WHEREAS, the said National Felt Works, Inc., N. N. Goldman, and G. J. Goldman 

desire to enter into a stipulation pursuant to the provisions of section 0.4(a) 

of the Rules of Practice under the Commodity Exchange Act (17 CFR 0.4(a)). 

NOW, THEREFORE, the said National Felt Works, Inc., N. N. Goldman, and G. J. 

Goldman hereby stipulate and agree that the following facts are true: 

1. National Felt Works, Inc., is a corporation organized under the laws of 

the State of Illinois, and has an office and place of business at 1130 North 

Cherry Avenue, Chicago, Illinois. 

2. N. N. Goldman and G. J. Goldman are president and treasurer, respectively, 

of the said National Felt Works, Inc., and, in their capacity as officers of the 

said corporation, controlled and were responsible for the execution of the 

futures transactions for its account, as hereinafter described. 

3. Between September 1952 and February 1953, both inclusive, the said 

National Felt Works, Inc., traded in cotton futures on the New York Cotton 

Exchange by means of accounts carried in the corporate name. During November 

and December 1952, both inclusive, the said N. N. Goldman also traded in cotton 

futures in the New York Cotton Exchange by means of personal accounts carried in 

his own name. 

4. At all times material to this stipulation, the New York Cotton Exchange 

was a board of trade which was duly designated as a contract market under the 

Commodity Exchange Act. 

5. During the period from September 17, 1952 to February 17, 1953, both 

inclusive, the long open contract position of the National Felt Works, Inc., in 

March 1953 cotton futures on the New York Cotton Exchange ranged between 6,400 

and 7,600 bales. By reason of the fact that such position was in excess of 

5,000 bales, the said corporation was in reporting status and was required to 

report to the Commodity Exchange Authority with respect to all transactions 

executed and all open contract positions held for its account during such 

period, in all cotton futures on all boards of trade, as provided in section 4i 

of the Commodity Exchange Act (7 U.S.C. 6i) and sections 3.10, 3.11, 3.12, and 

3.21 of the 
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rules and regulations thereunder (17 CFR 3.10, 3.11, 3.12, 3.21). During the 

said period, the following purchases and sales of March 1953 cotton futures were 

executed on the New York Cotton Exchange for the said corporation: 

Bought Sold 

Data Bales Bales

September 17, 1952 1,500 September 18, 1952 200 

September 19, 1952 500 

September 24, 1952 200 November 7, 1952 500 

December 17, 1952 300

Dacember 16, 1952 500

February 9, 1953 400

The said National Felt Works, Inc., failed to report to the Commodity 

Exchange Authority with respect to such purchases and sales and the resulting 

open contract positions, and with respect to transactions and open contracts in 

other cotton futures bought and sold by the said corporation during the above 

period, as required by the aforementioned sections of the Commodity Exchange Act 

and regulations. 

6. The long open contract position of the said corporation in March 1953 

cotton futures described in paragraph 5 was distributed among three accounts, 

each in the name of the National Felt Works, Inc., carried on the books of Orvis 

Brothers, Irving Weis and Company, and E. F. Hutton and Company, registered 

futures commission merchants. The open contract position in each account was 

less than 5,000 bales, but when the three accounts were combined and the total 

open contract position 

in March 1953 cotton futures was calculated, such calculation showed that such 

position was in excess of 5,000 bales during the period set forth above. 

7. During the period from November 21, 1952 to December 17, 1952, both 

inclusive, the long open contract position in the personal accounts of the said 

N. N. Goldman in March 1953 cotton futures on the New York Cotton Exchange 

ranged between 5,300 and 6,000 bales. By reason of the fact that such position 

was in excess of 5,000 bales, the said N. N. Goldman was in reporting status and 

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

transactions executed and all open contract positions held for his account 

during such period, in all cotton futures on all boards of trade, as provided in 

section 4i of the Commodity Exchange Act (7 U.S.C. 6i) and sections 3.10, 3.11, 

3.12, and 3.21 of the rules and regulations thereunder (17 CFR 3.10, 3.11, 3.12, 

3.21). During the said period, the following purchases and sales of March 1953 

cotton futures were executed on the New York Cotton Exchange for the account of 

the said N. N. Goldman: 

Bought Sold 

Data Bales Bales

November 21, 1952 1,000 

November 24, 1952 600 December 4, 1952 200 

December 17, 1952 2,000

The said N. N. Goldman failed to report to the Commodity Exchange Authority 

with respect to such purchases and sales and the resulting 

open contract positions, and with respect to transactions and open contracts in 

other cotton futures bought and sold for his account during the above period, as 

required by the aforementioned sections of the Commodity Exchange Act and 

regulations. 
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8. The long open contract position of the said N. N. Goldman in March 1953 

cotton futures described in paragraph 7 was distributed between two accounts, 

carried on the books of Irving Weis and Company, and Merrill Lynch, Pierce, 

Fenner and Beane, registered futures commission merchants. The open contract 

position in each account was less than 5,000 bales, but when both accounts were 

combined and the total open contract position in March 1953 cotton futures was 

calculated, such calculation showed that such position was in excess of 5,000 

bales during the period set forth above. 

9. On various occasions prior to September 1952, the Commodity Exchange 

Authority found it necessary to communicate with the said N. N. Goldman and G. 

J. Goldman and call their attention to the reporting requirements of the 

Commodity Exchange Act and regulations, as applied to futures trading for the 

account of the said corporation and for their personal accounts. The said 

National Felt Works, Inc., N. N. Goldman, and G. J. Goldman were therefore fully 

informed of their obligations under the act and the regulations to file reports 

whenever their trades or positions in the futures market placed them in 

reporting status, and the failure to file reports with respect to the 

transactions described 

above constituted wilful violations of section 4i of the Commodity Exchange Act 

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

In addition to admitting the foregoing facts, the said National Felt Works, 

Inc., N. N. Goldman, and G. J. Goldman hereby agree to discontinue all such acts 

and practices and all other acts and practices which are in violation of the 

Commodity Exchange Act or the rules and regulations thereunder, and do further 

specifically agree that this stipulation shall be admissible as evidence of acts 

and practices in violation of section 4i of the Commodity Exchange Act (7 U.S.C. 

6i) in any subsequent proceeding brought against the National Felt Works, Inc., 

N. N. Goldman, or G. J. Goldman, under the provisions of the said act. 

Done at New York, New York this 29th day of April, 1953. 

National Felt Works, Inc. 

By /s/ N. N. Goldman President 

By /s/ Geo. J. Goldman Treasurer 

/s/ N. N. Goldman 

N. N. Goldman 

/s/ G. J. Goldman 

G. J. Goldman 

Witnessed by: 

/s/ Robert J. Gross 

LOAD-DATE: June 16, 2008 
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