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Commodity Futures Trading Commission 

CEA CASES 

NAME: MURLAS BROTHERS COMMODITIES, INC, MURLAS BROTHERS COMPANY, GEORGE J. 

MURLAS, NICHOLAS J. MURLAS, AND HENRY C. GATLIN 

DOCKET NUMBER: 78 

DATE: JANUARY 27, 1958 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Murlas Brothers Commodities, Inc., Murlas Brothers Company, George J. 

Murlas, Nicholas J. Murlas, and Henry C. Gatlin, Respondents 

CEA Docket No. 78 

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

Act 

There is reason to believe that respondents, Murlas Brothers Commodities, 

Inc., Murlas Brothers Company, George J. Murlas, Nicholas J. Murlas, and Henry 

C. Gatlin attempted to manipulate the price of a commodity for future delivery 

on or subject to the rules of a board of trade, in violation of the Commodity 

Exchange Act (7 U.S.C. 1952 ed., §§ 1 - 17a), and in accordance with the 

provisions of section 6(b) of the said act (7 U.S.C. 1952 ed., § 9), this 

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

follows: 

I 

Respondent Murlas Brothers Company, a corporation organized and existing 

under the laws of the State of Illinois, is engaged in the business of shipping 

and distributing carlots of produce. At all 

times material herein it owned 100 percent of the capital stock of respondent 

Murlas Brothers Commodities, Inc. 

Respondent Murlas Brothers Commodities, Inc., a corporation organized and 

existing under the laws of the State of Illinois, was at all times material 

herein, and is now a clearing member of the New York Mercantile Exchange, and a 

registered futures commission merchant under the Commodity Exchange Act. 

The principal office and place of business of each of the foregoing 

corporations is 110 North Franklin Street, Chicago, Illinois, and trading in 

futures for both corporations is controlled by respondents George J. Murlas and 

Nicholas J. Murlas. 

II 

Respondent George J. Murlas, whose address is 6634 North Minnehaha Avenue, 

Lincolnwood, Illinois, was at all times material herein president of Murlas 

Brothers Commodities, Inc., secretary of Murlas Brothers Company, and a 

registered floor broker under the Commodity Exchange Act. 

III 

Respondent Nicholas J. Murlas, whose address is 6630 North Minnehaha Avenue, 

Lincolnwood, Illinois, was at all times material 
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herein president and treasurer of Murlas Brothers Company, vice president of 

Murlas Brothers Commodities, Inc., and a member of the New York Mercantile 

Exchange. 

IV 

Respondent Henry C. Gatlin, an individual, whose address is 1102 South 

Seminary Avenue, Park Ridge, Illinois, was at all times material herein the 

secretary-treasurer of Murlas Brothers Commodities, Inc., directed the firm's 

futures trading on the floor of the New York Mercantile Exchange and purchased 

all cash potatoes used for delivery on the said exchange during the month of May 

1957 by the respondents and by customers of respondent Murlas Brothers 

Commodities, Inc. The said Henry C. Gatlin was at all times material herein and 

is now a member of the New York Mercantile Exchange and a registered floor 

broker under the Commodity Exchange Act. 

V 

The New York Mercantile Exchange was at all times material herein and is now 

a duly designated contract market under the Commodity Exchange Act. 

(a) During the period from April 16 through May 1, 1957, respondents Murlas 

Brothers Commodities, Inc., Murlas Brothers Company, and Henry C. Gatlin held 

short positions in the May 1957 potato future on the New York Mercantile 

Exchange which, combined, ranged from 160 carlots to 200 carlots. On May 2, 

1957, the said positions totaled 170 carlots, and on May 3, 1957, 148 carlots. 

(b) During the period from April 16, 1957, through May 1, 1957, Vincent W. 

Kosuga, a customer of Murlas Brothers Commodities, Inc., held a short position 

in the same future on the New York Mercantile Exchange, which ranged from 104 

carlots to 144 carlots. On May 2, 1957, the said Vincent W. Kosuga's short 

position in such future was 144 carlots, and on May 3, 1957, 141 carlots. 

(c) During the period from April 16, 1957, through May 1, 1957, Roy D. 

Simmons, a customer of Murlas Brothers Commodities, Inc., held a short position 

in the same future which ranged from 35 carlots to 125 carlots. On May 2 and 

May 3, 1957, such position was 102 carlots and 76 carlots, respectively. 

VII 

On May 2 and May 3, 1957, respondents Murlas Brothers Company, Murlas 

Brothers Commodities, Inc., and Henry C. Gatlin delivered 10 carlots, 20 

carlots, and 3 carlots of potatoes, respectively, in 

satisfaction of short contracts in the May 1957 potato future on the New York 

Mercantile Exchange. On these same days respondent Murlas Brothers Commodities, 

Inc., delivered 3 carlots and 6 carlots of potatoes, respectively, for its 

customers, the said Vincent W. Kosuga and Roy D. Simmons, in satisfaction of 

short contracts in the May 1957 potato future on the New York Mercantile 

Exchange. The said 42 carlots of potatoes were purchased during the period from 

April 17 through May 1, 1957, for delivery purposes by respondent Henry C. 

Gatlin, acting for and on behalf of said accounts. 

VIII 

The respondents, acting pursuant to an agreement or understanding among 

themselves, and between themselves and the said customers, Vincent W. Kosuga and 

Roy D. Simmons, entered into the transactions and made the deliveries described 

in paragraph VII for the purpose and with the intent of depressing the price of 

the May 1957 potato future on the New York Mercantile Exchange. The acts and 

transactions on behalf of the corporate respondents were carried out by or under 

the direction and supervision of respondents George J. Murlas, Nicholas J. 
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Murlas, and Henry C. Gatlin, acting in their respective capacities as officers 

or agents of Murlas Brothers Commodities, Inc., and Murlas Brothers Company. 

IX 

By reason of the acts and transactions described herein, the respondents 

attempted to manipulate the price of a commodity for future delivery on or 

subject to the rules of a board of trade, in violation of sections 6(b) and 9 of 

the Commodity Exchange Act (7 U.S.C. 1952 ed. §§ 9, 13). 

Therefore, the said respondents, Murlas Brothers Commodities, Inc., Murlas 

Brothers Company, George J. Murlas, Nicholas J. Murlas, and Henry C. Gatlin are 

hereby notified to be and appear at a hearing to be held at 10:00 a.m., Central 

Standard Time, on the 18th day of March, 1958, in Room 1200, Board of Trade 

Building, 141 West Jackson Boulevard, Chicago, Illinois, 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 respondents for such period of time as may be 

determined, and suspending or revoking the registrations of respondents George 

J. Murlas and Henry C. Gatlin as floor brokers and the registration of 

respondent Murlas Brothers Commodities, Inc., as a futures commission merchant. 

The respondents will have twenty (20) days after the receipt of this notice of 

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

Agriculture, 

Washington 25, D. C., an answer with an original and seven 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 that are not answered will be deemed admitted for the 

purpose of this proceeding. 

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

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

of Agriculture, or by registered mail, at least twenty (20) days prior to the 

date set for hearing. 

Done at Washington, D. C, this 27 day of January, 1958. 

/s/ Don Paarlberg 

Don Paarlberg 

Assistant Secretary 

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