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Commodity Futures Trading Commission 

CEA CASES 

NAME: CONTINENTAL GRAIN COMPANY AND IN RE CONTINENTAL GRAIN COMPANY, JULIUS 

MAYER, AND SELWYN S. UNELL 

CITATION: 17 Agric. Dec. 854 

DOCKET NUMBER: 72 AND 84 

DATE: SEPTEMBER 22, 1958 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 5606) 

In re CONTINENTAL GRAIN COMPANY and In re CONTINENTAL GRAIN COMPANY, JULIUS 

MAYER, AND SELWYN S. UNELL. CEA Dockets No. 72 and No. 84. Decided September 

22, 1958. 

Manipulation of Prices of Wheat and Corn -- Suspension of Registrations -- 

Denial of Trading Privileges -- Consent Order

The complaints charge that the respondents manipulated or attempted to 

manipulate the prices of wheat and corn in wilful violation of the Commodity 

Exchange Act. The sanctions ordered were consented to by the respondents and 

recommended by complainant. 

Messrs. Benj. M. Holstein and Charles W. Bucy, for Commodity Exchange Authority. 

Thompson, Raymond, Mayer, Jenner & Bloomstein, of Chicago, Illinois, for 

respondents Continental Grain Company and Julius Mayer. Respondent Selwyn S. 

Unell pro se. 

Decision by Thomas J. Flavin, Judicial Officer

PRELIMINARY STATEMENT

These are disciplinary proceedings under the Commodity Exchange Act (7 

U.S.C., 1952 ed., Chapter 1) instituted by complaints and notices of hearing 

issued under section 6(b) of the act (7 U.S.C., 1952 ed., § 9) by the Assistant 

Secretary of Agriculture on April 30, 1956 for Docket 72, and May 12, 1958 for 

Docket 84. 

The sole respondent in Docket 72 is Continental Grain Company, a corporation 

organized under the laws of the State of Delaware, with its principal office and 

place of business at 141 West Jackson Boulevard, Chicago 4, Illinois. The 

corporation is now and was at all times material to this complaint a clearing 

member of the Board of Trade of Kansas City, Missouri, and of the Board of Trade 

of the City of Chicago, a registered futures commission merchant under the 

Commodity Exchange Act, and engaged in business as a merchant, receiver, 

shipper, broker, warehouseman, importer, and exporter of grain and other 

commodities. 

The complaint charges that the corporation on January 26, 1955 and on 

November 30, 1955, by means of transactions in wheat futures on the Kansas City 

Board of Trade, attempted to manipulate and did manipulate the price of wheat in 

interstate commerce and for future delivery on or subject to the rules of the 

board of trade, in wilful violation of sections 6(b) and 9 of the Commodity 

Exchange Act. 

On June 27, 1956 the respondent filed an answer denying the material 

allegations in the complaint. Hearings were begun in Kansas City, Missouri, on 
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August 14, 1956 and continued intermittently thereafter in Kansas City and 

Chicago until May 

23, 1957. Subsequent to the completion of the hearings, the complainant and the 

respondent, respectively, filed with the referee suggested findings of fact, 

conclusions, and order, and on August 20, 1958 the referee filed a report 

accepting in substance the suggestions of the complainant and recommending that 

the sanctions proposed by the complainant be imposed. 

In Docket 84 there are three respondents, the aforementioned Continental 

Grain Company, Julius Mayer, and Selwyn S. Unell. Respondent Julius Mayer is an 

individual who was at all times material herein an executive vice president of 

Continental, a member of the Board of Trade of the City of Chicago, and a 

registered floor broker under the Commodity Exchange Act. Respondent Selwyn S. 

Unell is an individual, a member of the Board of Trade of the City of Chicago, 

and a registered floor broker under the Commodity Exchange Act. 

The complaint charges that on September 13, 1957 respondent Unell, acting on 

behalf of Continental, and pursuant to orders and instructions given to him by 

respondent Julius Mayer, entered into transactions in corn futures on the 

Chicago Board of Trade for the purpose and with the intent and effect of 

manipulating the price of corn in interstate commerce, and for future delivery 

on and subject to the rules of the board of trade in wilful violation of 

sections 6(b) and 9 of the Commodity Exchange Act. 

The answer in Docket 84 is not yet due and there have been no proceedings 

beyond the issuance of the complaint. 

The respondents in both of these proceedings have filed a document consisting 

of an admission of jurisdictional facts, a withdrawal of the answer previously 

filed in CEA Docket 72, a waiver of all further proceedings in both matters, and 

a consent to the entry of the order contained herein. 

FINDINGS OF FACT

1. Respondent Continental Grain Company, hereinafter called Continental, is 

now and was at all times material herein a corporation organized under the laws 

of the State of Delaware, with its principal office and place of business at 141 

West Jackson Boulevard, Chicago 4, Illinois, and branch offices throughout the 

United States. The said corporation is now and was at all such times engaged in 

business as a merchant, receiver, shipper, broker, warehouseman, importer and 

exporter of grain and other commodities, buying and selling 

grain through its various offices and trading in grain for future delivery for 

its own account on boards of trade in the United States, including the Board of 

Trade of the City of Chicago, and the Board of Trade of Kansas City, Missouri. 

The said corporation is now and was at all such times a clearing member of the 

Board of Trade of the City of Chicago, and the Board of Trade of Kansas City, 

Missouri, and a registered futures commission merchant under the Commodity 

Exchange Act. 

2. Respondent Julius Mayer, an individual whose address is 912 Skokie Ridge 

Drive, Glencoe, Illinois, is now and was at all times material herein an 

executive vice president of Continental, a member of the Board of Trade of the 

City of Chicago, and a registered floor broker under the Commodity Exchange Act. 

Respondent Selwyn S. Unell, an individual whose address is 710 Hinman Avenue, 

Evanston, Illinois, is now and was at all times material herein a member of the 

Board of Trade of the City of Chicago and a registered floor broker under the 

Commodity Exchange Act. 

3. The Board of Trade of the City of Chicago and the Board of Trade of Kansas 

City, Missouri, are now and were at all times material herein duly designated 

contract markets under the Commodity Exchange Act. 
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4. On January 26, 1955, Continental Grain Company transmitted orders to 

Walter D. Farmer, a registered floor broker, to sell March 1955 wheat futures 

for its account on the Kansas City Board of Trade, and such orders were 

thereupon executed by the said Walter D. Farmer on the Kansas City Board of 

Trade for and on behalf of said Continental Grain Company. 

5. On November 30, 1955, Continental Grain Company transmitted orders to the 

said Walter D. Farmer to sell December 1955 wheat futures for its account on the 

Kansas City Board of Trade, and such orders were thereupon executed by the said 

Walter D. Farmer on the Kansas City Board of Trade for and on behalf of said 

Continental Grain Company. 

6. On September 13, 1957, Julius Mayer, acting on behalf of Continental Grain 

Company, transmitted orders to the said Selwyn S. Unell to sell September 1957 

corn futures for its account on the Chicago Board of Trade, and such orders were 

thereupon executed by the said Selwyn S. Unell on the Chicago Board of Trade for 

and on behalf of Continental Grain Company. 

CONCLUSIONS

The rules of practice under the Commodity Exchange Act provide that the 

Secretary in his discretion may allow a respondent to consent to an order at any 

time prior to a hearing, provided the respondent submits for filing in the 

record a stipulation or statement in which he admits at least those facts 

necessary to the Secretary's jurisdiction, and agrees that an order may be 

entered against him. This procedure is applicable to the present status of CEA 

Docket 84. The rules make no provision for the issuance of a consent order 

after the commencement or the completion of a hearing. However, the mere 

absence of a specific provision in the rules of practice should not be construed 

as a prohibition. Since the parties have reached an agreement which apears to 

be reasonable they should be permitted to terminate the proceedings in both 

dockets on that basis. If the admission of such facts as are necessary to the 

Secretary's jurisdiction will justify a consent order prior to hearing, it 

follows that the admission of similar facts after the hearing has commenced or 

been completed should have the same effect. 

The complainant has filed a recommendation which recites that it has 

carefully considered the stipulation and waiver submitted by the respondents and 

the terms of the order to which they propose to consent. The complainant 

expresses the view that the proposed sanctions are adequate and that the prompt 

entry of the order contained herein without further hearings or proceedings of 

any kind will constitute a satisfactory disposition of these matters, serve the 

public interest, and effectuate the purposes of the Commodity Exchange Act. 

Based on this view, the complainant recommends that the stipulation and waiver 

be accepted, that the hearings be declared closed, and that the order agreed 

upon be issued, terminating both proceedings. It is so concluded. 

ORDER

Effective on the 60th day after the date of this order, the registration of 

Continental Grain Company as a futures commission merchant under the Commodity 

Exchange Act shall be suspended for a period of ninety (90) days; the Board of 

Trade of Kansas City, Missouri, is directed to refuse all trading privileges 

thereon in wheat to the said Continental Grain Company for a period of ninety 

(90) days; and the Board of 

Trade of the City of Chicago is directed to refuse all trading privileges 

thereon in corn to the said Continental Grain Company for a period of ninety 

(90) days. 

Effective on the 60th day after the date of this order the registration of 

Julius Mayer as a floor broker under the Commodity Exchange Act shall be 

suspended for a period of ninety (90) days, and all contract markets are 
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directed to refuse all trading privileges thereon to the said Julius Mayer for a 

period of ninety (90) days. 

Effective on the 60th day after the date of this order the registration of 

Selwyn S. Unell as a floor broker under the Commodity Exchange Act shall be 

suspended for a period of thirty (30) days and all contract markets are directed 

to deny all trading privileges thereon to the said Selwyn S. Unell for a period 

of thirty (30) days. 

A copy of this decision and order shall be served upon each of the parties by 

registered mail or in person and upon each contract market. 

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