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Commodity Futures Trading Commission 

CEA CASES 

NAME: MILLER-LANE & CO., AND GEORGE C. LANE 

DOCKET NUMBER: 171 

DATE: APRIL 23, 1970 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Miller-Lane & Co., and George C. Lane, Respondents 

CEA Docket No. 171 

Complaint and Notice of Hearing Under the Commodity Exchange Act 

There is reason to believe that the respondents have violated the Commodity 

Exchange Act (7 U.S.C. 1964 ed., Chapter 1, as amended, Supp. IV, 1969) and the 

regulations made pursuant thereto. Therefore, this complaint and notice of 

hearing is issued stating the charges in that respect as follows: 

I 

Respondent Miller-Lane & Co., an Illinois corporation with its principal 

offices at 343 South Dearborn Street, Chicago, Illinois 60604, is now, and was 

at all times when it is mentioned herein, a registered futures commission 

merchant under the Commodity Exchange Act, with membership privileges on the 

Chicago Open Board of Trade, a duly designated contract market under the 

Commodity Exchange Act. 

II 

Respondent George C. Lane, an individual whose business address is the same 

as that of the respondent corporation, is now, and was at all times material 

herein, the president of the respondent corporation. 

At all such times, the operations of the respondent corporation were under the 

direction and control of respondent George C. Lane. 

III 

a. At the times hereinafter stated, the respondent corporation, in the 

regular course of its business as futures commission merchant, carried accounts 

of customers who traded in commodity futures on contract markets subject to the 

provisions of the Commodity Exchange Act and regulations. Such accounts, the 

trading therein, and the handling and disposition of funds in connection 

therewith, were subject to the provisions of the said act and regulations. At 

all such times, the respondent corporation had to its credit with banks or other 

depositories sums of money in varying amounts, held in segregated accounts and 

identified as customers' funds, representing deposits of margin by and trading 

profits accruing to such customers. 

b. On September 30, 1969, the respondent corporation was undersegregated in 

the amount of $ 18,887.60 -- that is, the total amount of customers' funds held 

in segregation as above described, was insufficient, by the aforesaid sum, to 

pay all credits and equities due to such customers. 
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c. On the daily segregation record that was prepared and kept by the 

respondent corporation to meet the requirements of the regulations issued under 

the Commodity Exchange Act, the said respondent showed that on September 30, 

1969, it had excess funds in segregation in the amount of $ 5,047.19, whereas, 

in truth and in fact, it was undersegregated as specified above. 

d. On each business day between January 15 and January 23, 1970, both 

inclusive, the respondent corporation was undersegregated in amounts ranging 

from $ 4,553.58 on January 16 to $ 6,606.99 on January 20 -- that is, the total 

amount of customers' funds held in segregation as above described, was 

insufficient, by the aforesaid sums, to pay all credits and equities due to such 

customers. 

IV 

As of September 30, 1969, the respondent corporation, while engaged in 

business as a registered futures commission merchant under the Commodity 

Exchange Act, failed to meet the minimum financial requirements prescribed by 

section 1.17 of the regulations (34 F.R. 599) issued by the Secretary of 

Agriculture under the said act. Examination of the respondent corporation's 

books and records by the Commodity Exchange Authority as of September 30, 1969, 

revealed a deficiency in adjusted working capital of $ 17,671.21, when computed 

in accordance with the above-cited section of the regulations. The analysis is 

as follows: 

See original document-page 3 

Unadjusted Working Capital 

 Current Assets $ 168,975.31

 Current Liabilities 127,027.49

 Unadjusted Working Capital 41,947.82

Adjusted Working Capital 

 Total charges against Unadjusted Working Capital 356.44

 Adjusted Working Capital 41,591.38

Minimum Adjusted Working Capital 

 Required 59,262.59

Deficiency in Adjusted Working 

 Capital 17,671.21

V 

During the period from August 1 through September 30, 1969, the respondent 

corporation failed to prepare and maintain a monthly computation of its net 

worth, as required by section 1.10 of the regulations issued under the Commodity 

Exchange Act (34 F.R. 599). Prior to September 30, 1969, examination of the 

books and records of Roberts, Lane & Co., a predecessor firm to the corporate 

respondent, by the Commodity Exchange Authority as of March 28, 1969, disclosed 

that the said firm was not preparing and maintaining such a computation and this 

failure was called to the attention of the firm in writing on August 20, 1969, 

and to the attention of respondent George C. Lane in a letter dated August 25, 

1969. 

VI 

By reason of the facts alleged in this Complaint, the respondents violated 

sections 4d, 4f, and 4g of the Commodity Exchange Act (7 U.S.C. 6d, 6f, 6g, 

Supp. IV, 1969) and sections 1.10, 1.17 (34 F.R. 599), 1.20, 1.21, 1.22, 1.23, 

1.32 and 1.35 of the regulations (17 CFR 1.20, 1.21, 1.22, 1.23, 1.32 and 1.35). 

WHEREFORE, it is hereby ordered that this Complaint and notice of hearing be 

served upon the respondents and this proceeding shall be governed by sections 
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0.1, 0.2, 0.4(b), 0.5 through 0.22, and 0.28 of the rules of practice under the 

Commodity Exchange Act (17 CFR 0.1, 0.2, 0.4(b), 0.5 through 0.22, 0.28). The 

respondents will have twenty (20) days after the receipt of this Complaint in 

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

Washington, D.C. 20250, an answer with an original and four copies, fully and 

completely stating the nature of the defense and admitting or denying, 

specifically and in detail, each allegation of this Complaint. Allegations not 

answered will be deemed admitted for the purpose of this proceeding. Failure to 

file an answer will constitute an admission of all the allegations of this 

Complaint and a waiver of hearing. The filing of an answer in which all of the 

material allegations of fact contained in the complaint are admitted likewise 

shall constitute a waiver of hearing unless a hearing is requested. The 

respondents are hereby notified that unless hearing 

is waived, a hearing will be held at 10:00 a.m., local time, on June 3, 1970, in 

Chicago, Illinois, at a place therein to be specified later, before a referee 

designated to conduct such hearing. At such hearing, the respondents will have 

the right to appear and show cause, if any there be, why an order should not be 

made directing that the respondents shall cease and desist from violating the 

Commodity Exchange Act and the regulations thereunder in the manner described 

herein. 

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

respondents at least twenty (20) days prior to the date set for hearing. 

Done at Washington, D.C. 

April 23, 1970 

[SEE SIGNATURE IN ORIGINAL] 

Richard E. Lyng 

Assistant Secretary 

 

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