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Commodity Futures Trading Commission 

CEA CASES 

NAME: CONTINENTAL GRAIN COMPANY, AND CLARENCE C. FIVIAN 

DOCKET NUMBER: STIPULATION 28 

DATE: September 13, 1955 

DOCUMENT TYPE: STIPULATION OF COMPLIANCE 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

In re: Continental Grain Company, and Clarence C. Fivian 

Stipulation of Compliance under the Commodity Exchange Act 

No 28 

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

Grain Company, a corporation, and Clarence C. Fivian have violated the Commodity 

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

Chapter 1) by virtue of certain transactions involving the purchase and sale of 

soybean futures, and 

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

WHEREAS, section 0.4(a) of the rules of practice under the Commodity Exchange 

Act (17 CFR O.4(a)) provides that at any time prior to the issuance of a 

complaint in any proceeding, the Secretary of Agriculture may, in his 

discretion, enter into a stipulation with a prospective respondent whereby the 

latter admits the material facts and agrees to discontinue the acts or practices 

which are intended to be set up as violative of the statute, and 

WHEREAS, the said Continental Grain Company and Clarence C. Fivian are 

desirous of disposing of this matter by entering into such a stipulation, 

NOW, THEREFORE, the said Continental Grain Company and Clarence C. Fivian 

hereby stipulate and represent that the following facts are true: 

1. Continental Grain Company is now and was at all times mentioned herein a 

corporation with an office and place of business at 141 West Jackson Boulevard, 

Chicago, Illinois. At all such times the said corporation was a registered 

futures commission merchant under the Commodity Exchange Act, and exercised 

membership trading privileges and clearing privileges on the Board of Trade of 

the City of Chicago, hereinafter called the Chicago Board of Trade, a duly 

designated contract market. 

2. Clarence C. Fivian, an individual whose address is 141 West Jackson 

Boulevard, Chicago, Illinois, is now and was at all times mentioned herein an 

employee of the said Continental Grain Company. 

3. Section 1.38 of the rules and regulations under the Commodity Exchange Act 

(17 CFR, 1954 Supp., 1.38) provides as follows: 

All purchases and sales of any commodity for future delivery on or subject to 

the rules of a contract market shall be executed openly and competitively as to 

price by open outcry or posting of bids and offers or by other equally open and 

competitive methods, in the trading pit or ring or similar place provided by the 

contract market, during the regular hours prescribed by the contract market for 

trading in such commodity: Provided, however, That this requirement shall not 

apply to such transactions as are executed in accordance with written rules of 

the contract market which have been submitted to and not disapproved by the 
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Secretary of Agriculture, specifically providing for the noncompetitive 

execution of such transactions. 

4. Regulation 1832A of the Chicago Board of Trade prohibits trading in 

soybean futures during the last seven days of a delivery month. Pursuant to the 

said regulation, trading in July 1955 soybean futures terminated at the close of 

business on July 20, 1955. 

5. On July 21, 1955, Clarence C. Fivian, acting on behalf of the said 

Continental Grain Company and with its authorization, purchased 125,000 bushels 

of July 1955 soybean futures by direct and private negotiation with the seller. 

Such transactions was not within any of the exceptions specified in section 1.38 

of the rules and regulations under the Commodity Exchange Act (17 CFR, 1954 

Supp., 1.38), and was in violation of the said section and Act. 

In addition to admitting the foregoing facts, the said Continental Grain 

Company and Clarence C. Fivian 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 further 

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

acts and practices, enumerated in paragraph 5, in violation of the Commodity 

Exchange Act and the rules and regulations thereunder in any subsequent 

proceeding brought against 

the said Continental Grain Company or Clarence C. Fivian, or either of them, 

under the provisions of the said Act. 

Done at Chicago, Illinois 

this 13th day of September, 1955 

/s/ Continental Grain Company 

Continental Grain Company 

(CORPORATE SEAL AFFIXED) 

by/s/ Frederick Mayer, 

Frederick Mayer Secretary 

/s/ Clarence C. Fivian 

Clarence C. Fivian 

Witnessed by: 

/s/ Gladys Bauer 

/s/ Lucille E. Berg 

LOAD-DATE: June 16, 2008 
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