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Commodity Futures Trading Commission 

CEA CASES 

NAME: AGRICOL CORPORATION, INC., AND GEORGE L. LEITZE 

CITATION: 16 Agric. Dec. 779 

DOCKET NUMBER: 77 

DATE: AUGUST 6, 1957 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 5126) 

In re AGRICOL CORPORATION, INC., AND GEORGE L. LEITZE. CEA Docket No. 77. 

Decided August 6, 1957. 

Stipulation by Respondents -- Suspension of Registration

Respondents filed a stipulation which admits the jurisdictional facts, waives 

hearing, and consents to the suspension of the respondent corporation's 

registration as a futures commission merchant through December 31, 1957. 

Mr. Benj. M. Holstein, for Commodity Exchange Authority. Respondents pro se. 

Decision by Thomas J. Flavin, Judicial Officer

PRELIMINARY STATEMENT

This is a disciplinary proceeding under the Commodity Exchange Act (7 U.S.C. 

1952 ed., Chapter 1) instituted by a complaint and notice of hearing issued 

under section 6(b) of the act (7 U.S.C. 1952 ed. § 9) by the acting Secretary of 

Agriculture on June 19, 1957. The respondents are a corporation which is 

registered as a futures commission merchant and an individual who is its vicepresident and manager. 

The complaint charges that the respondent corporation cheated, defrauded, and 

deceived its customers, falsified reports and records with respect to their 

trading, bucketed their orders, and failed to handle customers' funds as 

required by the act and the rules and regulations, in violation of sections 4b 

and 4d(2) of the act (7 U.S.C. 6b, 6d(2)). The complaint also charges that 

these violations were wilful. The charges are based upon 

allegations that the respondent corporation reported to customers that 

transactions in futures had been executed for their accounts when, in fact, no 

such transactions had been executed, reported purchases to customers at prices 

above the actual purchase price and sales at prices below the actual selling 

price, transmitted statements and closed out such trades on the basis of the 

reported prices rather than the actual prices, commingled customers' funds with 

its own funds, failed to compute the amount of customers' funds which should be 

held segregated, and failed to prepare and maintain records with respect to such 

funds which the rules and regulations required. 

No hearing has been held. On July 31, 1957, the respondents submitted for 

filing in the record, under section 0.4(b) of the rules of practice (17 CFR 

0.4(b)), a stipulation which admits jurisdictional facts, waives hearing, waives 

the service of a referee's report, and consents to the entry of an order 

suspending the registration of the respondent corporation as a futures 

commission merchant for the remainder of the calendar year 1957. 

FINDINGS OF FACT
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1. Respondent Agricol Corporation, Inc., a corporation with its principal 

office and place of business at the Bourse, Philadelphia, Pennsylvania, is now 

and has been at all times material herein a registered futures commission 

merchant under the Commodity Exchange Act. 

2. George L. Leitze, whose business address is Agricol Corporation, Inc., the 

Bourse, Philadelphia, Pennsylvania, was at all times material herein a member of 

the Board of Trade of the City of Chicago, vice-president of the respondent 

corporation, and manager of its business. 

3. During the period between May 31, 1955, and January 31, 1957, both 

inclusive, respondent Agricol Corporation, Inc., traded in commodities for 

future delivery for the accounts of customers on the Board of Trade of the City 

of Chicago, a duly designated contract market under the Commodity Exchange Act. 

Such trading was conducted under the supervision and direction of the said 

George L. Leitze in his capacity as manager of the said corporation. 

CONCLUSIONS

Section 0.4(b) of the rules of practice under the Commodity Exchange Act (17 

CFR 0.4(b)) provides as follows: 

(b) Consent order. At any time after the issuance of the complaint and prior 

to the hearing in any proceeding, the Secretary, in his discretion, may allow 

the respondent to consent to an order. In so consenting, the respondent must 

submit, 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. Upon a record composed of the complaint 

and the stipulation or agreement consenting to the order, the Secretary may 

enter the order consented to by the respondent, which shall have the same force 

and effect as an order made after oral hearings. 

The facts admitted by the respondents and set forth in the findings of fact 

are sufficient to subject them and each of them to the jurisdiction of the 

Secretary of Agriculture under the provisions of the above section. 

The complainant has filed a recommendation which recites that it has 

carefully considered the stipulation and the terms of the order to which the 

respondents propose to consent. The complainant states that, in its opinion, 

the proposed sanction would be adequate and the prompt entry of such an order 

without further proceedings would constitute a satisfactory disposition of this 

case, serve the public interest, and effectuate the purposes of the Commodity 

Exchange Act, and it recommends that the waiver be accepted and that the order 

to which the respondents have consented be issued. 

It is concluded that such an order should be issued. 

ORDER

The registration of Agricol Corporation, Inc., as a futures commission 

merchant is suspended until and including December 31, 1957. This order shall 

become effective 30 days after the date of its issuance. 

A copy of this decision and order shall be served on the respondents and on 

each contract market. 

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