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Commodity Futures Trading Commission 

CEA CASES 

NAME: MYERS AND COMPANY, A. H. MYERS, HARRY N. HARRISON, AND GLENN G. YANCEY 

CITATION: 14 Agric. Dec. 93 

DOCKET NUMBER: 63 

DATE: FEBRUARY 1, 1955 

DOCUMENT TYPE: DECISION AND ORDER 

(No. 4173) 

In re MYERS AND COMPANY, A. H. MYERS, HARRY N. HARRISON, AND GLENN G. YANCEY. 

CEA Docket No. 63. Decided February 1, 1955. 

Suspension of Registration -- Denial of Trading Privileges -- Stipulation by 

Respondents -- Jurisdiction of Secretary -- Dismissal -- Consent Order

Upon respondents Myers and Company and A. H. Myer's admission of 

jurisdictional facts, waiver of oral hearing, consent to entry of the order 

herein, and stipulation, trading privileges of all contract markets are denied 

to each of the said respondents for a period of ten days, and the registration 

of respondent company as a futures commission merchant is suspended for a 

similar period, and the proceeding is dismissed against respondents Harrison and 

Yancey. 

Mr. Benjamin M. Holstein for Commodity Exchange Authority. Messrs. Elton L. 

Marshall and Fielding H. Lane of Watson, Ess, Marshall & Enggas, of Kansas City, 

Missouri, for respondents. 

Decision by Thomas J. Flavin, Judicial Officer

PRELIMINARY STATEMENT

This is a quasi-judicial proceeding under the Commodity Exchange Act (7 

U.S.C., Chapter 1), instituted by a complaint and notice of hearing issued under 

section 6(b) of the Commodity Exchange Act (7 U.S.C. 9) by the Acting Secretary 

of Agriculture on September 3, 1954. The complaint alleged that the respondent 

corporation was undersegregated on various occasions within a period of 

approximately thirteen consecutive months in 1953 and 1954 -- that is, that the 

total amount of customers' funds held in segregated accounts of the corporation 

with depositories was less than the sum necessary to pay all credits owing to 

such customers; that the corporation wrongfully withdrew funds from such 

accounts resulting in under-segregation; that it failed to compute and its books 

failed to show the amount of money, securities and property required to be held 

in segregation under the rules and regulations; and that it failed promptly to 

close out transactions and furnish the customer concerned with a statement 

showing the financial results thereof. The complaint charged that these acts 

and omissions took place under the supervision and direction of the individual 

respondents, who were officers of the corporation, and that by reason thereof 

all the respondents violated section 4d(2) of the Commodity Exchange Act (7 

U.S.C. 6d(2)) and sections 1.20 to 1.27, inclusive, and section 1.46 of the 

regulations (17 CFR 1.20-1.27, 1.46). 

An answer was filed on November 4, 1954, in which the respondents admitted 

some of the jurisdictional allegations, admitted certain material allegations 

and denied others, set forth affirmative defenses, denied that there was any 

wilful design to violate the act or the regulations, and denied that Harry N. 
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Harrison or Glenn G. Yancey exercised supervision or direction or had any direct 

control over any of the acts or transactions in question. 

No hearing was held. On January 24, 1955, respondents Myers and Company and 

A. H. Myers filed a stipulation under Section 0.4(b) of the rules of practice 

(17 CFR 0.4), in which they withdrew the answer previously filed on their 

behalf, admitted the facts contained herein under "Findings of Fact," and 

consented to the entry of the order hereinafter set forth. 

FINDINGS OF FACT

1. Respondent Myers and Company is a corporation organized under the laws of 

the State of Missouri, with offices at 1307 Waldheim Building, Kansas City, 

Missouri. The said corporation is now and was at all times material to this 

decision and order a registered futures commission merchant under the Commodity 

Exchange Act. 

2. Respondent A. H. Myers, an individual residing at 6335 Ward Parkway, 

Kansas City, Missouri, was president of the said corporation at all such times, 

and managed and controlled its business. 

3. During the period from April 17, 1953 to May 27, 1954, respondent Myers 

and Company carried accounts for customers trading in commodity futures subject 

to the Commodity Exchange Act and regulations, and during such period respondent 

Myers and Company, in its capacity as a registered futures commission merchant 

acting for and on behalf of such customers, executed or caused the execution of 

transactions in commodities for future delivery on or subject to the rules of 

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

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

Trade were at all times material to this decision and order duly designated 

contract markets under the Commodity Exchange Act. 

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 respondents Myers and Company and A. H. Myers 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. Based upon assurance by these 

respondents that they will observe the restraints hereinafter set forth, the 

complainant recommends that the waiver of hearing submitted by them be accepted, 

that the order to which they have consented be issued, and that the complaint be 

dismissed as against respondents Harry N. Harrison and Glenn G. Yancey. It is 

so concluded. 

ORDER

Effective on the thirtieth (30th) day after the date of this order, all 

contract markets shall refuse all trading privileges to A. H. Myers for a period 

of ten (10) days, such refusal to apply to all trading done and positions held 

directly by the said A. H. Myers and also to all trading done and positions held 

indirectly through persons owned or controlled by him or otherwise, Provided,
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that such refusal shall not be construed to apply to trading in cash 

commodities. 

Effective on the thirtieth (30th) day after the date of this order, all 

contract markets shall refuse all trading privileges for its own or house 

account to Myers and Company for a period of ten (10) days, such refusal to 

apply to all trading done and positions held directly by the said Myers and 

Company, and also to all trading done and positions held indirectly through 

persons owned or controlled by the said firm, or otherwise, Provided, that such 

refusal shall not be construed to apply to trading in cash commodities. 

Effective on the thirtieth (30th) day after the date of this order, the 

registration of Myers and Company as a futures commission merchant is suspended 

for a period of ten (10) days, Provided, that such suspension shall not be 

construed to require the said Myers and Company to close out open contract 

positions in accounts of bona fide customers which positions are in existence on 

the effective date of such suspension, nor to prohibit the execution of futures 

transactions which liquidate such positions in whole or in part, except that 

these exemptions shall not extend to the house accounts of the said Myers and 

Company or to the personal accounts of the said A. H. Myers, or to any accounts 

in which Myers and Company or A. H. Myers has any interest other than the usual 

broker-customer relationship. 

The proceeding is dismissed as against Harry N. Harrison and Glenn G. Yancey. 

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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