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Commodity Futures Trading Commission 

CEA CASES 

NAME: G. H. MILLER AND COMPANY; GILBERT H. MILLER; HOWARD RANDOLPH, D/B/A 

RANDOLPH AND COMPANY; REFRIGERATED PRODUCTS, INC.; J.W. HARDING; CENTRAL IOWA 

POULTRY AND EGG COMPANY; JOHN H. SNOWGREN; ALLEN HEADLEE, D/B/A HEADLEE PRODUCE 

COMPANY; E.E. HUMMEL AND K. HUMMEL, D/B/A HUMMEL PRODUCE COMPANY; ALBERT SCHIRM, 

D/B/A SCHIRM PRODUCE COMPANY; LEO HAGEN; A.L. MYRICK, D/B/A MARKET PRODUCE 

COMPANY; LEWIS R. VAN SANT AND ROY ROUNTREE, D/B/A DATED EGG COMPANY 

DOCKET NUMBER: 60 

DATE: SEPTEMBER 1, 1953 

DOCUMENT TYPE: COMPLAINT 

UNITED STATES DEPARTMENT OF AGRICULTURE 

BEFORE THE SECRETARY OF AGRICULTURE 

Complaint and Notice of Hearing Under Section 6(b) 

of the Commodity Exchange Act 

CEA Docket No. 60 

In re G. H. Miller and Company, a corporation; Gilbert H. Miller; Howard 

Randolph, doing business as Randolph and Company; Refrigerated Products, Inc., a 

corporation; J. W. Harding; Central Iowa Poultry and Egg Company, a corporation; 

John H. Snowgren; Allen Headlee, doing business as Headlee Produce Company; E. 

E. Hummel and K. Hummel, partners, doing business as Hummel Produce Company; 

Albert Schirm, doing business as Schirm Produce Company; Leo Hagen; A. L. 

Myrick, doing business as Market Produce Company; Lewis R. Van Sant and Roy 

Rountree, partners, doing business as Dated Egg Company; Respondents, 

The Assistant Secretary of Agriculture has reason to believe that the 

respondents, G. H. Miller and Company, a corporation, Gilbert H. Miller, its 

president, Howard Randolph, an individual doing business as Randolph and 

Company, Refrigerated Products, Inc., a corporation, J. W. Harding, its 

president, Central Iowa Poultry and Egg Company, 

a corporation, John H. Snowgren, its president, Allen Headlee, an individual 

doing business as Headlee Produce Company, E. E. Hummel and K. Hummel, partners, 

doing business as Hummel Produce Company, Albert Schirm, an individual doing 

business as Schirm Produce Company, Leo Hagen, A. L. Myrick, an individual doing 

business as Market Produce Company, and Lewis R. Van Sant and Roy Rountree, 

partners, doing business as Dated Egg Company, attempted to manipulate and did 

manipulate the price of a commodity in interstate commerce and for future 

delivery on or subject to the rules of a board of trade, and attempted to corner 

and did corner such commodity, in violation of the Commodity Exchange Act (7 

U.S.C. 1-17a). In accordance with the provisions of section 6(b) of the said 

act (7 U.S.C. 9), this complaint and notice of hearing is issued alleging as 

follows: 

I 

Respondent G. H. Miller and Company is a corporation organized under the laws 

of the State of Illinois, and has an office and place of business at 1136 West 

Fulton Street, Chicago, Illinois. The said corporation is a dealer in eggs for 

its own account and for the accounts of customers, and in connection therewith 

it buys and sells cash eggs and trades in egg futures on the Chicago Mercantile 
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Exchange. The said corporation was at all times material to this complaint and 

is now a 

registered futures commission merchant under the Commodity Exchange Act and a 

clearing member of the Chicago Mercantile Exchange. Respondent Gilbert H. 

Miller, a registered floor broker under the commodity Exchange Act, is president 

of the said corporation, owns 50 per cent of its stock, and manages and controls 

its business. 

II 

Respondent Howard Randolph is the sole owner and manager of Randolph and 

Company, located in Guthrie Center, Iowa. The said firm is a dealer in and 

shipper of eggs, and it trades in egg futures on the Chicago Mercantile Exchange 

through various futures commission merchants including respondent G. H. Miller 

and Company. The said Howard Randolph is now and was at all times material to 

this complaint a member of the Chicago Mercantile Exchange, and was authorized 

by the said Exchange to act as associate broker for G. H. Miller and Company and 

solicit orders for futures transactions to be executed on the said Exchange 

through the said G. H. Miller and Company. 

III 

Respondent Refrigerated Products, Inc., is a corporation organized under the 

laws of the State of Texas, and has an office and place of business at 1109 

Jones Street, Fort Worth, Texas. The said corporation is engaged in various 

enterprises including the egg business, and it carries on speculative trading in 

egg futures on the Chicago Mercantile 

Exchange for its own account through respondent G. H. Miller and Company. 

Respondent J. W. Harding is president of and a principal shareholder in the said 

corporation, and manages and controls its business. 

IV 

Respondent Central Iowa Poultry and Egg Company is a corporation organized 

under the laws of the state of Iowa, and has an office and place of business at 

Marshalltown, Iowa. The said corporation is a dealer in eggs and poultry. John 

H. Snowgren is president of the said corporation and manages and controls its 

business. 

V 

Respondent Allen Headlee is the sole owner and manager of the Headlee Produce 

Company, located in Coon Rapids, Iowa. The said firm is a packer and shipper of 

eggs. 

VI 

Respondents E. E. Hummel and K. Hummel are partners doing business as the 

Hummel Produce Company, Oakland, Iowa. The said partnership is in the egg and 

feed business. 

VII 

Respondent Albert Schirm is the sole owner and manager of the Schirm Produce 

Company, Walnut, Iowa. The said firm is a packer and shipper of eggs. 

VIII 

Respondent Lee Hagen is an individual residing in Guthrie Center, Iowa. 

IX 
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Respondent A. L. Myrick is the sole owner and manager of the Market Produce 

Company, 315 East First Street, Fort Worth, Texas. The said firm is a dealer in 

eggs and poultry. 

X 

Respondents Lewis R. Van Sant and Roy Rountree are partners doing business as 

the Dated Egg Company, 321 Franklin Street, Houston, Texas. The said 

partnership is a dealer in eggs and poultry. The said Lewis R. Van Sant is now 

and was at all times material to this complaint a member of the Chicago 

Mercantile Exchange. 

XI 

The transactions hereinafter described took place upon the Chicago Mercantile 

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

XII 

At all times material to this complaint, the individual respondents exercised 

management and control over the business of the various respondent corporations, 

partnerships, or sole ownerships with which they 

were associated, and the transactions hereinafter described were carried out 

under the direction and supervision and by means of the acts of the said 

individual respondents in their capacities as officers, partners, or sole owners 

of the said respondents firms. 

XIII 

At all times material to this complaint, the respondents acted collectively 

and in a uniform manner, pursuant to an understanding or agreement to corner and 

manipulate the egg market, in furtherance of which respondents Gilbert H. 

Miller, Howard Randolph, and J. W. Harding caused the execution of the 

transactions in egg futures and cash eggs hereinafter described. 

XIV 

At the close of business on December 16, 1952, respondent Randolph and 

Company had a long position of 13 contracts or carlots of December 1952 egg 

futures on the Chicago Mercantile Exchange on the books of G. H. Miller and 

Company, and the G. H. Miller and Company had a long position of 22 contracts or 

carlots in such future for its own account. None of the other respondents above 

named had any position in December 1952 egg futures on the books of G. H. Miller 

and Company at the close of business on December 16, 1952. Beginning on 

December 17, 1952, and continuing through December 18 and 19, 1952, respondent 

Gilbert H. Miller purchased approximately 197 contracts or 

carlots of December 1952 egg futures which he distributed among the accounts of 

certain of the respondents as follows: 

Position on Bought Dec. Total Held 

Name Dec. 16 17-19 Dec. 19 

Randolph and Company 13 37 50

Refrigerated Products Company 0 50 50

Central Iowa Poultry and Egg 

 Company 0 24 24

Headlee Produce Company 0 20 20

Hummel Produce Company 0 9 9

Schirm Produce Company 0 9 9

Market Produce Company 0 24 24

Dated Egg Company 0 24 24

XV 
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During the period from December 17 through December 19, 1952, respondent 

Gilbert H. Miller withheld December 1962 egg futures from sale for the accounts 

of the said respondents, and kept their positions open in increasing quantities 

and at a steadily increasing percentage of the total open interest, with the 

result that, on December 19, 1952, as the close of trading in the December 1952 

future approached, the said respondents held approximately 75 per cent of the 

total open interest in December 1952 egg futures and had thereby attained a 

dominant and controlling long position in such future. 

XVI 

On December 19, 1952, the business manager of the Chicago Mercantile Exchange 

instructed respondent Gilbert H. Miller not to accept 

any more buying orders for December 1952 egg futures contracts. On December 22, 

1952, the next business day, respondent Howard Randolph purchased, through 

Helfer-King-Gatlin, Inc., a registered futures commission merchant and a 

clearing member of the Chicago Mercantile Exchange, 21 contracts or carlots of 

December 1952 egg futures, eleven of which were entered in the account of 

respondent Randolph and Company and ten of which were entered in the account of 

respondent Leo Hagen. 

XVII 

On December 17, 1952, there were approximately 133 carlots of shell eggs, 

deliverable and undeliverable, in Chicago warehouses, including shell eggs held 

by the respondents. This figure declined steadily to approximately 88 carlots 

on December 31, 1952. Trade estimates available to the public indicated that at 

all times after December 17, 1952, stocks of shell eggs in Chicago which were 

qualified for delivery in satisfaction of December 1952 egg futures contracts 

(hereinafter called "deliverable") totaled approximately 60 carlots. The last 

day for trading in December 1952 egg futures was December 23, 1952. At all 

times during the three trading days immediately prior thereto the total quantity 

of long December 1952 egg futures held by the respondents was more than three 

times as large as estimated total stocks of deliverable eggs in Chicago, 

including deliverable eggs held by the respondents. 

XVIII 

In furtherance of the understanding or agreement among the respondents to 

maintain control of December 1952 egg futures and deliverable cash eggs, 

respondents Gilbert H. Miller and G. H. Miller and Company stood for and 

received substantial deliveries of eggs on the long contracts held by the 

respondents, and maintained the cash egg position of the respondents at a 

steadily increasing percentage of the total available stocks of deliverable eggs 

in Chicago. Such deliveries were required and received with knowledge by the 

respondents of the fact that there was an insufficient supply of deliverable 

eggs in Chicago which could be tendered in satisfaction of the long futures 

contracts held by them, and with knowledge of the further fact that the major 

portion of such deliverable eggs was in their own possession. 

XIX 

On December 22 and December 23, 1952, respondent Gilbert H. Miller sold 113 

contracts or carlots of the long December 1952 egg futures purchased on December 

17, 18, and 19, 1952. On December 23, 1952, respondent Howard Randolph sold, 

through Helfer-King-Gatlin, Inc., the 21 contracts or carlots of December 1952 

egg futures purchased the previous day, as described in paragraph XVI. All such 

sales were made on a rising market, at or near prices which represented the 

maximum to which such prices were permitted to increase under the rules of the 

Chicago Mercantile Exchange. 

XX 
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Because of the dominant and controlling position of the respondents in the 

December 1952 egg futures market and the acceptance of delivery of eggs in 

satisfaction of such contracts, as above described, the said respondents owned 

and held approximately 75 per cent of all deliverable eggs in Chicago at the 

close of trading on December 23, 1952, and on December 31, 1952, the said 

respondents owned and held 77 out of a total of 79 carlots of deliverable eggs 

in Chicago, or 97 per cent. 

XXI 

Respondents Gilbert H. Miller and G. H. Miller and Company with held cash 

eggs from sale during the period of trading in the December 1952 egg future, and 

refused to sell such eggs after the close of trading in such future except at 

prices which were at a premium in relation to prevailing prices of cash 

refrigerator eggs, thus compelling the holders of short contracts to cover their 

commitments by the purchase of cash eggs from the respondents at prices fixed by 

them. 

XXII 

The respondents carried out the acts described in paragraphs XIII to XXI, 

inclusive, for the purpose and with the intent of cornering December 1952 egg 

futures and cash refrigerator eggs in Chicago, and for the purpose and with the 

intent of raising the price of December 

 

1952 egg futures and cash refrigerator eggs in Chicago. In furtherance of such 

purpose and intent, the respondents attained a dominant and controlling long 

position in the December 1952 egg futures market, required and accepted the 

delivery of cash eggs in satisfaction thereof, obtained control of the supply of 

deliverable eggs in Chicago, and placed themselves in a position where they 

could and did, through respondents Gilbert H. Miller and G. H. Miller and 

Company, exact such prices as they saw fit from the holders of short December 

1952 egg futures contracts. Such acts caused the price of December 1952 egg 

futures contracts on the Chicago Mercantile Exchange and the price of 

deliverable cash eggs in Chicago in December 1952 to rise to an artificial and 

manipulated level. 

XXIII 

By reason of the acts described above, the respondents attempted to corner 

and did in fact comer a commodity in interstate commerce and for future delivery 

on or subject to the rules of a board of trade in violation of Section 9 of the 

Commodity Exchange Act (7 U.S.C. 13). By reason of such acts, the respondents 

also attempted to manipulate and did in fact manipulate the price of a commodity 

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

board of trade, in violation of Sections 6(b) and 9 of the Commodity Exchange 

Act (7 U.S.C. 9, 13). 

Therefore, the said respondents, G. H. Miller and Company, Gilbert H. Miller, 

Howard Randolph, Refrigerated Products, Inc., J. W. Harding, Central Iowa 

Poultry and Egg Company, John H. Snowgren, Allen Headlee, E. E. Hummel, K. 

Hummel, Albert Schirm, Leo Hagen, A. L. Myrick, Lewis R. Van Sant, and Roy 

Rountree, are hereby notified to be and appear at a hearing to be held at 10:00 

a.m., Central Standard Time, on the 3d day of November, 1953 in Room 1200, Board 

of Trade Building, 141 West Jackson Boulevard, Chicago, Illinois, before a 

referee designated to conduct such hearing and then and there show cause, if any 

there be, why an order should not be made revoking or suspending the 

registration of respondent G. H. Miller and Company as a futures commission 

merchant, revoking or suspending the registration of respondent Gilbert H. 

Miller as a floor broker, and directing that all contract markets refuse all 

trading privileges to all the respondents until further notice by the Secretary 

of Agriculture. 
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The respondents will have 20 days after the receipt of this notice of hearing 

in which to file with the hearing clerk, United States Department of 

Agriculture, in triplicate, an answer fully and completely stating the nature of 

the defense and admitting or denying specifically in detail each material and 

relevant allegation of the complaint. Allegations that are not answered will be 

deemed admitted for the purpose of this proceeding. 

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

respondents by delivery of a true copy thereof by an employee of the Department 

of Agriculture, or by registered mail, at least 20 days prior to the date set 

for hearing. 

Done at Washington, D. C. 

this 1 day of Sept., 1953. 

/s/ John H. Davis 

Assistant Secretary of Agriculture 

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