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pers' Proceeds" or by a similar designation and shall maintain such account in conformity with the provisions of section 201.42 of the regulations promulgated under the Act (9 CFR 202.42).

Respondent is suspended as a registrant under the Act for a period of 15 days and thereafter until it complies with the bonding requirements of the Act and the regulations and demonstrates that it is no long insolvent. When respondent complies fully with the bonding requirements of the Act and the regulations and demonstrates that it is no longer insolvent, a supplemental order will be issued in this proceeding terminating the suspension after the 15-day period.

This order shall become effective on the sixth day after service thereof upon respondent and copies hereof shall be served upon the parties.

(No. 10,040)

In re ARTHUR BEKEN AND EDGAR BEKEN, d/b/a BEKEN BROS. P&S Docket No. 3475. Decided August 23, 1965.

Bonding requirements-Cease and desist-Consent

Respondents are ordered to cease and desist from engaging in business under the act without being bonded as required by the act and the regulations issued thereunder.

Mr. Samuel J. Harris for complainant.

Respondents pro se.

Decision by Thomas J. Flavin, Judicial Officer

PRELIMINARY STATEMENT

This is a disciplinary proceeding under the Packers and Stockyards Act, 1921, as amended and supplemented (7 U.S.C. 181 et seq.), hereinafter referred to as the Act, instituted by a complaint filed March 4, 1965, by the Director, Packers and Stockyards Division, United States Department of Agriculture, charging that respondents violated the bonding provisions of the Act and the regulations thereunder (9 CFR 201.1 et seq.).

On August 4, 1965, respondents filed an amended answer in which they admit the jurisdictional allegations of the complaint, neither admit nor deny the remaining allegations, waive oral

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hearing and the report of the Hearing Examiner, and consent to the issuance of a specified order with findings of fact and conclusions based on the allegations of the complaint. Complainant has recommended that the order consented to by respondents be issued.

FINDINGS OF FACT

1. Halletsville Livestock Commission Company stockyard, Halletsville, Texas, Cen-Tex Livestock Commission Co., Inc. stockyard, Gidding, Texas, El Campo Livestock Commission Company stockyard, El Campo, Texas, Sealy Livestock Auction Company stockyard, Sealy, Texas, Jackson County Livestock Exchange stockyard, Edna, Texas, Schulenberg Livestock Commision Co. stockyard, Schulenberg, Texas, Gulf Coast Stockyards, Inc., Bay City, Texas and Cleveland Commission Company stockyard, Cleveland, Texas hereinafter referred to as the stockyards, are now, and were at all times material herein, posted stockyards subject to the provisions of the Act.

2. Respondents, Arthur Beken and Edgar Beken, whose business address is Box 806, Weimar, Texas, are partners doing business as Beken Bros.

3. Respondents are now, and were at all times material herein, engaged in the business of a dealer within the meaning of the Act, buying and selling livestock in commerce for their own accounts, and are now, and were at all times material herein, so registered with the Secretary of Agriculture.

4. The surety bond which respondents maintained to secure performance of their dealer obligations under the Act was terminated on November 19, 1964. The Acting Area Supervisor, Packers and Stockyards Division, United States Department of Agriculture, for the Area that included the State of Texas, by a letter dated November 2, 1964, and received by respondents on November 4, 1964, notified respondents of the termination date of their bond and informed them that they would have to furnish the required bond if they continued to engage in business as a livestock dealer in commerce after such termination date. Notwithstanding said notice, respondents continued to engage in the business of a dealer, buying and selling livestock at the stockyards for their own account, without filing and maintaining a reasonable bond or its equivalent as required by the Act and the regulations thereunder.

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CONCLUSIONS

By reason of the facts set forth in Finding of Fact 4, it is concluded that respondents have wilfully violated section 312(a) of the Act (7 U.S.C. 213 (a)) and sections 201.29 and 201.30 of the regulations (9 CFR 201.29 and 201.30).

Complainant has recommended that the order consented to by respondents be issued. The order will be issued.

ORDER

Respondents shall cease and desist from engaging in business in any capacity for which bonding is required under the Act and the regulations without filing and maintaining a reasonable bond or its equivalent, as required by the Act and the regulations thereunder.

This order shall become effective on the sixth day after service thereof upon the respondents and copies hereof shall be served upon the parties.

(No. 10,041)

In re LUSK LIVESTOCK COMMISSION COMPANY. P&S Docket No. 3573. Decided August 23, 1965.

Market agency-Shippers' proceeds-Selling consigned livestock to employees -Rate schedule-Accounts of sale-Records-Suspension of registration

Consent

Respondent is ordered to cease and desist from using shippers' proceeds for unauthorized purposes, permitting employees to purchase consigned livestock, failing to follow the rate schedule, and issuing incomplete accounts of sale, is ordered to establish a separate account for shippers' proceeds and to keep records that fully disclose all transactions in its business under the act and is suspended as a registrant for a period of 15 days.

Mr. Samuel J. Harris for complainant.

Respondent pro se.

Decision by Thomas J. Flavin, Judicial Officer

Cite as 24 A.D. 1074

PRELIMINARY STATEMENT

This is a disciplinary proceeding under the Packers and Stockyards Act, 1921, as amended and supplemented (7 U.S.C. 181 et seq.), hereinafter referred to as the Act, instituted by a complaint filed July 22, 1965, by the Director, Packers and Stockyards Division, United States Department of Agriculture, charging that respondent violated certain provisions of the Act and the regulations thereunder (9 CFR 201.1 et seq.).

On August 18, 1965, respondent filed an answer in which it admits the jurisdictional allegations of the complaint, neither admits nor denies the remaining allegations, waives oral hearing and the report of the Hearing Examiner, and consents to the issuance of a specified order with findings of fact and conclusions based on the allegations of the complaint. By a letter addressed to the Hearing Clerk dated August 16, 1965, respondent requested that its suspension as a registrant under the Act become effective on August 24, 1965. Complainant has recommended that the order consented to by respondent be issued and that the suspension of respondent as a registrant under the Act become effective on August 24, 1965.

FINDINGS OF FACT

1. Respondent, a corporation having a place of business at Lusk, Wyoming, is now, and was at all times material herein, registered with the Secretary of Agriculture as a market agency and dealer under the Act. Respondent is now, and was at all times material herein, engaged in business as a market agency, buying and selling livestock in commerce on a commission basis.

2. Lusk Livestock Commission Company stockyard, Lusk, Wyoming, hereinafter referred to as the stockyard, is now, and was at all times material herein, a posted stockyard subject to the provisions of the Act.

3. During the period December 1, 1963, through September 30, 1964, respondent used funds received as proceeds from the sale of livestock consigned to it for sale on a commission basis, for purposes of its own and purposes other than the payment of lawful marketing charges and remittance of net proceeds to shippers, thereby endangering or impairing the faithful and prompt accounting therefor and payment of the portions thereof due the owners or consignors of livestock. As of December 31, 1963, respondent had a shortage in shippers' proceeds in the approximate

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amount of $44,232.78 and as of September 22, 1964, a shortage of approximately $30,420.14.

On or about August 5, 1964, respondent withdrew $25,370.16 from its custodial account for the purpose of paying a personal loan obtained by its president, Joe Madden from the Citizen National Bank, Torrington, Wyoming.

4. Respondent, at the stockyard, on or about the dates and in transactions set forth below, sold livestock for Joe Madden, president of respondent, and issued accounts of sale which failed to show the true and correct name of Joe Madden as the consignor or owner of the livestock. Copies of such incorrect accounts of sale were retained by respondent and became a part of its records.

5. Respondent, at the stockyard, on or about the dates and in the transactions set forth below, failed to charge to and collect from Joe Madden, its president, the selling commission charges specified in the rate schedule which it had filed with the Secretary of Agriculture pursuant to section 306 (a) of the Act (7 U.S.C. 207 (a)) and which was in effect at the time of such transactions. Respondent did not collect from Mr. Madden any selling commission charge in connection with such transactions.

6. Respondent, at the stockyard, on or about the dates and in the transactions set forth below and in connection with the weekly auction sale conducted at the stockyard, permitted its president, Joe Madden, to purchase livestock from consignments for his own