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Cite as 24 A.D. 771

of the act (7 U.S.C. 213 (a)) and sections 201.29 and 201.30 of the regulations (9 CFR 201.29, 201.30).

Respondent filed an answer to the complaint on January 29, 1965, in which he admits all the material allegations of the complaint. Respondent, in his answer, prays that such answer be considered as an application for reduction in the amount of the bond required to cover his dealer obligations. However, this is not a matter for consideration herein. A request for recomputation of the amount of the bond required should be directed to the Director, Packers and Stockyards Division of the Department of Agriculture, and should be accompanied by a statement setting forth the volume of respondent's livestock-dealer transactions during a recent period covering 12 consecutive months. Since there is no issue as to any of the material allegations of this complaint, the matter was referred to Will Rogers, Hearing Examiner, Office of Hearing Examiners, United States Department of Agriculture, for the preparation of a report without further investigation or hearing pursuant to section 202.9 (c) of the rules of practice (9 CFR 202.9 (c)).

FINDINGS OF FACT

1. Respondent, an individual whose address is 911 Monroe Street, Lawton, Oklahoma, is now and was at all times material herein engaged in the business of a dealer buying and selling in commerce livestock on his own account and is now and was at all times material herein so registered with the Secretary of Agriculture.

2. The Fort Worth Stock Yards, Ft. Worth, Texas, and the Lawton Stockyards Company, Lawton, Oklahoma, hereinafter called the stockyards, were at all times material herein posted stockyards subject to the provisions of the act.

3. The surety bond which respondent maintained to secure performance of his dealer obligations was terminated on October 8, 1964. Respondent, on or about November 10, 1964, was notified in writing of such termination date and was informed that he would have to furnish a new bond if he continued to operate as a dealer under the act. Notwithstanding such notice, respondent has continued to engage in the business of buying and selling livestock at the stockyards on his own account without filing and maintaining a reasonable bond or its equivalent, as required by the act and the regulations thereunder.

Cite as 24 A.D. 773

CONCLUSIONS

By reason of Finding of Fact 3, hereof, respondent has 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, 201.30). In re Ray York 20 A.D. 1112 (1961,) Respondent should be ordered to cease and desist from operating as a dealer as defined in the act without furnishing and maintaining the bond required by the act and the regulations issued thereunder and his registration as a dealer should be suspended until such time as he has achieved full compliance with such bonding requirements.

PROPOSED ORDER

Respondent shall cease and desist from engaging in business in commerce 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 issued thereunder.

Respondent is suspended as a registrant under the act until such time as he complies fully with the bonding requirements of the act and the regulations issued thereunder. At the request of respondent, when he demonstrates that he has complied fully with the bonding requirements of the act and the regulations, a supplemental order will be issued in this proceeding terminating this suspension.

This order shall become effective on the 6th day after service thereof upon respondent and copies hereof shall be served upon the parties.

(No. 9884)

In re KENNETH WILLETT d/b/a SALEM LIVESTOCK AUCTION. P&S Docket No. 3495. Decided June 2, 1965.

Bonding requirements-Suspension of registration-Consent

Respondent is ordered to cease and desist from engaging in business under the act without being bonded and is suspended as a registrant under the act until he complies fully with the bonding requirements of the act and the regulations issued thereunder.

Cite as 24 A.D. 773

Mr. Samuel J. Harris for complainant. Respondent 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 30, 1965, by the Director, Packers and Stockyards Division, United States Department of Agriculture, charging that respondent violated the bonding provisions of the Act and the regulations thereunder (9 CFR 201.1 et seq.).

On May 14, 1965, respondent filed an answer in which he 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. Complainant has recommended that the order consented to by respondent be issued.

FINDINGS OF FACT

1. Salem Livestock Auction stockyard, Salem, Arkansas, hereinafter called the stockyard, is now, and was at all times material herein, a posted stockyard subject to the provisions of the Act.

2. Respondent, Kenneth Willett, an individual d/b/a Salem Livestock Auction, whose business address is Salem, Arkansas, was at all times material herein engaged in the business of a market agency within the meaning of the Act, selling livestock in commerce on a commission basis, and is now, and was at all times material herein, registered with the Secretary of Agriculture as a market agency under the Act.

3. The surety bond which respondent maintained to secure performance of his market agency obligations under the Act was terminated on December 12, 1964. The Area Supervisor, Packers and Stockyards Division, United States Department of Agriculture, for the Area that includes the State of Arkansas, by a letter dated November 18, 1964, notified respondent of such bond termination date and informed him that he would have to furnish the required bond if he continued to engage in business as a market agency in commerce after such termination date. Notwithstanding said notice, respondent continued to engage in the

Cite as 24 A.D. 775

business of a market agency, selling livestock in commerce at the stockyard on a commission basis, without filing and maintaining a reasonable bond or its equivalent as required by the Act and the regulations thereunder.

CONCLUSIONS

By reason of the facts set forth in the Finding of Fact 3, it is concluded that respondent has 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 respondent be issued. The order will be issued.

ORDER

Respondent 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.

Respondent is suspended as a registrant under the Act until such time as he fully complies with the bonding requirements of the Act and the regulations. When respondent has complied fully with the bonding requirements of the Act and the regulations, a supplemental order will be issued in this proceeding terminating the suspension.

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

(No. 9885)

In re JEROME LIVESTOCK COMMISION Co. P&S Docket No. 3509. Decided June 3, 1965.

Market agency-Shippers' proceeds-Selling consigned livestock to employees-Insolvency-Suspension of registration-Consent

Respondent is ordered to cease and desist from using shippers' proceeds for unauthorized purposes, operating as a market agency while insolvent and permitting employees to purchase consigned livestock, is ordered to establish a separate account for shippers' proceeds and is suspended

Cite as 24 A.D. 775

as a registrant under the act for a period of 21 days and thereafter until no longer insolvent.

Mr. Garrett N. Wyss for complainant. Respondent 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 on April 21, 1965, by the Director, Packers and Stockyards Division, Consumer and Marketing Service, United States Department of Agriculture, charging respondent with violations of the Act and the regulations thereunder (9 CFR 201.1 et seq.), hereinafter referred to as the regulations.

Respondent filed an answer on May 20, 1965, 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 and conclusions, for the purpose of this proceeding only, based on all allegations contained in the Complaint. Complainant has recommended that the order consented to by respondent be issued.

FINDNGS OF FACT

1. Respondent, a corporation with a place of business at Jerome, Idaho, is now and was at all times material herein (a) engaged in the business of selling livestock on a commission basis at the Jerome Livestock Commission Co. stockyard, Jerome, Idaho, hereinafter called the stockyard, a posted stockyard subject to the provisions of the Act, and (b) registered with the Secretary of Agriculture as a market agency. Respondent has been registered with the Secretary of Agriculture as a dealer since October 22, 1964.

2. Respondent's current liabilities exceed its current assets. As of October 31, 1964 and February 28, 1965, respondent's current liabilities exceeded its current assets by approximately $29,000.00 and $37,500.00 respectively.

3. Respondent used funds received as proceeds from the sale of livestock consigned to it for sale on a commission basis at the stockyard for purposes of its own and purposes other than

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