Miscellaneous documents-Continued Letter, dated November 26, 1952, from Stone Forwarding Co., Galves- ton, to Bunge Corp., New York, confirming receipt of telegram of Letter, dated November 26, 1952, from Stone Forwarding Co., Galves- ton, to Galveston wharves, relative to telegram of November 26, Letter, dated November 29, 1952, from Galveston wharves, to Stone IMPORTATION OF FEED WHEAT THURSDAY, OCTOBER 8, 1953 UNITED STATES SENATE, SUBCOMMITTEE OF THE COMMITTEE ON AGRICULTURE AND FORESTRY, Federal Courts Building, Minneapolis, Minn. The subcommittee met, at 10 a. m., in room 416, Federal Courts Building, Minneapolis, Minn., Senator Edward J. Thye, of Minnesota, presiding. Present: Senators Thye (chairman) and Young. Senator THYE. The subcommittee will come to order at this time. The Senate Committee on Agriculture and Forestry, of which I am privileged to be a member, after learning that approximately 60 million bushels of wheat, classified as wheat unfit for human consumption, had been imported from Canada into the United States, during the years 1950, 1951, and 1952, instituted an investigation to determine the reasons for this large increase in importations. In years prior to 1950, the importation of this class of wheat was comparatively small and confined to its intended use as livestock and poultry feed. The committee conducted hearings at Washington which revealed that a substantial portion of the 60 million bushels had been diverted into various channels in direct competition with undamaged United States wheat. We found that this activity by a small group was disrupting the support programs put into effect by Congress to assist the American wheat farmer, and was making our wheat import limitations ineffective. We found also that the Government was being defrauded of large sums of money in improper collection of subsidies under the International Wheat Agreement. The hearings uncovered one important outlet where over a million bushels of wheat, classified as "wheat unfit for human consumption," had been mixed with, and substituted for, good United States wheat owned by Commodity Credit Corporation and others. This operation involved irregular payments to elevator operators of approximately $150,000. Since the Washington hearings were held, certain safeguards have been placed in effect to prevent future abuse, and other safeguards are being considered. The hearings being conducted here, and at Galveston, Tex., are to explore other methods and outlets which were used to dispose of this wheat. All testimony will be under oath. Senator THYE. Our first witness will be William G. Kellogg. Mr. Kellogg will you raise your right hand and be sworn? (Witness, sworn.) 167 TESTIMONY OF WILLIAM G. KELLOGG, PRESIDENT, KELLOGG MILLING CO., MINNEAPOLIS, MINN. Senator THYE. You may be seated, Mr. Kellogg. You are the vice president in charge of the Bunge Corp. of Minneapolis? Mr. KELLOGG. I was until I retired in July 1952. Senator THYE. You have retired? Mr. KELLOGG. Yes. Senator THYE. How many years had you been with the Bunge Corp.? Mr. KELLOGG. Ever since I started here which was in 1935. Senator THYE. Would you care to give us some further information as to what you did prior to the time that you went with the Bunge Corp.? Mr. KELLOGG. Well, I started in business, in the grain business in Milwaukee in 1906 and I worked for a grain company there until I was 21 when I went into business for myself. Senator THYE. Then, you are a veteran in the business? Mr. KELLOGG. Yes, yes; later, I went with the Armour Grain Co., when I came to Minneapolis and later I sold Armour's properties to Archer Daniels and then I went with the Federal Farm Board in charge of the grain department under Mr. Legge, Alexander Legge. In 1935, I sold the elevators which I was running for my brother's company to Bunge. Senator THYE. Where did Mr. Bunge reside at that time? Mr. KELLOGG. The Bunge Corp. are in South America and they have a New York export and import office. Senator THYE. They are a South American firm? Mr. KELLOGG. They have maintained a New York office and they have been exporting grains from the United States and also from other points. Mr. Irving MOSKOVITZ. I am Irving Moskovitz, 115 Broadway, New York City. Senator THYE. What is your relation to the Bunge Corp. Mr. MOSKOVITZ. I represent the Bunge Corp. I am an attorney. Senator THYE. If you do, you will have an opportunity to testify at a later time. If you wish to make a statement, we will prepare to swear you in. We will give you an opportunity to make your statement, but at the present time, we will just proceed. Mr. MOSKOVITZ. I thought perhaps you would want the record clarified. Senator THYE. In order that we may permit Mr. Kellogg to make his statement, we would like to know just his relationship with Mr. Bunge and so forth. Mr. MOSKOVITZ. There is no such person as Mr. Bunge. Senator THYE. The Bunge Corp. is a New York corporation, and it is owned by a number of people? Mr. MOSKOVITZ. Yes, and it in turn is owned by a number of people, directly or indirectly, who live in various parts of the world. They may have been at one time American citizens and some are Belgium, Dutch, and so forth. Senator THYE. You are going to want to testify in connection with this? Mr. MOSKOVITZ. I have no desire to testify, I am here to give the committee all the information it wants. Senator THYE. I think we will swear you in at this time. TESTIMONY OF IRVING MOSKOVITZ, COUNSEL FOR BUNGE CORP., NEW YORK, N. Y. (Witness was sworn.) Senator THYE. This name "Bunge," where did it originate? Is there someone who had such a name in the early history of the organization? Mr. MOSKOVITZ. Bunge is a name that has been in the grain business for over a hundred years. The predecessor company originated in Antwerp and they have offices in various other places. They have a company also in South America called Bunge & Born, Ltd. The same group of stockholders also own directly and indirectly Bunge Corp. which is a New York corporation and has been in business in New York for many years. Senator THYE. In other words, it is a firm that is engaged in importing and exporting of grain. You have an office in New York. Your parent office is apparently in South America and the company originated in Europe? Mr. MOSKOVITZ. The Bunge Corp. itself, is the New York corporation and has an office there. Senator THYE. How is it affiliated with the other Bunge organizations? Mr. MOSKOVITZ. It is affiliated with all the other Bunge companies. Senator THYE. In other words, the New York office is a branch of your South American office? Mr. MOSKOVITZ. It is a separate corporation, Senator. I make the point not to be technical, because Minneapolis is not a separate corporation, it is a branch of the New York corporation. Kansas City office is a branch of the New York corporation. That is a separate entity, but they are all affiliated. Senator THYE. They are all affiliated, the same officers? Mr. MOSKOVITZ. Not necessarily, but they are under what you might term the same ownership. Senator THYE. They are under the same ownership? Mr. MOSKOVITZ. Yes, sir. Senator THYE. Now, what relation has the Kellogg Milling Co. of Minneapolis to the Bunge Corp.? Mr. MOSKOVITZ. No relation to Bunge Corp., except for the fact that Mr. Kellogg, who was an officer of Bunge Corp., was also president, I understand, of the Kellogg Co. Senator THYE. How many years, Mr. Kellogg, have you been an officer of the Bunge Corp.? Mr. KELLOGG. Since 1935. Senator THYE. And at the same time you were president of the Kellogg Co. of Minneapolis? Mr. KELLOGG. Now, that, Senator, started in 1942. Senator THYE. And at the same time you were president of the Kellogg Co. of Minneapolis? Mr. KELLOGG. Yes. Senator THYE. Now, the Kellogg Milling Co. was formed and incorporated in 1942? Mr. KELLOGG. As a partnership. Senator THYE. It is a partnership? Mr. KELLOGG. Yes. Senator THYE. So that partnership was formed in 1942 and you were then, as you had been since 1935, a director of the Bunge Corp. of New York. Mr. KELLOGG. Yes, sir. Senator THYE. Affiliated with the Bunge Corp. elsewhere in the world? Mr. KELLOGG. That is correct. Senator YOUNG. May I ask a question for clarification? Senator THYE. Yes, by all means. Senator YOUNG. What is the nature of the business you transact in Minneapolis? Mr. MOSKOVITZ. I think Mr. Kellogg could answer that. I am not that familiar with that. Mr. KELLOGG. Should I answer that, Senator? Senator YOUNG. Yes. Mr. KELLOGG. All right. Senator THYE. Definitely, we are seeking information. Mr. KELLOGG. We are in the terminal grain elevator business and do a general merchandising business in grains. Senator YOUNG. Do you handle imports and exports out of that office? Mr. KELLOGG. We handle the importation of the Canadian wheat there through this office. Senator YOUNG. Any other imports such as oats, barley, or rye? Mr. KELLOGG. Well, we have in the past. We have bought some rye from Canada and brought it into Chicago and Buffalo. Senator YOUNG. How many bushels of wheat of all grades, rye, oats, and barley, did you import in the last 5 years, can you tell us? Senator THYE. Year by year? Mr. KELLOGG. That shows in our records. Mr. MOSKOVITZ. Can I explain that for the record? If we don't have it here, it is because Mr. KELLOGG. All the records have been brought in. Mr. MOSKOVITZ. We have only present Canadian importation which was asked for by the subpena. Senator YOUNG. You will supply it for the record? Mr. MOSKOVITZ. Yes, I will. For the last 5 years, Senator? (The information requested is as follows:) |