The reply is dated January 26, 1951, to Midwest Flour & Feed Co., St. Louis 2, Mo.

DEAR MR. ALTENBERND: Tom Whitten informs me that you would be interested in some of this Canadian frost-damaged wheat.

We are sending you under separate cover a type sample marked "bob" that we have in store here in Minneapolis. The Government would permit using this type wheat for blending and it is free from any odor and is sound from a milling standpoint. The test weight should run between 59 and 60 pounds, about 13 moisture, with protein about 13. We could offer you, subject, about 10,000 bushels of the above lot at 20 under the Minneapolis May f. o. b. Minneapolis for prompt shipment.

If you would be interested in same we would appreciate hearing from you.
HALLET & CAREY,
By R. J. JOHNSON.

Do you know anything about that letter, Mr. Kellogg?
Mr. KELLOGG. No, I don't.

Mr. GUINANE. Was anything discussed with Altenbernd by Johnson or Mr. Dodge?

Mr. KELLOGG. I don't know.

Mr. GUINANE. Concerning that letter?

Mr. KELLOGG. No; I don't believe so. I saw very little correspondence.

Mr. GUINANE. You wrote this letter, Mr. Dodge?

Mr. DODGE. Yes; I think I did.

Mr. GUINANE. What authority did you feel Hallet & Carey had for advising Midwest Flour & Feed Co. they had been authorized to use this in blending and for export? Do you think you had any authority?

Mr. DODGE. Yes; just this that has been brought up before. I was told it was, and to tell these people they could use this Canadian wheat as long as they stayed away from International Wheat Agreement subsidies.

Mr. GUINANE. Didn't you think it was important that your company would put in the record some way that they would have to avoid subsidies?

Mr. MOSKOVITZ. Does it not say so in the letter?
Mr. GUINANE. That they should avoid subsidies?

Mr. Moskovitz. Yes.

Mr. GUINANE (reading):

The Government would—

Mr. MOSKOVTIZ. Read the part about Canadian frost.

Mr. GUINANE (reading):

We are sending under separate cover a type sample marked "Bob" that we have stored here in Minneapolis. Tom Whitten informs me that you would be interested in some of this Canadian frost-damaged wheat.

Mr. MOSKOVITZ (reading):

We are sending a typed sample marked "Bob" that we have in store in Minneapolis.

There is not a grain man in the country who doesn't know Canadian wheat can't go under IWA and that letter shows it on its face.

Mr. GUINANE. How is it this wheat went out on International Wheat Agreement and you people didn't have anything to do with having it go out?

Mr. MOSKOVITZ. Not that we know of; no, sir. When you use the word "Canadian" you automatically know it is non-IWA.

Senator THYE. You can't put that in the record, you can't convince any other man that we should interpret that to mean that it was not to go out under the International Wheat Agreement shipments. Now, you can't get that written in the record.

Mr. HENDERSON. Could I answer that question, sir?

Senator THYE. Certainly.

Mr. HENDERSON. Under the IWA, when you received the subsidy, you sign an agreement or sign the papers that say that this grain is an American-grown grain, according to this letter, then this man couldn't accept any subsidies knowing it was Canadian grain.

Senator THYE. Nevertheless, the record is spelling itself out and the record contains no reference to the fact that this came in under reduced tariff, and came in here when we know what the law is on both the quotas and tariff questions.

Mr. GUINANE. I want to read another letter of May 1, 1951. This letter is signed "Dick" and is on the letterhead of Gano Grain Corp. of Fort Worth, Tex., and R. E. Bailey is named on the bottom.

DEAR BILL: I just returned from Ben Ferguson's office and wanted you to know that he has been trying to work some of your Canadian wheat to the Texas mills.

While I was in there he was talking to Bill Lathrop who did pass along the information that these Texas mills will look for that type wheat whey they get an export order.

Usually when the mills here get an export flour sale on the books they want the wheat shipped yesterday. There is no export flour business right now but once the same does develop I will work with Ben in an effort to get bids. The mills all have samples so know that for which they are bidding.

The Santa Fe shows Texas raising 19 million this year. Last year we grew about 20 million.

We had a nice convention in Dallas. It was my pleasure to entertain the CCC fellows and their wives at a dinner Saturday night; also the Galveston wharves folks. This a very worthwhile evening.

Further for your information, the Galveston wharves manager told me that Cargill had been applying much pressure to get a good mix out of the gulf but that he was going to take care of Bunge first as he appreciates the current association.

You, of course, know the details of our arrangement with him.

That is about it for now, I send you my kindest regards.

Now, who is Dick, Mr. Kellogg?

Mr. KELLOGG. Mr. Richard Bailey.

Mr. GUINANE. What is his position with Gano Grain Corp?

Mr. KELLOGG. I don't know.

Mr. GUINANE. Who owns that company?

Mr. KELLOGG. The same people that own Bunge.

Mr. MOSKOVITZ. The Bunge Corp.

Mr. GUINANE. It is a subsidiary of the Bunge Corp.?

Mr. KELLOGG. Yes.

Mr. GUINANE. What was he talking about when he told you that he had been entertaining the CCC fellows, the Commodity Credit Corporation fellows and their wives, and why did he tell you that? Mr. KELLOGG. I don't know.

Mr. GUINANE. Were you getting any favors from Commodity Credit Corporation people down there?

Mr. KELLOGG. None whatsoever.

Mr. GUINANE. Was Gano Grain Corp. getting any favors that you know of?

Mr. KELLOGG. I don't think so.

Mr. GUINANE. Did you think it was a good idea for one of your people to be writing and telling you he was entertaining Commodity Credit Corporation fellows in Galveston and the wharves people, if they were not doing it for some reason?

Mr. KELLOGG. It is quite customary to do those things in the grain corporations.

Mr. GUINANE. Did you think it was a good idea?

Mr. KELLOGG. I don't.

Mr. GUINANE. Have you entertained customs officials, Mr. Kellogg?

Mr. KELLOGG. No, sir.

Mr. GUINANE. You have not?

Mr. KELLOGG. NO.

Senator YOUNG. Did you have any contacts with customs, other than exchange of letter, other than Minneapolis?

Mr. HENDERSON. Yes.

Mr. KELLOGG. Mr. Henderson did at Duluth. Mr. Henderson did. I explained, Senator, before, the only time I had anything to do with them was when they sent this wire to Washington.

Senator YOUNG. Did you or any of the officials have personal contact?

Mr. KELLOGG. No.

Senator YOUNG. Official or unofficial in connection with this importation?

Mr. KELLOGG. Walter Vosika had most of the contacts.

Mr. VOSIKA. My name is Walter Vosika. I am the only man in the Bunge Corp.

Senator THYE. Will you raise your right hand and be sworn? (Mr. Vosika sworn.)

TESTIMONY OF WALTER J. VOSIKA, GENERAL TRAFFIC MANAGER, HALLET & CAREY CO., MINNEAPOLIS, MINN.

Senator THYE. You may proceed.

Mr. VOSIKA. With the exception of my trip, and to my knowledge, Mr. Henderson made one trip to Duluth, which involves the letter where the Bureau in Washington approved the importation of this wheat without restrictions as to the use. To my knowledge, I am the only one who has dealt with United States customs personnel. Senator YOUNG. Do you have conversations with them?

Mr. VOSIKA. Yes.

Senator YOUNG. How often?

Mr. VOSIKA. Oh, I don't know, 2 times, or 3 times or 4 times. Maybe 10 times.

Senator YOUNG. You don't know.

Mr. VOSIKA. Definitely not. This thing happened since 1950 which is a matter of investigation here and I don't believe there is any gentleman that can gage in the normal doing of a day's work that is required to know 3 years hence exactly how many times he talked to you or to someone else.

Senator YOUNG. You have some general knowledge?

Mr. VOSIKA. About-yes.

Mr. GUINANE. Now many times, about how many times, you ought to know?

Mr. VOSIKA. I would think a half dozen times in Duluth and a half dozen times in Minneapolis.

Senator YOUNG. Was it at the customs office?

Mr. VOSIKA. Yes.

Senator YOUNG. Did you have any meetings in hotel rooms?
Mr. VOSIKA. No, sir; definitely not.

Senator YOUNG. Whom did you contact?

Mr. VOSIKA. In Duluth, the contacts were with Dave Vaughan, assistant collector of customs and he is the man I was required to go to. Senator YOUNG. Who else did you contact in the Customs Service other than this assistant collector of customs?

Mr. VOSIKA. The assistant collector here in Minneapolis, Mr. Horan.

Senator YOUNG. How many times?

Mr. VOSIKA. I just answered that question, probably about 6 times and maybe 10 times.

Senator YOUNG. It might have been 20 times?

Mr. VOSIKA. No, I don't think so, but I wouldn't know.
Senator YOUNG. Where were these conversations held?

Mr. VOSIKA. In the customs office.

Senator YOUNG. Always in the customs office?

Mr. VOSIKA. No, we had a little meeting in the office of the supervisor of the Department of Agriculture over in the Federal Building. Senator YOUNG. Do you entertain them?

Mr. VOSIKA. No.

Senator THYE. May we have the name of the supervisor of the Department of Agriculture?

Mr. VOSIKA. Mr. Mort Johnson is the supervisor at Minneapolis. Senator THYE. It was in his office that you had the conference? Mr. VOSIKA. That is right.

Senator THYE. Who was it held for, at whose request? Was there someone present from the customs collector's office?

Mr. VOSIKA. I was present; Mr. Horan was present.

Senator YOUNG. Who is Mr. Horan; is he an official from customs? Mr. VOSIKA. He is the assistant collector and charged with enforcement in this district.

Senator THYE. And with Mr. Johnson, of the Department of Agriculture, you had this conference?

Mr. VOSIKA. That is correct.

Senator THYE. Why did you have a conference with Mr. Johnson? Mr. VOSIKA. Well, sir, if you wish, I could answer that question. If you prefer to waive it for the time being, in view of time, and the fact that I am under subpena and later on presumably I will be called in for more details on these matters.

Mr. MOSKOVITZ. You are here under subpena and you are under oath; answer the questions.

Senator THYE. The fact is, it is a very simple question. Why do you happen to be in Mr. Johnson's office, because this was a question relating to the import of grain?

Mr. VOSIKA. My recollection is this: There has been a lot of talk about the law and under the law as I understand it, the Department of Agriculture is the supervising agency insofar as the character of this wheat is concerned, and the Department of Agriculture has to make a determination as to whether the content is 30 percent or more

of damaged kernels, and it was necessary at one time, I felt, to ask him if the certificate of the State of Minnesota issued under the same grain standards as the Department of Agriculture and was acceptable as evidence under the law as we all understand it to cover this importation of 5 percent ad valorem.

Senator YOUNG. Did Mr. Johnson express any opposition to the import of this Canadian feed wheat?

Mr. VOSIKA. No.

Senator YOUNG. The name is Johnson?

Mr. VOSIKA. Yes.

Senator YOUNG. He is with the United States Department of Agriculture?

Mr. VOSIKA. Oh yes, sir; and he still is.

Senator YOUNG. Did he express any opposition to the import of this Canadian feed wheat?

Mr. VOSIKA. I don't believe he was in a position as long as the wheat had 30 percent or more damaged kernels and his authority expired to it when he made a report, and it was 30 percent or more damaged.

Senator YOUNG. Is not the United States Department of Agriculture obligated to follow the law and the limitation on these imports when they are interfering with price-support programs?

Mr. VOSIKA. I do not know.

Senator YOUNG. If any official of the United States Department of Agriculture knowingly and willingly approved heavy imports of wheat when we were having price-support programs, costing some money, don't you think he would be a derelict in his duty?

Mr. VOSIKA. I don't know if he approved anything except strictly the fact that that particular car of wheat had 30 percent or more damaged kernels which was the line of demarcation which was set up by the Secretary of the Treasury, in 1935, at the request of the United States Customs to determine in what manner a statement in the Tariff Act of 1935 was not understood by various personnel of the United States Customs Bureau and the Department of Agriculture was asked to make that determination and they have made it.

It was based upon 30 percent or more damaged kernel and when Mr. Johnson made a finding, Mr. Johnson's authority was ended, it merely invoked or stated the 30 percent or more damaged kernels or it had less.

Senator THYE. Was it Mr. Johnson who made the inspection or was it a certified grain inspector?

Mr. VOSIKA. I wouldn't know that.

Senator THYE. You may get that information positively for us. Senator YOUNG. I think we will want a lot more information from various officials.

Senator THYE. You have one more question?

Mr. GUINANE. Yes. Mr. Kellogg, when Bailey wrote you he was entertaining the Galveston wharves people, what was his reason? Mr. KELLOGG. None that I know of.

Mr. GUINANE. I wanted to read a letter from W. G. Kellogg to R. E. Bailey in Fort Worth, Tex., dated May 3, 1951:

I have your letter of the first and note that you are still working on some of our Canadian wheat. I am very sorry to advise that there is none of this wheat available now for early shipment and the only thing which we have beyond is