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Mr. SVENSSON. Well, at the arrival of this first boatload.

Mr. GUINANE. That was on October 2?

Mr. SVENSSON. Yes.

Mr. GUINANE. 1950?

Mr. SVENSSON. Yes; 1950.

Mr. GUINANE. Then what took place?

Mr. SVENSSON. Then we were contacted by Minneapolis here and asked if we would prepare the entries?

Mr. GUINANE. Who talked to you from Minneapolis?

Mr. SVENSSON. It was Mr. Vosika.

Mr. GUINANE. Who is Mr. Vosika?

Mr. SVENSSON. He is traffic manager for Hallet & Carey.

Mr. GUINANE. When he asked you to handle the documents, was this the first shipment for the Bunge Corp. or was it the first shipment for Kellogg Milling or both?

Mr. SVENSSON. The first entry I have in mind was for Bunge Corp. He said at the time that Mr. Sassman, of the Mallet & Carey Co., their manager, I believe, he said that he would act as agent for both Bunge Corp. and Kellogg Milling. He said that he could sign the entries for them.

Mr. GUINANE. And you made out the entries to cover this wheat, did you?

Mr. SVENSSON. Yes, sir.

Mr. GUINANE. How did you describe it on the document you prepared?

Mr. SVENSSON. As "wheat unfit for human consumption."

Mr. GUINANE. Did you prepare the documents-I want to show you entries Nos. 4, 5, 6, and 7, of the importation of Kellogg Milling Co. I will ask you to look them over and see if you had anything to do with preparing those documents?

Mr. SVENSSON. Yes, sir; these entries were prepared by myself.
Mr. MOSKOVITZ. I am sorry, I didn't hear that.

Mr. SVENSSON. Yes, sir; these entries were prepared by myself.
Mr. GUINANE. Under whose instructions?

Mr. SVENSSON. Under Mr. Vosika's instructions.

Mr. GUINANE. What conversation took place between you and Mr. Vosika at that time?

Mr. SVENSSON. As I recall he told me that the steamship Starbuck on April 21, 1951, that this boat was coming in as "wheat," and I was to prepare a T. and E. entry as "Wheat."

Mr. GUINANE. Did you know the boat was coming in with good wheat?

Mr. SVENSSON. No, sir.

Mr. GUINANE. Did you know it was wheat "unfit for human consumption"?

Mr. SVENSSON. I suspected it; yes.

Mr. GUINANE. Did you ask him why he wanted you to prepare the document in that manner?

Mr. SVENSSON. Yes. He said they were having trouble with the manifests down in the Southwest and the people thought the wheat would be unedible or something to that effect. That is, of the wheat coming into that territory.

Mr. GUINANE. So he wanted to have you make it out in this manner, so it would not show "unfit for human consumption"; is that right?

Mr. SVENSSON. Yes; that is right.

Mr. GUINANE. That was why Mr. Vesika talked to you?
Mr. SVENSSON. That is right.

Mr. GUINANE. Did you talk to any other officials as to how you would make these documents out?

Mr. SVENSSON. Yes.

Mr. GUINANE. I notice these documents were signed by George A. Sassman?

Mr. SVENSSON. Yes; I could have just as easily have signed them myself in place of George Sassman. At the time it was set up I was informed that George was to act as agent for both of them.

Mr. GUINANE. You prepared the documents?

Mr. SVENSSON. Yes, sir.

Mr. GUINANE. You prepared the documents and you took them up to Sassman for his signature?

Mr. SVENSSON. That is right.

Mr. GUINANE. Did you have a conversation with Mr. Sassman prior to the time of the signing of these documents?

Mr. SVENSSON. No.

Mr. GUINANE. Did Mr. Sassman know these documents were for wheat unfit for human consumption and not good wheat?

Mr. SVENSSON. I don't believe he did.

Mr. GUINANE. He signed the documents and you presented them to customs at Duluth?

Mr. SVENSSON. That is right.

Mr. GUINANE. You presented them to Mr. Vaughan?

Mr. SVENSSON. That is right.

Mr. GUINANE. You had a conversation with Mr. Vaughan at that time?

Mr. SVENSSON. Yes, sir.

Mr. GUINANE. What did he tell you?

Mr. SVENSSON. He told me that if I presented the entries as wheat described as "wheat" he would take a rubber stamp 3 inches high and stamp it as "Wheat unfit for human consumption."

Mr. GUINANE. When you presented these documents, how many documents were there all together, do you recall?

Mr. SVENSSON. I think we prepared the entries in three as the transportation entries are made out in triplicate. They match up to the gross total shown on the entry.

Mr. GUINANE. When you made these documents out and described the wheat and knew that it was a document covering wheat that was unfit for human consumption, you knew that those statements made in those documents were false?

Mr. SVENSSON. A boatload of wheat could be brought in and passed through the country. It would be a logical thing for a boatload of wheat

Mr. GUINANE. Aren't you under bond as a customs broker to comply with the regulations of the Bureau of Customs?

Mr. SVENSSON. To the best of my knowledge and ability.
Mr. GUINANE. Yes. Will you read this?

Mr. SVENSSON (reading):

I truly declare that the statements contained herein are true and correct to the best of my knowledge and belief.

(The document is as follows:)

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Mr. GUINANE. When you presented them to customs you knew those were not true statements?

Mr. SVENSSON. I suspected it.

Mr. GUINANE. You presented it under instructions of Mr.Vosika? Mr. SVENSSON. Yes, sir.

Mr. GUINANE. Representing at that time the Kellogg Milling Co.? Mr. SVENSSON. Yes, sir.

Mr. GUINANE. You suspected that this wheat was to be used for other than feeding purposes?

Mr. SVENSSON. I had no knowledge of what the use of the wheat

was.

Mr. GUINANE. Did someone later inform you that the wheat was being diverted to other than feeding purposes?

Mr. SVENSSON. At a later time I had heard it was being mixed for milling purposes.

Mr. GUINANE. When did you hear that?

Mr. SVENSSON. I don't recall offhand, it was at a later date. It would be in the record and the date could be verified, because at the time I heard it it was reported to the customs office. I believe Mr. Vaughan wrote a letter on it to the Bureau.

Mr. GUINANE. You don't know who told you that?

Mr. SVENSSON. No; I don't recall offhand.

Mr. GUINANE. What was your usual commission for handling these documents?

Mr. SVENSSON. We made $25 per entry on a grain boatload.

Mr. GUINANE. You handled a large number of entries for them, did you not?

Mr. SVENSSON. Yes.

Mr. GUINANE. Did they pay you an additional commission then? Mr. SVENSSON. No, sir.

Mr. GUINANE. They did not?

Mr. SVENSSON. No, sir.

Mr. GUINANE. That is all I have. Do you have anything, Senator Thye?

Senator THYE. No; I don't believe so. You may be excused Mr. Svensson, and thank you very much.

(Witness excused.)

Senator THYE. Mr. Vosika will be next. I believe you have been

sworn.

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

Mr. GUINANE. Mr. Vosika, when did you first have a discussion with anyone concerning the importation of wheat unfit for human consumption into the United States?

Mr. VOSIKA. The question came up I think from our own people first and then shortly after that I consulted the customs officials sometime in September or October, 1950.

Mr. GUINANE. "By our own people," whom do you mean?

Mr. VOSIKA. Mr. Senator, let me straighten out this portion for the record.

Mr. GUINANE. I believe

Senator THYE. I think it best that you answer the questions directly. You answer the questions and if you have not cleared the record we will give you an opportunity to do so later.

Mr. VOSIKA. Will you repeat the question, please?

Mr. GUINANE. With whom did you have these discussions?
Mr. VOSIKA. Mr. Henderson and Mr. Kellogg.

Mr. GUINANE. Mr. Kellogg was vice president in charge?

Mr. VOSIKA. He was vice president of Bunge Corp.

Mr. GUINANE. Also senior partner of Kellogg Milling Co.?

Mr. VOSIKA. On his own statement, yes. Also he was president of the Hallet & Carey Co. and he is my boss.

Mr. GUINANE. Mr. Kellogg was your immediate boss?
Mr. VOSIKA. He was my boss.

Mr. GUINANE. And Mr. Henderson was vice president?

Mr. VOSIKA. He was not at that time.

Mr. GUINANE. He was an assistant to Mr. Kellogg at that time? Mr. VOSIKA. He was a salesman as far as I know. However, I don't know the exact title of all of these people.

Mr. GUINANE. As near as you recall when was your first conversation about this wheat?

Mr. VOSIKA. The first conversation on the question as to whether or not we could bring in wheat?

Mr. GUINANE. Bringing in wheat.
Mr. VOSIKA. I would say, "Yes".

Did you bring in any?

Mr. GUINANE. What was the topic of conversation?

Mr. VOSIKA. What took place?

Mr. GUINANE. The question was as to the importation of wheat. Mr. VOSIKA. As I recall the situation, there was a quota of 795,000 bushels in Canadian weight and the quota was filled.

Mr. GUINANE. You checked with someone to see if the quota was filled?

Mr. VOSIKA. I understand that the quota is filled on May 1 each

year.

Mr. GUINANE. Yes. It is your understanding that the 795,000 bushels are taken up on the first day almost?

Mr. VOSIKA. I understood that from a letter I had at one time from the Commissioner in Washington.

Mr. GUINANE. Then what occured in this conversation; did you tell the officers that the quota was filled?

Mr. VOSIKA. Yes.

Mr. GUINANE. As far as the 795,000 bushels were concerned?
Mr. VOSIKA. Yes.

Mr. GUINANE. And there was some discussion about wheat unfit for human consumption?

Mr. VOSIKA. No; they asked if they could bring in wheat that had 30-percent damaged or frosted kernels, which we understood. was No. 5 and No. 6 wheat in Canada, and I told them, "Yes".

Mr. GUINANE. You told them how they could bring it in?

Mr. VOSIKA. I told them they could bring it in.

Mr. GUINANE. Did they ask you whether that could be used for milling purposes?

Mr. VoSIKA. I don't believe they did at that particular time, but it came up very shortly and I had understood that at all times that a certain portion of this Canadian wheat was imported over a period of years and was being used for milling purposes, and I believed that it was so stated and was permissible.

Mr. GUINANE. It was permissible?

Mr. VOSIKA. That is correct.

Mr. GUINANE. What did Mr. Kellogg say about that?

Mr. VOSIKA. I do not recall what they said but I am a transportation man and I neither buy nor sell grain. The mere fact that the record shows me as an attorney, I use that only in my transportation business. This customs is a side line and the legal decisions are made by New York and that is the reason we have this New York representation.

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